17. Concept, goals and objectives of financial logistics
Financial logistics - one of the concepts of finance. management, solving problems not only of optimizing the actual financial flows of enterprises and organizations, but also of integrated logistics management. flows in economic systems.
Logistics financial flow– directed movement of financial assets (cash, currency and securities) circulating in the logistics system, between the logistics system and the external environment, in order to effectively ensure material (resource), commodity and service flow, and increase the profitability of business activities.
Financial logistics process– organized in a certain way in time subsequence performing financial transactions, which allows you to achieve your goals with optimal expenditure of resources. Financial cycle– a constantly repeating process that accompanies and mediates the logistics cycle of movement of goods and services.
Objectives of financial logistics:
Studying the financial market and forecasting sources of financing.
Determining the need for financial resources, selecting sources of financing, monitoring the financial market.
An algorithm for the movement of cash flows from funding sources has been constructed.
4. Establishing the sequence of cash flows through business processes.
5. Coordination of financial and material flows based on information. technologies.
6. Formation and regulation of stocks (reserves) of financial resources.
7. Creation of operational communication systems between the subjects of the logistics chain and the organization of processing information flows.
To implement the concept of financial logistics it is necessary to solve problems related
with structuring of fundamental flows (financial, information, material); determining their characteristics;
choice of influence tools; developing mechanisms to respond to changes in the parameters of the internal and external environment;
providing information support for control actions.
Key financial indicators The operations of the logistics system for the period are: material flow(turnover, revenue), revenues, costs, profits, profitability, profitability and break-even points. From the point of view of financial logistics, the progressiveness of households. systems is achieved not so much by increasing their material and technical base, but improving its provision with financial resources.
18. Principles of financial flow management.
Reliance on modern principles of financial logic in management activities allows compensate for uncertainty of factors constantly changing external environment. Principles of financial logistics:
1. principle of consistency involves the formation of an integrated financial flow management system within the financial logistics system;
2. principle of synergy expresses the opportunity, through the coordination of actions in all interrelated processes, to achieve greater effect in the overall structure;
3. emergence principle consists in the property of performing a given target function, implemented only by the financial logistics system as a whole, and not by its individual elements;
4. feedback principle according to which the goals and objectives of financial logistics are determined by market requirements;
5. optimality principle is to ensure the greatest efficiency in the functioning of the enterprise as a production and marketing system;
6. principle of dynamism what lies in the progressive dynamics, which is expressed in development, the desire for improvement;
7. principle of initiative involves reactions to probable events, the ability to create and regulate conditions that positively influence processes;
8. principle of flexibility assumes a high degree of adaptability of financial logistics to the conditions of its functioning;
9. principle of reliability is to ensure uninterrupted financial services for material flows;
10. scientific principle involves strengthening the calculation principle at all stages of financial flow management from planning to analysis;
11. principle of concreteness involves a clear definition of the specific result of the goal of moving financial flow; 12. principle of computerization and automation means using the latest information technology and software.
Implementation of the principles of financial logistics in practice leads to significant cost reduction for the movement and preservation of material, human and financial resources, increasing balance in management logistics chains and systems, rhythmic functioning of structures and divisions logistics systems. These principles help improve quality organizational design and redesign(engineering and reengineering), provide a systematic approach to managing modern logistics systems in the national economy.
The core of financial activities associated with the logistics process is the movement of funds in the flow of receipts and payments. In this case, four functional directions can be traced (Fig. 10.1):
raising capital, i.e. financing;
investment, or investing;
return of capital, obtaining certain financial results in the form of profit or loss;
definancing, i.e. distribution and use of financial resources.
Rice. 10.1.
Financing as the first stage of financial flow means attracting capital in the form of money, material assets in order to ensure the circulation of capital, simple and expanded reproduction.
Financial resources are generated by enterprises through various types of income and receipts, and are spent on production, scientific, technical and social development, the formation of reserves, payments to the state budget system and for other purposes.
Depending on the source of funds, internal and external financing are distinguished.
Internal financing is the use of own funds, primarily net profit, and depreciation charges. In the case of active self-financing, gross profit should be sufficient to pay taxes to the budget system and interest on loans, expand fixed assets and intangible assets, replenish working capital, and implement social programs.
External financing is the use of funds from the state, financial and credit organizations, non-financial companies and citizens. Financing through borrowed capital involves the provision of funds on the terms of repayment and payment. Borrowed capital comes in two forms: long-term and short-term financial obligations of participants in the logistics process.
Long-term financial liabilities are all types of borrowed funds with a maturity period of more than one year. Among them are: long-term bank loans, long-term borrowed funds in the form of debt under the granted tax credit; financial assistance provided on a repayable basis; overdue debt on received long-term loans and borrowings.
Short-term financial liabilities include all forms of borrowed capital with a maturity of less than one year: short-term bank loans, short-term loans and loans not repaid on time; accounts payable for goods, works, bills issued, advances received; settlements with the budget and extra-budgetary funds. Providing a loan involves additional costs for its repayment and payment of interest, as well as a decrease in taxable profit due to inclusion in production costs and the circulation of the amount of interest for the loan.
The financial structure of capital is the ratio of equity and borrowed capital used by parts of the logistics system in the process of economic activity. Its nature significantly affects the level of return on equity, financial stability, solvency, and the amount of financial risks.
The advantages of own funds include a high rate of return on invested capital (in this case, there is no need to pay interest on the loan), financial stability and a reduced risk of bankruptcy of the company. The disadvantages of using equity capital are restrictions on the volume of raising funds and expanding business activities.
Borrowed funds have greater opportunities to attract capital; they create the prerequisites for increasing the financial potential of an enterprise when the need arises to increase the volume of economic activity. The negative features of borrowed funds are manifested in the difficulty of attracting them, since obtaining a loan requires the consent of other participants in the logistics process, guarantees or collateral. In addition, financing costs increase in the form of interest on loans, commission payments, and dividends.
The following factors are important for the policy of forming the structure of an organization’s financial resources:
stability of product sales: the higher its degree, the safer the use of borrowed capital;
level of development of the logistics system: a growing company with competitive products can attract a large share of borrowed funds for financing;
tax conditions: in companies with a high level of profit taxation, the use of borrowed funds is more efficient, since paying interest on a loan reduces the amount of balance sheet profit;
financial market conditions: the cost of borrowed capital and, accordingly, the efficiency of its attraction depend on its condition.
Introduction
1. Financial logistics
1.2 Main characteristics of financial logistics
2. Financial flow as the basis of financial logistics
2.1 Main characteristics of financial flow
2.2 Financial flow in transport logistics
Conclusion
References
Introduction
Currently, Russian enterprises operate in conditions of significant instability in the economic environment, which necessitates the search for highly effective methods and means of managing the activities of industrial enterprises. One of these methods is logistics, which allows you to reach a qualitatively new level of managing the material, financial and information flows of an enterprise in order to improve the final results of its production and economic activities and ensure a stable position in the market.
