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Kherson State Agrarian and Еconomic University

THE INFLUENCE OF LOGISTIC MANAGEMENT ON ECONOMIC ACTIVITIES IN THE REALM OF PUBLIC ADMINISTRATION

Galat L.M. - Ph.D. in Economics, Associate

Professor, Associate Professor

at the Department of Management

and Information Technologies

Annotation

logistic management public administration

This research article examines the impact of logistic management on economic activities within the realm of public administration. Logistic management plays a critical role in ensuring the efficient flow of goods, services, and information, which directly influences economic performance. The study aims to identify the current logistic management practices in public administration, analyze their strengths and weaknesses, and explore their influence on cost efficiency, service quality, and overall economic outcomes. By examining the relationship between logistic management and economic activities in the context of public administration, this research provides valuable insights for policymakers, administrators, and researchers. The findings contribute to a better understanding of the importance of effective logistic management in optimizing economic activities and improving overall performance in the public sector. The article concludes with recommendations for enhancing logistic management practices within public administration to achieve sustainable economic growth and efficient service delivery.

The conclusion of this article aims to increase awareness of the impact of logistic management on economic activities in the realm of public administration. The research highlights the necessity of effective logistic management in the public sector to achieve economic growth, ensure highquality services, and enhance overall productivity.

The article calls for the improvement of logistic management in public administration through the implementation of advanced methodologies, innovative technologies, and optimal resource utilization. It also recommends active engagement with stakeholders, considering the needs and expectations of citizens, and conducting systematic analysis and evaluation of logistic processes.

The application of effective logistic management in public administration will contribute to improved organizational performance, cost reduction, prompt and accurate responsiveness to citizen needs, and enhanced service quality. Increasing attention to logistic management in the realm of public administration is a crucial step towards achieving efficient functioning and sustainable development of the state.

Key words: logistic management, economic activities, public administration, logistics, logistic chain, cost efficiency, service quality, economic indicators, optimization, public sector, logistic challenges, logistic management strategies, infrastructure, productivity improvement, public services.

Анотація

Галат Л. М. Вплив логістичного управління на економічну діяльність у сфері державного управління

Дана наукова стаття присвячена вивченню впливу логістичного управління на економічні активності у сфері публічного управління. Логістичне управління відіграє важливу роль у забезпеченні ефективного руху товарів, послуг та інформації, що безпосередньо впливає на економічну продуктивність. Метою дослідження є визначення поточних практик логістичного управління в сфері публічного управління, аналіз їх переваг та недоліків, а також вивчення їх впливу на ефективність витрат, якість послуг та загальні економічні показники. Шляхом вивчення зв'язку між логістичним управлінням та економічними активностями в контексті публічного управління це дослідження надає цінні уявлення для приймачів рішень, адміністраторів та дослідників. Отримані результати сприяють кращому розумінню важливості ефективного логістичного управління в оптимізації економічних активностей та покращенні загальної продуктивності в секторі публічної сфери. У статті наводяться рекомендації щодо поліпшення практик логістичного управління у сфері публічного управління з метою досягнення сталого економічного зростання та ефективного надання послуг.

Висновок цієї статті спрямований на підвищення усвідомлення про вплив логістичного управління на економічні активності в сфері публічного управління. Дослідження виокремлює необхідність ефективного логістичного управління у публічному секторі для досягнення економічного зростання, забезпечення високої якості послуг та підвищення загальної продуктивності.

Стаття закликає до вдосконалення логістичного управління в публічній адміністрації шляхом впровадження передових методик, інноваційних технологій та оптимального використання ресурсів. Також рекомендується активне взаємодіяти зі стейкхолдерами, враховувати потреби та очікування громадян, а також проводити системний аналіз та оцінку результатів логістичних процесів.

Застосування ефективного логістичного управління в публічній адміністрації сприятиме покращенню роботи організацій, зниженню витрат, забезпеченню швидкого та точного реагування на потреби громадян і підвищенню загальної якості надання послуг. Посилення уваги до логістичного управління в сфері публічного управління є важливим кроком у напрямку досягнення ефективного функціонування і сталого розвитку держави. Ключові слова: логістичне управління, економічні активності, публічна адміністрація, логістика, логістичний ланцюг, ефективність витрат, сервісна якість, економічні показники, оптимізація, публічний сектор, логістичні виклики, стратегії логістичного управління, інфраструктура, поліпшення продуктивності, публічні послуги.

