Logistic management as a tool for ensuring effective enterprise performance

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Logistic management as a tool for ensuring effective enterprise performance

Galat Larysa

Ph.D. in Economics, Associate Professor, Kherson State Agrarian and Economic University (Kherson / Kropyvnytskyi)

This article explores the role of logistic management as a critical tool for enhancing the efficiency and overall performance of enterprises. Logistic management plays a vital role in supporting optimalfunctioning of the logistic chain and achieving successful outcomes. The key thematic blocks of the article include the definition of logistic management and its significance in entrepreneurial activities, essential aspects of logistic management, challenges and barriers in implementing logistic management, and recommendations for successful implementation. It is evident that logistic management is a complex and multifaceted process that requires a systematic approach and comprehensive examination. This process encompasses planning, coordination, control, and optimization of all stages within the logistic chain. Consequently, successful implementation of logistic management necessitates the involvement of top-level management, assessment of the current state, implementation of modern information systems, personnel training and development, and collaboration with partners. However, our analysis also reveals the challenges and obstacles that enterprises may encounter during the implementation of logistic management. These challenges encompass cultural changes, information technologies, complexities within the logistic chain, financial constraints, and changes in the external environment. To ensure successful implementation of logistic management and to capitalize on its potential for attaining competitive advantages and enhancing outcomes, continuous improvement, adaptability to changes and challenges, as well as strategic planning and implementation of appropriate solutions are required. The general knowledge about logistic management and its role in entrepreneurial activities, along with the identified aspects, challenges, and recommendations presented in this article, can be valuable for practicing managers, researchers, and the academic community focused on the development of effective logistic management. logistic management performance

Key words: logistic management, enterprise performance, efficiency, logistic chain, implementation, challenges, recommendations, strategic planning, coordination, control, optimization, information systems, personnel training, collaboration, competitive advantages, continuous improvement, adaptability, changes, barriers, cultural changes, information technologies, complexities, financial constraints.

Галат Л.М.

Херсонський державний аграрно-економічний університет (м. Херсон / м. Кропивницький)

ЛОГІСТИЧНИЙ МЕНЕДЖМЕНТ ЯК ІНСТРУМЕНТ ДЛЯ ЗАБЕЗПЕЧЕННЯ ЕФЕКТИВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВА

У цій статті досліджується роль логістичного управління як важливого інструменту для підвищення ефективності та загальної продуктивності підприємств. Логістичне управління відіграє вирішальну роль у підтримці оптимальної роботи логістичного ланцюжка та досягненні успішних результатів. Основні тематичні блоки статті включають визначення логістичного управління та його значення в підприємницькій діяльності, ключові аспекти логістичного управління, виклики та перешкоди впровадження логістичного управління та рекомендації для успішної реалізації. Метою цієї наукової статті є дослідження ролі логістичного менеджменту як ефективного інструменту для досягнення успіху та забезпечення сталого розвитку підприємств. Аналізуючи ключові аспекти ло- гістичного менеджменту, такі як планування запасів, оптимізація транспортних маршрутів, управління ланцюгом постачання та інформаційні системи, стаття має на меті визначити найефективніші практики та стратегії, що допоможуть підприємствам досягти високого рівня продуктивності та конкурентоспроможності. Очевидно, що логіс- тичнеуправління є складним та багатогранним процесом, який вимагає системного підходу та комплексного вивчення. Цей процес включає планування, координацію, контроль та оптимізацію всіх етапів логістичного ланцюжка. Отже, успішна реалізація логістичного управління передбачає залучення керівництва, оцінку поточного стану, впровадження сучасних інформаційних систем, навчання та розвиток персоналу та співпрацю з партнерами. Однак, наш аналіз також розкриває виклики та перешкоди, з якими підприємства можуть зіткнутися під час впровадження логістичного управління. Ці виклики включають культурні зміни, інформаційні технології, складності в логістичному ланцюжку, фінансові обмеження та зміни в зовнішньому середовищі. Для забезпечення успішного впровадження логістичного управління та використання його потенціалу для отримання конкурентних переваг та покращення результатів необхідні постійне вдосконалення, адаптація до змін та викликів, а також стратегічне планування та впровадження відповідних рішень. Загальні знання про логістичне управління та його роль у підприємницькій діяльності, а також виокремлені аспекти, виклики та рекомендації, наведені в цій статті, можуть бути корисними для практикуючих менеджерів, дослідників та академічної спільноти, спрямованої на розвиток ефективного логістичного управління.

