Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects
The investigation of theoretical aspects of formation and content of the term ‘logistics activities’ allowed clarifying the goals, objectives, objects, subjects and components of logistics activities. The paper has shown a system decomposition of the logistics activities at an industrial enterprise...
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Цитувати: | Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects / M.І. Ivanova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 125-130. — Бібліогр.: 16 назв. — англ. |
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irk-123456789-1093302016-11-25T03:02:40Z Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects Ivanova, M.І. Marketing The investigation of theoretical aspects of formation and content of the term ‘logistics activities’ allowed clarifying the goals, objectives, objects, subjects and components of logistics activities. The paper has shown a system decomposition of the logistics activities at an industrial enterprise and the author’s definition of the term ‘logistics activities’. Дослідження теоретичних аспектів формування й наповнення терміну «логістична діяльність» дозволило з’ясувати мету, завдання, об’єкти, суб’єкти та складові логістичної діяльності. У статті наведена системна декомпозиція логістичної діяльності промислового підприємства та авторське визначення терміну логістична діяльність. Исследование теоретических аспектов формирования и наполнения термина «логистическая деятельность» позволило уточнить цели, задачи, объекты, субъекты и составляющие логистической деятельности. В статье приведена системная декомпозиция логистической деятельности промышленного предприятия и авторское определение термина логистическая деятельность. 2015 Article Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects / M.І. Ivanova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 125-130. — Бібліогр.: 16 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/109330 658.7 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Marketing Marketing Ivanova, M.І. Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects Економічний вісник Донбасу |
description |
The investigation of theoretical aspects of formation and content of the term ‘logistics activities’ allowed clarifying the goals, objectives, objects, subjects and components of logistics activities. The paper has shown a system decomposition of the logistics activities at an industrial enterprise and the author’s definition of the term ‘logistics activities’. |
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Article |
author |
Ivanova, M.І. |
author_facet |
Ivanova, M.І. |
author_sort |
Ivanova, M.І. |
title |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects |
title_short |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects |
title_full |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects |
title_fullStr |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects |
title_full_unstemmed |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects |
title_sort |
studies of formation and content of the term ‘logistics activities’: theoretical aspects |
publisher |
Інститут економіки промисловості НАН України |
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2015 |
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Marketing |
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http://dspace.nbuv.gov.ua/handle/123456789/109330 |
citation_txt |
Studies of Formation and Content of the Term ‘Logistics Activities’: Theoretical Aspects / M.І. Ivanova // Економічний вісник Донбасу. — 2015. — № 4 (42). — С. 125-130. — Бібліогр.: 16 назв. — англ. |
series |
Економічний вісник Донбасу |
work_keys_str_mv |
AT ivanovamí studiesofformationandcontentofthetermlogisticsactivitiestheoreticalaspects |
first_indexed |
2025-07-07T22:55:24Z |
last_indexed |
2025-07-07T22:55:24Z |
_version_ |
1837030624766984192 |
fulltext |
M. І. Ivanova
125
Економічний вісник Донбасу № 4(42), 2015
UDC 658.7
M. І. Ivanova,
PhD (Economics), Ass. Prof.,
State Higher Education Establishment "National Mining
University", Dnepropetrovsk
STUDY OF FORMATION AND CONTENT OF THE TERM ‘LOGISTICS ACTIVITIES’:
THEORETICAL ASPECTS
Introduction. A logistics activity is one of the
most important components of the business enterprise
operation; it includes direct logistics functions and lo-
gistics processes, as well as logistics operations.
The regulatory and legal framework lacks an ap-
propriate definition of logistics as an activity at the na-
tional level, which leads to its improper reflection in sta-
tistical accounting forms. This does not allow assessing
the efficiency of logistics operations or their impacts on
the national economy. Logistics costs and their amount
are not recorded in the existing forms of accounting. In
the National Classification of Economic Activities
DK009:2005, logistics activities are "scattered" and pre-
sented as separate functions and operations in different
sections, subsections and groups of economic activities.
The existing form of the Classifier does not provide en-
tering logistics activities as an item of an account, given
its intersectoral and synthetic nature [1, p.152; 13,
p.290].
Analysis of recent research and publications
based on the problem under consideration. Distin-
guishing the types and identifying the contents of vari-
ous logistics activities were done by V.G. Alkema, N.V.
Kovalchuk, N.Y. Konischeva, V.L. Pylyushenko, A.V.
Tkachova, G.R. Rudenko, O.M. Sumets.
Thus, object of the paper is an investigation of the
theoretical aspects of forming the term ‘logistics activi-
ties’ and developing its content.
Research methodology. Our research is based on
a system approach using general scientific methods:
generalization, analysis and synthesis. We used ab-
stract-logical method for making conclusions.