In the context of the transition to a market economy, increasing the efficiency of production and sales of products determines the need to identify and study logistics financial flows corresponding to the movement of commodity-material and commodity-intangible assets, which in the process of moving from one economic entity to another can be considered as a corresponding commodity flow. Moreover, its movement is due to the implementation of a number of logistics operations.
The transition to market relations, the expansion of the scale of economic activity, the increased need to strengthen all types of relationships in the processes of managing financial flows generated by sales commodity flows, determined the main requirements for new forms and methods of increasing the efficiency of managing the activities of enterprises, increasing the effectiveness of their activities, and improving the financial condition . The formation of financial flows of logistics at enterprises, the use of logistics principles and methods, will allow us to approach traditional problems on a new basis and increase the efficiency of their production and economic activities.
1. Financial logistics
1.1 The concept and essence of financial logistics
Financial logistics is the least studied area. This happens mainly for two reasons: for objective reasons, the transition to a market ideology in Russia lasted too long, when, as the market develops, scientists and practitioners gradually come to understand the critical role of finance in the logistics system; and subjective, since financial flow management requires high professionalism and is associated with significant risks for each enterprise or company.
However, it cannot be said that Western “market experts”, whom domestic economists often rely on as a guide, have gone far ahead, although much earlier they began to study the main interdependencies between logistics and the financial goals of companies, as well as considering the share of supply chain management in the total cost of production company costs. And this is not surprising, since they have long been faced with the need for appropriate information to manage the investment process.
Speaking about the contribution of logistics to the profit of an enterprise, D.M. Lambert notes the need to analyze all logistics solutions both in terms of their cost efficiency and the benefits received.
The key factor here is customer service (logistics service) and its impact on profit margins. But he rightly warns that extremes should be avoided, in particular, providing a very high level of service without confidence that the client will appreciate the cost of such super service and be willing to pay for it.
The other extreme is to understand logistics solely as a source of costs and strive to reduce them in any way. According to the American economist M. Christopher, “reducing costs in any area of business is a cost factor, but it is advisable only when it leads to increased profits.”
Financial logistics, he admits, also contributes to the efficient use of capital. Logistic variables significantly form the individual components of the balance sheet, namely:
Cash on hand and debt. Thanks to effective logistics management, shorter order fulfillment cycles are achieved: the shorter the cycle, the faster the cash flow from sales; The degree of order implementation is also important;
Inventories. The level of inventories in the form of raw materials, components, finished products is the result of the enterprise strategy in the field of logistics services and the effectiveness of the monitoring and inventory management system;
Real estate, fixed assets and equipment. Optimization of the distribution network, achieved thanks to the found correspondence of the location and parameters of distribution nodes to the structure of demand, can lead to the release of capital;
Current payments. Their level can be increased by limiting the volume and frequency of orders, which can be the result of implementing systems such as material requirements planning or distribution requirements.
Foreign experts are initially focused on the fact that the main goal of an enterprise should be to maximize its value, therefore, the enterprise strategy should be aimed at achieving this goal. And this, in turn, is impossible without the introduction of new management methods - management through value. To use this management method, it is necessary to determine which processes and to what extent form the value of this cost and what role logistics plays in this.
In determining the value of a firm, free cash flows play a major role, providing the basis for dividend payments to shareholders, rising share prices, and sources of financing for firm growth. The interest rate, the value of which reflects the cost of capital, is also important.
The analysis of domestic scientific publications, educational and methodological literature, training courses at various universities suggests that, unlike the West, in our business practices the fetishization of material flow continues and the reduction of logistics only to transport, warehouse, production, supply, sales, inventories .
Most existing definitions of logistics lack a clear definition of financial logistics. It is no coincidence that financial movement is considered by many only as accompanying the material flow. Although, it is quite obvious that the movement of finances is a serious limiter on the benefits of an enterprise and an active “lever” for managing material flows.
Perhaps this is why indicators for assessing the effectiveness of financial flows have not yet been developed. Attempts by a number of economists to reduce them to classical indicators of financial management are completely unfounded. Thus, the relationship, or rather the interdependence of financial management and financial logistics, is not revealed. As you know, financial management is the art of managing the finances of an enterprise. As for financial logistics (financial flow logistics), this concept is narrower and represents a set of methods, means, tools aimed at increasing the efficiency of financial flows.
The financial aspects of the functioning of logistics systems are poorly represented in the economic literature as key in ensuring optimal decision making. From this we can conclude that there is an acute shortage of methodological materials on financial flows. Among them: the basics of the theory of financial flow management in the logistics system; regulation of financial resource flows; organization of structuring, formation and management of financial flows in meso-, state and socially-oriented logistics systems; financial flows in banking, stock exchange, and Internet trading systems.
The study of financial logistics issues requires remaining on scientific principles, which involve strengthening the calculation principle at all stages of financial flow management - from planning to analysis. This approach can be followed subject to specificity, which implies a clear definition of the specific result of the goal of moving the financial flow in accordance with the technical, economic and other requirements of the business entity, as well as the principle of constructiveness, which consists in continuously monitoring the movement of the financial flow and promptly adjusting its movement.
And finally, all financial logistics functions and the process of movement of financial flows must be performed with the maximum degree of automation, which is only possible if it is computerized.
It is important to keep in mind that, from the point of view of financial logistics, the progressiveness of economic systems is achieved not so much by increasing their material and technical base, but by improving its provision with financial resources.
The implementation of these principles leads to a reduction in the costs of storing and moving material resources and finished products, an increase in balance in the management of the economic activities of transport systems, and the rhythm of the functioning of structures and divisions included in the financial logistics system. In addition, the principles of financial logistics make it possible to improve the methodology and improve the quality of organizational design, to provide a systematic approach to the design of regional transport systems.
The basic principles of financial logistics must be supplemented by the principles of marketing, management and other scientific and applied disciplines that synthesize the theory and practice of logistics.
A study of available materials and literature also gives reason to conclude that cost is interpreted by management personnel and top managers of a number of enterprises exclusively as part of the taxation process. Therefore, the cost factor is not used as an objective criterion for increasing the activity and competitiveness of the main production.
Flow management can be considered effective if it allows you to automatically solve the main production and economic tasks of an enterprise. These include: coordination of production and financial plans, establishment of the required level of inventories, volumes and timing of required resources. By influencing flows, it is possible to provide the logistics system with financial and material resources, attract and return funds, and distribute them according to areas of use. The functions of flow management should also include monitoring the compliance of the parameters of financial and material flows, their impact on the efficiency of logistics activities, and checking the optimality of resource flow patterns.
