A company’s logistics network is part of a global network in which the logistics systems of many different companies in the logistics industry are intertwined. Because multiple logistics networks are interconnected, the company’s own network must be considered separately, delineated, and rules defined for its relationship with other logistics networks, such as those of suppliers and customers. The scope of management for a company’s own logistics network depends on how critical logistics is to the company’s objectives. For example, the management of a logistics network for companies in the automotive industry extends beyond their customers to include their suppliers’ suppliers.
Flows of goods, cargo, and people are guided and controlled by information and data flows as they pass through the logistics network. The structure of a logistics system—that is, a logistics network—generally consists of a specific number of the following factors:
- Inbound stations
- Service or logistics stations
- Outbound stations
- Inbound flows
- Outbound flows
An analysis of the entire logistics network can be divided into three areas:
- Intra-facility logistics network of a business location (Intralog)
- External logistics network of a facility (Extralog)
- Cross-company logistics network (Interlog)
Just as the terms intranet, extranet, and internet are used in communication and information networks, the three areas of the logistics network can be defined as the intralog network, extralog network, and interlog network.
For more information, see Intralog.
Image license: CCO 1.0, Author: Public Domain CC0
