Goods flow concepts

August 9, 2008

We already mentioned that logistical processes can be illustrated in a network made of nodes and links. We also know the characteristics of these elements. Our primary question under this title refers to relation between nodes. What are the relations between nodes in the network during the logistical process?

Two basic concepts illustrate goods flow in the logistical process:

Single-step System is uninterrupted flow of goods from supply point to the reception point. During this action, there is no need for additional storage or movement (only a means of transport is in use).

Multi-step System is concept where the goods flow is interrupted at least at one place. At these points, good manipulation (warehousing, deconsolidation,…) take place. In a multi-step transport chain the change of transport means takes place between supply and reception point.

Some specific circumstances as great distances or volume of goods generate Combined System of goods flow. In a combined system simultaneous direct and indirect goods flows are possible. With great distances, there can appear delays in distribution of goods. In case of avoiding this problems, regional deconsolidation and warehousing centers are located between the supply and reception points where necessary.