Logistics principles for increasing the competitiveness of an enterprise. Logistics as a factor in increasing competitiveness

streams of life

logistics is the most important factor in increasing the competitiveness of an organization

According to experts, in the United States since the early 80s, half of the annual overall increase in labor productivity (5-6%)

Achieved through the dissemination of the logistics concept.

Foreign practice shows that logistics allows for more efficient use of labor resources compared to other production and economic systems. The role of logistics in strengthening the competitiveness of economic structures

Extremely relevant. The analysis of existing

Russian economic science of logistics concepts shows that they largely reflect the various evolutionary stages of its development, historically updated under the influence of new objective processes in the world economy.

For the first time among the competing concepts that originated in the West in the mid-twentieth century, and which found supporters among us, mainly from among former “supply” specialists, there is a desire to identify logistics with modern forms of material and technical support for production and other activities, as well as sales of products in a market economy. At the same time, the subject of the study becomes the organizational and economic foundations of the formation of material and commodity flows, traditionally corresponding to these divisions of production and commercial activity “before” and “without” logistics. It is no coincidence that all former departments of economics and logistics organization either turned into departments of logistics or disappeared altogether. This concept is, in our opinion, of little substance and unpromising, since, firstly, it is focused on improving the local performance of individual units, regardless of

Protsenko O.D.

Vice-Rector of the Academy of National Economy under the Government of the Russian Federation, Director of the Higher School "Institute of Management and Marketing", Editor-in-Chief of the magazine "Russian Entrepreneurship", Dr. econ. sciences, professor

Russian entrepreneurship

directly to the final result, the level of customer satisfaction with minimal costs. Secondly, it ignores modern logistics achievements in integrated production and material infrastructure. Thirdly, it contributes to the scientific profanation of logistics science, giving pseudo-novelty to trivial and outdated economic and organizational provisions relating to the organization of supply and sales, hiding behind the not yet fully meaningful term “logistics”. The second concept, while continuing to consider material and commodity flows as the main object of its research, makes the subject of research the end-to-end organizational and analytical optimization of the entire set of these flows within the framework of production and material infrastructure (supply, sales, transport, warehousing, communications, information and financial support, etc. .). This concept is more progressive, since it reflects a new stage in the evolution of all components of the production (material) infrastructure towards the logistics idea. Here, the objective prerequisites for the relevance and feasibility of the logistics approach appear as a consequence of global integration trends in the world economy and a gradual reorientation towards the consumer market.

Since the 60s of the last century, in almost all economically developed countries, sales, as a meaningful part of the production infrastructure and the organizing center of transport, information and financial flows, has become the function of a single service. It implements end-to-end functions of management and regulation (distribution) of material flows at manufacturing companies, starting from the receipt of materials at the warehouse until this flow exits the enterprise in the form of finished products. This combines the management of previously independent processes such as supply and procurement, loading and unloading, transport

logistics

Objective

Prerequisites

Relevance and

^feasibility

Logistics

Act as

Consequences

global

Integration

Trends in

global economy

And gradual

reorientation to the consumer market

forwarding and customs warehouse operations, inventory management and other activities that essentially create and direct the entire movement of material assets with a focus on the ultimate goal of the company. This is how organizational logistics services empirically took shape, which, according to the second concept, can be interpreted as a scientific organization of managing infrastructural flow processes through their integration and rationalization (optimization) in order to more fully and timely ensure the production of the company and the sale of manufactured products at the lowest cost. A certain, I would say, temporary drawback of this concept is the exclusion of production itself from the composition of material and commodity flows, subject to integration and optimization by a general criterion. But it is here that the single material flow undergoes the most profound transformation, the purpose of which is to create potential consumer value. The limitations of this approach are largely due to the still fairly widespread sales concept of marketing, according to which material production still remains the highest priority and dominant stage of the reproduction process, on which all other infrastructural links work, and, therefore, depend on its requirements. However, in the market the main thing is not to produce, but to sell, find your niche and satisfy the identified need for goods or services. Therefore, corporations striving for success realized that they must move to a complete reorientation to the consumer market, taking into account their needs and needs. The key to success is precisely the “end-to-end” rationalization of the entire set of material and commodity flows from the perspective of a single whole. At the same time, it does not matter whether the movement and transformation of these flows is carried out within the boundaries of one firm-owner, or by the forces of several associated economically and legally independent pro-

production and commercial entities, but which are, in fact, links in a single reproduction process. This flow includes all stages of creation, distribution and consumption of the final product. Logistics acquires particular relevance in the design and creation of micro-meta and macro-logistics systems, respectively, in conditions of delegation of management and individual functions in modern company development strategies.

