Іvanova М. Functions of the Logistics System.

Abstract

The article investigates differences in the interpretation of the term ‘logistics system’ and its functions. In defining logistics system, most modern scholars and scientists distinguish the structural units and material flow components without focusing on the functions that the system has to perform. Disputes rarely arise in determining the properties of an object, which can be considered a system. The study deals with the functions of logistics systems and gives the author's interpretation of the term "logistics system". Currently, the most common are two main approaches to the classification of logistics functions: First, based on the classic management functions with minor distinguishing of the logistics processes, and secondly, from a position of total content of the logistics definition. The author gives examples of "substitution" of concepts, when instead of the term "logistics functions" scientists use the concepts of "functional sections of the logistics management", "the goals of the logistics at the enterprise", "functions and goals of logistics", "functions of the logistics management", "management of the logistics activities in an industrial enterprise". In conclusion, the author speaks about a serious problem of unification of the logistics terminology. The author believes that the logistics system should consist of a combination of elements (input, output, object, subject, limits, and feedback) to ensure the implementation of management influences as to minimizing costs and consequently maximizing profits. The logistics system with imparted management functions should meet a classical scheme of the management process based on the major functions of management: planning, organization, incentive, control.