Business processes of a logistic chain

Any of business systems is a number of business processes connected between each other and the final objective of which is production distribution. By production is products, services, documents and information are meant. A business process is a flat hierarchy of interior and independent between each other functional activities the final objective of which is production distribution.

Commonly the following categories of business processes are defined:

  • Production distribution processes, which bring profits to a business system;
  • Planning and management processes, providing effective planning and income generation management during production distribution implementing;
  • Resource processes, providing production delivery and storage at a point of the direct execution of an activity;
  • Improvement processes which are subordinate and necessary for changing of existing technologies (i.e. business process optimization, reengineering, redesign and other improvements).

The practice of consulting shows that the main business processes of logistic chains are following:

  • Production handling planning (management and planning processes)
  • Delivery of production from suppliers (resource process)
  • Warehouse inventory control of production (resource process)
  • Production delivery to sections, shops, individual wholesale shops and representational offices (production distribution process)
  • Production handling control (Planning and management process)
  • Logistic business processes optimization (improvement process)

The following basic objectives are implemented within the frames of business processes of the logistic service:

  • The timing of receiving and sending shipments;
  • The analysis of information on transfer companies;
  • Negotiating with transfer companies;
  • Defining of an optimal itineraries of goods delivering;
  • Calculation of transportation expenses;
  • Preparation of a map of the itinerary;
  • Planning of the system of production delivery;
  • Providing of receiving and storage of goods in the warehouse of a company;
  • Providing of shipment of goods from the warehouse of a company;
  • Informing of trade organizations and representational offices about the approximate time of arriving;
  • Accepting of orders;
  • Control of all stages of shipment.

According to all stated above, you can see that effective business process optimization and management can play a significant role in working of the whole logistic chain of an enterprise. That is why it is hardly possible to overestimate the necessity of business process optimization in the sphere of logistics.

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