Yevhen Kush
O.M. Beketov University of Urban Economy in Kharkiv,
Ukraine
E-mail:
yevhen.kush@gmail.com
Maksym Tonkoshkur
O.M. Beketov University of Urban Economy in Kharkiv,
Ukraine
E-mail:
maksym.tonkoshkur@kname.edu.ua
Kateryna Vakulenko
O.M. Beketov University of Urban Economy in Kharkiv,
Ukraine
E-mail: vakulenko.e@ukr.net
Natalia Davidich
O.M. Beketov University of Urban Economy in Kharkiv,
Ukraine
E-mail:
pmkaf@kname.edu.ua
Andrii Galkin
O.M. Beketov University of Urban Economy in Kharkiv,
Ukraine
E-mail:
galkin.tsl@gmail.com
Submission: 10/21/2019
Revision: 11/6/2019
Accept: 11/22/2019
ABSTRACT
Constant raising the requirements for logistics service of end-consumer expand sales markets and economic relationships that are formed under conditions of uncertainty and instability of the environment, leading to the need to consider not only the logistics system of internal factors but also external. This issue is especially important for Commonwealth of Independent States that rebuilt to a market economy. Nowadays, the grocery logistics network distribution system that would fit for end-consumer and logistics systems owner simultaneously have not fully developed. On the one hand, consumers are looking for minimal cost, which can be provided by direct logistic channels, but minimal cost do not give flexibility in quantity and volumes or other services. On the other hand, the multilevel system provides high level of service and diversity in channel, but products are more expensive in it. Finding the balance between rational price and level of service for end-consumer and logistics system profits in period is been up-today issue in consumer-oriented logistics. The development of mechanisms makes it possible to assess the scale of the rational use of direct and multi-level logistics for the distribution of material flows, which was demonstrated with the numbering of participants in the logistics system in the current situation (external and internal factors). The paper considers the functioning of the system for delivering goods on a direct and multilevel distribution channel. An integrated approach to evaluate the efficiency of the functioning of the logistics system and the consumer had been used.
Keywords: material flow, end-consumer, channel, participant, urban, integrate
1.
INTRODUCTION
Delivering products to the consumption sphere
is one of the important trade functions that take place in commercial
companies. Rational management of these processes plays an important role in
the distribution of goods. A logistics tools affect the choice of delivery
mechanism distribution. At the current stage of development of the state's
economy, the ability of one or another subject of enterprise activity to
compete with nation-al and foreign similar enterprises takes great
significance.
Therefore, an increasingly widespread
application in practice is acquiring a logistic approach to organizing the work
of enterprises and supply chains, which, based on principles such as
consistency, flexibility, rhythm, allows for the maximum reduction of costs and
losses in the activities of economic entities.
The paper investigates the change of the main
indicators of the functioning of the logistic system, depending on the
organization of movement of the material flow. The purpose is to determine the
feasibility of changing the existing organization of supply of products in
supply chain «Manufacturer – Retailers». To achieve the purpose, existing
approaches to determining the efficiency of the supply chain functioning were
analyzed, a mathematical model of the supply chain functioning was constructed,
studies were conducted to determine the effect of parameters of participants in
the supply chain on their performance and the chain as a whole, and
recommendations were developed for improving the efficiency of the supply
chain.
The supply chain is formed by independent
participants of the market of pure competition at the distribution stage,
namely: manufacturer, wholesaler, retailers and participants who transport
goods to the areas: manufacturer - wholesaler and wholesaler - retail chain.
The developed models of the functioning of the participants and the supply
chain reflect the transport-technological and economic features of their
interaction, consider the tax component and the conditions for attracting
financial resources. As a criterion for evaluating the performance of the
supply chain proposed net present value (NPV), which characterizes the excess
of total cash receipts over total costs in the supply chain.
2.
REFERENCES ANALYSIS
2.1.
Analysis of the work of logistics
systems
Logistic activity is based
on the concept of integration of all components of the logistics system and the
search for optimal solutions in general throughout the material flow (MF)
movement (RUSHTON; CROUCHER; BAKER, 2010). In the works (CAMPAGNA; FILIPPI,
2009; TANIGUCHI; THOMPSON; YAMADA, 2016) logistics activities are considered as
a combination of the following activities: customer service; forecasting
demand; stockpile management of work in progress; order processing; cargo
processing; packaging; supply of spare parts and assisting consumers in
servicing; selection of places of allocation; logistics of return flows;
management of transportation and transporting of cargoes; warehousing and
storage.
