INTERNAL AND EXTERNAL LOGISTICS AND ITS FEATURES IN AGRIBUSINESS

• Main Author: Velychko О. P.
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2012-01-01
• Series: Економіка розвитку
• Subjects: internal logistics; external logistics; insourcing; outsourcing; classification; agribusiness; peculiarities
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/ee121_61/e121vely.pdf

The article deals with the reasonability of using the notions "internal and external logistics of an enterprise" and "internal and external logistics (in general meaning). It is suggested to consider and classify the essence of the latter according to the origin of sources in logistics service of flow processes (like insourcing and outsourcing). Belonging to external and internal logistics (in general meaning) should be determined in accordance with the independence and involvement of external sources due to organizations’ performance of such processes as supplying, storing, transportation etc.Internal logistics provides for service both of exclusively its own flow processes (closed or restricted logistics) and in complex with additional use of logistics forces outside (insourcing).The integral part of external logistics is partnership, strategic union, contract and outside logistics. Logistics outsourcing can be observed in all types of external logistics while the logistics subcontracting takes place only in the system of outside and contract logistics. The basic level of outside logistics (Party Logistics) is not internal logistics but subcontract services in transportation, storing etc.The features of agricultural enterprise’s internal logistics include the presence of the flow process of stocking up, the sources of which are supplies of material recourses and production of in-house industrial remaking of some agricultural production and complex of agro-service logistics.In the agrarian business at the basic level of outside logistics it is reasonable to distinguish potentially profitable (non-profitable) and independent (subsidiary) subjects. Higher levels provide management of an agricultural company’s supplies chain and complex agrarian and logistics service.