Obviously, with this methodological approach, the classification (division) of logistics into procurement, production, transport, warehouse, distribution and other types looks somewhat archaic. Such “fragmentation” makes sense only if they are links in the main chain - general coverage and optimization of flow processes. With the “conditional division” approach, the content of the subject of logistics includes the optimal organization of the flows themselves, as a result of which the boundaries of structural and functional divisions are established, for example, the degree of feasibility of purchasing, production, warehousing, and transportation of raw materials, components, and equipment by various modes of transport. In addition, it becomes possible to solve a number of specific, local logistics problems within these divisions, including preparation for the implementation of optimal solutions of the administrative logistics center. Practice shows that it is necessary to clearly define and differentiate the boundaries and tasks that are solved by production logistics, supply, transport and warehouse logistics, information and financial logistics from traditional scientific and practical activities in the field of economics and the organization of relevant departments. Otherwise, logistics simply claims to replace these applied economic sciences. All previously discussed concepts, however, organically link theory, methodology,

in the market the main thing is not to produce, but to sell, find your niche and satisfy the identified need for goods or services

each of the economic spheres

activities have their own logistics

Goals, networks and

problem situations, formulation, modeling and methods for solving their

specific tasks

gy, object and subject of logistics with certain types of activities limited by material, commodity and accompanying information and financial flows. We share new modern concepts of the development of logistics as a scientific organization for managing any flow processes in any field of human activity that have a spatio-temporal sequence: in military operations, medicine, banking, healthcare, law, etc. through their rationalization (optimization) for the sake of improving the final results of these activities. Each of the spheres of economic activity has its own logistics goals, networks, problem situations, formulation, modeling and methods for solving its specific problems. In these areas, one of the leading places undoubtedly belongs to transport logistics. The increment of new scientific approaches requires theoretical understanding of breakthrough logistics forms and methods in relation to spatio-temporal flow processes in various types of activities, which will certainly mutually enrich the logistics arsenal.

What gets measured gets managed. This phrase is the key to understanding the enormous importance of logistics for the capital of a modern corporation. In my practical seminars for managers to better understand the multifaceted functions of logistics, I usually quote from Lewis Carroll:

Could you tell me which way I should go to get out of here? - asked Alice.

“It depends on where you would like to go,” the cat answered.

“I don’t know,” said Alice.

Then it doesn't matter which way to go. Today, in an age of fierce competition, when determining the efficiency of an enterprise, the problem of meeting customer needs comes first. To do this, it is necessary to measure the implementation of logistics operations

tions to know exactly what benefits it brings to clients. For example, if a company, when making deliveries, does not ensure their timeliness and is not interested in customer reactions, then it is unlikely to increase the number of orders. If customers value accuracy and speed of delivery more than price, they will turn to another supplier.

Without information about how successfully the daily battle for customers is going, the company cannot make the right choice of direction for development. Logistics managers must focus not only on internal measurements, but also on external factors that add up to meet customer needs. There is a direct relationship between logistics measurements and the efficiency of the work performed. Thus, effective logistics measurement measures become the key to business success. They are an important way to identify a company's strategy when focusing on development indicators. It is these indicators that fully monitor the search and acquisition processes, as well as order fulfillment in terms of time, cost and quality. The effectiveness of work should be determined based on these indicators. Information technology, which is quickly becoming a powerful tool for measuring the effectiveness of logistics activities, can provide an objective assessment of the costs of logistics and execution. This will help companies stop serving unprofitable customers. Knowing what features of the goods and services presented attract customers, and servicing some of them brings profit, company management can focus attention on winning positions, thereby increasing its competitiveness.

Without information about how successfully the daily battle for customers is going, the company cannot make the right choice of development direction

The increasing role of logistics in the modern period, which occurs in the context of an increase in industrial production and the expansion of intranational and global economic relations, requires special attention to its potential to reduce costs in market activities and improve business results.