The implementation of
«Just-in-time» approach in the industry and its extension to traditional
distribution systems of material flows in combination with information
technologies has allowed reducing inventory and optimizing the supply chain.
The development of the retail market requires improvements in the methods and
models of the efficiency of the logistics systems operation with the
consideration of consumers. This leads to the need for the logistics system to
adapt to changing requests conditions and to effective met the demand (GALKIN;
DOLIA; DAVIDICH, 2017).
The literature most widely
and in detail covers the application of logistic methods to the formation of
logistics channels, management of transport and warehouse functions and means
of production. At the same time, the use of logistic approaches to the study of
consumer goods markets, especially at the stage of their movement from retail
to households, is not given enough attention. They require further
consideration, since the consumer market is in the stage of development and
reform.
Participants in the channels
that create the logistics system are aware of the influence of buyers and
regard them as their assets. On the other hand, every logistics system learner
has its own goals and interests (GALKIN, 2015). Modern theories examine the
different indicators as indicators of the efficiency of the logistics system:
costs, cost, profit, safety, quality, agrarian indicators, time and performance
(MAKAROVA; SHUBENKOVA; PASHKEVICH, 2017). Recent studies point to the adoption
of managerial decisions in the logistics system, considering purchasing
interests. Participants in the logistics system are aware of the influence of
buyers and consider them as their assets.
The references analysis
indicates about insufficient attention has paid to the management of material
flows in logistics systems, especially at the stage of distribution among end
users. The following types of logistic activity are considered: customer
service (GAJEWSKAN; ZIMON, 2018); forecasting of demand (BOWERSOX; CLOSS;
COOPER, 2002); fright distribution (SAKAI, et. al,.2018); processing and
execution of orders (KUSH, et. al, 2018); supply and provision of ancillary
services to consumers during maintenance; the choice of distribution center
location (ŻAK; WĘGLIŃSKI, 2014); revers flow management (BAJDOR;
BRZEZIŃSKI, 2018); management of production processes (ŻAK; HADAS;
ROSSI, 2017), transportation management (DE GIOVANNI, et. al., 2017) and others
(TANIGUCHI; THOMPSON; YAMADA, 2016).
Simultaneously, the movement
of material flows in logistics systems from the participant in the retail
network to the end consumer remains not fully investigated, Figure 1. Modern
methods offer a macro model of consumer evaluation in Information and
communications technology platform for urban freight distribution (PLC –
participant of logistic channel) (CAMPAGNA; FILIPPI, 2009). In fact, the
methods and patterns of the distribution of material flows in logistics systems
at the micro level, considering final consumers, require further consideration.
Figure 1: Distribution of
material flows to consumers: PLCQV – V-th participant of logistic
system, Q-th logistics system
It is known that changing
the parameters of the logistics system can lead to a redistribution of the
volumes of material flows realized in them at different times (CRAINIC;
RICCIARDI; STORCHI, 2009). At the same time, the influence of the consumer on
this indicator is not sufficiently studied (Figure 2).
Figure 2: Material flow’s distribution channels scheme, (Х –
logistic channel under certain conditions does not exist)
Source: Based Litomin, et al., (2016)
The number of intermediate
levels between the producer and the consumer characterizes distribution
channels of goods. In fact, they consist of independent participants in the
promotion of material flows. Each member of the channel is a separate unit that
seeks to secure maximum profit. This approach contradicts the system approach,
since none of the channel participants has full or sufficient control over the
activities of the rest of the participants. The maximum logistics efficiency of
the logistics channel organized less than with the system approach.
2.2.
Analysis of the transport operations
in logistics systems
The nature of the effective
functioning of the intermediary, the conditions for its emergence and the
transformation of the logistics system from a lower hierarchical system to a
higher hierarchy system remain to be studied. It can be assumed that a
situation arises in the market when the number of transport participants (TP)
selling their services for various logistic systems reaches a critical value.
In this case, it is expedient to use the mediator. The use of transport in the
logistics system can be represented in three directions:
1. Transport is the property of the logistics system
and is fully aimed at serving the needs of the system.
2. Transport is the property of the logistics system
and, in addition to the needs of the system, performs functioning in other
logistics systems.
3. Transport needs of the logistics system are met
by external transport, which is not the property of the system.
