LOGISTICAL APPROACH TO THE FORMATION AND FUNCTIONING OF VERTICALLY INTEGRATED STRUCTURES IN THE AGRO-INDUSTRIAL COMPLEX

Keywords: agro-industrial complex, agriculture, vertically integrated structures, agroindustrial integration, logistics, logistics approach, material flows, flow processes, economic relations, optimization

Abstract

For the effective development of the APK enterprise, it is important to use science-intensive technologies and new methods of production, processing, movement, storage and sale of agricultural products, which requires greater financial infusions. It is obvious that an individual enterprise in the agrarian sector cannot afford to conduct large-scale scientific research and implement their results in its activities. The problem of rationalization and increase of economic indicators of activity of agro-industrial associations in Russia is actual for the last decades. This is due to increased competition in the world and domestic markets, limited resources for agricultural production, rather low competitiveness of domestic producers, the lack of a sufficient number of highly qualified personnel and a number of other factors. The purpose of the article is to substantiate the use of a logistic approach to the creation and operation of agro-industrial integrated corporations in order to improve their economic efficiency, which involves the optimization of streaming processes (movement of material, financial, infor-mation flows) at all stages of commodity circulation, taking into account the economic interests of all members of associations. The leading method underlying the study of the problem is the method of functional analysis, which allows to identify the relationship and interdependence between economic processes and economic phenomena of the participants of vertically integrated structures in the agro-industrial complex. The advantages of the formation and functioning of vertically integrated structures in the agro-industrial complex compared with other forms of business, the advantages of the introduction of basic logistics methods in the activities of agro-industrial associations to optimize the processes at all stages of commodity circulation. The results of the study can be used in theoretical and practical studies of issues on the use of logistics management methods in the activities of agro-industrial corporate structures, heads of structural units of vertically integrated companies in agriculture and other industries.

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Published
2024-07-30
How to Cite
Fimyar, S., & Prysiazhnenko, V. (2024). LOGISTICAL APPROACH TO THE FORMATION AND FUNCTIONING OF VERTICALLY INTEGRATED STRUCTURES IN THE AGRO-INDUSTRIAL COMPLEX. Entrepreneurship and Innovation, (32), 112-116. https://doi.org/10.32782/2415-3583/32.17