Ключові слова: логістичне управління, продуктивність підприємства, ефективність, логістичний ланцюжок, впровадження, виклики, рекомендації, стратегічне планування, координація, контроль, оптимізація, інформаційні системи, навчання персоналу, співпраця, конкурентні переваги, постійне вдосконалення, адаптабельність, зміни, перешкоди, культурні зміни, інформаційні технології, складності, фінансові обмеження.

Formulation of the problem. In the modern dynamic business environment, where companies face increasing competition, changing consumer demands, and rapid technological changes, ensuring the efficiency and success of a company becomes an extremely important task. In this context, logistics management serves as a key tool that can help businesses achieve efficiency and competitiveness goals.

However, despite the significance of logistics management, many companies encounter a range of difficulties and challenges in implementing effective logistics strategies. One of the main problems lies in the lack of understanding of the role of logistics management and its potential to enhance business processes' efficiency. Many companies fail to recognize the importance of logistics management and do not allocate sufficient attention to it in their strategies and development plans.

Moreover, there exists a discrepancy in understanding and implementing key aspects of logistics management, such as inventory planning, optimization of transportation routes, supply chain management, and the utilization of information systems. This leads to the underutilization of the full potential of logistics management and restricts the capabilities of companies in achieving high productivity and efficiency. Therefore, it is necessary to conduct a detailed analysis of the role of logistics management as a tool to ensure the efficiency of business operations. Such research can help identify the problems and challenges faced by companies and develop recommendations for the effective implementation of logistics strategies. This will enable companies to ensure stable and successful operations in the modern competitive business environment.

Modern global markets demand continuous improvement in efficiency and competitiveness from companies. In this context, logistics management serves as a key tool to ensure effective business operations.

Logistics management encompasses comprehensive strategies, processes, and methods aimed at optimizing the movement of goods, information, and services from suppliers to end consumers. This includes planning, coordination, control, and organization of various elements of the logistics system, such as suppliers, warehouses, transportation vehicles, infrastructure, and information technologies.

Analysis of recent research and publications. Considerable attention has been devoted by a number of domestic and international researchers to the study of the economic aspects of logistic management and its peculiarities. Biliavskyi M. explores the importance of logistics in modern warfare and provides an understanding of how logistics plays a crucial role in achieving success in military operations. Various logistical challenges and strategies applied in contemporary military scenarios are discussed. The aim of the article is to highlight the significance of logistics in military contexts and its influence on achieving operational objectives.

Hrynchak N.A. [2] analyzes various quantitative data and statistical indicators to assess the current state of the logistics market, identify trends, and draw conclusions about its effectiveness. The research aims to contribute to understanding the logistics industry and provide valuable information for decision-making by policymakers, businesses, and researchers.

Zhuravel V. [3] examines the challenges and opportunities for the logistics industry in times of war, reforms, and future development. It explores the impact of warfare and reforms on logistics operations, as well as the potential for growth and advancement in the field. The article's goal is to uncover the resilience and adaptability of logistics in challenging circumstances and its potential for future success. Zaverbnyi A.S., Dvulit Z.P, Vuiek Kh. [5] explore the peculiarities of forming logistic chains during war and in the post-war period. The article discusses the challenges and strategies involved in establishing and maintaining effective logistic chains in such circumstances. The aim of the study is to provide insights into the dynamics of logistic operations during and after conflicts and offer recommendations for improving their efficiency.

Isachenko O. [4] examines the changes that have occurred in logistics in Ukraine during the war. The article discusses the impact of the conflict on various aspects of logistics, including supply chain management, transportation, and infrastructure. The author highlights the challenges faced and the measures taken to adapt logistics operations to the wartime conditions.

Kaliuzhna N.H., Sheremet A.S. [5] analyze the current issues and priorities of recovery in the logistic system of Ukraine. The article discusses the challenges and obstacles faced in rebuilding and optimizing the logistic infrastructure in the post-war period. The authors propose solutions and prioritize key areas for the recovery and improvement of the logistic system.

The article "Restructuring Logistics in the Face of Russian Aggression against Ukraine" [6] published in Holos Ukrainy addresses the need for restructuring logistics operations in response to the aggression by Russia. The article highlights the challenges posed by the conflict and explores the strategies and measures taken to ensure the continuity and effectiveness of logistic activities in Ukraine.

Formulation of the purpose of the article. The aim of this scientific article is to investigate the role of logistics management as an effective tool for achieving success and ensuring sustainable development of enterprises. By analyzing key aspects of logistics management such as inventory planning, optimization of transportation routes, supply chain management, and information systems, the article aims to identify the most effective practices and strategies that will help enterprises achieve high levels of productivity and competitiveness.

Presentation of the main research material. Logistics management is a comprehensive approach to planning, coordinating, and controlling the movement of goods, information, and services from suppliers to end consumers. It encompasses all stages of the supply chain, including suppliers, warehouses, transportation vehicles, infrastructure, and information technologies. The main goal of logistics management is to ensure efficiency and optimize processes in order to meet customer needs and achieve a competitive advantage.