The use of this or that
direction concerns the assessment of the effectiveness of transport. It can be
assumed that in these directions the values of the transport performance
indicators can be different. Therefore, it may be necessary to have a system to
bring transport performance indicators in these areas into a single assessment
system.
The cost of transportation
affects final costs from the point of view of logistics. Very often, the cost
of transportation is not taken into special consideration and as a result, the
cost of goods increases precisely because of transportation. When we assume
that the work of the transport is auxiliary and is aimed at ensuring the work
of other participants in the logistics system, then we can draw the following
conclusion: the assessment of the work of transport should be based on the
values of indicators located in the zone of «logistic expediency». The term
«logistic expediency» is proposed to mean the values of transport performance
indicators, which are in the range from the minimum to the maximum possible
values (meaning the physical capability of the indicator), as well as between
the minimum and maximum values of the efficiency of the logistics system (KAZHAEV,
et. al., 2018).
The current state of
economic and political relations between the states of Europe is characterized
by the preservation of disproportions in the functioning of transport, which
complicates the development of integration processes and national economies (ALMETOVA,
et. al., 2018), in the Ukrainian economy. In this
regard, it becomes of importance to ensure the functional and economic
stability of the modules of the transport complex, as well as the development
of logistics management.
One of the problems of
increasing the efficiency of the transport complex is the problem of assessing
the efficiency of various modes of transport. The existing approach to
assessing the efficiency of transport in terms of the volume of scheduled
traffic became the main reason that the transport had unjustified overloads and
the necessary increase in traffic volume was provided mainly due to extensive
factors (LOBASHOV, et. al., 2018). Therefore, it is important to develop a
methodology for assessing the transport operations of development of economic
relations. It is necessary to design a logistic system or increase its
operational efficiency considering all possible external and internal.
3.
RESULTS
3.1.
Determining the boundaries of the
system and the calculation of performance indicators of its participants
The task of identifying the
characteristics of the system can be considered as a dual (connected) in
relation to the task of managing the system (CRUIJSSEN, et. al., 2007). You
cannot manage the system if it is not identified either in advance or in the
management process. For example, it is impossible to drive a car until the
procedure of familiarization with its reaction to the steering, accelerator or
brake pressing, that is, until acquaintance with the properties of the vehicles
(ESPER; WILLIAMS, 2003; ROSSOLOV, et. al., 2017), occurs. Identification
consists of three stages:
1. The choice of model structure based on a
priori information about the investigated process and qualitative
characteristics of the process and model.
2. The choice of the criterion of proximity of
the object and the model, based on the specifics of the problem.
3. Determination of the parameters of the
model, optimal in terms of the chosen criterion of smoothness (identification
of the parameters of the model).
In the existing sources for
identifying model parameters, the mathematical approach predominates (OLKHOVA,
et. al, 2017). Simultaneously, the identification of parameters in logistics
systems can take place in two fundamentally different approaches: the heuristic
and mathematical (ALHO; SILVA, 2017).
Further, let's dwell on each
of the approaches. Existing methods of constructing mathematical models of
technological processes (the functioning of transport can be considered as a
set of technological processes) can be divided into two approaches (COMI et.
al., 2012):
1. Physical and mathematical analysis of
phenomena that determine the dynamics of the process.
2. Experimental identification, in which the
basic information about the process is obtained by direct measurements.
The most suitable are the
experimental methods of identification (the consideration of physical and
mathematical regularities turns out to be ineffective because of the complexity
and variety of processes occurring in complex systems, and also because of the
large number of their constituent elements) (TAVASSOLI; FARAMARZI; SAEN, 2015).
An analysis of the existing state of sites is carried out using a model that is
based on the determination of a net cash flow (HALKIN, et. al, 2016), according
to which the objective function of the model of the system under study is as
follows:
(1)
where
– respectively, the net present value of the
TP project in the section «manufacturer - distribution center», distribution
center, TP in the link «distribution center - retail network» and retailer,
which is considered, UAH.
The income of the transport participant depends on the tariff for
transportation. The tariff is determined by the transportation costs, which
depend on the parameters of the selected route. The studies conducted by the
authors showed that the probability of a driver choosing the i-th route for
movement between pick up and deliveries bays can be formalized as follows:
(2)
where - the ratio of the speed along the i-th route to the speed along the shortest route; - the ratio of the length of the i-th route to the length of the shortest route; TN - individual characteristics of
drivers, which are determined by the type of nervous system; AD – driver’s age.
