MODELING LOGISTIC BUSINESS PROCESSES IN AGRICULTURE

Keywords: agricultural enterprises, supply chain, business process, modeling, logistics

Abstract

This article examines agricultural enterprises that are increasingly involved in demand-driven supply chains that are able to flexibly adapt to changes in the market. Agile supply chains aim to communicate in a timely manner about the supply chain, where early warnings are given to businesses to react quickly to changes in demand or supply. The timely exchange of information especially requires the compatibility of the information systems of the involved enterprises. The need for responsiveness requires flexible information systems that support the flexibility of an agreement with unexpected changes in business processes. A business process is a collection of logically related tasks performed to achieve a specific business result. Business processes can be divided into primary processes that directly add value to products and supporting processes. In supply chains, transformation is carried out by numerous enterprises, especially if there is a high degree of specialization. The pivotal role of business processes emphasizes process models as a central means to achieve the necessary interoperability and flexibility of information systems in agricultural supply chains. It was noted that the increased interest in supply chains was also caused by the development of information and communication technologies, which often allow the exchange of huge amounts of information among chain participants for coordination purposes. It has been established that supply chain management can be further classified according to the viable system model, consisting of five interacting subsystems. Review a list of specific characteristics of the supply chain business process, where each characteristic affects the way logistics processes are organized. Through the specific characteristics of food, the principles of partnership, it is important for agricultural enterprises to enter into contracts with suppliers in order to guarantee the supply of raw materials with the right volume, the required quantity, the right quality, in the right place and at the right time. It was found that the main value of the model lies in the fact that it helps to timely, accurately and consistently map and business processes of the supply chain that should guide the enterprise in order to meet the various requirements of its customers.

References

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Zhu, W., Ng, S., Wang, Z., & Zhao, X. (2017). The role of outsourcing management process in improving the effectiveness of logistics outsourcing. International Journal of Production Economics, 188, 29–40. https://doi.org/10.1016/j.ijpe.2017.03.004

Brekalo L., Albers S. (2015) Effective Logistics Alliance Design and Man-agement (Working Paper, No. 113). Cologne: University of Cologne. Re-trieved from https://www.econstor.eu/bitstream/10419/121326/1/837297079.pdf (accessed 25 September 2020).

Ceniga P., Sukalova V. (2015) Future of Logistics Management in the Pro-cess of Globalization. Procedia Economics and Finance, 26, 160–166. https://doi.org/10.1016/S2212-5671(15)00908-9

Kolodizieva T. (2019) Assessment of behavioral factors influencing cooperation in logistics. Economics of Development, 18(3), 34–44. doi: https://doi.org/10.21511/ed.18(3).2019.04

Pomponi F., Fratocchi I., Tafuri S. R., Palumbo M. (2013) Horizontal col-laboration in logistics: a comprehensive framework. Research in Logistics & Production, 3(4), 243–254. Available at: http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.baztech-fc452528-8644-4a8f-81b2-3f3899c107dd

Serpeninova Yu., Makarenko I., Linska A. (2018) Logistics costs account-ing: challenges for identification in Ukrainian accounting practice. Account-ing and Financial Control, 2 (1), 47–53. doi: https://doi.org/10.21511/afc.02(1).2018.05

Taraniuk L., Jianping Wang, Hongzhou Qiu, Petrushenko Yu. and Taraniuk K. (2019). International aspects of assessing the logistic potential of the main countries of agricultural production. Problems and Perspectives in Management, 17(3), 31–44. doi: https://doi.org/10.21511/ppm.17(3).2019.03

Zhu, W., Ng, S., Wang, Z., & Zhao, X. (2017). The role of outsourcing management process in improving the effectiveness of logistics outsourcing. International Journal of Production Economics, 188, 29–40. https://doi.org/10.1016/j.ijpe.2017.03.004

Published
2020-10-30
How to Cite
Abramovych, I., & Volovyk, D. (2020). MODELING LOGISTIC BUSINESS PROCESSES IN AGRICULTURE. Entrepreneurship and Innovation, (14), 10-13. https://doi.org/10.37320/2415-3583/14.2
Section
Economics and business management