Logistics development prospects in ukrainian enterprises

Tarasenko Anna

(Kharkiv, Ukraine)

ЕКОНОМІКА ПІДПРИЄМСТВА ТА УПРАВЛІННЯ

(Логістика)

LOGISTICS DEVELOPMENT PROSPECTS IN UKRAINIAN ENTERPRISES

The economic development of Ukraine, which has been observed in recent years, causes a change in priorities in the activity of business entities. It is necessary for enterprises to justify and put into practice the management of the latest approaches to optimize the functioning of their economic mechanism. Logistics is one of these approaches, which is beginning to develop rapidly in Ukraine.

Logistics is the process of organizing, managing, planning, implementation of plans and control over efficient, economical storage and movement of raw materials, production stocks, finished products; management of transportation, warehousing and other and as a result, bringing the finished product to the consumer, as well as the transmission of relevant information in order to improve service [1].

It is important to accelerate the development of logistics in Ukraine to find out the reasons that hinder its practical application. First, it is the absence of a proper state approach to logistics problems. Secondly, general economic crisis, incompleteness of the solution of the property issue, inflation hinders any innovations. Thirdly, there is no comprehensive cost accounting whereby its growth in the transport economy is overridden. Fourth, the logistical approach involves dramatic changes in the structure of the enterprise, the transition to more flexible organizational structures, the creation of specialized workshops. Fifth, development of logistics ideas is hampered by the shortcomings in training. [2].

The prospects for the development of logistics can be summarized in directions: integration of organizations into the global logistics network; introduction of the latest technologies and equipment; development of integrated logistics.

The biggest problem for Ukraine is integration into the global logistics network, as there is a lag in the development of logistics technologies compared to the leading countries. In order to accelerate the integration into the global logistics network, it is necessary to bring the level of development of Ukraine’s logistics system closer to the world level by introducing the latest technologies and equipment.

Modern logistics theory uses a large number of economic tools when planning and organizing the logistics of the enterprise. But in the practical activity of Ukrainian enterprises only a small part is used. This is because businesses have not yet sufficiently aware of the need to use logistics tools. The big push to development can be the use of e-commerce elements in the logistics system, using the Internet and through the formation logistics chain: manufacturer –site – order processing department – consumer. These innovations can increase sales, provide higher level of customer service, reduce inventory levels and expand market segments.

Integrated logistics is based on the use of a «value chain», targeted at all participants. Value chains have areas of performance: contact with suppliers; consumer relations; technological processes within one unit; logistic processes between units within the enterprise. Integrated logistics enables the combined efforts of the management staff of an industrial firm, its structural divisions and logistics partners in the through-line management of material and related flows in a complete logistics chain «purchase – distribution – sale». Utilizing the logistics capabilities, entrepreneurs can achieve reducing production costs, managing efficiently inventory, quality customer service, flexible response to market needs. Reduction of all types of costs associated with material flow management, transportation, order management, procurement and inventory, packaging, allows the company to release funds for additional investment in warehouse equipment, information and computer systems, advertising, marketing research and more. Therefore, the best companies in the world are those that use the concept of integrated logistics. Companies such as Toyota Motors, IBM, Procter & Gamble and others have been using the logistics approach.

The effectiveness of logistics management is confirmed by the data obtained from a survey of 1450 businessmen and reported in the work of logistics specialist H. Peters «Trade, production and service industry»: inventory volume decreases by 30-70%; labor productivity increases by 20 – 30%; the cost of production is reduced by 30%; turnover in the sphere of turnover is reduced by 20%. According to logistics specialist H. Stabenau, if transport and warehousing costs in production are now up to 15% and in trade – up to 25% of total costs, then the cost can be reduced by 1/3 when applying a logistic approach to management enables to increase the profit [3].

The integrated function of logistics in the process of commodity traffic management is realized through the system of forms and methods of practical activity: integrated function of formation of economic relations with determining the needs for transportation; coordination of operational management; optimizing the total cost of goods; development of specific functions of commodity traffic management [4].

To summarize, it should be noted that the main task of logistics is to consider all stages as a single and continuous process of transformation and movement of the product and related information. Integrated logistics supports the systemic sustainability of an industrial company, optimizes inter-organizational relationships with logistic intermediaries to ensure high competitiveness of enterprises.

References:

1. Krykavsʹkyy YE.V. Lohistyka pidpryyemstva: Navch. pos. – Lʹviv: Lʹvivsʹka politekhnika», 2005. – 160 p.
2. Kalʹchenko A. H. Lohistyka: Pidruchnyk. – K.: KNEU, 2003. –284 p.
3. Moskvitina T.D. Torhovelʹna lohistyka: Navch. posib. – K.: Kyyiv. nats. torh.-ekon. unt, 2007. –161 p.
4. Hadzhynsʹkyy A.M. Lohistyka: Navch.pos. – 5-e vyd. pererob. i dop. – M.: Marketynh, 2004. – 408 p.

Research advisor: Ph.D., Associate Professor, Vasylyk Sergey