The development of logistics is primarily due to the desire to reduce time and money costs associated with the movement of goods. At the same time, the sharp increase in interest in logistics is determined by the following factors:

In Western countries, 93% of the time a product moves from the primary source of raw materials to the required consumer is spent passing through various logistics channels. Own production of goods takes only 2% of the total time, and transportation - 5%. In these countries, the share of revenues from the movement of goods accounts for more than 20% of national income. In the structure of costs for the movement of goods, the cost of raw materials, materials, semi-finished products and finished products is

44%, the cost of warehousing and dispatching - 16%, long-distance and technological transportation - 23% and 9%, respectively. The 8% that remains is attributed to the costs of ensuring the sale of finished products.

The development and intensification of competition in Ukraine occurs in the context of the development of entrepreneurship and private property and is largely influenced by the integration of the domestic economy into the global trading system. In such a situation, the use of old traditional methods of managing the sports functions of supply, production and distribution by Ukrainian enterprises cannot provide significant competitive advantages. That is why more and more domestic enterprises are introducing logistics elements into their own management system.

Significant advantages of logistics in competition are based on research by British scientists who claim that in the structure of product costs, about 70% are costs associated with storage, transportation, packaging and other operations for the movement of goods and materials. It follows that it is in the field of logistics, and not production, as previously thought, that the greatest reserves for improving the competitive position of an enterprise are contained.

Among the main components of the economic effect from the use of logistics in the sphere of production and circulation, the most important are: -reduction of inventories along the entire route of material flow;

- reducing the time it takes for goods to pass through the logistics chain;

- reduction of transportation costs;

- reduction of manual labor costs and, accordingly, costs of cargo operations.

The benefits of reducing inventories are due to the fact that in the structure of the costs of goods distribution, the costs of maintaining inventories (rental fees for premises, energy, administrative expenses, labor costs, damage, theft, etc.) amount to more than 50%; Most of the working capital of enterprises (from 10 to 50%) is illiquid inventory. Reducing inventories when using logistics allows, through coordinated actions of all participants in logistics processes, to reduce the cost of production, increase capital turnover, and also use the released funds for other purposes.

Reducing the time it takes for goods to travel through the logistics chain also has significant economic potential. The bottom line is that in the structure of the total time for the production and sale of goods (starting from placing an order for materials and ending with sale to the final consumer), the production process itself takes up an average of 2 to 5%. Thus, over 95% of turnover time is spent on logistics operations. Reducing this component will increase capital turnover and, accordingly, obtain greater profit per unit of time.

The effect of optimizing transport routes, coordinating transport schedules, due to which the idle mileage of vehicles is reduced, and also leads to a reduction in production costs.

And the use of the same type of operations, the same packaging, and similar cargo handling techniques in all links of the logistics chain form another component of the enterprise’s competitive advantages in the conditions of using logistics - reducing the cost of manual labor and the corresponding costs of cargo operations.

The logistics approach also creates the prerequisites for improving other performance indicators of the enterprise, which consist in improving the overall organization of the enterprise, establishing reliable relationships, which allows us to claim an increase in the level of manageability and obtaining higher financial and economic indicators. In general, logistics influences almost every aspect of the formation of the financial results of enterprises.

Thus, logistics as a special type of management activity will direct its efforts to research and optimization of processes associated with the movement of material and related information flows in the direction of strengthening their organization and coordination. At the same time, due to the action of its special tools, there is an increase in the main performance indicators of enterprises.

Manasova A.E.
Almaty Management University, “Economics and Service”, Master’s degree, 2nd year,
Almaty Scientific supervisor: Sadykova GM., Doctor of Technical Sciences, Professor

This article highlights ways to increase the competitiveness of a transport company. To increase the competitiveness of a transport company, it is very important to focus on organizing the competent provision of transport services in combination with a well-thought-out pricing policy. In particular, the company needs to introduce into its regular activities special software aimed at organizing logistics routes and calculating transport costs. The company is recommended to implement a Kazakh logistics program to optimize costs and increase competitiveness.

The issues of increasing the competitiveness of a transport company are of great importance today, due to the expansion of product markets and the increasing need for transport services.

Passing through production, sales, and transport links to the final consumer, the material flow, like a snowball, increases in value. Recent studies conducted by the British agency Reuters in March 2016 showed that up to 70% of the cost of the final product consists of costs associated with storage, transportation, packaging, and delivery of the final product to the consumer. In other words, logistics services make up a significant part of the cost of the final product. To reduce the cost of the final product, manufacturing companies are looking for opportunities to reduce the cost of logistics services while maintaining their quality. Today in the Republic of Kazakhstan, most companies consider it unprofitable to have their own transport department and full-time drivers; they prefer to outsource transport services. This is why, according to the authoritative economic publication Capital, so many transport companies have recently appeared in the Republic of Kazakhstan.

