International scientific e-journal

ΛΌГOΣ. ONLINE

10 (June, 2020)

e-ISSN: 2663-4139
КВ №20521-13361Р

ECONOMICS

UDC 338.4

EOI 10.11232/2663-4139.10.23

DIRECTIONS OF IMPROVEMENT OF LOGISTICS SYSTEMS DEVELOPMENT STRATEGIES

AMELNITSKA O.,

ORCID ID: 0000-0001-5296-1688

PhD in economics, associate professor, associate professor of Transport Management and Logistics Department 

Priazovsky State Technical University

 

UKRAINE


Abstract. The article provides an analysis of the definitions of the category "development" in economic systems by various experts, which allowed to establish certain characteristics of this category, as well as a system of interpretations of sustainable development. Based on the study of the essence of the definition of "logistics strategy", its essence is systematized according to the views of leading experts in the field. The general structure of the strategy of logistics systems development has been developed and the peculiarities of the organization of the strategy development and implementation process have been determined.

Keywords: development; sustainability; logistics activities; logistics strategy; logistics system; diversification and development strategy.

Relevance of the research topic. The development of technology and society, which takes place in the modern world, is characterized by certain characteristics, such as: reducing the time of technological cycles, intense increase of information tension, increasing the degree of uncertainty of human life. In such conditions, compliance with the development trend in the functioning of any economic system, including logistics, requires simultaneous optimization of the material and spiritual needs of society and the individual and rational, safe management and efficient use of natural resources, preservation, reproduction and enhancement of environmental quality and natural and resource potential of social production.

Literature review on the topic of research. Many domestic and foreign scientists are engaged in questions of the concept of development in economy and the analysis of essence and components of logistic strategies at the enterprises: B.D. Gavrilishin, Z.V. Gerasimchuk,  L.S. Zapasna,  L.G. Melnik, O.E. Raevneva , М.P. Torado, L.V. Frolova, D.D. Bauersocks, A.M. Gadzhinsky, O.A. Rudkivsky,  M. Christopher, D. Stoke, D. Lambert, L.B. Mirotin, V.I. Sergeev, A. Harrison and others. However, their work focuses mainly on the formation of theoretical and methodological foundations of logistics strategies of enterprises, a little attention is paid to the consideration of development strategies, especially in logistics.

The purpose of the article is a development of theoretical bases and development of the recommendation concerning directions of improvement of development strategies of logistic systems.

The presentation of the main material. Today, development as a criterion is an important prerequisite for the efficiency of enterprises, a significant advantage in competition and the key to success, and the market environment of its operation is a reflection of the state and dynamics of economic and social processes. The interaction of the business entity with its social environment becomes a basic factor in the effective functioning of the modern realities of the Ukrainian economy. In such conditions, the role of social utility of the business entity increases.

There is no single point of view among modern scholars on the category of "economic system development" and its individual modifications and related concepts. Often leading experts sometimes define the same terms personally, according to own tasks of research.

Analysis of many interpretations of the category "development" allowed to define it as an irreversible, directed, natural change of material and ideal objects, and only the simultaneous presence of all three of these properties distinguishes the processes of development among other changes:

- reversibility of changes characterizes the processes of functioning (cyclic reproduction of a constant scheme of functions);

- the lack of regularity is characteristic of random processes of the catastrophic type;

- in the absence of direction, changes cannot accumulate, therefore, the process loses a single, internal interdependent line characteristic of development.

As a result of development there is a new qualitative state of the object, which acts as a change in its composition or structure (i.e., the emergence, transformation or disappearance of its elements and connections).

Based on the mentioned above, it is advisable to identify the characteristics of the category of "development", which are inherent in any object of animate and inanimate nature:

- development is a process, movement, change of state of an object;

- development is an irreversible natural process, as it takes place over time and is caused by objective contradictions both inside the object and between the object and the external environment;

- development is characterized by the unity of changes in both quantitative and qualitative characteristics of the object (composition, structure, efficiency of the system, which is determined by its results);

- dependence on the nature of the object under study (plant, person, organization, country, economy of the region, etc.);

- complexity, multidimensionality of the process of change, as any object can be represented as a system with its inherent features;

- development is inherent in the system only in the process of its functioning.

In the second half of the 20th century (1992, Rio de Janeiro), the concept of sustainable development (development that meets the needs of modernity but does not jeopardize the ability of future generations to meet their own needs) was officially adopted by most countries ), which is very slowly, but gradually trying to implement the world community, but the Concept mainly concerns the global and macroeconomic levels. According to the English term "sustainable development" - literally viable development, its expanded interpretation - comprehensively balanced development - the term "sustainable development".