When managing the movement of financial and material flows, one must strive to both save resources spent on impact and maximize the final result. If possible, it is necessary to ensure that one control action changes the parameters of as many threads as possible. In this case, problems will be resolved as quickly as possible and at the lowest cost.
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Financial flow is a reflection of material flow, so they are different in nature. The financial flow is always directed against the movement of the material flow. The material flow consists of many different elements, and the financial flow consists of identical price units and does not depend on the form of their presentation. The material flow depends on many independent objective circumstances, as a result of which it is generally irregular, discrete and stochastic and, as a result, uncontrollable. The financial flow as a whole is regular, continuous and deterministic, as a result of which it is quite stable and manageable. The behavior of financial flow resembles the behavior of liquid in pipes: it has the condition of laminarity (ordered movement) and turbulence (chaotic movement caused by random disturbances with increasing speed). The overall financial flow is managed through switching and flow rate regulation.
Financial flow in logistics is the movement of financial resources circulating in the logistics system, as well as between the logistics system and the external environment, necessary to ensure the effective movement of goods flow.
Any enterprise must earn money as a result of selling the products of its activities (goods and services), and then invest (invest) the money received in the production of new goods (services). At the same time, a normally operating enterprise should make a profit from its activities. This constantly repeating process is called the “cash flow cycle,” and its individual stages are provided by the movement of cash flow.
The speed of financial flow is determined by the speed of money circulation. There is a certain limit to this speed, determined by the physical capabilities of a person in terms of the speed of decision-making; in addition, this speed is limited by the time of legal registration of the transaction and the throughput of the financial system itself. In addition, we know that investments in the real sector are directed the more the higher its stock price relative to its value, and in the fictitious (speculative) sector the more, the lower its stock price is. The stock price of capital itself depends solely on the loan interest rate. To determine the species diversity and direction of flows, it is necessary to classify them (Table 5)
The main goal of optimizing the movement of financial flows in logistics is to ensure the movement of material flows (service flows) with financial resources in the required volumes, at the right time, using the most effective sources of financing, i.e. in accordance with the “seven H” logistic rule. This is achieved in two main ways: timely receipt of funds to the enterprise in the amount necessary to finance its further activities; ensuring efficient spending of funds that is profitable and consistent with the mission of the enterprise.
Financial logistics is a section of logistics that studies the optimization of financial flows directed to the acquisition of resources and received by enterprises from product buyers and partners in the movement of products in the supply chain.
Table 5 – Classification of financial flows
| Classification feature | Stream type |
| Direction of movement | Positive (cash inflow, cash inflow) Negative (cash payments, cash outflows) |
| Calculus method | Gross - the totality of receipts and expenditures of funds Net cash flow is the difference between positive and negative cash flows (between cash inflows and cash outflows) |
| By purpose | Purchasing - servicing process of purchasing goods Production - servicing production process Sales - servicing the process of selling finished products |
| Frequency of occurrence | Regular - occurs regularly in business activities (salaries, tax payments, etc.) Discrete - occurs when carrying out one-time, single transactions (for example, purchasing real estate) |
| Sufficiency level | Excessive - cash receipts significantly exceed the real need of the enterprise to spend them Deficit - revenues are significantly lower than the real needs of the enterprise in their expenditure |
| Scale | For the enterprise as a whole - accumulates all types of funds of the enterprise For certain types of enterprise activities For individual structural divisions (responsibility centers) of the enterprise For individual business transactions |
| Type of economic activity | Accompanying the movement of products (payments to suppliers, employees, tax authorities, receipts from product buyers, etc.) Accompanying investment activities (sale and purchase of fixed assets, real estate, intangible assets) Accompanying financial activities (receiving and paying loans, attracting additional share capital, paying dividends) |
Source: compiled by the author from www.hi-edu.ru
Let's consider what stages the cash flow cycle consists of. The manufacturer spends money to purchase copyrights for a finished product or finances its creation. As a result, he receives the product and the right to produce it. It is advisable to first spend certain funds on marketing research, which will provide information for making decisions on the acquisition of rights, the form of production, production volumes, and distribution channels.
Most often, the expenditure and receipt of funds of enterprises is characterized by significant unevenness. Therefore, if business managers do not pay due attention to financial logistics, they may periodically discover that at the right time there is not enough money in the company’s accounts. You have to take out a loan, and since this needs to be done urgently, there is no time left to search and select the optimal conditions for borrowing money, the amounts and terms of the loan. The development of this negative situation further leads to a violation of the loan payment schedule, and, consequently, to penalties.
Another situation is also possible - the uncontrolled flow of money into the company’s accounts makes it difficult to optimize tax payments and leads to the formation of temporarily free funds. Available funds lose their value over time due to inflation and other reasons. Consequently, optimization of cash flows should include balancing them by type, volume, timing and other characteristics, as well as increasing the net cash flow of the enterprise. At the same time, cash flows must be subordinated to the fulfillment of the enterprise’s mission and the goals of its activities in the book market.
The need to optimize the cash flow of an enterprise is determined by the following basic provisions.
Cash flows are the “financial blood circulation” of an enterprise; they serve almost all aspects of business activity. Properly organized cash flows are the most important condition for obtaining effective results from an enterprise.
The financial stability of an enterprise is largely determined by how different types of cash flows are synchronized with each other in time, in the direction of movement, etc. Insolvency can occur even for enterprises that receive a sufficient amount of profit due to an imbalance of receipts and payments over time.
Rational formation of cash flows helps to increase the rhythm of all logistics processes of the enterprise. Any failure to make payments has a negative impact on the formation of inventories of raw materials, labor productivity, sales of finished products, etc. Effectively organized financial flows create conditions for optimizing the movement of all other types of flows (material, information, personnel, service).
By actively managing cash flows, you can ensure a more rational and economical use of your own financial resources and reduce the need for borrowed capital.
Cash flow management ensures acceleration of the enterprise's capital turnover by reducing production and financial cycles, reducing the need for capital serving the economic activities of the enterprise.
Synchronizing the flow of receipts and payments of money allows you to reduce the real need of the enterprise for free cash balances, which contributes to the formation of additional resources that can be directed to investments that are a source of profit.
The following stages of financial flow management are distinguished:
Accounting for their movement. Like the management of all other types of logistics flows, cash flow management must be provided with the necessary information. Accounting provides this information.
It should be noted that external consumers should also have financial information about the company’s activities. Owners (current and potential), government organizations, creditors (for example, suppliers of goods who sell them on credit), and consumers (clients) are interested in obtaining information about the financial condition of a company. Each of the interest groups uses financial information for its own purposes. Potential owners - to decide on the acquisition of shares, suppliers - to determine the terms of delivery, government agencies - to monitor the correct payment of taxes, etc.
