Denisenko Andrey

postgraduate student Donetsk National University of Economic and Trade named after M. Tugan-Baranovsky

 

Logistics as instrument of production efficiency increase

 

         At the modern stage of Ukrainian economics development, under uncertain and unstable conditions of the market environment, modern commercial relations are being formed between the agents of management. Under such conditions the enterprises should constantly increase the efficiency of their activity in order to remain competitive and make progress in their business.

         Subjects of business do not exist mediately: in the process of their activity they constantly interact with other agent of management and environment. The main kinds of relations between different subjects of business are related with the moving of resources, goods, finished commodity and information in space and time. One of the most progressive and high-performance areas of data flow process organization and control is logistics.

         Logistics is the management process of sufficient and efficient (from the point of flow of expenses and spent time) flow of raw material inventory, material, incomplete production, finished commodity, service, finances and attendant information from the place of its consumption (including reception, sending, internal and external motion) with the view of complete satisfaction of users needs [1, p. 9].

         The main point of logistics is most exactly expressed by the so-called 8-R complex (from English «right» - meaning corresponding): the necessary product in the necessary quantity of corresponding quality should be delivered to the necessary place at the right time to the certain consumer on the cheap at the appropriate price, providing the necessary information.

         Total input reduction; inventory balance reduction; product flow acceleration; increase of customer support level, which in turn leads to the internal economy of material and financial resources at the enterprise, all these items belong to the general purpose of logistics.

         The idea of forming of logistic unification in business is quite often connected with the necessity of logistics foundations at the concordance usage of principles of policy decisions by market subjects. Diversity of goals which certain entrepreneurs have according to every data process causes plenty of forms of these processes logistic integration. Logistic approach to management allows to examine the material and informative flows of different level with the same attitude. Thus, depending on the chosen level and stage of detailed elaboration of logistic operations it is appropriate to distinguish several levels: the micrologistics and macrologistics (which in its turn includes meta, мезо- and mega- levels).

         Logistic integration at the microlevel is the combination of data flow process within a certain entrepreneurial structure among its functional sections (subsections) for the purpose of regulation of micrologistic flows efficient by volume, to time and space. Micrologistics decides the issues of material and informative flows management with the view of economic activity optimization within the limits of one enterprise. Thus, the issues decided by micrologistics are local.

         Logistic integration on the macrolevel consists in combination of separate processes or all functions of several independent enterprises for the purpose of increase of logistic flows efficiency both inside and outside a region or a country. This, as a rule, is a large-scale executive system of material and information flows. To achieve the assigned common objective it combines different production, commercial, transport and intermediate firms, which differ by their specialty, scales, patterns of ownership, belonging to industry, geographic location, and they can also be placed in different state.

         Among the main integration stimuli of both separate activity directions and business structures, one should distinguish:

·                    efficiency increase at the expense of general system of advertising and purchases, marketing organization and realization of commodities, integrated brands and quality marks of goods (services);

·                    facilitation of overcoming of barriers in international markets entry;

·                    better access to technological innovations of production ("know-how") and realization of commodities and service, etc [2, p. 56].

         Logistic processes are considered to be optimal, if they provide moving or finding of the necessary resource of goods in the necessary quantity, of proper quality at the right time. Above by terms the condition of minimal cost in case of logistic processes execution gives to such processes new quality of efficiency.

         The system of activities which depends on the analysis purpose, is used to estimate the economic efficiency of logistic integration process of enterprises. It provides the ability to determine overall indices, which are the minimum of total expenses and maximum of integrated structures income. Efficiency of separate kinds integration or enterprises activity in general is based on determination of index of the specific total expenses if the enterprise functions independently  and the same expenses after integration.

         Depending on the type of integration, the systems of account and estimation of expenses, expenses after integration imply the total expenses of integrated structure, determined from a joint accounting or sum of expenses of legally independent enterprises, which created an integrated structure. It is clear, that the positive value of specific economic efficiency of integration of a certain enterprise confirms expediency of selected variant of its collaboration with other enterprises and creation of integrated structure. In the case of other values of this index, integration is not rational.

         The positive value of specific economic efficiency of integration of one or a few types of enterprises activity is often related to reduction of expenses and shows up in such indices:

·                    an increase of specific income of enterprise, which is determined by a sum  exceeded by the integration of separate or all types of enterprise activity, on the assumption of comparable prices;

·                    the cost saving of consumption, if commodities are bought at low prices under the influence of the total expenses economy of integrated structures by comparison with the prices before the enterprises integration;

·                    the sum total of income increase of businessmen and consumption economy got from the integration of separate sort of activity or all functions of the enterprise [2, p. 69].

         Efficiency of logistic processes can show up not only in diminishing of material cost to maintain the process, but also in diminishing of amount of expenses: volume of resource (raw material or energy resource) during the moving of over  normative expenses or natural loss; amounts of place - on commodity storages due to optimal organization of movement commodity in a transport during organization of rout transportations and complete loading; time - due to the optimal loading of production, optimal organization of schedule, motion and loading-unloading operations transport, etc. Control of quality of raw material (commodity), got before motion at the early stages allows to save at the cost material losses from the overturn of off-grade raw material (goods) absence.

         Other positive factor of logistic integration is realization of synergistic effect, that can show up at first, in the general acceleration of material flow, what corresponds to the increase reaction on the wishes of clients; secondly, in diminishing of the total expenses due a voiding the conflicts of partial expenses; thirdly, in the increase of level of logistic service. Integration of separate functions or all types of activity and transformation on its basis of functioning mechanisms of enterprises make sense only, when providing such effect which is impossible to attain without integration transformations. Results of comparison of actual indices of enterprises activity efficiency before the integration and predicted indices taking into account integration, are the ground for the acceptance of final decision according to the integration expediency.

         The socio-economic effect of logistic integration shows up in reduction of expenses of consumption, increase of competitiveness of commodities and enterprises, in more complete and timely satisfaction of customers demand for goods and services of high quality, and also in providing of economic independence of country and consumer safety of its people.

         Thus, introduction of logistical and logical management at an enterprise opens new possibilities of activity efficiency increase, without attracting new resources, and only due to the economy of resources and usage of enterprise internal reserves, and also synergistic effect from the use of logistic systems.

 

References:

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