Theoretical foundations of the logistics management concept – an attempt at synthesis – part 2

Logistics process management, through coordinated and integrated actions and activities systematized in a way that corresponds to the logic of the management process, should ensure the efficient and effective flow of materials and finished goods in specific logistics systems. The goal of logistics process management is therefore to deliver the right products or services to the right place, to the right customer, at the right moment (time), while maintaining the desired quality and the lowest possible cost. The bundle of these goals is referred to in the literature by the acronym “7 Rs”. Fig. 1 presents the essence of the logistics process management concept.

Efficiently overcoming time and spatial constraints when moving products is possible thanks to effective logistics process management, aimed at the physical movement of materials or products, so as to realize all functions in the company while simultaneously making the flow process economical. The object of reference for logistics process management is therefore the process of physical flow of materials, semi-finished products, and finished goods, carried out both within individual enterprises and between them. Logistics process management can be defined as the process of comprehensive planning, organizing, and controlling logistics processes and activities, carried out to ensure the efficient and effective flow of materials, semi-finished products, and final products in enterprises as well as in logistics chains and supply chains. A similar definition states that logistics process management is the process of planning, implementing, and controlling the efficient and economically effective flow of raw materials, materials for the production of finished goods, and relevant information from the point of origin to the point of consumption, in order to meet customer requirements. Another definition states that logistics process management is the process of managing the flow and storage of goods and materials, starting from the source of their acquisition to the point of their final consumption (use), as well as the flow of information associated with it.

Fig. 2 presents the scope of logistics process management. The first level consists of logistics processes and activities carried out within the framework of the logistics process management concept. These include: the procurement process (in particular purchasing), transport and storage, production, and product utilization. The second level of the concept is the subject of physical flow –

raw materials, sub-assemblies, parts, and packaging. The next level is an attempt at a functional classification of the flow objects; here, we distinguish between procurement stocks (inbound logistics phase), semi-finished products (production logistics phase), and finished goods stocks (outbound logistics phase). As the analyzed diagram shows, logistics process management includes materials management and the management of physical product distribution. The presented concept of logistics process management consists of properly coordinating and integrating the logistics processes and activities being carried out. Logistics process management can be described as operational logistics management when it is not transferred to the strategic sphere of enterprise management and constitutes a transitional stage in the development of the management paradigm in logistics.