Due to the high level of competition among transport companies, the “sharpness of the mechanism” for providing transport services to clients is of great importance. This article reveals ways to increase the competitiveness of transport company services using the example of Renus Intermodal System LLP (hereinafter referred to as Renus Intermodal System). Renus Intermodal System is a fairly large logistics company in the Kazakhstan market. It offers all types of logistics services. The company is located in Almaty, in the Koktem-1 microdistrict.

To increase the competitiveness of Renus Intermodal System it is necessary to use the following ways:

— organizing the availability of a well-functioning accounting and information system;

— reducing the time it takes for goods to pass through the logistics chain;

— reduction of transportation costs;

— reduction of manual labor costs and costs of cargo operations;

— conducting a comprehensive analysis of expenses and income of all divisions of the company, as well as participants in the logistics chain;

— determination of the share of profit from various logistics operations in the total profit of the company. So, let's look at these ways to increase competitiveness in more detail. For anyone

It is very important for a transport company to have a well-functioning accounting and information system, due to the fact that the accounting and control system allows you to track the main flows of profit and costs from the normal activities of the company. In particular, many logistics companies are implementing powerful analytical accounting systems built on Oracle, which allow them to control the working capital of a logistics company. And the availability of free working capital and control over accounts receivable for a transport company is all the more important, due to the fact that the transport company incurs constant operating costs - for fuel, for driver salaries, customs and other fees, payment for renting warehouses and other expenses. Let us note that the presence of a good accounting and control system will allow a logistics company to optimize its activities and attract more customers due to the free resources that appear as a result of optimization. According to the British The Guardian, competent analytics in a transport company is already half the success of its current activities. Among Kazakh transport companies, DAMU logistics JSC, one of the largest logistics companies in Kazakhstan, stands out for its competent analytical approaches in planning its activities.

The second way to optimize the logistics chain is to reduce the time it takes for goods to pass through the logistics chain. In other words, the shorter the period of time it takes for goods to pass through the logistics chain, the greater the level of profit the logistics company will receive. Because, firstly, it will attract more customers, and secondly, it will reduce the variable costs per unit of logistics services. Optimization of the supply chain is achieved using router programs that help organize the best route for transporting goods. For example, there is a logistics management program “USU.kz”. The program was developed by Kazakh programmers from the domestic company Prime Source. It allows you to significantly optimize the activities of a logistics company. In general, universal logistics programs provide their users with a number of significant advantages in optimizing activities:

— the program begins accounting for transportation with the formation of a unified database of counterparties. At the same time, the user of the program can obtain data about a particular counterparty at any time. In more advanced versions of logistics programs, programs can communicate with the Internet and automatically update counterparty databases. For example, a SaaS program that optimizes logistics delivery routes does just that;

— software for logisticians in the company includes automated work with customers, other logisticians and couriers of the company. At the same time, logistics programs, as a rule, allow you to fully automate the work, this is how the application for cargo transportation and the application for cargo transportation are automated. Microsoft is a pioneer in the development of logistics programs. Back in 2011, they introduced an updated version of the Microsoft Dynamics CRM logistics program, and since then they have updated it every 2-3 years. The last update of the program was released in 2015;

automation of the technological process and production, information support, consolidation of cargo along the route - all this is created by a logistics company with a special program.

Thus, optimizing the activities of a transport company through the use of a special program is one of the ways to increase the competitiveness of logistics services.

Reducing transportation costs will also allow the company to increase its competitiveness, due to the fact that reducing transportation costs will allow the logistics company to reduce the cost of its services, while maintaining their quality at an acceptable high level. Thus, these measures will significantly increase the competitiveness of the logistics company. To reduce transportation costs, you should monitor the pricing policies of suppliers and monitor possible promising directions for cargo delivery. In addition, it is necessary to monitor customs changes in the customs legislation of the countries with which logistics transportation is carried out.

Thus, according to The Guardian, a significant part of the cost of logistics transportation is made up of customs duties and taxes. If you monitor changes in legislation and, if possible, optimize logistics routes, you can significantly reduce the cost of logistics transportation. Note that reducing the cost of logistics transportation is possible by organizing long-term route planning and the possibility of receiving a discount in advance. Thus, the Kazakh airline Scat cooperates with many logistics companies, providing them with discounts on logistics transportation of goods by air if the companies contact this carrier in advance and enter into appropriate agreements with it.

