Improvement of the Logistics Strategy of the Company through Effective Budgeting of its Activities (by the Example of JSC "Russian Railways")

Today many companies face the need to increase planning accuracy in order to minimize negative consequences of demand volatility under conditions of uncertainty. In this situation it is also important to improve the effectiveness of budgeting activities. The purpose of this master's thesis is to develop recommendations for improving logistics strategy of a transport company, taking into account the role of budgeting (by the example of JSC “Russian Railways”). The object of this research are logistics activities of the largest transport company in Russia - JSC “Russian Railways”. The subject of this research is improvement of logistics strategy of JSC “Russian Railways” with increase in efficiency of its budgeting system. The role of JSC “Russian Railways” in Russian transport system cannot be underestimated (taking into account the share of JSC “Russian Railways” in total freight turnover in Russia, which reaches 45%). Therefore, the problem of increasing this company's efficiency is a current issue. Solving identified problems in the company’s logistics involves changes in its logistics strategy and organizational structure, as well as improving the budgeting system of JSC “Russian Railways”, taking into account modern approaches in foreign practice. These solutions will allow to increase profitability of the company's assets and its profits, as well as providing conditions for the company's future development. The measures proposed in this paper should cause positive changes in the company’s performance, which determines practical significance of the results of this master's thesis.