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Logistic Hierarchy as a Basis for Systemic Management of a Company

Authors: Olga G. Sokolova and Dmitry A. Karkh

Abstract:

The authors explore the issues of applying a system approach to company management to form a logistic system of management. The paper presents the evolution of approaches to the concept “system” and authors’ treatment of the concept “logistic system” as well as specifies main differences of this treatment compared to other definitions. From the standpoint of subject-to-object and process approaches to management at the example of a mining enterprise the major logistic business processes, which take into account the specifics of the enterprise functioning, are identified. Three hierarchical levels of subsystems of logistic system are distinguished. Logistic business processes at corresponding hierarchical levels (inter-organizational, inter-functional and intra-functional levels) are classified to improve the management of the logistic system and achieve company strategic and operational goals. The hierarchy of logistic subsystems allows determining appropriate limits for management parameters and managing company logistic system more efficiently.

Keywords: logistics; system; logistic system; system approach; management; supply chain management; integration; business process.

For citation:

Sokolova O.G., Karkh D. A. Logisticheskaya ierarkhiya kak osnovanie sistemnogo upravleniya predpriyatiem [Logistic Hierarchy as a Basis for Systemic Management of a Company]. Izvestiya Uralskogo gosudarstvennogo ekonomicheskogo universiteta – Journal of the Ural State University of Economics, 2016, no. 4 (66), pp. 99–107.