Analysis of cash flows based on accounting data. It is determined whether the enterprise has enough funds, whether they were used effectively, whether a balance was achieved in the flow of receipts and payments of funds, etc.
The analysis should be carried out both for the enterprise as a whole and for individual areas of its activity, as well as for individual structural divisions. As a result of the analysis, opportunities are identified:
reducing the enterprise’s dependence on external sources of raising funds;
balance of receipts and payments in terms of time and volume;
interrelationships of cash flows by type of economic activity of the enterprise;
increasing the amount of net cash flow (profit).
Cash flow planning is carried out both for the enterprise as a whole and in the context of its various types of activities. Since the development of the financial situation in the future is a process characterized by significant uncertainty, it is advisable to carry out planning in the form of developing several options corresponding to different scenarios for the development of events (optimistic, realistic, pessimistic).
Control of cash flows: fulfillment of planned indicators, uniformity of cash flow formation over time, efficiency of use of cash flows, solvency of the enterprise, net cash flow.
As already noted, the main goal of optimizing the cash flow of an enterprise is to ensure its financial stability and competitiveness in the book market. The most important prerequisite for optimization is the study of factors affecting financial flows. There are external and internal factors, or factors of the external and internal environment of the enterprise.
The main external factors include:
Book market conditions. The market environment has a significant impact on the receipt of funds from sales of products. The higher the demand for products, the better they sell and the greater the flow of revenue from sales. A decline in demand, on the contrary, reduces the flow of revenue from the sale of goods, which can lead to a shortage of funds for the enterprise and the accumulation of significant inventories of products that cannot be sold.
Industry practice of lending to suppliers and buyers of products. This practice determines the established procedure for purchasing products - on the terms of prepayment, cash payment, deferred payment (commercial loan).
Tax system. Its changes affect the volume and nature of tax payments of the enterprise. It is important to have complete information about the possibilities of minimizing tax payments and optimizing the tax burden.
Conditions of the financial and credit markets. The state of the financial market affects the price of the company's shares. In addition, financial market conditions determine the possibility of effectively using the enterprise's free funds by purchasing shares, and also affects the receipt of funds from the securities it already has (dividends, interest).
Depending on the conditions of the credit market, the volume of banks’ supply of “expensive” or “cheap” (interest rate), “short” or “long” (loan terms) money increases or decreases, which affects the possibility of generating the enterprise’s cash flows from this source.
The main internal factors influencing the cash flows of an enterprise are:
Duration of the logistics cycle. The shorter the duration of the logistics cycle, the faster the purchased materials are converted into finished products and sold to customers, and the more money turns around, bringing profit as a result of the completion of each cycle. At the same time, the acceleration of financial flows not only does not lead to an increase in the need for working capital, but even reduces the size of this need.
Seasonality of demand and product sales. Significantly affects the formation of cash flows over time, causing the formation of both temporarily free funds and an increase in costs. An example of seasonal fluctuations, for example in the book business, is the need to produce and purchase educational publications by the beginning of the school year, an increase in sales of calendars and greeting cards for the New Year holidays and their decrease in the summer season.
Financial mentality of owners and qualifications of company managers. They affect the choice and implementation of the financial policy of the enterprise. The owners distribute the income of the enterprise and decide whether it will be actively invested in its development or directed to other needs. Managers implement the financial policies developed by the owners, so the level of their qualifications, which determines the effectiveness of their decisions, becomes important here.
Enterprise life cycle. Different stages of an enterprise's life cycle are characterized by different volumes and structure of cash flows. The following stages of a company's life cycle are distinguished:
1) Entering the market. At this stage, the enterprise has a small profit, and sometimes even losses, since sales volumes are small, and the costs of organizing production and sales are very significant.
2) Enterprise growth. This stage is characterized by a high rate of increase in the output of products (services) and its sales. This leads to a noticeable increase in profits. There is an active investment of profits in new areas of activity, in the development of new markets, products, etc.
3) Maturity. At this stage, the enterprise’s economic growth rates may slow down, and its business goals and strategies may be revised. At the same time, the best enterprises are constantly looking for new competitive advantages and continuously improving their products. This position allows you to increase the duration of the growth and maturity stages indefinitely.
4) Decline in activity. The growth of the enterprise stops, sales volumes and profits decrease, competitiveness and financial stability decrease. All this can lead to the company leaving the market. The recession stage can be caused by both objective external factors (for example, a decrease in demand for these goods), and mistakes made by the management of the enterprise, unused opportunities, etc.
Despite the obvious advantages that financial logistics demonstrates in its “ideal” version, in practice today it can only give recommendations on how to most rationally combine forms of payment and types of payments. If the financial flows at the entrance and exit of the company are more or less clearly formalized, then the financial flows within the company (and these are not only calculations, but, say, investments) occur in different ways not only in space, but also in time. How do investments turn into fixed assets, how does depreciation occur, how does the process of value transfer occur? Today, financial logistics does not even reach the level of raising these questions.
Logistics is the art of reasoning and calculation. In economics, logistics is a scientific and practical activity related to the organization, management and optimization of the movement of material, information and financial flows from the source to the final consumer. At the beginning of the twentieth century in Russia, professors of the St. Petersburg Institute of Railways published the work “Transport Logistics”; on its basis, models of troop transportation were built, which received practical application in conducting and planning military operations of the First World War. During World War II, logistics was widely used in the logistics of the army. The active use of logistics in the economy dates back to the 60–70s of the last century. Until the middle of the last century, little importance was attached to the creation of product supply schemes. This period is characterized by the development of production. However, by the middle of the last century, the need arose to find ways to create competitive advantages. At this stage, cash investments in the distribution system affect the supplier's position in the market more than capital investments in production. Tracking all stages of the movement of raw materials, parts and final products allows you to see the losses allowed in the usual schemes for managing material flows. In logistically organized chains, the cost of goods at the final destination turns out to be lower than the cost of the same goods in the absence of a logistics approach. This monitoring shows clear economic benefits from the use of logistics in the economy. That is why logistics began to be used for more efficient management of material flows. The active use of logistics was helped by scientific and technological progress, which made computer technology and instant communication more accessible. This made it possible to monitor material and information flows, managing them at all stages of movement.
2. Functions and tasks of logistics
There are two types of logistics functions: operational and coordination. Operational functions are associated with managing the movement of material assets in the field of supply production and distribution.
In the supply sector, this is the management of the movement of raw materials, materials, and stocks of finished products from the supplier to the manufacturing plant, warehouse or commercial storage facility.
At the production level, logistics is management that includes control of the movement of semi-finished products through all stages of production, as well as the movement of goods to warehouses and sales markets.