Net present value is defined as the ratio:
(3)
where
– net cash flow at selected intervals of the
total calculation period t; і – discount rate; k – total calculation period.
The cost component of each
participant has certain differences, but the main components are the current
costs of organizing production, the basis of taxes and fees, payments on
borrowed capital and capital investments (Table 1).
Table 1: Scheme of costs of participants in the supply chain for the
existing organization of the system under consideration
Participants |
Current
costs |
Basic taxes and fees |
Distribution center |
rent; expenses for the maintenance of a TP; expenses on wages of
employees; maintenance and repair costs of the equipment; fuel costs for
loaders; general expenses. |
- income tax; - VAT. |
Transport company |
wage costs; maintenance and repair costs of vehicles; fuel and
lubrication costs; general expenses. |
- income tax; - VAT; - tax on owners of vehicles. |
Retail participant |
expenses for the purchase of products; expenses on wages of employees;
maintenance and repair costs of the equipment; general expenses and others. |
- income tax; - VAT. |
Calculations are made for a period of 5 years, which
is divided into quarters 3of three months. In this paper, it is proposed to
consider not a supermarket as an independent entity, but a chain, the initial
link of which is manufacturers or other suppliers. Material flows in individual
areas relative to the object being examined, are depicted in Figure 3. In this
case, two separate sections of the existing system within the city are being
investigated, namely the «Distribution center of alcoholic beverages «Obolon»
in Kharkiv city (in the paper – the distribution center) – Limited Liability
Company «Rost» (hereinafter in the paper – the retail participant) and
Manufacturer of non-alcoholic beverages «Private enterprise «Vela»
(manufacturer) in Kharkiv city – «Limited Liability Company «Rost» (Figure 4).
The total area of
the supermarket, including the parking area, is approximately
10,000 square meters. The total area set aside for construction is
approximately 5,000 square meters. The area of the supermarket
premises, including the administrative building, warehouses, is approximately
8,500 square meters. The supermarket is essentially a warehouse-store, most of
all products are stored directly in the premises of the trading hall, the rest
- in warehouses. The
initial data are given in table 2. It was obtained
according economic-planning department and logistics department od considering
supply chain.
Table 2: Scheme of costs of participants in the supply chain for the
existing organization of the system
№ |
Name
of factor |
Units
of mesurments |
Value |
1 |
The
average value of the daily sales volume of the enterprise of production is 1
(distribution center) |
tonn |
0,08 |
2 |
The
average value of the daily sales volume of the enterprise products - 2
(manufacturer) |
tonn |
0,048 |
3 |
Proportion
of products - 1 (distribution center), which is considered, in the total
sales of products by the enterprise |
% |
0,075 |
4 |
The
share of production - 2 (manufacturer), which is considered, in the total
sales of products by the enterprise |
% |
0,029 |
5 |
The
value of the area's retail network storage |
m2 |
425 |
6 |
The
value of space by retail chain |
m2 |
6050 |
7 |
The
average height of storage space among members of the retail network |
m |
5,5 |
8 |
The
average value of the bulk cargo |
ton/
m3 |
0,7 |
9 |
Number
of days a retailer works in a month |
unit |
30 |
10 |
Average
markup for retailer products |
% |
34 |
11 |
The
average markup on the products of the distribution center |
% |
40 |
12 |
Average
cost of production of one tonne of material flow 1 (distribution center) at
manufacturer's selling price |
UAH |
3600 |
13 |
Average
cost of production of one ton of material flow 2 (manufacturer) at the
manufacturer's selling price |
UAH |
3200 |
14 |
The
total number of staff required for a retail network participant, as required
by the approved staffing schedule |
units |
483 |
15 |
Average
monthly salary per unit of retailer's staff according to staffing |
UAH |
11960 |
16 |
Rate
of deductions for repair and maintenance of equipment and maintenance of
premises of the retail participant |
% |
2 |
17 |
Income
tax rate |
% |
25 |
18 |
Value
added tax rate |
% |
20 |
19 |
Discount
rate, to adjust net cash flow |
% |
17 |
Figure 3: Existing organized supply chain
Figure 4: Description of the movement of
products flows
3.2.
Characteristics of projected changes
The collaborative approach allows its participants to gain more profit,
operate based on equal partnership and in a high degree of trust, delegate
powers and delegate responsibilities, co-solve problems, and focus their
attention and strength not on their own operations, but on existing and
potential consumers. In this case, the terms of contracts are more flexible. In
this case, the combination of the work of two separate supply chains, which are
considered in the second section of the study, is investigated. Thus, the
following scheme is proposed for organizing the movement of material flows
(Figure 5) in comparison with the existing one (Figure 6).
