The notion of logistics (originating from Greek “logos”) can be interpreted as “argument, follow-through, calculation”. There exist a great number of ways to interpret the concept of “logistics” [1-9]. Many literary sources are addressed to the analysis of the common definitions of logistics and suggest the definition, which the authors find to be more appropriate.
Common definitions of “logistics” concept
|
No. |
Name |
Interpretation |
|
1 |
Logistics |
Business control over all core functions that pertain to purchasing production resources, delivery of finished products to buyers, including adequate dataware applied to such processes [1] |
|
2 |
Logistics |
Control over inventory transactions: from the stage of receipt of raw materials to the stage of delivery of finished products to consumers [3] |
|
3 |
Logistics |
Part of economic science and area of work focused on management and control of processes of advancing products from manufacturers to consumers, functions in sphere of circulation of products, goods, services, commodity stock management, generation of sales promotion infrastructure [4] |
|
4 |
Logistics |
Science of planning, control and management of transportation, storage and other material and non-material operations to be performed in the process of delivering raw and other materials to an enterprise, in-plant processing of raw materials, semi-finished products, delivery of finished products to consumers [5] |
|
5 |
Logistics |
Theory of planning, management and control of processes of operation of material, labor, power and other flows in man-machine systems [6] |
|
6 |
Logistics |
Theory and practice of management of material and data flows in the product promotion process [7] |
|
7 |
Logistics |
Science of management and optimization of material flows, flows of services and attendant data and financial flows in specific micro-, meso- or macroeconomic systems with a view to attaining preset targets [8] |
|
8 |
Logistics |
Integral management tool that contributes to attainment of strategic, tactical or operative business management goals due to effective cut in total cost, satisfaction of the requirements set by final consumers in respect of quality of products and services in sphere of management of material and/or service flows, as well as attendant data and finance flows [8] |
|
9 |
Logistics |
Strategic management of the work on purchases, supplies, carriage and storage of materials, parts and finished stock [9] |
However, despite application of different approaches to interpretation of the concept of logistics, it’s essential meaning remains invariable.
The most common interpretation
Assuming that science is the sphere of human cognitive activity focused on acquisition of new knowledge about nature, society and thinking [10], and having analyzed the existing interpretations of the concept [1-9], we offer the following extended summary of all preceding definitions:
Logistics is the science about material and attendant flows.
Material flow is a combination of raw materials, other materials, components, semi-finished products, finished items, which advance from suppliers, via production and/or distribution companies (departments) to consumers [10]. All current notions of logistics refer [1-9], in one or another form, to the material flow, as well as to the flows attendant thereto. The material flow should be understood as the flow from the manufacturer to the consumer.
Logistics attendant flows: data and financial flow
Data flow is the flow of messages in the voice, documentary (paper and electronic) and other forms, which is generated by the source material flow in the logistic system under review, between links of the logistic system, or between the logistic system and environment, and is intended for implementation of controlling functions [11].
Financial flow is the oriented drive of funds circulating in the logistic system, as well as between the logistic system and environment, which must be provided to assure effective advancement of a certain product flow. It results from the above definition that:
• first, the logistic financial flow is not just a drive of financial resources, but rather their oriented drive;
• second, orientation of the drive of financial resources in the sphere of logistics is attributed to the need to transfer an appropriate product flow;
• third, the financial resources are driven either within the logistic system, or between it and the environment [11].