Structure of logistical process
August 9, 2008
The logistical process describes the interaction of production, movement and warehouse processes which are steered through production factors (Time, Costs and Quality). These actions can be illustrated in a network, which consists of a two different elements (Nodes and Links). Through the network, objects (goods, services, information) are moved or transacted.
Links represent transport routes (movement or flow from one point to another).
Nodes can have different functions:
- Production (the qualitative change of goods)
- Consumption (goods are consumed or further changed qualitatively)
- Storage (stored goods are waiting to be used by consumers)
- Deconsolidation (shipments are united or dispersed)
- Disposal (mostly ecological purpose as waste recycling or consumed goods management)
Fluent and economic working processes depend on proper geographical positioning of nodes. Locations must be analyzed by various factors that are:
- Production costs (availability and the costs of personnel, energy and production areas)
- Warehousing possibilities (costs and space)
- Costs and time requirement for deconsolidation
- Quality factors in production, deconsolidation and transport
- Possibilities for efficient transport between nodes
All the logistical process is about to find the optimal solutions in the manufacturing and distributing goods considering the market uses. Specific location, means of transport and transport routes are chosen in order to bring the product to the specific place at a right time in the correct quantity with no damages and at a good price. One of the most significant global economy outcomes of this consideration is clearly visible in the present. High Tech products are developed in high cost countries, on the other hand massive production takes place in countries with low wage labour.
