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Increasing Company's Logistics Efficiency

Student: Lesnichii Anton

Supervisor: Andrey Aleksandrovich Bochkarev

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2020

The logistics efficiency is considered in the qualification study as a key objective for enterprise. Nowadays, there are a huge amount of companies, which produce goods or provide services worldwide. Due to this reason, there is a competitive fight in the market when each enterprise strives to reach a leadership. A company has to decrease its total costs while making its pool of activities more profitable in order to achieve it. There are a set of methods from different areas which can be used by enterprises to reach an aim. Logistics is one of these areas. Logistics is the science of flow control, which provides an optimum state of processes and increases their efficiency. For example, logistics methods affect both transportation and warehousing. A company can provide the necessary level of process efficiency and reduce its total costs using the logistics methods of optimization. The study contains three chapters. Such theoretical logistics basics as a role of logistics for an enterprise, functions and definitions connected with logistics are considered in the first one. Also, an aspect about formulating logistics strategy of the enterprise and analyzing the efficiency of its logistics management is considered here. All these elements are used in practical part of research. The second part includes information about methods of increasing company’s logistics efficiency, such as a supplier selection task, method of warehouse optimization. Moreover, there is an analysis of logistics costs and aspect of controlling in this part. The third part has a practical task. A confectionery factory, which has difficulties related to its efficiency, was selected as an object of research. Firstly, there is an analysis of company’s activities, its revenues and expenses. Then, an action plan is proposed, which concerns the optimization of raw materials purchasing system and storage optimization. Next point includes the implementation of these methods to improve performance. Its effectiveness is evaluated at the end of research. As for results, it is possible to say that the enterprise is able to decline its costs and rise its profits by using the logistics methods of optimization. As for the recommendations, it is necessary to mention that before the implementation of different methods related to efficiency increase, the company has to engage an expert who can correctly assess the current situation and propose the right methods to use. Then, the chosen techniques should be implemented and the effectiveness of its application should be evaluated.

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