The significance of service in the modernization of logistics of agricultural service cooperatives

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The significance of service in the modernization of logistics of agricultural service cooperatives

Matkovskyi Petro Yehorovych D.Sc. in Economics, Professor of the Department of Accounting and Taxation, Grytsiuk Mykhailo Yosypovych graduate student of the second year of studies in the specialty 051 Economics, Mysiv Volodymyr Vasylovych graduate student of the second year of studies in the specialty 051 Economics, Vasyl Stefanyk Precarpathian National University; Petrenko Oleksandr Oleksandrovich director of Aspen LLC; Zelisko Oleh Volodymyrovych director at LLC «Sepia rent»; Chuba Rostyslav Igorovich lawyer, Hlynskyi Taras Orestovych manager of LLC «Pikart group», Derkach Oleksii Валерійович Sole Proprietor

Abstract

The importance of service for the profitability of a transportation company cannot be overstated. This article examines why service is a critical factor influencing the success and competitiveness of the transportation business. It emphasizes that without proper technical maintenance, even the best logistics strategies can fail due to frequent breakdowns and vehicle downtime.

The main body of the article focuses on the components of service, including the maintenance schedules developed by vehicle manufacturers and the importance of adhering to these schedules to ensure the reliable operation of the fleet. The aggregate method of maintenance, which involves replacing units and assemblies rather than repairing them, is also discussed as a means to reduce vehicle downtime. The material is considered from the point of view of transport companies, but each of the statements and conclusions is quite relevant for the modernization of logistics processes in agricultural service cooperatives in which logistics is an important element in the chain of service provision.

Modern service programs, such as Fleet Management Systems (FMS) and Warehouse Management Systems (WMS), are crucial for optimizing the operations of transportation companies. These systems help manage fleets efficiently, monitor the technical condition of vehicles, plan routes, and manage inventory.

A key role in ensuring effective service is played by the logistics manager, who must be knowledgeable in the technical aspects of vehicle maintenance. This knowledge allows the manager to efficiently manage company resources, minimize downtime, and make informed decisions regarding the repair or replacement of vehicles.

The article highlights the importance of interaction with parts suppliers and vehicle manufacturers to ensure the timely delivery of quality parts and technical support. Continuous monitoring of market innovations and technological advancements is also essential for enhancing service efficiency.

In conclusion, the article asserts that service is critically important for the profitability of a transportation company. Investing in quality service, developing in-house technical centers, and training personnel are strategically important steps to achieving high profitability and competitiveness in the market. The synergy between logistics processes and effective technical maintenance is key to the stable development and prosperity of the transportation business.

Keywords: service, logistics, transportation company, cooperation, agricultural service cooperative, modernization.

Анотація

Значення сервісного обслуговування в модернізації логістики сільськогосподарських обслуговуючих кооперативів

Матковський Петро Єгорович доктор економічних наук, професор, професор кафедри обліку і оподаткування, Грицюк Михайло Йосипович аспірант другого року навчання спеціальності 051 Економіка, Мисів Володимир Васильович аспірант другого року навчання спеціальності 051 Економіка, Прикарпатський національний університет імені Василя Стефаника; Петренко Олександр Олександрович директор ТОВ «Аспен»; Зеліско Олег Володимирович директор ТОВ «СЕПІА РЕНТ»; Чуба Ростислав Ігорович юрист, Глинський Тарас Орестович менеджер ТОВ «ПІКАРТ», Деркач Олексій Валерійович ФОП

Важливість обслуговування для прибутковості транспортної компанії важко переоцінити. У цій статті розглядається, чому обслуговування є критично важливим фактором, що впливає на успіх і конкурентоспроможність транспортного бізнесу. Підкреслюється, що без належного технічного обслуговування навіть найкращі стратегії логістики можуть зазнати невдачі через часті поломки та простої транспортних засобів.

Основна частина статті зосереджена на компонентах обслуговування, включаючи графіки технічного обслуговування, розроблені виробниками транспортних засобів, і важливість дотримання цих графіків для забезпечення надійної роботи автопарку. Агрегатний метод технічного обслуговування, який передбачає заміну вузлів, а не їх ремонт, також обґрунтовуються елементи скорочення часу простою автомобіля. Матеріал розглядається з погляду на транспортні компанії, однак кожне із тверджень та умовиводів цілком актуальне для модернізації логістичних процесів у сільськогосподарських обслуговуючих кооперативах в яких логістика є важливим елементом у ланцюгу надання послуг.

