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What is Virtual Corporation

Encyclopedia of Networked and Virtual Organizations
An organization that is created from a network of suppliers, manufacturers and administrative services to accomplish specific objectives, such as flexibility and responsiveness (Fitzpatrick & Burke, 2000).
Published in Chapter:
Virtual Logistics from Outsourcing Logistics
Vladimir Modrák (Technical University of Košice, Slovakia)
Copyright: © 2008 |Pages: 7
DOI: 10.4018/978-1-59904-885-7.ch239
Abstract
The wide utilisation of information communication technology has significantly affected also a development of logistics services concepts. Consequently, research in the area of virtual companies including logistics services is developing. Presented visions are commandingly optimistic, even though sceptics are already gathering counter-arguments against those visions. As an important factor of strengthening, the above-mentioned optimistic vision can be accounted for by a tendency of wider applications of outsourcing. Activities carried out by specialised external providers for a larger number of customers are usually cheaper, particularly because of fixed costs. Moreover, organisations that provide outsourcing bring into partnership their own know-how from optimisation of logistical activities. Cooperation in this field helps to eliminate or reduce unexpected idle periods in transport, such as long transport routes, reloading, customs clearing, and other. A higher form of outsourcing is the inclusion of logistical centers (LC) into a supply chain (SC). With the progressing globalization, the significance of integrated logistical centers is increasing. The aim of the article is to describe the concept of an integrated architecture of a logistic center reflecting progressive trends in logistic management. It also includes a model of features for a designing of a virtual logistical center and description of typical signs of virtual corporations.
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