Systematic logistical links

Systematic logistics links

Logistics networks determine the geographic and logical distribution and networking of transportation, transshipment and warehousing processes as well as the related information processes. Companies choose the network structure that optimally suits their needs in terms of effectiveness and costs. In the process, they also make fundamental decisions that have a large number of secondary and operational effects.

Basic structures of logistics systems

Basic structures of logistics networks

The logistics chain between procurement and the sales market can be illustrated graphically as a network. The transport, handling and warehousing processes related to the movement and storage of goods and the associated information processes are implemented through this network. The chart above illustrates the basic structures of such logistics systems.
The logistics network strategy helps shape the basic structure of the logistics system and the related logistics capacity for the logistics processes.

One-stage system

In a one-stage system, the movement and storage involve a direct flow of goods between the supply point, or source, and the receiving point, or destination. In this system, the goods are made available at the supplier site and used at the receiving point.
The strength of the one-stage system is that the flow of goods is not interrupted. No other warehousing and transport processes are required to send the goods in another direction [1].

Multi-stage system

In a multi-stage system, the movement and storage involve an indirect flow of goods between the supply and receiving points. The flow of goods is interrupted at one or more stages. Here, additional storage or transport processes are performed. The objective of this work is to separate or consolidate the flow of goods.

Breakbulk point: Large quantities of goods from the supply point arrive at the “breakbulk point,” and small quantities of them leave it bound for various receiving points.
Consolidation point: The interruption point in a multi-stage system can be a “consolidation point,” where the goods are consolidated, collect or sorted [1].