The beginning of the nineties was marked by the collapse of the USSR and the beginning of the formation of market relations. At this time, a new direction of a scientific and practical nature appeared in our country and began to develop rapidly: logistics. The increased demand for cargo transportation combined with the new economic conditions made this trend very attractive. Initially, newly emerging companies sought to reduce the costs required to produce products. But now the business is focused on logistics, which attracts it from a completely different perspective. Currently, the consumer market is oversaturated with offers of any kind. Therefore, to feel comfortable and gain a foothold in the business will allow the company to reduce the cost of warehousing and transportation of goods.
In the modern world, the term "logistics" includes at the same time four areas that relate to the business sphere. It is divided into:
- effective procurement management;
- supply allocated to a separate industry in each individual organization;
- transportation, as well as storage of materials, equipment, parts and finished equipment;
- reducing costs and maximizing revenue when determining long-term plans.
Logistics supply companies around the world works on the same scheme. The chain of promotion of finished products is carried out from the manufacturer to the transport company, and then to the dealer-buyer. Sometimes this scheme can be supplemented by the costs incurred during the advertising campaign.
The logistics of supply according to the multi-level marketing scheme works by the method of promoting goods from the direct producer to the end consumer directly. Currently, such methods of selling goods do not yet have great popularity.
Supply logistics is divided into three main methods:
- Custom. It operates with a single output and is most effective in fulfilling orders of large-sized high-quality materials, the storage of which has certain difficulties.
- Deterministic. This method of supply is possible on the basis of a planned task. Based on the primary need and specification, the secondary and additional need for material resources is calculated .
- Based on actual consumption. This method is based on the acquisition of additional materials and their storage in the warehouse of the enterprise in order to quickly eliminate any shortage of resources that has arisen until a new batch is received. This type of logistics involves the timely and continuous replenishment of the necessary stocks.
Logistics of supply depends on external conditions that determine the degree of its development, as well as on internal factors - the conditions of the company’s economic activity.
The procurement activities of the enterprise in order to maximize future revenue should be effective. Economic functioning should include a whole range of operational measures that are aimed at acquiring the necessary materials and their movement between company divisions.
Procurement logistics solves the problem of the most complete satisfaction of production needs for the necessary resources with maximum economic effect. The basis for achieving this goal is the acquisition of materials of appropriate quality at the lowest prices. There is also a need to comply with other factors (delivery time, purchase costs, etc.). This type of logistics is an important component of production, which covers a large sector of the sphere of circulation and provides transportation of material resources from the manufacturer to the buyer.