Formulation of the problem

Logistic management plays a vital role in the efficient functioning of economic activities in various sectors, including public administration. Effective logistic management ensures the timely and cost-effective flow of goods, services, and information, ultimately impacting the overall economic performance. This study aims to explore the influence of logistic management on economic activities within the realm of public administration, shedding light on its significance and potential benefits. The problem under investigation is to examine how logistic management practices within the domain of public administration affect economic activities. Specifically, this research aims to analyze the relationship between logistic management and economic performance indicators, such as cost efficiency, service quality, and resource allocation. By understanding this relationship, policymakers and administrators can identify areas for improvement and implement strategies to enhance economic activities within the public administration realm.

Analysis of recent research and publications

Considerable attention has been given to the study of the economic aspects and characteristics of logistic management by both domestic and international researchers. Biliavskyi M. examines the significance of logistics in modern warfare and its crucial role in achieving success in military operations. The article discusses various logistical challenges and strategies applied in contemporary military scenarios, aiming to emphasize the importance of logistics in military contexts and its influence on achieving operational objectives.

Hrynchak N. A. [2] analyzes quantitative data and statistical indicators to assess the current state of the logistics market, identify trends, and draw conclusions about its effectiveness. The research aims to contribute to understanding the logistics industry and provide valuable information for decision-making by policymakers, businesses, and researchers.

Zhuravel V. [3] explores the challenges and opportunities for the logistics industry during times of war, reforms, and future development. The article examines the impact of warfare and reforms on logistics operations, as well as the potential for growth and advancement in the field. The goal is to uncover the resilience and adaptability of logistics in challenging circumstances and its potential for future success. Zaverbnyi A. S., Dvulit Z. P, Vuiek Kh. [3] investigate the peculiarities of establishing logistic chains during and after war. The article discusses the challenges and strategies involved in forming and maintaining effective logistic chains in such circumstances. The study aims to provide insights into the dynamics of logistic operations during and after conflicts and offer recommendations for improving their efficiency.

Isachenko O. [4] examines the changes that have occurred in logistics in Ukraine during the war. The article discusses the impact of the conflict on various aspects of logistics, including supply chain management, transportation, and infrastructure. The author highlights the challenges faced and the measures taken to adapt logistics operations to the wartime conditions.

Kaliuzhna N. H., Sheremet A. S. [5] analyze the current issues and priorities of recovery in Ukraine's logistic system. The article addresses the challenges and obstacles encountered in rebuilding and optimizing the logistic infrastructure in the post-war period. The authors propose solutions and prioritize key areas for the recovery and improvement of the logistic system.

The article «Restructuring Logistics in the Face of Russian Aggression against Ukraine» [6] published in Holos Ukrainy discusses the necessity of restructuring logistics operations in response to Russia's aggression. The article highlights the challenges posed by the conflict and explores the strategies and measures implemented to ensure the continuity and effectiveness of logistic activities in Ukraine.

Formulation of the goals of the article

The goal of this article is to examine and analyze the influence of logistic management on economic activities within the realm of public administration. The article aims to explore the relationship between logistic management practices and various economic performance indicators, such as cost efficiency, service quality, and resource allocation. By achieving this goal, the article intends to provide insights and recommendations that can help policymakers and administrators enhance logistic management practices to optimize economic activities in the public administration sector.

Presenting main material

In order to understand the influence of logistic management on economic activities in the realm of public administration, it is crucial to identify the current logistic management practices and evaluate their strengths and weaknesses. This analysis will provide insights into the existing state of logistic management and highlight areas that require improvement. Here are some common logistic management practices in public administration along with their strengths and weaknesses:

1. Supply Chain Management:

– Strengths: Effective supply chain management can ensure the timely availability of goods and services, reducing delays and improving operational efficiency. It enables better coordination and collaboration among various stakeholders involved in the procurement and distribution processes.

– Weaknesses: Weak supply chain management can lead to delays in the delivery of essential goods and services, affecting service quality and efficiency. Inadequate coordination and information sharing among different departments can result in redundant or inefficient resource allocation.

2. Inventory Management:

– Strengths: Efficient inventory management minimizes inventory carrying costs and reduces the risk of stockouts or overstocking. It optimizes resource allocation by maintaining appropriate stock levels based on demand forecasting and consumption patterns.

