Distribution Channels Management in Different Regions

Transcription

1 American Journal of Economics, Finance and Managemen Vol. 1, No. 2, 2015, pp hp:// Disribuion Channels Managemen in Differen Regions Andrii Galkin * Transpor Sysems and Logisics Deparmen O. M. Bekeov Naional Universiy of Urban Economy in Kharkiv, Ukraine Absrac This paper develops a model for calculaing disribuion channel funcioning efficiency in differen regions. Auhor examined parameers and facors which impac on channel s choice and change. Replacemen any of hem impac on channel efficiency in ime period. In such condiions, he various aspecs of disribuion sysem for each region should be decided in he operaion, logisics, economics and markeing levels. Consider coss for liquidaion, reorganizaion and funcioning of hese channels. For channel performance evaluaion auhor proposes o use invesmen indicaors. Sudying improves approach for disribuion channel managemen which include projec analysis and logisics mehods for efficiency calculaions in long erm period. Keywords Regions, Invesmens, Projec, Logisics, Channel, Disribuion Received: March 16, 2015 / Acceped: April 2, 2015 / Published online: April 6, 2015 The Auhors. Published by American Insiue of Science. This Open Access aricle is under he CC BY-NC license. hp://creaivecommons.org/licenses/by-nc/4.0/ 1. Inroducion Producion delivery in he consumpion sphere is one of he imporan rade funcions ha ake place in he commercial companies. Raional managemen is imporan in goods disribuion processes. Logisics ools are effecing on he choice of disribuion channel delivery mechanism for differen regions. The sales channels choice is one of he key decisions for he company. 2. Disribuion Channel Characerisics Choice of logisics channel () is influencing on he disribuion processes efficiency. The is linearly ordered by paricipan s characerisics ha perform logisics operaions o bring maerial flow from one paricipan o anoher or o he final user (Oklander, 2005; Larina, 2005). An example of he disribuion channels is presened on fig. 1 (Oklander, 2005; Anykyna, 2003; Kal'chenko, 2003; Hadjinsky, 2013). * Corresponding auhor address: andrey g@mail.ru

2 93 Andrii Galkin: Disribuion Channels Managemen in Differen Regions Fig. 1. Maerial flow s disribuion channels scheme. Fig. 1 shows differen ways of selling. consiss of differen paricipans: manufacurers (seller), consumer (buyer) and logisics agens, sorages, services organizaions and ohers. References analysis reveals he differen approaches o he classificaion of paricipans Fig. 2. Fig. 2. Approaches o classificaion of disribuion channels paricipans. 3. Mehods Analysis organizaional consrucion may vary (Miroin and Tashbayev, 2002), depending on he: enerprises size, exen aciviies, managemen conceps, maerial consumpion and economics. Selecing a paricular disribuor, carrier, insurer, forwarder, banker, ec. use differen mehods (Nerush, 2007; Lukynskyy, 2003; Ponomarev, 2003; Roslavsev, 2010; Shapiro, 2006) such as: peer review, mehods of operaions research and ohers. These mehods do no ake ino accoun he enerprise specifics, logisics and markeing sraegies, hey reflec he disribuion channels funcioning wihou he cos of funds and se ou o organize he. Episodic funcioning in differen regions become o make decision abou managing disribuion channels in differen service areas in long erm.