Distribution management covers the organization of the flow of final products from producer to consumer. The functions of logistics coordination include: identifying and analyzing the material needs of various parts of production, analyzing the area of markets in which the organization operates, forecasting the development of potential markets, processing data on the needs of the clientele. The essence of these functions is to coordinate supply and demand. Based on relevant information, logistics deals with matching the demand presented by the market situation and the supply developed by the organization. From the coordination function of logistics, another direction was formed - operational planning. Based on the demand forecast, a transportation schedule and a procedure for managing finished product inventories are developed, ultimately determining production planning and developing programs for the supply of raw materials and components. The following functions of logistics are distinguished from the fundamental positions: system-forming, integrating, regulating, resulting.
Backbone logistics is a system of effective technologies for ensuring resource management.
The integrating function is to ensure the synchronization of the processes of sales, storage and delivery by logistics with reference to the market for means of production and the provision of intermediary services to consumers. The regulatory function is to implement the management of material, information and financial flows to reduce costs.
The resulting function involves the activity of delivering goods in the right quantity at a certain time and place with the required quality at the lowest possible cost. The criterion for determining the effectiveness of the implementation of logical functions is the achievement of the final goal of logistics activities.
The challenges facing logistics can be divided into general, global and private. Achieving maximum effect with minimal costs is the main global task of logistics. Modeling of logistics systems and factors of their functioning is also considered a global task.
Common tasks include:
1) creation of a system for regulating material and information flows;
2) forecasting possible volumes of production, transportation, storage;
3) determining the discrepancy between the need and the opportunity to implement it in production;
4) identifying demand for a product developed and promoted within the logistics system;
5) organization of pre-sales and after-sales services.
Based on solutions to common problems, a network of warehouse systems is created to organize customer service and optimally attach them to production points.
Particular tasks have a narrower focus and include:
1) creation of minimum reserves;
2) maximum reduction of storage time of finished products;
3) reduction of transportation time.
The basic rules of logistics can be formulated as follows: the right product of the required quality in the right volume is delivered at a certain time and place with minimal costs. The main object of research in logistics is material flow. The actions attached to the material flow are called logistics operations, or logistics functions. Material resources in a state of movement, work in progress, manufactured products, to which logistics operations or functions are applied, determine the material flow.
A logistics operation is a movement coordinated with the emergence, absorption and transformation of material and accompanying information, financial and service flows.
The logistics function is an autonomous component of logistics operations aimed at solving the tasks assigned to the logistics system and units. The combination of logistics operations and functions depends on the type of logistics system.
3. Basic concepts of logistics
The concept of a logistics system is central to logistics. A complex organizational system, consisting of fragments of links united in one process for managing material and related processes, is logistics. The tasks of functioning of the system’s links are united by internal tasks of the business structure or external goals. Certain functional connections and relationships have been established between the elements-links of the logistics system. Some economically and functionally isolated object is called a logistics link of the system. It fulfills its narrow role defined by logistics operations and functions. There are several types of links in the logistics system: generating, transforming and absorbing. Often there are mixed links in the logistics system, in which three main types are presented at once, combined in various combinations.
Material flows in the links of the logistics system can converge, split, branch, change their content, parameters and intensity. Enterprises supplying material resources, sales, trade, intermediary organizations of various levels, enterprises of information and trade services and communications can act as elements of the logistics system.
Another concept in logistics is the supply chain. A large number of links in the logistics system represent a supply chain.
The links in the logistics chain are linearly ordered by material, information, and cash flow with the task of analyzing or designing a certain set of logistics functions or costs.
The next concept in logistics is the logistics network. A logistics network is a large number of links in the logistics system that are interconnected by material or accompanying information and cash flows within the boundaries of the logistics system.
The logistics network is a narrower concept in contrast to the logistics system, which is characterized by the presence of senior logistics management that implements the target function of the system.
The concept of total costs is usually associated with another concept in logistics - the logistics channel. A logistics channel is considered an ordered set of links in the logistics system, which includes the full scope of logistics chains or their participants, conducting material flows from the supplier of material resources needed for the manufacture of a specific type of product to direct consumers.
The concept of a logistics channel includes external, intra-production and macro-logistics groups within the defined framework of each logistics operation. Therefore, the concept of total logistics costs is fundamentally important.
4. Factors and trends in the development of logistics
In industrialized countries, interest in the problems of logistics development is associated with economic reasons. The development of logistics was predetermined by the following factors: increasing requirements for the quality characteristics of the process, the transition from a seller's market to a buyer's market. This transition was accompanied by significant changes in commodity distribution systems and production strategies. If previously the sales system was adjusted to production, then in conditions of market oversaturation, production programs are formed depending on the volumes and divisions of market demand. In conditions of intense competition, adapting to the interests of the clientele requires manufacturing companies to respond to these requests, which leads to improved quality of service, minimization of order fulfillment time and strict adherence to the agreed delivery schedule. Time factors, together with price and quality of products, became decisive for the successful functioning of the enterprise. It is necessary to note the complication of the implementation problem with parallel interest in the quality of the distribution sphere. A similar reaction arose from manufacturing companies to their suppliers of resources and materials; as a result, a complex system of connections was formed between various market representatives, which required modification of existing organizational models in the field of supply and sales. The replacement of traditional conveyors with robots has led to significant savings in human labor. Manufacturing small batches of products has made it cost-effective to create flexible manufacturing systems. Large enterprises were given the opportunity to restructure their activities from mass production to small-scale production with minimal costs. Small firms were able to increase their flexibility and competitiveness. Working on the principle of “small batches” in the system of organizing the provision of material resources and the sale of finished products has entailed corresponding changes. Often, deliveries in large quantities have become not only uneconomical, but in some cases they have simply become unnecessary. There was a need to move cargo in small batches within tighter deadlines, but there was no longer a need for large storage capacities at enterprises. At the same time, transportation costs were covered by funds released from the reduction of warehouse space. As directly determining the development of logistics, in addition to the above, it is necessary to note the following factors: the use of systems theory and compromises to solve economic problems, the introduction and use of the latest generations of personal computers in the field of product distribution and business practices of firms, as well as the acceleration of scientific and technological progress; in countries that have intensive connections with each other, standardization of technical means of communication, moving stock and loading and unloading equipment, elimination of various import and export restrictions. The ascent from the lowest stage of logistics development to higher ones, as a rule, is gradual or, when favorable conditions appear, zigzag. Such conditions may include mergers of enterprises, changes in management regimes, and political initiatives. An analysis of the levels of logistics development showed that those companies that use a diverse approach to logistics management improve their performance indicators. The development of logistics in countries with developed economies in recent years is characterized by the transfer of the function of monitoring the process of distribution of finished material from manufacturing enterprises to specialized firms. As a result, a type of contract logistics has emerged, which involves the involvement of a third party in the form of a wholesale trade company to perform all or part of the company’s functions for the distribution of products, along with transportation, storage, inventory management, customer service and the creation of logistics information systems.
