Development of logistics centres by network theory

Abstract

Logistics centres with huge product-stopping capacity and having the ability to create added value have emerged in recent decades. These centres have become network nodes between the co-operating organizations which accomplish the management of supply chains (networks) by connecting different modalities and networks with their infrastructure and informatics background. The effective operation of logistics centres appearing in business networks are usually managed by logistics supplier businesses (3PL/4PL). Defining the supply net as a complex network, logistics centres may be called hubs, the routes and relationships connecting the centres, or – by borrowing the term used in network theory – may be called edges. Taken into consideration the earlier results of network research, the present paper aims to find the correlations between the principles proved by Barabási and the growth possibilities of the centres (hubs) operated by logistics service providers. The conclusions drawn by Csermely concerning cellular networks provide further opportunities for the application of the results of theoretical network science to logistics systems. Considering the references above and the results of empirical research and experience gained among domestic logistics companies, the best responses to the challenges posed by business networks can be recommended to domestic logistics service providers. Furthermore, the results of network research can be set in parallel with the research conducted by Reszegi - Juhász on performance enhancement involving 4,600 Hungarian businesses. At the end of the paper, an attempt is made to describe a system of correlation between network phenomena and the activities employed in implementing the strategies of logistics service providers.