The role of logistics management in business activities:

Logistics management plays a crucial role in ensuring the efficiency and success of business activities. The main roles of logistics management include:

Enhancing efficiency: Logistics management helps optimize logistics processes, reduce costs associated with warehouse maintenance, transportation, and inventory management. This enables enterprises to achieve higher productivity and lower overall costs, leading to increased profitability and competitiveness.

Ensuring high-quality service: Logistics management enables the efficient delivery of goods and services, ensuring timeliness, reliability, and service quality for customers. This increases customer satisfaction levels and promotes customer loyalty to the enterprise.

Risk management: Logistics management enables the identification and management of risks associated with sourcing, transportation, and warehouse activities. This includes developing reliability plans, contingency plans, and security measures to avoid problems and ensure uninterrupted supply chain operations.

Creating a competitive advantage: Logistics management can be a source of competitive advantage for a company. Effective logistics management allows for quick response to changes in demand, speeding up delivery times, and improving service offerings. This enables companies to differentiate themselves from competitors and succeed in the market.

Key aspects of logistics management include:

Inventory planning: Optimal inventory management is a crucial aspect of logistics management. This involves determining optimal inventory levels, forecasting demand, inventory control, and developing inventory management strategies to meet customer needs and minimize costs.

Route optimization: Efficient management of transportation routes helps reduce transportation costs and shorten delivery times. This includes identifying optimal routes, utilizing routing technologies and vehicle monitoring, as well as collaborating with logistics partners for efficient use of transportation infrastructure.

Supply chain management: Logistics management involves collaboration with suppliers and customers to ensure the smooth flow of goods and information throughout the supply chain. This includes order coordination, fulfillment, warehouse management, and information exchange to ensure fast and accurate delivery of goods to customers.

Utilization of information systems: Logistics management requires the use of information systems for efficient process management and decision support. Information systems automate planning, control, and reporting processes, improve coordination and communication within the logistics chain, and enable quick response to changes in demand and market conditions.

Quality management: Logistics management includes quality control of goods and services at every stage of the logistics process. This involves implementing quality standards, monitoring compliance, implementing quality control systems, and continuously improving quality in the logistics chain.

Challenges and obstacles faced by companies during the implementation of logistics management include cultural changes, information technology, the complexity of the logistics chain, financial constraints, and changes in the external environment.

Implementing logistics management may require changes in organizational culture and structure. This can be challenging as it requires involvement from all levels of management and employees. Effective communication, training, and staff support are essential to ensure the successful adoption of new approaches.

Implementing logistics management requires the use of modern information technologies. However, there is a challenge in selecting, implementing, and integrating appropriate software tools. Access to proper supply chain management systems, efficient enterprise resource planning systems, and data exchange systems with partners needs to be ensured.

Logistics management faces difficulties in managing a long logistics chain that involves suppliers, manufacturers, distributors, and customers. Challenges arise in coordination and collaboration among different chain entities, inventory management, selection of optimal delivery routes, and interdependencies of various chain links.

Implementing logistics management may require investments in technology enhancement, infrastructure, and staff training. For many companies, this can be a financially demanding task, especially for small and medium-sized enterprises. Optimal budget planning and identifying investment opportunities are key factors for successful implementation of logistics management.

Instability in the external environment, such as changes in legislation, political crises, or natural disasters, can significantly impact logistical processes and require quick adaptation. Companies need to be flexible and prepared to address unforeseen challenges that can affect the efficiency of logistics management.

Conducting an analysis of these challenges and adopting appropriate strategies can help companies overcome obstacles and ensure successful implementation of logistics management.

For successful implementation of logistics management, here are some recommendations:

Define strategic direction: Carefully define the purpose and strategy of implementing logistics management according to the needs and goals of your company. Align all efforts towards achieving this strategic direction.

Engage leadership: Ensure active support and involvement of top management in the implementation of logistics management. Leadership should be prepared to allocate necessary resources and create appropriate structures for the successful realization of logistics projects.

Assess current state: Conduct a detailed analysis of current logistics processes and identify potential issues and shortcomings. This will help understand improvement needs and prioritize areas for implementation.

Implement information systems: Information systems are a crucial component of logistics management. Identify the need for modern technologies and software tools that can automate and optimize logistics processes, including inventory management, warehouse management, routing, and monitoring.

Training and personnel development: Provide training and support to the staff responsible for implementing logistics management. Ensure they have the necessary knowledge and skills to implement new processes and understand the importance of logistics for the efficient operation of the company.