Figure 5: Existing scheme of organization of movement of material flows
(direct channel)
Figure 6: Proposed scheme of organization of movement of material flows
(multilevel logistic channels)
The terms of such an
organization are the change in the trajectory of the material flow of the
manufacturer to the retail network, which will cause the corresponding changes
in the main technical and economic indicators in the work of participants.
Other source data remain unchanged. Thus, the total volume of products serviced
by the latter is increased by 431.8 tons and is 1280.8 tons.
It is proposed to accept
such surcharges for the main material flow of the distribution center and the
manufacturer's products separately for each participant (Table 3).
Table 3: Extras of the system
participants in the conditions of the proposed changes
Material flow |
Manufacturer, % |
Distribution center, % |
Retail participant, % |
The main material
flow of the distribution center |
- |
40 |
34 |
Manufacturer
production, which is considered |
50 |
10 |
22 |
It should be noted that the mark-up of the
distribution center on the products of the manufacturer under consideration
cannot exceed the corresponding existing margin of the retail participant.
There is also a need to recalculate the following system performance indicators
(Table 4).
Table 4: The parameters of the
participants of the logistics system that will change
Participant |
Parameter |
Participant |
Parameter |
Distribution
center |
Number of loaders
in the supply service area |
Transport participant in the link «Distribution Center - Retail
Network» |
The number of
turns and the number of points of arrival on the route |
Number of loaders
in the retail service area |
The average
travel time of one vehicle and the average length of the route |
||
The number of
working staff at the site |
|||
Warehouse area |
Required number
of vehicles and drivers and other employees |
||
The number of
places of storage in the racks |
For a TP in the link «Manufacturer – Distribution
Center» the model for calculation of the main indicators of functioning was
changed. Appendix A and
Table. 5 show the calculated performance of the DC and TP in the section
«Distribution Center – Retail Network».
Table 5: Calculated indicators of
the monthly demand for the number of storage places in the racks and the
required area of the warehouse of the distribution center
Monthly need for storage places in the racks for a distribution center,
units. |
||
The
monthly volume of the main products of the distribution center, 849 tons. |
233 |
351 |
Monthly
production volume of the manufacturer involved, 431,8 tons |
118 |
|
Required area of the distribution center, sq. m. |
||
The
monthly volume of the main products of the distribution center, 849 tons. |
203 |
306 |
Monthly
production volume of the manufacturer involved, 431,8 tons. |
103 |
According to the obtained results, the proposed
changes provide for the introduction of 1 loader into the DC to the service
area for manufacturers and 118 additional storage locations in the racks; One
additional vehicle to the TP in the section «Distribution center - Retail
network». The results of the calculations are presented in Table. 6.
Table 6: Comparison of the received
indicators of the proposed organization of the transport participant in the
section «Manufacturer - Distribution Center» with the existing ones
№ |
Name of the indicator |
Multilevel logistic channels |
Direct channel |
1 |
Monthly sales volumes of material flows, tons |
431,8 |
431,8 |
2 |
Load time of one vehicle in the warehouse of the
manufacturer, h. |
0,71 |
0,93 |
3 |
Idle time under unloading at the distribution center
warehouse on site «Manufacturer - Distribution Center», h. |
0,71 |
1,53 |
4 |
Accounting number of vehicles, units |
2 (0,36) |
4 |
5 |
The maximum possible number of turns of the vehicle
per month, units |
286 |
90 |
6 |
The duration of the return trips at the site
«Manufacturer - Distribution Center», days, h. |
0,10 |
4,73 |
7 |
Total rest time of driver, h. |
0 |
- |
8 |
Total number of drivers on the site, units |
3 |
5 |
9 |
Number of engineering staff, units |
2 |
3 |
The proposed changes to this logistics system
participant contribute to the reduction of indicators that characterize its
capacity, in particular, the reduction of the average length of the route to 10
km and the supply to one customer allows reducing the number of existing
vehicles to 2 units, which in turn will affect the traffic of the site, the
cost of servicing vehicles, including key employees, and the amount of
depreciation deductions by reducing the value of vehicles.
3.3.
