Productive forces development and regional economy

Specific features of regional logistics potential consideration in the process of the enterprise distribution system development

Economic Annals-XXI

Economic Annals-ХХI: Volume 160, Issue 7-8, Pages: 105-110

Citation information:
Bilovodska, O., Gryshchenko, O., & Syhyda, L. (2016). Specific features of regional logistics potential consideration in the process of the enterprise distribution system development. Economic Annals-XXI, 160(7-8), 105-110. doi: https://doi.org/10.21003/ea.V160-21

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Olena Bilovodska
PhD (Economics),
Associate Professor,
Sumy State University
2 Rymsky-Korsakov Str., Sumy, 40007, Ukraine
alenabel79@gmail.com

Olena Gryshchenko
PhD (Economics),
Senior Lecturer,
Sumy State University
2 Rymsky-Korsakov Str., Sumy, 40007, Ukraine
elena.gryshchenko@gmail.com

Liubov Syhyda
PhD (Economics),
Assistant Professor,
Sumy State University
2 Rymsky-Korsakov Str., Sumy, 40007, Ukraine
liubov.syh@gmail.com

Specific features of regional logistics potential consideration in the process of the enterprise distribution system development

Abstract. Introduction. Nowadays, it is important for any region to define its place among other regions and to position itself if it wants to provide sustainable and long-term development. Therefore, in the context of the changing external environment, regions have to maintain their own competitiveness. One of the most important factors which determines competitiveness is the level of the region’s logistics potential. This is due to the fact that sufficient and good logistics contributes to the region’s integration into the global supply chain. Also, a study of the region’s logistics potential allows not only to determine the direction of its further development, but also can help managers to make decisions in terms of the development of the enterprise distribution system.

The purpose of the article is to determine the development of the enterprise distribution system as part of the enterprise’s supply chain based on its regional logistics potential.

Results. Using the Logistics Performance Index (LPI), the authors have analysed the logistics potential of Ukraine. It was defined that Ukraine was ranked 61st among 160 countries in the 2014 survey, which was the best result among the post-Soviet countries. Nevertheless, Ukraine is among the countries with a value of LPI below the average. Thus, it is necessary to improve the efficiency of customs and border management, the quality of trade and transport infrastructure and the professionalism and quality of logistics services. The authors have formulated the essence of logistics potential. It is suggested to identify elements of the regional logistics potential, such as transport potential, storage potential, transit potential, human resources potential, customers and sales potential, marketing and services potential, advantages of the economic and geographic position, as well as the dimensional potential. Based on the proposed structure of the regional logistics, the logistics potential of Sumy region of Ukraine has been evaluated. The procedure for the development of the enterprise’s distribution system was proposed based on the regional logistics potential.

Conclusions. In the modern conditions, it is important for regions to form additional competitive advantages. Today it becomes clear that regional logistics potential can be one of such advantages. A sufficient level of regional logistics potential allows not only developing thecompetitive advantage region’s competitive status in the future, but also helps enterprises to develop distribution systems that fully meet the requirements of the region.

Keywords: Logistics Potential; Distribution; Region; Marketing Channel; Efficiency of Logistics; Competitive Advantage; Enterprise

JEL Classіfіcatіon: D30; М31; R10

DOI: https://doi.org/10.21003/ea.V160-21

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Received 28.04.2016

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