Each scientist, exploring the terminology and essence of the definition of "sustainable development", forms its definition with an emphasis on certain aspects depending on the scope of its activities.

Thus, the exact generally accepted definition of the term "sustainable development" in the scientific literature today does not exist, because there are several dozen interpretations of it, which experts group into a whole system and more common recognize the following (Fig. 1):

Fig. 1. Interpretation of the concept of "sustainable development" [1]

 

Logistics strategy within the general pyramid of strategies of the enterprise takes place at the level of functional strategies along with production, financial, marketing, development strategy and so on. That is, on the basis of the existing general corporate strategy of the enterprise make a portfolio of functional strategies. Thus, the logistics strategy reflects the direction of implementation of the overall strategy using the tools of logistics management.

In the scientific literature there is no unity of views in defining the meaning of the concept of "logistics strategy". The strategic approach is used in establishing functional and general corporate tasks, in the process of determining strategic competencies, long-term prospects for enterprise development.

Different understanding and identification of logistics strategies are offered by different domestic and foreign scientists, the main of which are given in table. 1.

 

Table 1. Defining the essence of the concept of "logistics strategy" [2-7]

According to the process of research and analysis of the application of logistics strategies in the practice of enterprises and research, it makes sense to add to the analyzed concept certain categories that are directly related to the process of developing a logistics strategy, namely: "logistics mission", "logistics mixure", " logistics concept "," strategic logistics plan ". In practice, a hierarchy of logistics strategic decisions is formed on their basis. To determine the place of each logistics solution and to coordinate separate and diverse research of scientists, it is advisable to propose a certain logical scheme of the process of forming a logistics strategy at the enterprise (Fig. 2).

Fig. 2. Scheme of the process of forming a logistics strategy of the enterprise [8]

 

The beginning of the formation of logistics strategy in accordance with [2] is a detailed analysis of the overall corporate strategy, based on which it is determined to what extent logistics activities contribute to its implementation. Further the generalization of the received results in the form of the logistic mission (taking into account features of external environment and key factors of success of the investigated enterprise) is carried out. However, experts note that logistics strategies should be linked to other functional strategies and correspond to the optimal implementation of the competitive strategy of the enterprise.

The implementation of the logistics strategy requires the provision of certain conditions and requirements to achieve its effectiveness (Table 2).

 

Table 2. Provision conditions and requirements for achieving the effectiveness of the logistics strategy [5]

To form a strategy for the development of logistics systems of electricity companies, an approach based on four levels of logistics development is proposed. In this approach, the logistics strategy is represented by the importance of increasing its role in the enterprise:

- the first level (lower) - cross-functional integrative strategy of logistics development of the enterprise, which contains components of other functional strategies in order to optimally achieve the set functional goals;

- the second level - inter-organizational integrating strategy of development of a logistic chain of the enterprise combining strategies of separate participants of a logistic chain in uniform system;

- the third level - a competitive strategy for the development of logistics systems of the enterprise, which provides the optimal combination of capabilities of the participants in the logistics chain in order to achieve excellent competence;

- the fourth level (higher) - a conceptual strategy for the development of logistics systems of the enterprise and participants in the logistics chain, which determines the meaning of the enterprise, while forming the basis for the logistics mission and the mission of the enterprise.

The proposed directions of formation of strategy of development of logistic systems are not generally accepted and are recommended for use at each concrete enterprise and need specification of mechanisms of strategies formation of development at each certain level. The lack of a single, typical method of forming strategies for the development of logistics systems is due to the presence among most professionals of differences in the conceptual approach to the role of logistics in the enterprise in the management system.

According to [6], certain typical methods for the development and adoption of strategic decisions in the context of the development of logistics systems of the enterprise in accordance with the logistics strategies of the four levels of development (Table 3).

In addition to defining the four levels of formation of the strategy for the development of logistics systems, it is also proposed to take into account certain business processes that occur in the implementation of production and economic activities of the enterprise. There are certain groups of factors of business processes that are taken into account in the formation of the logistics strategy of the enterprise:

 

Table 3. Typical methods that can be used to form the logistics strategy of the enterprise [6]

- external, including business processes of the external environment: increasing competition, expanding international cooperation, development of modern information technologies, development of logistics infrastructure;

- internal, which include the main business processes at the enterprise: compliance with the current level of use of technical means and information technology, reliable support for strategic cooperation with stakeholders, support for product quality standards and the level of logistics customer service;

- derivatives that contribute to the normal course of major internal and external business processes: the use of modern management concepts, adherence to uniqueness in the formation of development strategy, direct participation of enterprise management in the process of modeling development strategy, compliance with the new logistics development strategy in logistics chains. the reality and elasticity of the model of the strategy of development of logistics systems, the definition of criteria and indicators for evaluating the effectiveness of the proposed development strategy.