Comparison and analysis of the
results
The emergence of a DC on the
way of promoting the manufacturer's products to the retail network caused
changes in the main performance indicators of each of the participants in the
system under study. Such a redistribution was reflected in the figures for the
total NPV of each participant in such an organization (Table 7).
Table 7: Comparison of the obtained
indicators of NPV for 5 years, UAH
Participant |
NPV for direct organization of the logistics
system, UAH. |
NPV for Multilevel logistic channels,
UAH. |
Manufacturer |
Х |
« + 715108,45 » |
Manufacturer's
transport member |
556924,32 |
230324,36 |
Distribution
center |
10468392,36 |
11454077,86 |
TP in the section «Distribution Center – Retail Network» |
1051385,59 |
1690495,94 |
Total NPV of the system
(excluding the relevant indicator of the retailer being considered) |
12076702,28 |
14090006,61 |
Retail participant |
28696355,47 |
28685298,53 |
In Figure 7 and Figure 8 graphically according to Figure
5 and Figure 6 are presented the existing system and system with considering
the proposed changes in the organization, indicating the NPV indicators of each
of the participants.
Figure 7: Existing scheme of organization of movement of
material flows (direct)
Figure 8: Proposed scheme of organization of movement of
material flows (throw DC)
Provided, the DC and the
manufacturer use their own vehicles for the transport of products. Therefore,
the income of TP constitutes the corresponding item of expenditure in their
work. In the case of the manufacturer, the new organization of the movement of
the material flow allows to reduce these costs. Since the main means of
generating income for a distribution center and a retail participant is an
extra charge per unit of sales, an increase in its value by one participant
requires a reduction in the corresponding for another. This dependence can be
represented graphically (Figures 9, 10).
Comparison of the costs of
the existing and proposed organization of the movement of material flow is
carried out using Figures 11-13, where: «1» is the sum of the profits of the
enterprise, «2» is the sum of depreciation deductions, «3» – the total sum of
taxes from the participant, «4» – current expenses. The average amount of
profit per unit of current member's expenses under the existing organization of
the system is UAH 0,36, in the conditions of the proposed organization – UAH
0,50. The indicator of profitability of the participant under the existing
organization of the system under consideration is UAH 0,30. per unit of current
expenses for the calculated period, under the conditions of the proposed
organization – 0,29.
Figure 9:
Dependence of the NPV of the DC and the system depending on the change in the
margin of the DC in the price of the unit of material flow considered without
the NPV of the retail network:
- NPV of the considered system;
- NPV of the distribution
center;
- NPV of the considered
system under the existing working conditions (direct channel); - NPV of the distribution center
under the existing working conditions.
Figure 10:
The dependence of the NPV of the retail participant depending on the change in
the margin of the distribution center in the unit price of the material flow: -
NPV of the retail participant.
Figure 11: Income components of revenue for a TP
in the existing organization of the system and considering the proposed changes
Figure 12:
Income components of revenue for distribution center in the existing organization
of the system and considering the proposed changes
Figure 13: Income components of revenue for a TP
from the manufacturer in the existing organization of the system and
considering the proposed changes
For a TP, the average amount
of profit per unit of current expenses of a participant for an existing
organization in the accounting period is UAH 0,27, under the conditions of the
proposed organization – UAH 0,14. Changing the organization of the movement of
material flow requires the appropriate costs from the parties to ensure its
promotion in the supply chain.
According to the
calculations performed under the current operating conditions of the system
under consideration, the net present value for: the distribution center is UAH
10468392,36 (at current expenses UAH 42960065,89, the total amount of income
for the estimated period is UAH 73353600,00), for TP in the section
«Distribution Center – Retail Network» – UAH 1051385,59 (at current expenses
UAH 3052546,64, total amount of income for the estimated period – UAH
5902684,77), for TP in the section «Manufacturer – Distribution Center» – UAH
556924,32 (at current expenses UAH 2078364,24, the total amount of income for
the estimated period is UAH 3621127,50), for the retail participant is UAH 28696355,47.
As a result, a larger indicator of the total net present value for the system
is obtained, minus the corresponding for the retail network. Profitability of a
TP in the link «Distribution Center – Retail Network» has been increased from
UAH 0,36 per unit incurred expenses up to UAH 0,50, profitability of the
distribution center reduced by 1%, profitability of the TP included in the
manufacturer – reduced by 13% due to reduction of work volume. At the same
time, in such an organization, in the conditions of the constant retail price
for the retail network for end users, each of the participants in the retail
network on average loses UAH 211 profit in a month due to the appearance of an
additional link in the channel of promotion of the material flow of the
manufacturer under consideration.