Reducing manual labor and cargo handling costs is also the best way to increase the competitiveness of a transport company. So, the transport company should try to build its route in such a way as to unload and load cargo as little as possible. On the one hand, this will ensure additional integrity of the cargo. On the other hand, it will allow the company to optimize its human labor costs.

It is very important for a transport company to conduct comprehensive due diligence of its costs and income generated during logistics operations. It should be noted that due diligence in a logistics company can be carried out either by the company itself or with the involvement of specialists. Conducting full due diligence of logistics services will allow the company to calculate costs and profits for each logistics operation. It is necessary to explain in a nutshell what due diligence of logistics operations is. Due diligence of logistics operations is an extensive analysis of each logistics operation - the legal component (contract analysis), analysis of the costs of the operation, search for sources of its optimization, and analysis of other significant factors. Very often, for due diligence of logistics operations with their subsequent optimization, transport companies invite consulting agencies such as Delloitte, PWC and others.

Due diligence allows you to identify how much the costs of a logistics operation are justified, and how significant they are for the client company; can they be reduced, optimized, or should they be left unchanged? For example, sometimes you can optimize some costs by simultaneously transporting cargo ordered by several suppliers. The process of a complete analysis of profits or losses from a particular logistics operation allows the company to evaluate the operation from a new perspective, the costs it incurs and the profit it ultimately receives. In addition, thanks to such analysis, the transport company can reconsider its key operating strategy and make the transport company more attractive to customers.

Sometimes it seems appropriate for a company to calculate the profit from a particular logistics operation in the overall structure of profits and losses. This is largely due to the fact that sometimes it is advisable for a company to abandon one or another logistics operation, since the profit it brings is not commensurate with the costs of this operation. For a transport company, the relevant costs are fuel and labor costs of the company’s drivers. If the profit is disproportionately small with the overall level of costs of the operation, then it is advisable to abandon it. At the same time, it is necessary to take into account what part of the transport company’s fixed costs covers the profit from a particular logistics operation.

Naturally, the indicated ways to optimize the activities of a transport company and increase its competitiveness are not exhaustive. Competent management in the company and thoughtful advertising also play a major role in increasing the competitiveness of a transport company. Thus, competent management is based on the orientation of the management of the transport company. It depends on what the company’s management puts at the forefront of its work - profit orientation, or focus on the quality of transport services. Effective management also includes thoughtful motivation of company employees. Thus, it is very important that a logistics company employs competent, professional drivers who perform their work with professionalism and responsibility.

It is no less important to develop the competitiveness of a transport company through the placement of conscientious advertising. It is very important that the company focuses on its strengths and provides in advertising all the necessary information about the pricing policy for transport services and the required level of insurance for customer cargo.

Let us summarize the results of writing this article.

To increase the competitiveness of a transport company, it is very important to focus on organizing the competent provision of transport services in combination with a well-thought-out pricing policy. In particular, the company needs to introduce into its regular activities special software aimed at organizing logistics routes and calculating transport costs. The company is recommended to implement the Kazakh logistics program “USU.kz”, developed specifically for the Kazakh market. We must also not forget about conducting thoughtful advertising and competent management of the transport company. If Renus Intermodal System LLP implements these measures, its competitiveness will increase significantly.

Short description

The purpose of the course work is to determine the main logistics factors for increasing competitiveness at the enterprise ETC-EXI LLC, as well as to analyze the competitive environment of the enterprise under study.
The first part of the work examines the main theoretical aspects of increasing competitiveness in an enterprise.
In the second chapter, an analysis of the competitiveness and logistics service of ETK-EXI LLC is carried out.
And the third part is devoted to recommendations for increasing the competitiveness of the enterprise ETK-EXI LLC.