Collaboration with partners: Develop strategic partnerships with key suppliers, distributors, and other stakeholders in the supply chain. Joint efforts and information exchange will help improve coordination and optimization of logistics processes.

Continuous improvement: Implementing logistics management should be a process of continuous improvement. Continuously evaluate and analyze results, implement corrections, and optimize processes to achieve greater efficiency and competitiveness.

These recommendations will help companies successfully implement logistics management and achieve improved operational efficiency.

Conclusions

In this research article, we have explored logistics management as a tool for ensuring efficiency in business operations. It has been found that logistics management plays a key role in supporting optimal functioning of the logistics chain and achieving successful outcomes.

The main thematic blocks of our article included the definition of logistics management and its role in entrepreneurial activities, key aspects of logistics management, challenges and barriers to implementing logistics management, and recommendations for successful implementation of logistics management.

It is evident that logistics management is a complex and multifaceted process that requires a systemic approach and comprehensive examination. This process encompasses planning, coordination, control, and optimization of all stages of the logistics chain. Accordingly, successful implementation of logistics management necessitates the involvement of top management, assessment of the current state, implementation of modern information systems, employee training, and collaboration with partners.

However, our analysis has also revealed that there are challenges and obstacles that companies may encounter during the implementation of logistics management. These include cultural changes, information technologies, the complexity of the logistics chain, financial constraints, and changes in the external environment.

In order to ensure successful implementation of logistics management, we have provided recommendations that include defining strategic orientation, engaging management, assessing the current state, implementing information systems, training personnel, and collaborating with partners.

Overall, the use of logistics management as a tool to ensure business efficiency has significant potential for achieving competitive advantages and improving outcomes. Realizing this potential requires continuous improvement, adaptation to changes and challenges, as well as strategic planning and implementation of appropriate solutions.

The general knowledge of logistics management and its role in entrepreneurial activities, along with the identified aspects, challenges, and recommendations provided in this article, can be valuable for practicing managers, researchers, and the academic community focused on the development of effective logistics management.

References

Westland J. (Jun 18, 2019) Logistics Management 101: A Beginners Guide. Available at: https://www.projectmanager.com/blog/logistics-management-101

Biliavskyi M. Syla lohistyky: yak peremohty u suchasnii viini [How to Succeed in Modern Warfare]. Available at: https://razumkov.org.ua/statti/syla-logistyky-iak-peremogty-u-suchasnii-viini

Viina v Ukraini: ekonomika, biznes, lohistyka, dopomoha. Available at: https://trans.info/ru/ viyna-v-ukrayini-ekonomika-biznes-logistika-dopomoga-279148

Hrynchak N.A. (2021) Statystychne otsiniuvannia natsionalnoho rynku lohistychnykh posluh [Statistical Assessment of the National Market for Logistic Services]: dys. na zdobuttia stupenia kand. ekon. nauk: spets. 08.00.10 "Statystyka". Kyiv, 258 p.

Zhuravel V. Bude skladno, ale zreshtoiu haluz rozkvitne: lohistyka pid chas viiny, reformy ta mai-butnie industrii [Challenging, but Ultimately Flourishing: Logistics during War, Reforms, and the Future of the Industry]. Available at: https://delo.ua/uk/transport/bude-skladno-ale-zrestoyu- galuz-rozkvitne-logistika-pid-cas-viini-reformi-ta-maibutnje-industriyi-397214/

Zaverbnyi A.S., Dvulit Z.P, Vuiek Kh. (2022) Osoblyvosti formuvannia lohistychnykh lantsiuhiv v umovakh viiny ta u pisliavoiennyi period [Features of Building Logistic Chains during War and in the Post-War Period]. Ekonomika ta suspilstvo, no. 43. Available at: https://www.economyandsociety.in.ua/ index.php/journal/article/view/1750

Isachenko O. Zberehty ta zabezpechyty: yak zminylasia lohistyka v Ukraini pid chas viiny [Preserving and Ensuring: How Logistics in Ukraine Has Changed during the War]. Available at: https://mind.ua/openmind/20241674-zberegti-ta-zabezpechiti-yak-zminilasya-logistika-v-ukrayini- pid-chas-vijni

Kaliuzhna N.H., Sheremet A.S. (2022) Lohistychna systema Ukrainy: aktualni problemy ta priorytety vidnov-lennia [Logistic System of Ukraine: Current Issues and Priorities of Recovery]. Biznesinform, no. 4, pp. 90-96.

Perebudova lohistyky v umovakh ahresii rosii proty Ukrainy (May 14, 2022) [Restructuring Logistics in the Face of Russian Aggression against Ukraine]. Available at: http://www.golos.com.ua/ article/360050

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