FUNCTIONAL AREAS OF LOGISTICS MANAGEMENT
Abstract
The article groups the main functional areas of logistics management in modern conditions. Three groups of logistics management functions are analysed: planning and coordination of the activities of participants in the logistics process; regulation of the progress of work on fulfilling orders received; control over the movement of material flows. It examines general methods of managing end-to-end material flows (as well as related information flows) developed by science and practical activity in the field of logistics. An attempt is made to justify the basic logistics functions: supply, production, and sales. The article describes the main functional areas of logistics. The most common types of logistics are characterised: production, transport, distribution (sales), procurement, inventory logistics, production and warehouse logistics, information logistics, customs logistics, logistics services and financial logistics. However, in logistics management, the functional areas of logistics are described in broader terms, namely the concepts of "inbound logistics," focused on supply and procurement functions, and "outbound logistics," related to distribution operations. The author's position coincides with the opinion that a broader or narrower interpretation of functional areas in relation to the formation of a structural unit of a company depends on the volume of logistics operations. Therefore, in the article, traditional types of logistics are supplemented with such functional areas as financial and information logistics. At the same time, the goal of logistics management at an enterprise is the accuracy and timeliness of fulfilling obligations, as well as ensuring the optimal movement of flows at any level. The study of the functional areas of logistics management will allow effective management decisions to be made for any option of flow movement at an enterprise. If a company can deliver its products to consumers quickly and at low cost, it can gain an advantage over its competitors in terms of market share. Thanks to effective logistics, it can also sell its products at lower costs or provide a higher level of service and thus gain a good reputation.
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