INTRODUCTION
1 Logistics as a factor in increasing competitiveness

1.2
1.3 Logistics service as a factor in increasing competitiveness
2 Analysis of the competitiveness of the enterprise ETK-EXI LLC
2.1 General organizational and economic characteristics of ETK-EXI LLC
2.2 Analysis of competitiveness and logistics services of ETK-EXI LLC
3 Recommendations for increasing the competitiveness of the enterprise ETK-EXI LLC
3.1 Improving the logistics service of the enterprise
3.2 Increasing competitiveness through the development of sales via the Internet
CONCLUSION

Attached files: 1 file

INTRODUCTION

1 Logistics as a factor in increasing competitiveness

The role of logistics in increasing competitiveness
Main logistics aspects of increasing competitiveness
Logistics service as a factor in increasing competitiveness

Analysis of the competitiveness of the enterprise ETK-EXI LLC

General organizational and economic characteristics of ETK-EXI LLC
Analysis of competitiveness and logistics services of ETK-EXI LLC

Recommendations for increasing the competitiveness of the enterprise ETK-EXI LLC

Improving enterprise logical services
Increasing competitiveness through the development of sales via the Internet

CONCLUSION

LIST OF SOURCES USED…

INTRODUCTION

In the context of the economic crisis in our country, a search has been and continues to be made for new forms and methods of management to improve its health. These include the achievements of cybernetics and computer technology in the recent past; These currently include advances in marketing and logistics.

The word “logistics” comes from the Greek word “logistike”, which means the art of calculating, reasoning. The history of the emergence and development of practical logistics goes far into the past.

Logistics is considered as a set of actions for the integrated management of circulation and information flows in the economic sphere and as an interdisciplinary science.

Experts believe that logistics acts as a scientific direction, and its most radical followers and propagandists consider logistics a new science. Logistics, as a science, they argue, plays a leading role in the rationalization and automation of production. This is the science of the rational organization of production and distribution, which comprehensively, from a systemic perspective, covers the issue of supplying an enterprise with raw materials, fuel, materials, semi-finished products, and organizing sales, distribution and transportation of finished products.

In a competitive market, the seller is forced to build his activities based on consumer demand. The buyer also dictates his terms in the field of composition and quality of services provided to him in the process of supplying this product. Creating the most profitable service and a well-functioning logistics system allows the seller to fully satisfy consumer demand and ensure a favorable competitive position in the market.

The first part of the work examines the main theoretical aspects of increasing competitiveness in an enterprise.

In the second chapter, an analysis of the competitiveness and logistics service of ETK-EXI LLC is carried out.

To write the work, manuals and textbooks were used by the following authors: Gadzhinsky A.M., Sergeev V.I., Anikin B.A., Mirotin L.B., Toshbaev N.E., Sergeev V.I., Smekhov A.A. ., Fatkhutdinov R.A. and others. As well as Internet resources.

1 Logistics as a factor in increasing competitiveness

Currently, market relations dominate in every country in the world. There are now a huge number of companies producing homogeneous products. There is fierce competition between them. And the production of high-quality, inexpensive, competitive products and services in comparison with analogues is the main task of any company in any country. And each company strives to do everything to ensure that its products are competitive; in particular, the strategy of each enterprise includes a logistics system adapted to the current market and decent customer service. The release of competitive products and their sale complete the cycle of the enterprise’s economic assets, which allows it to fulfill obligations to the state budget, the bank for loans, workers and employees, suppliers and reimburse production costs. Therefore, the category of competitiveness is one of the key ones, and increasing competitiveness is the main task of every enterprise.

1.1 The role of logistics in increasing competitiveness

Competition is the economic rivalry of isolated commodity producers for market share. Competition is the main element of the market mechanism for regulating the supply and demand of goods, acts as a form of socio-economic relations and interaction of market economic entities in the process of production, application of labor and capital, purchase and sale of goods. The initial means of competition are price and quality of goods, price-quality ratio, service, prestige, and the company’s trademark.

Competition performs the following essential functions:

assertion of consumer sovereignty;
constant adaptation of production to changing market conditions;
stimulating producers and consumers;
ensuring economic freedom of commodity producers;
self-regulation of commodity producers;
differentiation of commodity producers;
distribution of resources among commodity producers.

Whether the competition is fierce or the level of competition is low, every company needs to develop a successful strategy that will provide an edge over competitors and strengthen its position with customers. Even the best company strategy for achieving competitive advantage depends on the strength of competitors' positions and their strategies.

At the present stage of global development, competition as a driving force forces manufacturers of goods to constantly look for new ways to improve their quality, reduce prices, and improve the quality of service. Due to the scarcity of resources, a new problem arises - saving resources for consumers of goods by simplifying the design and improving the quality of goods and logistics management of all processes.