– Weaknesses: Poor inventory management can result in excessive inventory holding costs, wastage, and obsolescence. Inaccurate forecasting or inadequate tracking systems can lead to stockouts, delays, and customer dissatisfaction.

3. Transportation and Distribution:

– Strengths: Well-managed transportation and distribution systems ensure timely and cost-effective delivery of goods and services. Effective route planning, optimized vehicle utilization, and reliable logistics partners can enhance efficiency and reduce transportation costs.

– Weaknesses: Inefficient transportation and distribution processes can lead to delays, increased costs, and suboptimal resource allocation. Lack of coordination among different transportation modes or inadequate infrastructure can hamper the smooth flow of goods and services.

4. Information Systems and Technology:

– Strengths: Robust information systems and technology enable real-time tracking, monitoring, and data analysis, enhancing visibility and decision-making in logistic management. Automation and integration of processes streamline operations, reduce errors, and improve efficiency.

– Weaknesses: Outdated or inadequate information systems and technology can hinder effective logistic management. Insufficient data integration, security concerns, or resistance to technological advancements can limit the utilization of available resources and impede data-driven decision-making.

5. Collaboration and Partnerships:

– Strengths: Collaborative efforts and partnerships with external stakeholders, such as suppliers, contractors, and logistics service providers, can improve logistic management. Shared resources, knowledge, and expertise can lead to enhanced efficiency, economies of scale, and reduced costs.

– Weaknesses: Lack of effective collaboration and partnerships can result in fragmented processes, information gaps, and duplication of efforts. Inadequate communication, trust issues, or inconsistent coordination can hinder the effectiveness of logistic management.

It is important to note that the strengths and weaknesses of logistic management practices may vary across different public administration entities and sectors. Conducting a thorough assessment and analysis of the specific practices and their impact on economic activities within each organization will provide a more accurate understanding of the strengths and weaknesses in logistic management.

The relationship between logistic management and cost efficiency within the realm of public administration is significant and can have a direct impact on the overall economic performance. Here are some key insights into this relationship:

Streamlined Processes: Effective logistic management practices, such as supply chain optimization, inventory management, and efficient transportation planning, can contribute to streamlined processes. By reducing redundancies, minimizing delays, and optimizing resource allocation, cost efficiency can be enhanced. Streamlined processes eliminate wasteful activities, leading to cost savings and improved economic performance.

Resource Optimization: Logistic management focuses on optimizing the use of resources, including personnel, materials, and equipment. Through efficient procurement, inventory control, and resource allocation, public administration entities can avoid excesses or shortages, leading to cost savings. Proper planning and coordination of logistic activities help minimize idle resources, eliminate bottlenecks, and maximize cost efficiency.

Economies of Scale: Logistic management can leverage economies of scale, particularly in public administration entities that handle large volumes of goods, services, or information. By consolidating demand, negotiating better prices with suppliers, and optimizing transportation routes, cost efficiency can be improved. Public administration entities can achieve cost savings through bulk purchasing, centralized storage facilities, and collaborative efforts.

Cost Reduction Strategies: Logistic management offers opportunities for implementing cost reduction strategies. This includes identifying cost-effective suppliers, implementing lean inventory practices, utilizing efficient transportation modes, and optimizing warehouse operations. By continuously monitoring costs and implementing cost-saving measures, public administration entities can enhance cost efficiency and allocate resources more effectively.

Enhanced Service Delivery: Logistic management plays a crucial role in delivering public services efficiently and effectively. Timely and accurate delivery of goods and services to the intended recipients can minimize delays and improve service quality. By reducing delivery errors, optimizing routes, and ensuring reliable supply, logistic management contributes to cost efficiency by avoiding unnecessary expenses associated with rework, customer complaints, or service disruptions.

Performance Measurement and Analysis: Logistic management provides valuable data and performance metrics that enable continuous improvement and cost optimization. Through data-driven analysis, public administration entities can identify areas of inefficiency, bottlenecks, and cost drivers. By monitoring key performance indicators related to logistic activities, such as transportation costs, inventory turnover, and order fulfillment rates, cost efficiency can be measured and targeted improvements can be made. Overall, effective logistic management practices in public administration have a direct impact on cost efficiency. By optimizing processes, resources, and service delivery, logistic management contributes to reducing costs, improving resource utilization, and enhancing the overall economic performance of public administration entities.