Сучасні сервісні програми, такі як Fleet Management Systems (FMS) і Warehouse Management Systems (WMS), мають вирішальне значення для оптимізації роботи транспортних компаній. Ці системи допомагають ефективно керувати автопарками, стежити за технічним станом транспортних засобів, планувати маршрути та управляти запасами.

Ключову роль у забезпеченні ефективного обслуговування відіграє менеджер з логістики, який повинен знати технічні аспекти обслуговування транспортних засобів. Ці знання дозволяють менеджеру ефективно управляти ресурсами компанії, мінімізувати час простою та приймати зважені рішення щодо ремонту або заміни транспортних засобів.

У статті підкреслюється важливість взаємодії з постачальниками запчастин і виробниками транспортних засобів для забезпечення своєчасної поставки якісних запчастин і технічної підтримки. Постійний моніторинг ринкових інновацій і технологічних досягнень також є важливим для підвищення ефективності обслуговування.

На закінчення статті стверджується, що сервіс є критично важливим для прибутковості транспортної компанії. Інвестиції в якісний сервіс, розвиток власних технічних центрів і навчання персоналу є стратегічно важливими кроками для досягнення високої прибутковості та конкурентоспроможності на ринку. Синергія між логістичними процесами та ефективним технічним обслуговуванням є запорукою стабільного розвитку та процвітання транспортного бізнесу.

Ключові слова: сервіс, логістика, транспортна компанія, кооперація, сільськогосподарський обслуговуючий кооператив, модернізація.

Statement of the problem

Most people understand the term "logistics". However, few realize just how crucial logistics is in today's world. It is a key component of business, ensuring the efficient movement of goods from manufacturers to consumers. Every agricultural service cooperative as a transport company strives to excel in logistics operations to remain competitive in the transportation market. While the importance of logistics has been extensively covered by many economists and industry specialists, is there another critical factor influencing the profitability of a transport company? Yes, there is another pivotal factor--service, without which the fleet simply cannot operate.

Analysis of recent research and publications

Various scientists have paid considerable attention to the study of the essence and stages of development of logistics processes. In their scientific works, such researchers as: D. Shelenko [1], O. Levandivskyi [2], L. SaS [3], P. Matkovskyi [4], D. Nemish [5] substantiated the concept of logistics, its influence on processes modernization of agricultural enterprises. However, they did not pay much attention to the importance of service and its influence on the successful operation of logistics, in particular in agricultural service cooperatives.

Target articles is to outline factors influencing the profitability of agricultural service cooperative as a transport companies other than logistics.

Contribution to the main material

Why Is Service So Important for Transport Companies? The answer is straightforward: service is one of the most costly components where significant funds from the company's profits are directed. Without proper technical maintenance, even the best logistics strategies can fail. Poor maintenance leads to frequent breakdowns, increased downtime, and consequently, loss of clients. This makes service not just important but critical for the survival and prosperity of a company in a competitive market.

Components and Significance of Service

To thoroughly analyze service and understand its importance, let's consider its components. For proper operation of a vehicle, the manufacturer develops a schedule for planned maintenance and provides recommendations based on the service life of various components, the shelf life of technical fluids, lubricants, and operating conditions. For a carrier, the brand of the truck is important, especially when it undergoes maintenance according to the schedule set by the manufacturer, and the downtime aligns with the standard hours determined by the manufacturer. Notably, manufacturers do not include repairs as a planned operation, as repairs are unpredictable in terms of time and cost. To maintain warranty coverage, certain elements, such as the clutch, are replaced routinely, even if they are only 80% worn. Modern transport hardly considers the term "repair," especially capital repair. If this term is used anywhere, it is mostly in countries with underdeveloped automotive industries and inefficient production lines. Thus, service is an integral part of logistics operations.

Minimizing Service Costs

But what should an agricultural service cooperative as a transport company do if its fleet is no longer under warranty? How can it minimize service costs in this case? The most cost-effective option for a fleet that has exceeded the warranty mileage or age limit is the aggregate method of maintenance. This method is effective if the fleet consists of vehicles of the same brand with compatible aggregates and includes more than ten units, allowing the company to keep spare parts in stock.

Importance of the Aggregate Method

The aggregate method of maintenance involves replacing entire units and components rather than repairing them. This significantly reduces vehicle downtime since replacing a unit takes less time than repairing it. Moreover, having spare parts in stock ensures uninterrupted operation of the fleet. It is also important to note that modern vehicles are becoming increasingly complex, and their repair requires highly skilled specialists and specialized equipment, which may not be available in many companies.

Modern Service Programs for Transport Companies: From Fleet Management to Warehouse Management Systems. In today's world, with the advancement of computer technologies, various communication tools, and data processing programs, service programs for transport companies have emerged.

