ECONOMIC BASES OF MANAGEMENT OF THE LOGISTICS STRATEGY OF THE BUSINESS ENVIRONMENT

Authors

DOI:

https://doi.org/10.31891/mdes/2024-12-34

Keywords:

logistics, logistics processes, business Strategy, business environment

Abstract

The achievement of essential results of enterprise activity directly depends on the logistics strategies used, which are the basis for managing logistics processes. When developing a logistics management system, an enterprise administrator is based on the decisions made, focusing on the organization of the process of working material, information, and additional flows from the supplier and intermediary to the consumer.

The purpose of this article is to provide a comprehensive study of the economic foundations of ensuring the process of managing logistics Strategy in the business environment. The conditions of a dynamic external business environment determine that the logistics development Strategy is the key to the survival of enterprises. Minimizing costs and the ability to innovate involves choosing the optimal Strategy. The logistics market management Strategy is a systemic process that effectively coordinates relations between market players and regulates production, information, sales, personnel, financial, legal, energy, and other activities. Successful Strategy implementation depends on considering the intermediate results of each type of activity when making strategic decisions. Therefore, we propose to consider the logistics Strategy in the long term, based on long-term planning and the expected return on investment in the logistics and transport market, warehousing, adaptation of material and technical infrastructure, and establishment of stable and consistent relationships. The logistics Strategy is a business direction and part of the algorithm of actions required to achieve the company's goals by reallocating the resources of the entire enterprise. It should be noted that there are two types of logistics strategies, static and dynamic, which are interrelated. The difference between these strategies lies in innovative support, intensity of business processes, profitability, and efficiency of supply chains. To summaries, logistics strategies are characterized by interrelated processes based on the quality of logistics services, optimization, and efficiency of transport flows. Essential characteristics of the logistics Strategy are the consolidation of all components of the logistics system, their technological and organizational integrity, efficiency of implementation of the logistics Strategy in time, competitive advantages, and dynamism and adaptability.

Published

2024-06-25

How to Cite

SAMOILENKO Б., BORTNYK А., GUPALO В., & JANCHUK І. (2024). ECONOMIC BASES OF MANAGEMENT OF THE LOGISTICS STRATEGY OF THE BUSINESS ENVIRONMENT. MODELING THE DEVELOPMENT OF THE ECONOMIC SYSTEMS, (2), 259–264. https://doi.org/10.31891/mdes/2024-12-34