Logistic management plays a significant role in influencing service quality within the realm of public administration.

Timely Service Delivery: Effective logistic management ensures that goods, services, or information are delivered in a timely manner. This timeliness is crucial for public administration entities to meet the expectations and needs of their constituents. By optimizing processes, coordinating activities, and minimizing delays, logistic management contributes to timely service delivery, enhancing service quality.

Accuracy and Reliability: Logistic management processes, such as inventory management and order processing, directly impact the accuracy and reliability of service delivery. Proper handling of data, effective tracking systems, and efficient information flow ensure that the right goods or services are provided to the right recipients. Accurate and reliable service delivery improves trust, customer satisfaction, and overall service quality.

Effective Resource Allocation: Logistic management involves allocating resources efficiently, such as personnel, equipment, and materials. Proper resource allocation ensures that the necessary resources are available at the right place and time to deliver services effectively. This contributes to smoother operations, reduced wait times, and improved service quality in public administration.

Handling of Exceptions and Complaints: Logistic management encompasses managing exceptions, such as handling disruptions, delays, or unforeseen circumstances. Prompt and effective handling of these exceptions is critical to maintaining service quality. Logistics professionals who can quickly resolve issues and minimize the impact on service delivery contribute to a positive customer experience and enhanced service quality.

Enhanced Coordination and Collaboration: Logistic management requires effective coordination and collaboration among various stakeholders involved in the service delivery process. This includes departments, suppliers, contractors, and logistics service providers. Improved coordination and collaboration result in seamless service delivery, reduced errors, and enhanced service quality. Communication, information sharing, and cooperation among these stakeholders are vital for achieving optimal service quality.

Monitoring and Continuous Improvement: Logistic management provides mechanisms for monitoring service quality and identifying areas for improvement. Performance metrics, such as on-time delivery rates, error rates, and customer feedback, help evaluate service quality levels. By analyzing these metrics, public administration entities can identify bottlenecks, implement corrective measures, and continuously improve service quality.

Cost-Effective Service Provision: Logistic management practices contribute to costeffective service provision, which indirectly influences service quality. By optimizing resources, streamlining processes, and reducing wasteful activities, logistic management helps control costs while maintaining or improving service quality. Cost-efficient service provision enables public administration entities to allocate resources strategically and invest in enhancing service quality.

In summary, logistic management has a significant impact on service quality within the public administration context. By ensuring timely delivery, accuracy, effective resource allocation, handling exceptions, promoting coordination, and enabling continuous improvement, logistic management contributes to providing high-quality services to constituents. Public administration entities that prioritize and invest in effective logistic management practices are more likely to achieve and maintain superior service quality standards..

Conclusions

Logistic management practices play a crucial role in the efficient functioning of economic activities in public administration. Effective logistic management ensures the timely and cost-effective flow of goods, services, and information, ultimately impacting economic performance.

Streamlined logistic processes contribute to cost efficiency in public administration. By eliminating redundancies, minimizing delays, and optimizing resource allocation, logistic management practices lead to cost savings and improved economic performance. Logistic management has a direct impact on service quality within the public administration context. Timely delivery, accuracy, effective resource allocation, handling of exceptions, and enhanced coordination and collaboration all contribute to improved service quality.

Effective logistic management enables resource optimization, leveraging economies of scale, and implementing cost reduction strategies. By optimizing processes, utilizing resources efficiently, and implementing cost-saving measures, logistic management enhances cost efficiency and resource utilization.

Continuous monitoring, analysis, and improvement of logistic management practices contribute to better economic activities in public administration. Performance measurement, data-driven decision-making, and targeted improvements based on key performance indicators lead to enhanced economic performance.

Challenges and barriers, such as outdated technology, inadequate infrastructure, and lack of collaboration, can hinder effective logistic management in public administration. Overcoming these challenges requires strategic investments, technological advancements, and fostering partnerships with relevant stakeholders.

Based on these conclusions, it is recommended that policymakers and administrators prioritize logistic management practices within public administration. Investments in technological advancements, capacity-building, and collaboration can enhance logistic management, leading to improved economic activities, cost efficiency, and service quality within the public administration realm. By adopting best practices, implementing efficient processes, and continuously monitoring and improving logistic management, public administration entities can optimize their economic performance and better serve the needs of their constituents.

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