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traditional approach to management

The traditional approach to managing every element of the logistics chain has its own system management, aiming at their own goals and performance criteria. The output material flow of each previous level supply chain, formed under the influence of management system of care with regard to its objectives and criteria, is an input for further management. The resulting material flow throughout the supply chain is the output of the last link. Its parameters are determined by independent control actions implemented consistently in every part of the logistics chain. Therefore, in terms of overall management objectives, they are random. The task control cross-cutting material flow is lost and can not be solved, because she does not stand out category-through material flow. " As a result, performance this flow (cost, reliability, revenue, quality, etc.) at the outlet of the chain is usually far from optimal.

logistics approach when managing effects accompanied by a single logistics management system for individual stages of the supply-side process. These control actions formed the basis of common objectives and performance criteria studied supply chain so that the output parameters of the material through- flow (point Q) are fairly predictable and controllable.

promotion material flow throughout the supply chain begins to be implemented with minimal costs due to improved values \u200b\u200bof the parameters of the system.

In general, the fundamental difference between a logistics approach to the management of material flows from the traditional is:

• allocation of a unified management functions previously scattered material flows;

• technical, technological, economic and methodological integration of individual links materialoprovodyaschey circuit into a unified system that provides effective management of cross-cutting material flows.

Thus, Logistics offers a different logic control aggregate (material, financial and other) resources and allows to coordinate closely its own logistics organization and production strategy. The results of this strategy are:

• desired range of stocks in its proper place at the right time;

• coordination of external and internal transport, which guarantees the timely delivery in accordance with the requirements of production;

• synchronicity warehousing and transport and related packaging requirements of transportation, to minimize consumption of resources, reduce inventories and stocks of finished products;

• Timing of consumer orders and transport services.

Logistics - a theory and practical activities for the organization and management of the movement of a single set of material, financial, labor, and legal information streams in a system of market economy.

Logistics today is manifested as:

• today's competitive strategy of economic entities, purposeful factor which is resource-saving algorithm for entrepreneurship;

• a systematic approach represents the movement and development of material, information, financial and human resources in terms of flows and stocks;

• algorithm organization rational movement of material flows and associated flows of information and finance at all stages of the reproductive process;

• type of business activities, which specializes in procurement, storage and delivery of raw materials and products to the consumer.