Logistics of an enterprise, all its phenomena and processes, are characterized by complexity, as well as a diverse influence on all activities of the subject. Each enterprise as an economic unit has its own goals, which are defined differently depending on the time horizon, subject and field of activity, etc. Logistics processes are closely related to the functioning of the enterprise; they do not form an autonomous sphere of activity, but must be subordinate to the main goals of the enterprise as a whole. Therefore, logistics processes are of a nature that ensures the achievement of these goals.

The main goal of an enterprise, which distinguishes it from other economic entities, is often called the mission of the enterprise.

From the point of view of the time horizon, strategic, tactical and operational goals are distinguished. In turn, each area of an enterprise’s activity may have its own goals, for example, production, marketing, financial, logistics, etc.

However, it should be emphasized that the local goals of individual areas of activity of the enterprise, as well as the divisions that are part of it, cannot contradict the main goals of the enterprise as a whole. Rather, on the contrary, local goals should support and strengthen the main goal. Only such activities are effective and bring positive economic effects.

The goals of an enterprise are determined in various ways by parties interested in its activities and the results obtained. Goals are presented differently by the owner of the enterprise, his team, the environment, and also the management team. A possible conflict of goals can lead to a change in the management of the enterprise if it is unable to effectively implement the goals set by the owners. The objectives of the enterprise may, in particular, be:

strengthening the market position and thereby gaining competitive advantages;
maximizing financial results over a long time horizon;
increasing economic potential;
increasing the value of the enterprise for shareholders (owners).

The goals formulated in this way do not contradict each other, but they allow us to place some emphasis differently. To increase the value of an enterprise for shareholders, it is absolutely necessary to strengthen its market position and increase its potential, which can be achieved, first of all, by maximizing financial results over a long time horizon. With this approach, we can talk about a set of goals, the implementation of which increases the chances of achieving the main goal.

Further development of this issue is beyond the scope of this work. You just need to pay attention to the connection between logistics and the goals of the enterprise. Clarifying the goals of logistics processes at the enterprise, if they are successfully implemented, can simplify the achievement of the goals of the enterprise as a whole.

The enterprise's marketing strategy is primarily aimed at providing the required level of service to the recipient client. It can effectively influence the strengthening of the market position of an enterprise and create a competitive advantage. This leads, in turn, to an increase in turnover and diversification of the material and territorial structure of the enterprise. The task of logistics is to effectively implement these goals. It can be solved by ensuring the required intensity of supplies of products to their recipients, rational formation of reserves throughout the distribution network, etc.

Reducing costs is a must for maintaining a competitive edge. Logistics activities offer many opportunities for cost rationalization in various parts of the supply chain, which will be discussed in the following sections.

Maximizing income and minimizing costs are the most important areas that ultimately determine the financial result of the company.

A wide range of logistics processes directly affects the maximization of income from the total activities of the enterprise; it can also reduce its costs. These two leading areas are reflected both in the financial result (by maximizing it) and in strengthening the market position, achieving and maintaining competitive advantages. These goals are achieved both by logistics activities and by direct cost reduction. In turn, obtaining financial profit allows you to increase the economic potential of the enterprise and, ultimately, increases its value.

Several years ago, the famous British logistics specialist M. Christopher drew attention to the connection between logistics and increasing enterprise value for shareholders. In his opinion, there are many important links between the efficiency of logistics processes and the value of the firm to shareholders. Therefore, we should talk about the influence of logistics not only on the formation of operating profit, but also on the productivity of resource assets by accelerating their turnover, and - due to this - the impact on the volume of attracted capital.

All of the above allows us to conclude that logistics can play an extremely important role in the company’s competitive struggle, and logistics specialists will be in demand in the labor market.

Main logistics aspects of increasing competitiveness

Logistics is a part of economic science and a field of activity, the subject of which is the organization of a rational process of promoting goods from producers to consumers, the functioning of the sphere of circulation of products, goods, services, inventory management, and the creation of a distribution infrastructure. Logistics is a view (worldview) of all business processes of an enterprise through the prism of costs, with the aim of optimizing, controlling and managing them. In fact, the field of application of logistics is so specific and new that at the moment specialists in this profession are very much needed in the labor market.

Let's consider logistics as a factor in increasing competitiveness. This implies that the consequences of decisions made in this area must be measurable in terms of their impact on functional costs and on revenues from the sale of goods. In this regard, the task of finding a way to control costs and indicators that most correctly reflect the connection between logistics and the main economic and financial indicators of companies is becoming urgent. As it turned out, it is very difficult to quantify the consequences of logistics decisions. This can only be done if the following methodological and technical conditions are met:

Availability of a well-functioning accounting and information system;

Conducting a comprehensive analysis of the costs and income of structural divisions of companies and all participants in the supply chain, based on the application of the principle of “missions” and a unified methodology for calculating costs;

Determination of the share gained from logistics activities in the total profit of firms.

