Saturday, 27 June 2015 08:47

Logistical context of a business model

MAGAZINE №1 (66) February 2015


CATEGORY Terminology in Logistics and SCM


Multi- and interdisciplinary nature of the supply chain management and modern logistic strategic potential define logistical context of a business model.

Some implications have been made based on the reviewed articles about logistics and business models.  (1) It is evident that authors have little agreement about logistical challenges in business models that can be explained by lack of unity in understanding the business model concept.  (2) Logistics and business models are interrelated. Logistics influences efficiency, results and possibilities of a business model development. Moreover, a business model defines requirements for logistics. (3) Significance of logistics in a business model is determined by the object of logistics which is an aggregate of interrelated material, information and financial flows. The system of material flows ensures management of information flows in the value chain. This in turn is a basis of fair distribution of financial results between supply chain partners.

The author uses a consolidated definition of a business model as an object that deals with assessment, creation, distribution and supply of value to the client, and also with allocation of profit collected thanks to its acknowledgement on the market. The researcher attempts to update logistics as an instrument of developing and applying a business model. It is emphasized that it has an unquestionable primary role in the chain to create, distribute and supply value to the client.

The author suggests and describes the model of a logistics business model and develops a system of indicators to evaluate and analyze logistics in a business model.  The system of indicators can be used to complete two tasks. The first task is to evaluate logistical component of a business model to develop logistical strategy in a company. The second task is to analyze the results of logistical activity in the framework of a business model to understand the rationale to develop a new business model in a company. 



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