It seems appropriate when forming a strategy for the development of logistics systems to take into account new logistics strategies developed for freight forwarding services [7]:

- strategy of diversification and development;

- innovation and integration strategy.

The strategy of diversification and development provides for the introduction of the following measures in logistics activities:

- performance of non-traditional transit functions of the intermediary company, which means in accordance with the international classification of the formation of the type 3-PL of the company;

- ensuring the reliability of the operation of the logistics chain in the main activities of the enterprise and in the provision of accompanying additional various services;

- control of orders and settlements of consumers;

- development of optimal modes of operation of logistics systems in technical, informational and financial aspects;

- development of product quality control systems.

The strategy of innovation and integration provides for the introduction of the following measures in the logistics activities of the enterprise:

- implementation of new functions of the operator of end-to-end integrated transportation on the basis of creation of the company of type 4-PL which functioning provides integration of all functions in a logistic supply chain;

- development of modern computer information networks;

- introduction of logistics outsourcing and focus of the enterprise on key competencies with the implementation of coordination tasks;

- use of an innovative approach to the implementation of ancillary logistics functions;

- use of multimodal information flow transmission systems;

- electronic record keeping;

- use of investments and innovations of stakeholders;

- making payments for the supply of products and data exchange between the participants of the logistics system.

When using logistics outsourcing as a strategy for the development of logistics systems, it is possible to obtain certain results:

- improving the quality of logistics services, which will increase the competitiveness of the enterprise;

- achieving the effect of synergy to improve relations and cooperation between stakeholders;

- increase the efficiency of the company and improve the logistics infrastructure as a whole.

Conclusions. The relevance, necessity and prospects of research in the areas of improving the development strategies of logistics systems requires further research in this area. The need to implement the general structure of the strategy for the development of logistics systems and the peculiarities of the organization of the process of development and implementation of the strategy is implemented by the identified problems in the formation of an effective logistics system. Prospects for research in this direction are the further development and improvement of the proposed practical measures to improve strategies for the development of logistics systems.


REFERENCES:

 

  • Волошин, В. С., Колосок, В. М., Амельницька, О. В., Ходова Я. О.   (2020) Сталий розвиток вітчизняних логістичних систем  в умовах євро інтеграційних трансформацій: монографія. Маріуполь: ПДТУ

  • Уотерс, Д. (2003) Логистика. Управление цепью поставок; пер. с англ.  М.: ЮНИТИ-ДАНА.

  • Крикавський, Є.В. (2006) Логістика. Основи теорії: підручник. 2-е вид., доповн. і перероб. Львів: Інтелект-Захід

  • Тридід, О.М., Таньков, К. М.  (2015) Логістичний  менеджмент:  навч.  посіб. Харків: Інжек.

  • Фролова, Л.В.  (2005) Механізми  логістичного  управління торговельним  підприємством: монографія. Донецьк:  ДонДУЕТ  ім.  М.  Туган-Барановського.

  • Сток  Дж. Р.Ю., Ламберт Д. М.   Стратегическое  управление  логистикой; пер. С 4-го англ. изд. М.: ИНФРА-М, 2015. XXXII. 797 с.

  • Харрисон, А. (2011) Управление логистикой: разработка стратегий логистических операцій; пер.  с  англ.  Днепропетровск: Балан Бізнес Бук.

  • Смерічнівська, М.В., Жболенко, С. В. (2016) Маркетингова логістика: концептуальні основи  та  стратегічні  рішення: навч.  посіб.  у  схемах та таблицях.  Львів: Магнолія.


НАПРЯМИ УДОСКОНАЛЕННЯ СТРАТЕГІЙ РОЗВИТКУ ЛОІГСТИЧНИХ СИСТЕМ

АМЕЛЬНИЦЬКА О.В.,
канд. екон. наук., доцент, доцент кафедри транспортного менеджменту і логістики
Приазовський державний технічний університет
УКРАЇНА

Анотація.
У статті надано аналіз  визначень категорії «розвиток» в економічних системах різними фахівцями, що дозволило встановити певні характерні риси означеної категорії, а також визначено систему трактувань сталого розвитку. На основі дослідження сутності  дефініції «логістична стратегія»  систематизовано її сутність за поглядами провідних фахівців в галузі. Здійснено розробку загальної структури стратегії розвитку логістичних систем  та визначено  особливості організації процесу розробки та реалізації стратегії.


Ключові слова: розвиток; сталий розвиток; логістична діяльність; логістична стратегія; логістична система;  стратегія диверсифікації та розвитку

© Амельницька О.В., 2020

© Amelnitska O., 2020

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

PUBLISHED : 27.06.2020