The rational scope of using direct and multilevel logistics channels for material flow distribution (case study in Ukraine)

Abstract

Constant raising the requirements for logistics service of end-consumer expand sales markets and economic relationships that are formed under conditions of uncertainty and instability of the environment, leading to the need to consider not only the logistics system of internal factors but also external. This issue is especially important for Commonwealth of Independent States that rebuilt to a market economy. Nowadays, the grocery logistics network distribution system that would fit for end-consumer and logistics systems owner simultaneously have not fully developed. On the one hand, consumers are looking for minimal cost, which can be provided by direct logistic channels, but minimal cost do not give flexibility in quantity and volumes or other services. On the other hand, the multilevel system provides high level of service and diversity in channel, but products are more expensive in it. Finding the balance between rational price and level of service for end-consumer and logistics system profits in period is been up-today issue in consumer-oriented logistics. The development of mechanisms makes it possible to assess the scale of the rational use of direct and multi-level logistics for the distribution of material flows, which was demonstrated with the numbering of participants in the logistics system in the current situation (external and internal factors). The paper considers the functioning of the system for delivering goods on a direct and multilevel distribution channel. An integrated approach to evaluate the efficiency of the functioning of the logistics system and the consumer had been used.