Problem description. A careful study of the ‘lo-
gistics activities’ definition was done by famous scien-
tists V.G. Alkema and O.M. Sumets who formulated the
‘business card’ of logistics activities, which contains the
definition, goals, objectives, direction, subjects and ob-
jects, effectiveness criteria, and types of logistics activ-
ities [1; 13].
Effective organization of logistics activities in the
enterprise will facilitate its rhythmic work and optimize
the business activities, providing a sustainable competi-
tive advantage for the company; this will allow timely
execution of contracts as well as prompt and flexible re-
spond to any changes in demand.
We agree with V.G. Alkema who says about the
lack of a unified approach to the definition of the term
"logistics activities"; this is proved by various alterna-
tive definitions, such as logistic function, company lo-
gistics, types of logistics activities, logistics process and
so on. Scholars have different views on types of logistics
activities; there is no common understanding of the ob-
jects of logistics or the classification of its subjects and
constituents, etc [1, p.152].
Table 1 shows the most common definitions of lo-
gistics activities that occur in scientific publications and
periodicals. By ‘definition’ we mean a form of reflection
of the universe using language means for generalization
of objects and phenomena in the form of simplest ab-
stractions by which facts can be systematized and sum-
marized [1, p.148].
Table 1
Approaches to the definition of logistics activities
Definition Author
1 2
Activities for a systematic improvement of flow processes at the enterprise in order to reduce
costs and improve customer service. The main activities in focus are supply, production, mar-
keting, storage, transport and inventory management; the essence of logistics activities varies
with the stage: either it is procurement, production, or sales
[10, p.70-72]
A separate economic activity that requires a sustainable process of logistics activity in the en-
terprise as a single industrial complex; this will minimize costs and losses due to an optimization
of a logistics "chain" in the enterprise and reduce the impact of external risks
[6, p.122]
A direction of economic activity that involves the material flow management supported by the
information, financial and service flow management through consistent and coordinated logis-
tics operations based on the consistent, comprehensive, and integrated performance of all parts
of the "supply - production - sales" logistics chain. The goal is to achieve a long-term success in
business by maximizing the customer satisfaction, minimizing costs, meeting the interests of all
[15]
M. І. Ivanova
126
Економічний вісник Донбасу № 4(42), 2015
Ending of Table 1
1 2
parties to the goods turnover under the conditions of risks, volatility and uncertainty of the ex-
ternal environment. Logistics operations as integrated flow control in an industrial enterprise
cover all of its units and functional areas - procurement, production, marketing, sales, finance,
and infrastructure. The functional areas in focus are procurement, production, sales, warehous-
ing, transportation, inventory management. The object of the company’s logistics activity is a
set of material, financial, information and service flows
The process of planning and implementation of raw material flows and stocks, work in progress,
finished goods and related information flow from the place of manufacture to the place of con-
sumption in order to meet the customer’s product requirements
[16, p.29]
A business function, responsible for the coordination of physical distribution and management
of materials to save costs and improve the service level
[11, p.29]
A sphere of competence that combines the company with its customers and suppliers through
the inventory and information flows; to maximize the strategic advantages, all the functional
units are to be integrated
[2., p.51]
Activities performed in the process of moving products from the point of manufacture to the
point of consumption
[12, p.18]
A set of spheres of the organization’s activity, from procurement of raw materials to delivery
of finished products to consumers
[7, p.23]
A set of processes of physical movement of material values (raw materials, semi-finished and
finished products) within the enterprise and between enterprises and promotion of information
flows that reflect the material processes and are used to manage these processes
[8, p.18]
A type of economic activity associated with the planning, organization, management and control
of material and accompanying flows in the process of moving them from the place of manufac-
ture to the point of consumption through consistent and time- and place coordinated performance
of logistics activities
[13, p.292]
A set of integrated phase and functional logistics processes and operations aimed at transforming
material and related flows in order to achieve a long-term success by maximizing the customer
satisfaction, minimizing costs, coordination of interests of all the parties to the goods turnover
in terms of effective protection against the threats of a changing and unstable environment
[1, p.152]
Source: systematized by the author.
O.M. Sumets, exploring the definition of "logistics
activities", insists on highlighting the goals, objectives,
target, subjects and objects, effectiveness criteria, and
types of logistics activities [13, p.290]; V.G. Alkema ac-
complishes the decomposition of the logistics activity
elements, adding the following components of logistics
activities to the above constituents of the 'business card':
research methods, managerial and supply aspects and
organizing principles [1, p.152].
Solving problems. The author’s opinion on struc-
tural and logical analysis of the mutual subordination
and interrelationship of the terms that synthesize the
concept of "logistics activities" coincides with the find-
ings by O.M. Sumets who says that the category of "ac-
tivity" is the base for the development of a universal
philosophical methodology [13, p.291]. Activities,
when examined in a social system are differentiated by
objective criteria into the following types: physical, so-
cial, and spiritual activity [3, p. 243].