5. Basic principles of logistics
In order to master logistics and improve it, some companies are creating advisory centers. The development of logistics is carried out in conjunction with the development of the concept of logistics and its principles. Of utmost importance in the development and creation of logistics systems are the principles that determine the nature and essence of the entire coordination device in general and its individual aspects in particular. There are several basic principles that reflect the logistics approach to solving problems in production and economic activities.
1. The principle of synergy. This principle defines an integrated and systematic approach to achieving certain goals. Taking into account the interaction of the mechanism of production and circulation, on the basis of this principle it is possible to achieve a better result in the overall structure by coordinating actions in all interrelated processes than by improving the functioning of individual elements of the logistics system.
2. The principle of dynamism. Logistics systems must reflect the essence of the processes they cover and should not be frozen organizational and economic entities.
The essence of the logistics process lies in progressive dynamics, which is determined by development and the desire for improvement. Dynamism determines supply and sales operations, means and objects of labor, goals and objectives expressed at the next stage of development.
3. The principle of completeness. This principle means that logistics systems should be built as a community of several or many elements that are closely interconnected. Within the logistics system, continuous autonomous operation of any individual elements is not allowed. Emergencies and unusual situations are an exception.
4. The principle of initiative. Logistics systems built on this principle presuppose that the resulting structures demonstrate the ability to make a determinative reaction to probable events, together with the ability to create and regulate subjective conditions that positively influence the processes of economic activity.
5. The principle of expediency. Focuses on attracting the potential that plays a positive role in achieving goals. The choice of organizational, technical and technological structures reveals selectivity, expressed by the desire to reduce costs or travel time in the conditions of the possibility of solving certain problems in several ways.
The concentration of interrelated functions in united structures for warehousing and transport under single leadership determines, first of all, the implementation of the principles of logistics. The transition to integrated management is carried out using a logistics approach, in contrast to the traditional one, where management is often isolated. The progressiveness of economic systems from the point of view of logistics is achieved not by increasing the material and technical base, but by improving it. With the logistics approach, all factors that relate to the economic system and that are associated with it are coordinated. The most effective indicators in the organization of economic activities are achieved as a result of the parallelism of the mechanism of production, transportation, supply and sales with maximum integration of interconnected systems and subsystems based on the principles of logistics. Reducing inventory volumes, uncoordinated material flows, reducing storage costs, moving material resources and manufactured products occurs as a result of the implementation of logistics principles.
The principles of logistics make it possible to improve the methodology and improve the quality of organizational design, to provide a systematic approach to the design of transport and warehouse, production, communication and information subsystems.
The practical application of logistics tasks and principles depends on the specific situation and is diverse.
6. Information support in logistics
The introduction of information and computer technologies into all areas of business determines the current state of logistics. Without the use of high-speed computers, the implementation of most logistics concepts is impossible. Information support of the logistics process is so important that experts highlight information logistics, which has independent significance in business and information flow management.
Information flow is a flow of messages in paper and electronic (documentary), speech and other forms, put forward by the initial material flow in a certain logistics system, between the links of the system or the logistics system and the environment and intended for the implementation of control functions.
Based on their connection with logistics activities and functions, elementary, key, complex and basic information flows can be distinguished.
Information flows in connection with the logistics system are divided into:
1) passing within the logistics system or its link or flow;
2) passing between the logistics system and the external environment.
The most common types of storage media are paper and magnetic media.
Based on the time of occurrence of information, flows are divided into:
1) regular (stationary);
2) periodic;
3) operational.
Regular corresponds to time-regulated data transmission, periodic is strictly limited by transmission time, operational provides communication between subscribers in an interactive mode. Depending on the purpose, control and auxiliary information flows, information flows for conducting accounting and analytical activities, for making decisions, and normative and reference information flows are determined. In modern logistics, the increasing role of information flows is due to the following main reasons.
A necessary element of a consumer logistics service is information about the status of the order, product availability, delivery time, and release documents. The availability of complete and reliable information from the standpoint of supply chain inventory management can reduce the need for labor reserves by minimizing the relativity of the demand line. The flexibility of the logistics system increases information with this approach, where resources can be used to achieve specific benefits.
Logistics management has numerous indicators and characteristics of information flows:
1) terminology of transmitted messages, types of data, documents;
2) volumes of data;
3) data transfer speed;
4) the capacity of information channels;
5) noise immunity.
There is no unambiguous synchronous correspondence between the information flow and the material flow in time. The information flow either leads or lags behind the material flow. Sometimes the material flow is a consequence of the information flow. Typical is the presence of several information flows next to the material flow. The information flows accompanying individual logistics functions can be very complex and document-intensive.
The specific needs of logistics management determine information flows in the logistics system when developing some details of regulatory planning, analysis and accounting. As an example, consider a diagram of information sources and emerging information movements when forecasting the dispersion of inventories of manufactured products in the distribution network. When an enterprise plans inventories of finished products, it takes into account consumer requests, forecasting sales volumes, distribution decisions, and inventory management costs. Information reflecting consumer requests details the classes and groups of consumers in a certain part of the market, the routes for delivering finished products to each group and the formation of a logistics service.
Information flows carry information about product requirements, the cost of finished products, the procedure for ordering and delivering finished products to consumers. To forecast sales volume, information sources include information such as:
1) information on previous sales of a specific market assortment;
2) the number of sales of competitors' products;
3) the entire sales volume of a given market segment;
4) market demand for finished products;
5) reliability and accuracy of information about previous sales;
6) planned changes in the quality characteristics of finished products;
7) economic directions in changing the structure of consumer demand;
8) short-term forecasts in the finished product distribution system;
9) forecast for the development of new markets.
Information flows characterizing decisions in the distribution system can be divided into those characterizing the temporary reasons for operations in the distribution network and reflecting the accuracy and reliability of the data. Information that reduces the uncertainty of distribution timing combines order fulfillment data. Temporary parameters of transportation are associated with the choice of delivery scheme, route, etc. The cycle of receiving an order and its duration include information about the time of cargo delivery, the destination, the time of loading and unloading, and documentation. Information flows associated with reducing the uncertainty of other parameters take into account delivery conditions, reliability and accuracy of information when managing inventories. The considered information flow for one function of logistics management gives an idea of the complexity and variety of information flows in the logistics system.
7. Control in logistics
To achieve constant efficiency in any type of production and economic activity, it is necessary to have an appropriate control system. Streaming process control is no exception. Without an effective control subsystem, a logistics system cannot be considered fully capable. The absence of this subsystem leads to significant losses. The parallelism and coherence of the mutual processes of all subsystems and subsystems in the logistics system breaks down, the reliability of the combined work of various components and individual subjects of activity drops sharply. The time of unaccounted periods of non-use of machinery and equipment is increasing.
