MARKETING POLICY OF DISTRIBUTION OF PRODUCTS IN THE UKRAINIAN RETAIL CHAINS

Authors

  • Oleksandr Yarym-Agayev State University of Infrastructure and Technologies
  • Andrew Buga State University of Infrastructure and Technologies

Keywords:

trade network, organization of deliveries, Bullwhip-efeсt, logistic management, sales

Abstract

One of the main trends in the development of retail in Ukraine is the enlargement of existing retail chains. This in turn leads to the complication of the supply of retail chains and the emergence of new problems, including the emergence of the so-called “Bullwhip-effect”.

The article analyzes the situation with the organization of the delivery of products to retail networks, examines the emergence of the “Bullwhip-effect” at all stages of the distribution of goods. Based on the research data, it was established that the maximum level of irregularity is observed among suppliers. At the same time, the amplitude of supply seems to be quite large even at a relatively uniform level of consumption at the final stage of distribution.

This leads to irregular deliveries and, as a result, non-compliance with the assortment policy and a decrease in the volume of potential sales in the network.

In order to reduce the negative consequences of “Bullwhip-efekt”, the article substantiates the need for a transition to an integrated logistics management of the supply of products of daily demand. Logistics management should be based on the concept of SCM (Supply Chain Management) using the IDEF methodology and information technologies of the ERP class. Particularly, the need to harmonize material and information flows and to measure joint logistics systems, including suppliers and retail networks, and coordination of the logistics activities of all counterparties.

The proposed development direction has both scientific and practical perspectives, which is due to the logic of the development of the economy in general and retail trade in particular. In addition, these studies are aimed at solving the most important marketing task, better satisfying the needs and requirements of customers.

Published

2018-12-27