Material activity implemented in the procedures of
interaction between man and nature in the context of
production is translated into economic activity; there-
fore, the category of "economic activity" is subordinate
to the category of "activity". In turn, production activity
is also divided into types - production activity, market-
ing activity, logistics activity etc. Each of these activi-
ties is performed in the company through a specific
function and each function is performed through a par-
ticular process or a set of processes. And, accordingly,
each process is implemented through a set of operations
[13, p.291].
Approaches to defining the logistics activities can
be analyzed using the definitions shown in Table 1.
Firstly, in formulating goals we singled out several
areas:
a) reducing costs [1, p.152; 6, p.115-116; 10, p.70-
72; 11, p.29; 16];
b) improving the quality of customer service [1,
p.152; 10, p.70-72; 11, p.29; 15; 16, p.29;];
c) reducing the impact of external risks [1, p.152;
6, p.115-116; 15];
d) strategic long-term benefits [1, p.152; 2, p.51].
Secondly, the objectives of logistics depend on the
goal and the current situation (Table 2).
M. І. Ivanova
127
Економічний вісник Донбасу № 4(42), 2015
Table 2
Approaches to the content of logistics objectives
Description Author
1) objectives of exogenous nature:
Providing maximum adaptability of the enterprise to the changing market conditions;
increasing their own market share;
creating the conditions for obtaining competitive advantages and
a long-term business success;
2) objectives of endogenous nature:
reducing the costs of logistics activities in order to increase the profits;
improving logistics management in the enterprise;
creation of appropriate logistical capacity of the enterprise;
forming an integrated utility of the products or logistics services for the consumers;
improving the efficiency of the enterprise logistics system
[13, p.293]
1) formation of the optimal production program for the production and distribution system of the
industrial enterprise, which follows the structure of consumer demand;
2) development of an algorithm of the program change with fluctuations in consumer demand in
case of resource constraints;
3) optimization of inventory at each level of the logistics system of the company;
4) optimization of movement of the material and information flows of the logistics system;
5) optimization of total costs in the movement of material and information flows of the logistics
system
[9, p.67]
1) long-term tasks concerning the process of storage and transportation; warehousing and trans-
portation facilities; structure and processes of planning decisions; ensuring the production po-
tential; support for innovative technologies;
2) medium- and short-term objectives concerning the use of transport facilities; production man-
agement; management of the material and technical resource movement; staff and technical de-
vice management; information exchange; innovation resources;
3) coordination of processes and scopes of activities (organizing): specialization of production;
coordination of the production programs; determination of the logistic strategy; choice of tech-
nology; determination of the distribution of products; identifying the needs in production; spec-
ifying the machine loads; determining the volume of production; specifying the use of the pro-
cess time; implementation of planned innovations.
4) control of the following: quality of the products; introduction of innovative technologies; staff
efficiency; procurement; use of vehicles; inventory
[4]
organization and management of procurement;
organization of warehousing and cargo management within the "storage space";
inventory management;
organization and management of transport process;
organization and management of the production process;
organization and management of material flows distribution;
organization and management of sales;
organization and management of information flows ;
organization and management of logistics operations
[5]
Thirdly, the objects of logistics activities are the
components of logistics activities (phase, flow and func-
tional processes and operations), which are character-
ized by a change in size, form of existence, location;
they are the target for management functions as to en-
sure the desired efficiency of performance. The follow-
ing objects of logistics activities are usually distin-
guished:
Material values (physical distribution) [2, p.29; 7,
p.23; 8, p.18; 11, p.29; 12, p.18];
Flow processes [6 p.115-116; 10 p.70-72];
Material flows and accompanying information, fi-
nancial and service flows [1, p.152; 8, p.18; 13 p.292;
15; 16, p.29].
Fourth, the subjects of logistics activities are phys-
ical and legal entities who are engaged in logistics ac-
tivities and directly affect the objects in order to reach
the goals by performing the specified tasks; they are log-
isticians, logistics operators, intermediaries, logistics
centers, contractor companies.
Fifth, concerning the components of logistics ac-
tivities, V.G. Alkema suggests distinguishing the fol-
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op
er
at
io
ns
Procurement
Production
Sales
Utilization, processing
Material flow
Information flow
Financial flow
Manpower flow
Logistics systems
Logistics networks
Logistics clusters
Micro logistics
Meso logistics
Macro logistics
Meta logistics
External
Internal
Physical supply
Physical transformation
Physical distribution
Order
Procurement
Warehousing
Packing
Inventory
Customer service
Transportation
Movement
Cargo handling
Completing
Infrstructure
128
Економічний вісник Донбасу № 4(42), 2015
M. І. Ivanova
M. І. Ivanova
129
Економічний вісник Донбасу № 4(42), 2015
lowing classification groups of logistics activity compo-
nents: phase scope, form of organization, levels, types,
subtypes, processes, operations [1, p.154].