The quality of products, work and operations performed is reduced, which has a detrimental effect on the level of customer service. Increased risks and significant costs in the course of regulating material, cash and other flows entail the failure to apply the necessary control. Failure to exercise control can be a very dangerous threat, but it is not the only cause of risks. The quality of the tactical and strategic decisions made plays an important role, because the nature of risks in production and economic activities is diverse.
Making the right tactical decision makes it possible to relatively quickly check ongoing processes and, accordingly, reduce or eliminate potential losses. Risks of a strategic nature that arise on a long-term basis require complex insurance schemes for possible assessments.
8. Types of concepts in logistics, their characteristics
Several periods can be distinguished for improving systems for promoting goods and finished products: during the period of absence of logistics, traditional logistics and the period of new logistics. Each of these periods is characterized by conceptual approaches to the creation of these systems, as well as, accordingly, to their management criteria. Management of material distribution was fragmented in the pre-logistics period.
There was a need to control transportation, check cargo invoices, packaging, weighing, and related work. The work of a cargo transportation manager has become more diversified. This and the above factors served as the basis for the development of logistics. It is not something completely new and unknown to practice. The problem of rational movement of materials, finished products and raw materials has always been the subject of close attention.
The innovation of logistics consists in changing the criteria for the economic activity of enterprises, where the main role is played by the management of commodity distribution methods. Another innovation in logistics is the use of a combined approach to the positions of movement of commodity resources in the reproduction process. Material flow management and coordination of actions with a fragmented management method are clearly insufficient. With this approach, the necessary sequence is not observed and it is not possible to coordinate the actions of various divisions of the enterprise.
Based on an integrated approach, logistics presupposes the consistency of methods that are interconnected with material flows, production and marketing. And along with all of the above, the innovation of logistics lies in the use of the theory of compromises in the economic activities of firms. The innovative approach of logistics made it possible to move away from autonomous regulation of various methods of commodity distribution and to combine them, which made it possible to obtain a result of activity that exceeded the sum of the individual effects. The period of traditional logistics is distinguished by the creation of a logistics system that replaced the process of optimizing transportation at enterprises. This period is determined by the presence of several conceptual approaches to the creation of logistics systems, differing in the scope of application in the harmonization of economic interests, as well as criteria.
Economic interests within each conceptual approach were of an intralogistics functional nature. And they did not affect the production activities of firms.
In the first approach, the scope of harmonization of economic processes was the costs of certain logistics operations of one company with the criterion of minimum total costs for material distribution. This approach allowed us to achieve certain results. It turned out to be possible to reduce the costs of the entire logistics system to a minimum by increasing the costs of some operations in order to reduce the costs of other operations. A typical example of this approach is increasing transportation costs by reducing the costs of regulating storage stocks. A positive economic effect while minimizing total costs was achieved by focusing on the use of intrafunctional compromises (harmonization of economic interests). The cost criterion limits the financial capabilities of the enterprise, since it does not reflect the influence of demand on the relationship between profits and expenses. As a result, a transition has emerged to extracting maximum company profit from logistics operations, which takes into account both demand and costs. However, the new approach also had a number of limitations.
The separation of the logistics mechanism within production infringed on the interests of enterprises participating in the same logistics process. Therefore, at the end of the period of traditional logistics, changes occurred in its concept. Maximum profit from logistics operations of all enterprises participating in the process has become a criterion for the formation of an optimal management and distribution system.
The beginning of the 1980s was marked by a new period in the development of logistics - the period of new logistics (neologistics). The need for its implementation was justified by the fact that none of the zones operating within the enterprise, including logistics, as a rule, has the proper resources and capabilities to respond quickly enough to changes in external conditions and work effectively autonomously. A collaborative effort across all parts of the organization was required to optimize the response. The work required specific knowledge and experience of managers who viewed the activities of enterprises as a single whole. The conceptual approach is called an integrated or enterprise-wide approach. Logistics functions within the framework of this approach are considered as the most important subsystem of the overall production system.
What this means: logistics systems are created and managed based on a common goal - achieving maximum efficiency in the operation of the entire enterprise. Attention began to focus on cross-functional trade-offs, not excluding production and other non-logistics departments. Minimizing the costs of the entire enterprise has become a criterion for this approach.
9. Basic concepts of information logistics
Logistics can rightfully be considered a significant factor in the implementation of measures aimed at increasing the economic positivity of production and sales. In the rationalization of these activity structures, great progress can be achieved in the case of maximum coordination of commodity and information flows when they merge, which is the priority task of logistics. To solve this problem, it is necessary to use large-scale standardization of material and technical connections and organize functioning on the basis of fundamental analysis and the use of new technologies that ensure automation of operations.
The main links of the logistics system, which are divided into a number of structures, can be represented as horizontal functional subsystems in the procurement, production and sales sectors. Each of these elements is inevitably present in any production; logistics combines them into a system with certain goals and objectives that relate to the area of minimizing the costs of the entire production, and not of this individual element.
Information support for production is a tool for similar unification, starting with procurement and ending with the sales system. The reason for success or failure in the external sphere of activity of an enterprise on the market can be: obtaining operational information about an event or situation in the market, refusal or receipt of a supply request.
An important role is played by the complex of information support. The connecting threads are the flows of information on which all elements of the logistics system are connected. The creation of databases, communications within the enterprise, and the presence of a number of decision-making activities require an information network.
Even in the recent past, the main problems that worried logistics system developers related to the area of physical flows of goods and raw materials.
Accompanying documentation was considered to provide information support for the process of moving goods from supplier to consumer.
As logistics systems developed in production, the need began to be felt for the development and implementation of logistics information systems that could unite all logistics subsystems into one whole.
The successful implementation of this concept into practice was facilitated by the awareness of the fact that information at the current level of production development is a self-sufficient production factor.
Its potential opportunities open up great prospects for strengthening the competitiveness of enterprises. To effectively analyze the information activities of logistics, it is necessary to accept the entire logistics system as a base of functionally limited logistics subsystems, the operation of which as a whole is ensured by information logistics at the level of its own subsystems. This division is very arbitrary.
In practical activities, close interweaving and interaction are the stronghold for the successful operation of the entire complex as a whole. One more aspect needs to be noted.
The main place of planning and production management is the organic relationship between centralization and decentralization in the work of individual subsystems. As a rule, well-organized separate work of each subsystem does not lead to the best results in the activities of the entire system. Even with highly qualified personnel, the functional isolation of individual production departments can hinder the increase in the efficiency of the entire system as a whole.
