Impact of logistics integration on the formation of system and network enterprises
Abstract
Subject of research is theoretical and methodological approaches to the revealing the impact of logistics integration on the formation of system and network businesses. The purpose of the article is to assess the impact of logistics integration on the formation of system and network businesses. To achieve the object, the following tasks were set: firstly, to compare the logistics system (system company) with the logistics network (network company); secondly, to prove the importance of re-assessment of the participants of the integrated system, based on their unique competences; thirdly, to reveal the relationship between integration processes and forms of existence of enterprises. The study used general scientific and special methods: abstraction was applied in determining the nature of the categories of «network logistics system» and «integrated logistics system»; structural and genetic analysis was used to identify and improve the re-assessment cycle for the participants of the integrated logistics system; through comparison, the differences between the system and network companies were determined. Logistics integration provides strategic cooperation and coordination between all participants in the process of formation, production, sales and customer service throughout the product life cycle. The key properties that distinguish the logistics system (system company) from the logistics network (network company) are the organizational structure, allocation of responsibilities, legal independence (autonomy), the interaction between the subjects, goal orientation and methods of flow control. Proceeding from these properties, the author has proved that the logistics network has a horizontal structure based on specialization and development of key competencies. Therefore, the re-assessment cycle for the participants of the logistics system should be based on their unique core competencies. Hence, the network logistics system (integrated logistics system) is a long-term equal partnership of legally independent companies by combining their core competencies with the purpose of transferring material and related flows within the frame of logistics activities. The results of the investigation may be used by researchers and practical logisticians in the formation of system and network companies, in reassessment of the membership of the logistics system and choosing a form of integration. The prospect of further research is defining performance efficiency indices for the network logistics system.
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