These programs help manage different aspects of transport company operations, including fleet management, logistics, customer service, and financial accounting. Some of the most important service programs for transport companies are Fleet Management Systems (FMS) and Warehouse Management Systems (WMS).

Fleet Management Systems (FMS) enable companies to efficiently manage their fleet, increasing productivity and reducing costs. Key functions include:

- monitoring the technical condition of the fleet: collecting and analyzing data on vehicle conditions, such as fuel levels, tire mileage, and engine status [6];

- managing maintenance and repairs: planning and executing maintenance and repairs;

- monitoring and optimizing fuel usage: controlling fuel consumption and reducing costs;

- managing routes and drivers: planning optimal routes and tracking the fleet's location [7];

- warehouse Management Systems (WMS) are aimed at optimizing warehouse activities:

- receiving goods: controlling and documenting the receipt of goods into the warehouse;

- storing and placing goods: optimizing warehouse space utilization [8];

- picking and assembling orders: automating order fulfillment processes;

- inventory management: monitoring and optimizing stock levels [9];

- recording goods and reporting: accurate accounting of goods and generating reports for managerial decisions.

These systems enable transport companies to improve management efficiency, reduce costs, and enhance customer service. They integrate with other business systems, ensuring information unity within the organization and allowing for informed managerial decisions.

Synergy of Logistics and Service

If a transport company has its own service facility for vehicle maintenance and repair, a logistics manager, being knowledgeable in service, can easily communicate with the service manager. This understanding will lead to timely servicing of vehicles and reduce the risk of unexpected failures. If the transport company uses an external service for its fleet maintenance, a logistics manager competent in service can schedule service appointments and plan routes accordingly[10]. Additionally, logistics and service managers should be proficient in modern service programs for transport companies, facilitating quick information exchange and correct decision-making.

Role of the Logistics Manager

A logistics manager should be competent not only in route planning and optimization but also in understanding the technical aspects of vehicle maintenance. Knowledge in service allows for more efficient resource management, considering the technical condition of vehicles when planning routes and minimizing downtime [11]. Furthermore, expertise in service helps make informed decisions regarding the replacement or repair of vehicles, significantly affecting the overall profitability of the company.

Interaction with Suppliers and Manufacturers. Service also involves interaction with parts suppliers and vehicle manufacturers [12]. It is crucial to have reliable partners who can timely supply quality parts and provide technical support. Interaction with manufacturers allows for up-to-date information on new technologies and improvements, helping to enhance service efficiency. Constant modernization and monitoring of market innovations and technological advancements can provide significant advantages, as implementing modern solutions can reduce costs and increase fleet efficiency. Ensuring quick parts delivery reduces the need for large inventories, simplifying inventory management.

synergy agricultural service transport

Conclusions

In conclusion, service is critically important for the profitability and modernization of an agricultural service cooperative as a transport company. Understanding the importance of timely and quality vehicle maintenance allows for significant cost reductions, minimized downtime, and reliable fleet operation. Logistics managers who are knowledgeable in service can effectively manage company resources and ensure a high level of service. In a competitive environment where every minute of downtime can result in substantial losses, service becomes one of the key factors for the success of a transport company. The ability to combine logistical processes with effective technical maintenance is the key to stable development and prosperity of the transport business. Investing in quality service, developing in-house technical centers, and training personnel are important strategic steps for any transport company aiming to achieve high profitability and competitiveness in the market.

References

1. Shelenko D.I., Sas L.S., Matkovskyi P.Ye. (2017) Osoblyvosti tekhnolohii onovlennia ta modernizatsii pidpryiemstv riznykh orhanizatsiino-pravovykh form v umovakh riznoukladnosti vyrobnytstva na seli [Peculiarities of the technology of renewal and modernization of enterprises of various organizational and legal forms in conditions of diversity of production in the countryside]. Ekonomichnyi dyskurs, vol. 4, pp. 99-109.

2. Levandivskyi O.T., Balaniuk I.F., Matkovskyi P.Ye., Shelenko D.I. (2022) Biudzhetuvannia yak systema kontroliu u diialnosti finansovo-kredytnykh ustanov [Budgeting as a system of control in the activity of financial and credit institutions]. Aktualniproblemy rozvytku ekonomiky rehionu, vol. 18(1), pp. 67-78.

3. L. Sas, I. Balaniuk, D. Shelenko, M. Vasyliuk, P. Matkovskyi, L. Hnatyshyn (2023) International Financial Reporting Standards (Ifrs) In The Accounting System Of Ukraine,” Financ. Credit Act. Probl. theory Pract., vol. 1, № 48, pp. 78-90.