The presence of an information system that would make it possible to link together all activities and organize their management based on the possibility of a single whole is the main component of the work of the entire production. To create an information logistics system at the production level, you need to formalize its model.
An information system at the production level is a component that links together and serves to coordinate supplies, production and sales.
The definition of a supply coordination system consists in decomposing physical flows into independent transportation and storage areas, in preparing information about the period and state of the flow in an accurate time scale.
Information logistics goes well with computer technology. The computer system brings mutual benefits.
Firstly, such a system optimizes the management of logistics that become increasingly complex over time. For compact production with a synchronous delivery type, such as just-in-time, the coordination of the movement of incoming material becomes increasingly important.
Secondly, optimizing the operation of information logistics when exchanging supply data affects the increase in the level of inventory management.
The exchange of supply data distributed across a network of companies allows the manufacturer to reduce the costs associated with supplying the entire supply chain. By optimizing its operation, the manufacturer receives tangible savings. The resulting savings are divided in certain shares between the manufacturer, supplier and transport company, reimbursing the costs invested in the creation and maintenance of up-to-date information systems, and creating additional profit from their use.
Obtaining the effect of information logistics stimulates all participants in the logistics process to maintain the achieved level of this process, as well as to invest new funds in its optimization. The constantly updated database of the coordination system helps to evaluate the efficiency of logistics services.
Analysis of the existing system is one of the approaches to creating a diagram of information flows in production. It involves reducing certain production units to individual components, combining which, one can obtain a model for analyzing options for enterprise units.
The structural model must contain the main elements:
1) production capacity and means of realizing material flow. Combining these elements, researchers and system organizers divide the entire production structure into buffer and technological. This approach considers all types of activities from receiving raw materials to transferring finished products to the consumer.
2) instant response to the slightest change in market conditions, which is a vital necessity. This response is possible with the effective functioning of the information flow and all information logistics in general.
10. Marketing logistics
In the modern period, the use of marketing in distribution logistics has been argued, which can contribute to a more optimal course of improvement of sales activities.
From the perspective of the logistics approach, the concept of marketing is divided as a general business idea, covering the entrepreneurial activities of all services, and as a functional activity of a special service for studying sales markets for manufactured products, determining prices and drawing up price lists, developing promotions, etc. The most important are the following functions marketing:
1) market research;
2) distinguishing it in relation to supply and demand;
3) ensuring the advantages of your product in relation to competitors;
4) development of a marketing proposal.
Developing a marketing proposal for options for specific sales activities is a central function of marketing.
Firms must carry out extensive research work on the product market to determine their marketing proposal.
Market research is one of the determining prerequisites for organizing product promotion. This process was defined as a separate structure of intra-company activities.
In connection with the orientation of enterprises towards a specific product market, the role of market research has especially increased. Manufacturers feel an urgent need for detailed information about the market for their products and changes in consumer demand.
Information received from sales department employees is sometimes incomplete for making a qualified decision.
11. Financial flows in logistics
In a developing market economy, increasing the efficiency of promoting commodity flows is achieved by optimizing financial services, which determines the importance of studying logistics cash flows and inventories. Inventory assets unite all types of material goods, including real estate; intangible assets include services and intangible assets.
The least studied area of logistics is currently the mechanism of financial servicing of commodity flows. In the specialized literature, some of the issues relating to its content are not considered at all. There are significantly different points of view on other issues. Already when determining the essence of financial flows, certain differences arise.
There are several approaches to determining financial flows. Cash flow refers to any movement in the macro- or microeconomic environment. Financial flow refers to movement only in the logistics system. With any methods of organizing entrepreneurial activity, financial flows have always existed in one form or another.
The greatest efficiency of their movement, as practice has shown, is achieved through the use of logistics principles for regulating material and financial resources, which leads to the formation of a new term - logistics financial flow.
To ensure efficient movement of goods flows, financial logistics flows are created and used. The need to service the process of moving inventory and intangible assets in time and space is a specific feature of the logistics financial flow.
Logistics financial flow is the directed movement of financial resources.
The need to ensure the movement of material flow is determined by the direction of movement of financial resources in logistics.
The movement of financial resources occurs either in the logistics system or between the logistics system and the external environment. In terms of their composition, logistics financial flows are heterogeneous according to a number of characteristics (direction of movement, destination, etc.). The need for their detailed classification determines the need for the formation of more positive methods for managing logistics financial flows.
In logistics, certain characteristics are used to classify financial flows: relationship to the logistics system, direction of movement, form of payment, type of economic relations.
Financial flows within the framework of considering a certain logistics system can be external and internal. Outside the logistics system under study, an external material flow flows in the external environment; an internal financial flow flows inside the logistics system, which changes when a number of logistics operations are performed.
An incoming financial flow enters the logistics system from the external environment, begins its movement from the logistics system under consideration, and the outgoing financial flow continues to exist in the external environment. Logistics financial flows can be divided into groups according to their purpose: financial flows passing in accordance with the process of purchasing goods, for the reproduction of labor, associated with the formation of material costs, investment financial flows.
All financial flows in logistics, depending on the forms of payment used, can be divided into two groups: cash financial flows, which determine the movement of cash financial assets, and information and financial flows, which are characterized by the movement of non-cash financial assets.
Cash flows are divided into cash flows for ruble accounts and for settlements in foreign currency. Information and financial flows include flows of non-cash financial resources, payment requests, etc. Along with cash flows, there are information, material and accounting and financial flows.
Logistics accounting and financial flows characterize the movement of financial components within the framework of this process.
Financial flows based on the types of production connections are divided into longitudinal and vertical. Longitudinal ones reflect financial resources between equal representatives of entrepreneurial activity, vertical financial flows arise between subsidiaries and parent commercial organizations.
In each specific case, it is necessary to establish its own specific composition of classification characteristics of logistics financial flows.
The main task of financial services for commodity flows in logistics is to ensure their movement with financial resources in the required volumes, within a certain time frame and using the most optimal sources of financing.
In the most primitive case, a certain commodity flow corresponds to a financial flow.
The variety of forms and directions of development of the financial market is the specificity of its work, provided there are calm market relations in Russia.
It should be noted that the effective use of stock market details allows you to optimize the operation of financial flows and significantly improve business performance.
The analysis of the financial mechanism for servicing commodity flows showed that the existence of a commodity flow is due to the presence of a logistics financial flow.
The volume, source and start time of the financial flow depend on the form of payment agreed upon with the supplier and customer of the goods and on the additional conditions specified in the purchase and sale agreement.
The practice of using various types of securities to optimize mutual settlements, which has become widespread recently, has led to a complication of the scheme for monetary servicing of commodity flows, but on the other hand, to an increase in efficiency.
In the field of logistics and financial planning, subject to certain conditions and the use of a specific financial service mechanism, the use of securities allows you to save money when delivering goods.
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