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Logistics networks

With the evolution of enterprises, the blurring of their external and internal boundaries as a result of closer ties between partner companies and their clients, and the widespread use of IT systems, new, forward-looking forms of partnership have emerged. Partnerships and alliances have allowed for the creation of network organizations in which companies fulfill specific functions and perform joint tasks. Within the framework of network connections, a number of business processes take place, including transport, warehousing, production, and the commercialization of products and services, among others.
In this way, a special type of network can be distinguished from network organizations, namely logistics networks. Moving on to considerations about logistics networks, one cannot ignore the fact that this term has evolved in recent years; it was previously replaced by the concept of “supply network” or “supply chain”. In some literature devoted to logistics issues, one can also encounter the term “supply chain” (in Polish: łańcuch podaży), which results from a literal translation from English, where the word “supply” means “podaż”. However, the more widespread and accepted term in the Polish scientific and business environment is “supply chain” (łańcuch dostaw). The path to the creation of supply chains, and later network organizations, was primarily the conviction that isolated actions of individual companies to rationalize their own logistics systems are increasingly less effective and efficient.
In the conditions of a customer market, there is a need to meet increasingly demanding customer expectations regarding the level of delivery service. The main factors determining the dynamics of changes in modern logistics networks are undoubtedly: globalization, the development of the electronic economy, integration processes, and the growing needs of consumers. The globalization of markets has contributed to a greater interest in partnership as a way of achieving the basic goals of an enterprise. The nature of modern competition does not allow an enterprise to tie up resources in all areas of operation. It is increasingly difficult to point to successful organizations operating solely on their own. The enterprise is no longer perceived as an individual unit, but as a component of a complex system of organizations. According to P. Dicken, it is precisely the globalization of operations at the enterprise level that consists of integrating internationally dispersed functions/activities and the units that carry them out, which contributes to the creation of global logistics networks.
An important issue for determining global logistics networks is the location of operations, which involves decisions regarding the creation of distribution centers, terminals, warehouses, or, for example, sales offices. When choosing a location for operations, companies belonging to a given logistics network should take into account the level of political stability, government policy towards foreign investors, proximity to major markets, and finally, the attractiveness of local companies as potential partners. Proximity to significant markets can be treated as a competitive advantage factor resulting from lower transport costs and the ability to react quickly to changes. On the other hand, as far as the use of the electronic market is concerned, companies participating in it primarily gain greater transparency of logistics networks, and through this, better access to information, strengthening relationships with customers, or reaching new customers. The pursuit of an effective customer service strategy throughout the entire delivery path requires, among other things: sharing data on demand, sales forecasts with network participants, joint planning and implementation of the supply chain logistics strategy with the definition of its links, or agreeing on the division of principles of risk and potential benefits resulting from undertaking joint logistics ventures.
The article comes from the magazine “Logistyka” 1/2007.

L2007-1s6.pdf