4. Matkovskyi P.Ye., Shelenko D.I., Sas L.S., Balaniuk I. F. (2020) Innovatyzatsiia silsko-hospodarskykh pidpryiemstv v umovakh modernizatsii ekonomiky [Innovation of agricultural enterprises in the conditions of modernization of the economy]. European journal of economics andmanagement, vol. 5, № 2. pp. 79-85.

5. Nemish D.V., Balaniuk I.F., Shelenko D.I., Sas L.S., Matkovskyi P.Ye. (2020) Rol tvarynnytstva u funktsionuvanni osobystoho selianskoho hospodarstva [The role of animal husbandry in the functioning of a personal peasant economy]. Visnykahrarnoi nauky, vol. 10, pp. 77-87.

6. Shelenko D., Balaniuk I., Sas L., Matkovskyi P. Kozak-Balaniuk I. Mechanism of transformation of agricultural enterprises in terms of innovative development. Journal of Vasyl Stefanyk Precarpathian National University. 2020, vol. 7, № 3, pp. 115-127.

7. Shelenko D., Balaniuk I., Sas L., Malik M., Matkovskyi P., Levandivskyi O., Humeniuk, М. (2021) Forecasting of net profit and the area of land of private enterprises. Management Theory and Studies for Rural Business and Infrastructure Development. vol. 43, № 4, pp. 500-516.

8. Sas L.S., Shelenko D.I., Matkovskyi P.Ye., Balaniuk I. F. (2019) Innovatsiini tekhnolohii modernizatsii vyrobnytstva v silskohospodarskykh pidpryiemstvakh Ukrainy [Innovative production modernization technologies in agricultural enterprises of Ukraine]. International independent scientific journal, vol. 7, pр. 7-11.

9. Matkovskyi P.Ye., Shelenko D.I., Levandivskyi O.T. (2023) Kooperatsiia silskohospodarskykh pidpryiemstv na osnovi yikh zemelnoho ta innovatsiino-investytsiinoho resursnoho potentsialu [Cooperation of agricultural enterprises based on their land and innovative investment resource potential]. Skhidna Yevropa: Ekonomika, biznes ta upravlinnia, vol. 2(39), pp. 37-40.

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Література

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2. Левандівський О.Т., Баланюк І.Ф., Матковський П.Є., Шеленко Д.І. Бюджетування як система контролю у діяльності фінансово-кредитних установ. Актуальні проблеми розвитку економіки регіону. 2022. Вип. 18(1). С. 67-78.

3. Sas L., Balaniuk I., Shelenko D., Vasylyuk M., Matkovskyi P., Hnatyshyn L. International financial reporting standards (ifrs) in the accounting system of Ukraine. Financ. Credit Act. Probl. theory Pract., vol. 1, № 48, pp. 78-90, 2023.

4. Матковський П.Є., Шеленко Д.І., Сас Л.С., Баланюк І. Ф. Інноватизація сільськогосподарських підприємств в умовах модернізації економіки. European journal of economics and management. 2019. Вип. 5, № 2. р. 79-85.

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6. Shelenko D., Balaniuk I., Sas L., Matkovskyi P. Kozak-Balaniuk I. (2020) Mechanism of transformation of agricultural enterprises in terms of innovative development. Journal of Vasyl StefanykPrecarpathian National University. 2020, vol. 7, № 3, pp. 115-127.

7. Shelenko, D., Balaniuk, I., Sas, L., Malik, M., Matkovskyi, P., Levandivskyi, O., Humeniuk, М. (2021). Forecasting of net profit and the area of land of private enterprises. Management Theory and Studies for Rural Business and Infrastructure Development. Vol. 43. № 4. Р. 500-516.

8. Сас Л.С., Шеленко Д.І., Матковський П.Є., Баланюк І.Ф. Innowacyjne technologie modernizacji produkcji w przedsi^biorstwach rolnych w Ukrainie. International independent scientific journal. 2019, № 7, pр. 7-11.

9. Матковський П.Є., Шеленко Д.І., Левандівський О.Т. Кооперація сільськогосподарських підприємств на основі їх земельного та інноваційно-інвестиційного ресурсного потенціалу. Східна Європа: Економіка, бізнес та управління. Вип. 2(39). 2023. С. 37-40.

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12. Матковський П.Є. Модернізація економіки України: витоки, сутність, очікувані результати. Сталий розвиток економіки. 2012. № 2. С. 170-173.

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