A careful review of the suggested approaches to the
distinguishing the components of logistics activities has
allowed us to identify the following groups:
1) by the phases of production and commercial cy-
cle: procurement, production logistics activities, sales
activities (distribution), processing and recycling activ-
ities [1, p.153]; management of information and finan-
cial flows [14, p.161];
2) by the form of organization: logistics systems,
logistics networks, logistics clusters [15];
3) by levels: micro logistics activities, meso logis-
tics activities, macro logistics activities [14, p.162],
meta logistics activities;
4) by types: external and internal logistics activi-
ties, physical procurement, physical transformation,
physical distribution [13, p.294];
5) by functions: planning (forecasting), organiza-
tion, motivation (incentives), control (accounting, anal-
ysis, coordination, monitoring), regulation (coordina-
tion);
6) by processes and operations: processing and ful-
filment of orders, transport activities, warehousing,
packaging, stockpiling, logistics services [1, p.153];
purchasing, materials handling, monitoring the move-
ment of products, completion [14, p.162].
Fig. 1 shows the author's vision of the system de-
composition of logistics activities. This scientific
method allows us to consider the system being studied
(logistics activities) as a complex consisting of individ-
ual interconnected subsystems which, in turn, are di-
vided into parts.
Based on the above study, we will consider logis-
tics activities a type of economic activity that influences
the components of logistics activities (phase, flow, func-
tional processes, and operations) by means of manage-
rial functions; it is aimed at changing the size, form of
existence, location in order to provide close to the de-
sired processes and (or) performance criteria values of
this activity.
Conclusions. We made several conclusions based
on the study:
1) First, when formulating the objective of logistics
activities, the authors distinguish the following direc-
tions: cost reduction; improving the quality of customer
service; reducing the impact of external risks; obtaining
strategic long-term benefits. Second, the objective of lo-
gistics activities directly depends on the goal and the
current situation. Third, the objects of logistics activities
are the components of logistics activities (phase, flow,
functional processes, and operations). Fourth, the sub-
jects of logistics activities are physical and legal entities
engaged in logistics activities and directly affecting the
objects in order to reach the goals by performing some
specified tasks: logisticians, logistic operators, interme-
diaries, logistics centers, contractor companies. Fifth,
phase spheres, forms of organization, levels, types, sub-
types, processes, and operations are distinguished as the
components of logistics activities.
2) logistics activities are a type of economic activ-
ity that influences the components of logistics activities
(phase, flow, functional processes, operations) using
management functions, aiming at changing the size,
form of existence, location in order to provide close to
the desired processes and (or) values of the logistics per-
formance criteria.
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Іванова М. І. Дослідження особливостей фо-
рмування й наповнення терміну «логістична ді-
яльність»: теоретичний аспект
Дослідження теоретичних аспектів форму-
вання й наповнення терміну «логістична діяльність»
дозволило з’ясувати мету, завдання, об’єкти,
суб’єкти та складові логістичної діяльності. У статті
наведена системна декомпозиція логістичної діяль-
ності промислового підприємства та авторське ви-
значення терміну логістична діяльність.
Ключові слова: логістична діяльність, мета ло-
гістичної діяльності, завдання логістичної діяльно-
сті, об’єкт логістичної діяльності, суб’єкт логістич-
ної діяльності, складові логістичної діяльності.
Иванова М. И. Исследование особенностей
формирования и наполнения термина «логисти-
ческая деятельность»: теоретический аспект
Исследование теоретических аспектов форми-
рования и наполнения термина «логистическая де-
ятельность» позволило уточнить цели, задачи,
объекты, субъекты и составляющие логистической
деятельности. В статье приведена системная деком-
позиция логистической деятельности промышлен-
ного предприятия и авторское определение термина
логистическая деятельность.
Ключевые слова: логистическая деятельность,
цель логистической деятельности, задачи логисти-
ческой деятельности, объект логистической де-
ятельности, субъект логистической деятельности,
составляющие логистической деятельности.
Ivanova M. І. Studies of Formation and Content
of the Term ‘Logistics Activities’: Theoretical As-
pects
The investigation of theoretical aspects of for-
mation and content of the term ‘logistics activities’ al-
lowed clarifying the goals, objectives, objects, subjects
and components of logistics activities. The paper has
shown a system decomposition of the logistics activities
at an industrial enterprise and the author’s definition of
the term ‘logistics activities’.
Keywords: logistics activities, goal of logistics ac-
tivities, objectives of logistics activities, object of logis-
tics activities, subject of logistics activities, the compo-
nents of logistics activities.
Received by the editors: 04.12.2015
and final form 28.12.2015
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