4.
CONCLUSION
The basic conceptual idea of
logistics is the need to adapt the company to an ever-changing market
situation, while spending a minimum of funds in these conditions. The concept
of logistics is a system of views on the rationalization of economic activity
by optimizing material flows. Each company develops its own concept of
logistics – a system of views on improving the efficiency of the enterprise. It
relies on the long-term goals of the enterprise and ensures the coherence of
the actions of all units. The complexity of the logistics system lies in the
fact that it should match two areas of activity: the demand put forward by the
intermediary (consumer) and the proposals put forward by the manufacturer,
which is based on relevant information (KUSH, et. al, 2018).
An intermediary can be
represented as a market participant acting as a connecting element between
different systems. Therefore, it is difficult to attribute an intermediary to
one or another logistics system. An intermediary can also be represented as the
regulator of the effective functioning of the logistics systems of any market.
From this side, the definition of the modalities of the development of
intermediaries will allow us to approach the solution of the problem of
assessing the efficiency of transport in the logistics system.
Considering amount of sales of non-alcoholic products of the
manufacturer, the total amount of loss for the entire retail network is UAH
8290560,00 in the form of income, UAH 3315546,41 – in the form of NPV. That is,
on average, one member of a retail network loses UAH 211 profit in a month per
such organization. In the case of a manufacturer, changing the trajectory of
the movement of its products allows to free up the funds in the amount of UAH
715108,45 in the form of profit for the accounting period due to a decrease in
the workload of transport serving the material flow. Thus, the possible
reduction of the manufacturer's margin is up to 47,4% and the increase in the
average retail margin by 2%. In this case, one representative of the retail
network, on average, loses about UAH 165, which is significantly lower than the
previous result.
The article presents an
approach to determining the consumer's influence on the distribution option
(with or without DC). The obtained results can be used in planning and
organizing the functioning of the logistics and system, as well as estimating
the amount of material flows in it.
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APPENDIX
Table A1: Results of
calculations performed and comparison with existing ones
№ |
Indicator |
Value |
Difference |
|
Existing organization (direct channel) |
Organization considering the proposed changes (multilevel logistic
channels) |
|||
1 |
Average volume of one delivery, tons |
1,5 |
2,1 |
0,6 |
2 |
Number of revolutions, units |
189 |
304 |
115 |
3 |
Number of arrival points on the route, units |
3 |
2 |
-1 |
4 |
Average turnover time of vehicle, h |
3,72 |
3,37 |
-0,35 |
5 |
Average length of the route, km |
35,2 |
32,2 |
-3 |
6 |
Loading time of 1 vehicle in a warehouse of the distribution center, h. |
0,94 |
0,91 |
-0,03 |
7 |
Number of loaders in the distribution center in the retail network
service area, units. |
2 |
2 |
- |
8 |
Maximum daily volume of material flow at the section «Distribution center
- Retail network», tons |
424,5 |
638,4 |
213,9 |
9 |
The required number of load posts in the warehouse of the distribution
center in the retail network service area, units. |
1 |
1 |
- |
10 |
The number of loaders in the distribution center in the service area of
the retail network, which simultaneously serves 1 post load, units. |
2 |
2 |
- |
11 |
Idle time during unloading of the vehicle when servicing the retail
network, h. |
1,35 |
1,26 |
-0,09 |
12 |
Number of vehicles, units |
10 |
11 |
1 |
13 |
Maximum number of revolutions per day by vehicle, units. |
4 |
4 |
- |
14 |
Number of truck drivers in the distribution center, units. |
8 |
10 |
2 |
15 |
Number of engineering and technical workers of the distribution center,
units |
18 |
27 |
9 |
16 |
Number of drivers of vehicles, units. |
6 |
9 |
3 |
17 |
Number of engineering and technical workers of the TP, units |
6 |
6 |
- |
18 |
The average number of retail participants serviced per day, units |
19 |
21 |
2 |
19 |
The required number of loaders in the distribution center on the site of
service of manufacturer, units |
2 |
3 |
1 |
20 |
The required number of load posts for the warehouse of the distribution
center at the service area of the manufacturer, units |
1 |
1 |
- |
21 |
The number of loaders in the distribution center at the service area of
the manufacturer, which simultaneously serves 1 post load, units. |
2 |
3 |
- |