The article participated in the 4th edition of the “Piórem logistyka” (With a Logistician’s Pen) competition.
System and enterprise logistics
In literature concerning systems research, we encounter an impressive variety of definitions for the term “system.” Today, the most effective way to explicate the content of the concept of a system is to attempt to define it as an ideal object (subject). Due to its properties, in the subject literature, it is treated as a set of elements on which no restrictions are imposed, with one exception – for the system under consideration, these elements are an indisputable unity. Between the considered elements of the set forming the system, specific relationships and couplings are established. The arrangement created in this way transforms into a connected whole. The existence of couplings and relationships causes it to become a relatively independent system. These properties cause the system as a whole to be relatively isolated from the environment in which it is located. The environment of the system affects the system functioning within it and manifests its properties. [3, 4, 5]
Systems are built of system material, which creates their material and non-material structure. The structure of systems is characterized by order, and its operation is subject to specific laws, e.g., the carrier of non-material material is material substance. Phenomena that occur in systems are referred to as chains of system phenomena. They constitute ordered sequences of logical events that form chains of connections. Consequently, processes occur in systems that support and determine their operation. The above phenomena are directed towards a specific goal of operation.
Defining an enterprise as a system of events, which is created by a set of elements connected by processes, enables the transfer of systems theory concepts to the field of logistics. Depending on the functions of the enterprise’s activity and the complexity of economic processes, the integrating system is the management system, of which the logistics subsystem is an inseparable part. Analyzing the mission, goals, and tasks of logistics in a modern company, we can state that these are the fundamental determinants of creating processes supporting company operations. These processes form the logistics system in the enterprise.
The concept of a systems approach in logistics is illustrated in Figure 1.
Fig. 1. Systems approach in logistics.
Source: Own elaboration.
The enterprise logistics system is an ordered organism of the company, which is created through logistics infrastructure and people managing inventory, order fulfillment, transport, and warehousing. Within this system, processes of transfer, transaction, supply, production, and distribution are most often carried out. The company’s logistics infrastructure includes universal internal transport means, warehouses and storage facilities maintaining appropriate inventory levels, and information streams that function inside and outside the enterprise. Proper functioning of the logistics infrastructure ensures the continuity and rhythm of supply, production, and distribution processes, as well as maintaining high quality of manufactured products, inventory optimization, etc.
The term “logistics system” is significant in practice, as the basic logistical assumptions in a company are as follows [2]:
- a systems approach to the analysis and design of the enterprise’s logistics activities;
- identification of physical flows of raw materials, materials, goods, and services;
- knowledge of information-decision streams controlling these flows of goods and services;
- optimal level of material inventory;
- enterprise logistics infrastructure;
- a comprehensive approach to logistics costs (within the accounting system and in analytical work);
- striving for unified management of logistics activities.
Therefore, a logistics system can be distinguished in every enterprise. However, its scope and the dimension of tasks vary, and this implies the degree of complexity of logistics processes.
Enterprise logistics processes are an integral component of every company. Among them, one should distinguish: information streams and resources, which on one hand reflect the flow and state of material resources, and on the other hand, are used to control flow processes. We therefore distinguish two types of information: controlling and regulating material flows, and reporting-control information. The former run in the opposite direction to material flows. They originate in the market and take the form of demand forecasts or customer orders. In turn, reporting-control information runs in the same direction as the flow of material processes. They reflect the implementation of earlier planning decisions in terms of: assortment, quantity, time, etc. [5]