3 American Journal of Economics, Finance and Managemen Vol. 1, No. 2, 2015, pp Resuls may be viewed as sages of a business plan: idenificaion, preparaion (planning), analysis, implemenaion, operaion, afer he projec audi. Alernaive projecs analysis in he business implemenaion is an imporan sep of idenificaion. Differen projec idenificaions enable he alernaive income analysis and economic profi (Roslavsev, 2010; Vorku, 2002), which can be obained a differen disribuion channels in organizaion and planning. The selecion consiss of he various facors ha can be divided ino exernal: sae, economy, region, poliical siuaion, demographic and legislaive facors, echnological and echnical availabiliy of he channel, level of logisics echnology, maerial flow s characerisics. The efficiency depends on many facors, which can be wrien as: where choice; Logisics_channel = X,..., X, X,...,X (1) 1, X 2 Xi - facors of influencing on he Replacemen any of hese facors will change efficiency of he channel or make i impossible o use in some ime periods: Logisics_ channel f( 1 2 funcioning;1 =, (2) non_ funcioning;0 i ) I is imporan o noe ha liquidaion, reorganizaion and funcioning of may have addiional coss: where TС = IC + U + H + P, (3) TС - The oal cos for funcioning, USD. IC Capial expendiure on esablishmen, reorganizaion and liquidaion inside he, USD. О Operaing coss in he, USD. Tx Taxes in he, USD. L Loans cos in he, USD. Managemen funcions are imporan in idenificaion of disribuion channel funcioning efficiency. An imporan sep of planning is working ou of business plan (projec) for he disribuion channel implemenaion (Vorku, 2002; Roslavsev, 2010). Business plan can provide each calculaion of echnological, economical, projec s performances, Fig. 3. Oher managemen funcions are also imporan. Organizaion echnologies make an impac on projec s performances. Conrol sysem indicaes changes hrough ime periods of funcioning. Fig. 3. Diagram of logisics channels managemen. selecion should base on all performances inside and ouside of i. For example, he decision o use or no o use disribuion cener, he decision o use heir own or hired ranspor, decision abou he number of paricipans in he, he decision o use or own wage disribuion cenre, he number of disribuion cenres, leading o changes in capial and operaing coss, expenses loans and axes in each disribuion channel version. The vehicles number, delivery ime, driver s number, vehicle s capaciy, sorage size, reailers desinaion and heir number, service level, supply level and oher echnological indicaors are influenced on changing inside channel. For example, an increasing in he sock s value may change channel sysem using composiions o direc echnology "jus in ime". opions developmen and analysis provide abiliy o use no only own logisics sysem elemens bu also hired paricipans. Main purpose of using hired paricipans is coss reduce. In such cases, disribuion cenres can be used. Disribuion cenre accumulaes various received goods nomenclaure, sells hem, and ge profis porion from he

4 95 Andrii Galkin: Disribuion Channels Managemen in Differen Regions combined sales. Goods suppliers are able o sell heir producs over he wide consumers range. Differen provides maerial flow for differen regions, you can see on fig. 4. Fig. 4. Logisics channels for differen regions: Manufacurer; Disribuion Cener (Dealer); reailer; funcioning ; no funcioning. Based on he relaionship (1) and (2) i should be noed ha some in some regions canno funcion. The exisence of several disribuion channels simulaneously raises he quesions abou he synergisic effec wih heir service. Several service will allow more vehicles efficien usage and separae fixed coss (Roslavsev, 2010): driver s salaries, overhead coss for he vehicles repair and mainenance, he loan cos beween all. Solving he problem provides o conrol parameers of hese channels in real ime. managing opions may include: L he links number; Lq he relaionship characer; M paricipans number; X impacs facors; Q he maerial flow amoun; Qn he maerial flow amoun moving hrough he logisics channel N; N number, R regions numbers. The indicaors ha characerize he channel resuls may include: ne presen value and payback period which includes differen risks in disribuion channel. Projec s inves consiss of coss and revenues in a ime period: invesmen coss in period ( IC ) and oal ne cash flow in period (). Inves projecs efficiency can be found by he ne cash flow () calculaing (Vorku, 2002; Roslavsev, 2010): = D TC D posiive cash flow in period, USD; TC posiive cash flow in period, USD;, (4) Researches have shown ha he amoun of coss and revenues depends on he maerial flow amoun in he. Maerial flow volumes changes in he channel are dicaed by changes one of he parameers: Including managing opions and formula (4) will have wide: = (( D ( L, Lq, M, R, M, QQn,, N)), (5) ( TC ( L, Lq, M, R, M, QQn,, N))) The choice is deermined by he inves indicaor: Where USD; 1 F },(6) NC The highes ne cash flow indicaor,, indicaor, USD. = max{ 2,..., N All ne cash flow Decisions on changes inside or replacemen he channel a all mus be accepable in he long erm. Therefore, he assessmen of possible changes and soluions in has o be assessed by invesmen performance. The ime for making changes has o be included ino consideraion. 5. Conclusions 1, 2,..., N Usage he mehods and models of logisics channels managemen should be considered a differen levels, such as: coninen, sae, region, area, ciy, disric and ohers. The various aspecs of disribuion sysem for each region should be decided in he operaion, logisics, economics, markeing and oher levels. Logisic channel mechanisms for promoing individual maerial flow mus be provided a he planning sage and projec idenificaion. One of he changing parameers can lead o efficiency varying inside he channel bu change he disribuion channel a all. Sudying improves models and mehods of disribuion channel managemen which ake ino consideraion projec analysis and logisics mehods for efficiency calculaions. Furher sudies will be focused on esing and modeling of he

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