Foreign economic literature notes that firms that have adopted the logistics concept and built their strategy on its basis have seen a significant improvement in the indicator reflecting the ratio of profit received from the sale of goods or services to invested capital (PIK - return on invested capital) . At the same time, the dual significance of logistics is pointed out, which is to reduce costs and increase the company’s market share.

Logistics impacts almost every aspect of a firm's profit and loss account. Therefore, corresponding changes in logistics strategy affect the financial performance of firms. Considering logistics as a factor in increasing competitiveness implies that the consequences of decisions made in this area should be measurable in terms of their impact on functional costs and on revenues from the sale of goods. Economic practice shows that it is very difficult to determine quantitative indicators of the impact of logistics on increasing the competitiveness of firms. Sometimes this can only be done if the following conditions are met:

If there is a well-functioning accounting and information system;

When conducting a comprehensive analysis of income and expenses of all structural divisions of the company and all sections of the supply chain, based on a unified methodology for calculating costs;

Subject to determining the share of profit from logistics activities in the total profit of firms.

Firms that have adopted the logistics concept have seen an improvement in the ratio of profit to invested capital (invested capital is divided into fixed and working capital):

the cost of elements of the logistics system (vehicles, loading and unloading mechanisms, warehouses), if they belong to the company, is part of its fixed capital.

Logistics operations and decisions are closely related to various types of inventories, accounts receivable and cash, which are nothing more than working capital.

The impact of logistics on the costs associated with selling goods is obvious. Within the framework of the logistics approach, these costs include the costs of fulfilling orders, including the costs of order processing, transportation and warehousing of goods, inventory management, packaging and support activities (provision of spare parts, after-sales service).

Logistics has a significant impact on working capital through the reduction of inventories of raw materials, semi-finished products, components and finished products. Very often, 50% or more of a firm's working capital comes from inventory. Therefore, the logistics factor affecting the invested capital largely depends on the companies' policies regarding inventory levels, the degree of control and management of inventory levels, as well as on the distribution requirements planning system.

The rental of vehicles, warehouses and other elements of the logistics system by many companies turns them from fixed capital into operating expenses for the tenant, which must be taken into account in logistics activities.

Currently, when considering questions about the competitiveness of companies, they proceed from 2 provisions:

Producing at the lowest cost is no longer the sole goal of the manufacturer;

Price competition is no longer the only form of competition.

Therefore, the concept of a company’s competitiveness provides for obtaining a competitive advantage by differentiating the company’s overall offer by improving the quality and expanding the scope of logistics services offered to the client.

A mechanism for increasing the competitiveness of a company based on logistics: A typical market situation is when: within a specific industry, products or services are highly comparable; products are widely known to a wide range of potential buyers; The selling price of the products is fixed.

Competition Rules:

a) the maximum price level is set;

b) production costs are not the same for different producers;

c) production costs depend on accumulated experience.

Companies are looking to improve logistics productivity to reduce costs and improve competitiveness. They are resorting to rationalization of logistics activities, but the level of logistics services remains the same. After a certain time, having received profit from the rationalization of logistics activities, the company's management realizes that such rationalization is becoming more difficult to carry out and the company is looking for other ways.

Innovations are associated with the level of service accompanying the product, as well as with the replacement of a product with a service. Differentiation occurs. Logistics can differentiate the supply by moving from weekly to daily deliveries or by expanding logistics activities in the transition from the production of goods (cars) to the maintenance or operation of a fleet of cars.

If at the first stage the criterion was the prices of goods with the same quality, then at the second stage - the quality of logistics services. Over time, the process of introducing innovations gradually spreads to all companies in this industry and the third stage begins.

Restoring the original situation, but on a different basis. As a result, cost reduction again becomes a priority, but this time in relation to all goods and services offered by the company. In reality, none of the stages leads to stabilization of the situation for a long period. The pursuit of competitiveness leads to the constant introduction of innovations, which forces us to constantly rethink the structure of the product supply.

Logistics principles for increasing the competitiveness of an enterprise. Logistics as a factor in increasing competitiveness

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