Logistical support of foreign economic activity

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Visnyk LNAU: Economics of AIC 2020 №27: 48-52

Logistical support of foreign economic activity

Yanyshyn Ya., PhD
Lviv National Agrarian University

https://doi.org/10.31734/economics2020.27.048

Annotation

There are many ways to improve the production process at agricultural enterprises, and each of these methods can be practically applied. One of the most effective ways to create new and consolidate the existing competitive advantages of agricultural market entities is to implement, optimize and apply the system of logistic support for agricultural production. The system of logistical support of production occupies a prominent position among the effective tools of intensive development of agricultural enterprises. The value of logistics costs is up to 25% in the cost structure of the enterprise, which, under the current conditions of management puts logistics in the list of the primary management tasks. Understanding the basement of the functioning of logistics systems makes it necessary to carry out the optimization of such system and constant control and audit of logistic activity of the enterprise. Logistics lies within all production and support processes and can be a key factor in the effective functioning of all business units. Logistics is an integral part of foreign economic activity, and thus the effective use of logistics tools and methodology in the management of foreign economic activities can be a key to success in the international marketplace.

The market situation, characterized by instability, continuous changes in technological processes, as well as constant growth of society's requirements for the characteristics of goods and services, causes the requirement of innovative and improvement of existing management techniques. An approach of focusing on logistical support for agricultural production, and in particular foreign economic activity, is necessary to maintain the position of the enterprise at the market, as well as to increase the performance indicators of producers in accordance with their strategic goals, and from this - the potential capture of additional niches of the market.

In the research, the author considered and analyzed the state of logistics provision of foreign economic activity of the agricultural enterprise «Agro LV Limited», analyzed the structure of the logistics enterprises and logistics chain by select the main foreign trade partners, created the model of improving the system of logistic support of foreign economic activity on the example of the agricultural enterprise «Agro LV Limited».

Key words

logistic support, logistic chain, logistics link, distribution channel, production area

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