Problems and Solutions of Transport Logistics

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Problems and Solutions of Transport Logistics
Liudmyla Boldyrieva
Department of Management and
Logistics
Poltava National Technical Yuri
Kondratyuk
Poltava, Ukraine
Boldyrewaljuda@ukr.net
Halyna Zelinska
Ivano-Frankivsk National Technical
University of Oil And Gas
Ivano-Frankivsk, Ukraine
zelinska_haluna@i.ua
Anna Komelina
Department of Compliance
PJSC "Poltava-Bank"
Poltava, Ukraine
komelina.anna@gmail.com
Valentyna Krapkina
National University
of "Kyiv-Mohyla Academy"
Ukraine, Kyiv
valentina_31@i.ua
Abstract—Different approaches to the definition “transport
logistics” have been generalized. It has been justified that
transport is one of the main costs in the logistics system. The
categorical apparatus of transport logistics has been presented,
namely, the essence of such categories has been revealed:
general function, purpose, task (creation of transport systems;
joint planning of transport processes on different types of
transport; ensuring technological unity of transport-warehouse
process; coordination of transport and production processes;
choice of vehicle type; choice of vehicle type; ensuring
technological unity of the transport process; determining a
rational delivery route; eliminating the purpose conflict,
reducing transportation costs; and goals of increasing
warehouse costs). The functions of transport logistics have
beensuggested, in particular: system-forming, integrating,
regulating, resultant, reproducing. The factors that led to the
allocation of transportation into a separate functional area of
logistics have been characterized. These factors include a large
proportion of transportation costs in total logistics costs;
impossibility of organization and existence of material flow
without transportation. Transport-logistic systems have been
classified by types: delivery, service, transport. It has been
determined that transport logistics has been linked with other
logistics systems by such elements as warehouses and
inventory. Nine groups of global problems of transport logistics
in Ukraine have been identified, including: financial, technical,
technological, information, economic, international, customs,
environmental, labor. The main directions of overcoming
financial, technical, technological, information, economic,
international, customs, environmental and labor problems
have been formulated. It has been proposed to determine the
capacity of the transport services market of a certain region as
the sum of volumes transport services provided in a certain
region by local transport enterprises; provided by transport
companies in other regions; provided by own vehicles of non-
transport enterprises, population, etc.; transport services, that
are not provided by carriers due to lack of transport capacity.
Keywords—transport, transport logistics, management,
material flows, cargo.
I. INTRODUCTION
Transport is one of the main objects of cost in the
logistics system of the enterprise. Consequences of
violations of the functioning of the transport system are
damage to enterprises and even their bankruptcy.
The issue of transport logistics development has been
widely researched by scientists. For example, A. Dubois, K.
Hulthén, V. Sundquist [1] consider the problems of the
transport logistics organization in construction impact on the
efficiency of the economic system.
It has been acknowledged that logistics is a driving force that
shapes the integration of the transport chain. This paper argues
that while the liner shipping industry exhibits increased
horizontal integration, its vertical integration remains limited. A
clear distinction is drawn between freight logistics, container
logistics and vessel logistics. Freight logistics is defined as part of
the supply chain process, the focus of which is the goods being
transported. The purpose of container logistics is to optimize the
movements of the containers themselves, an operation that is
directly related to vessel logistics which is concerned with
maximizing vessel utilization. The paper demonstrates that
shipping lines have to find the correct balance between these
three types of logistics [2]. Their interest in vertical integration is
primarily because the management of container logistics
provides direct support to vessel logistics. Their involvement in
freight logistics remains unclear and uncertain.
Logistics is a major component of modern production and
distribution systems and a key contributor to macroeconomic
development. Comprehensive logistics costs represent
approximately 10% of GNP in developed countries, and even
more in less-advanced ones. Beyond its costs, logistics
efficiency or inefficiency affects the whole production and
exchange process. In fact, three main families of definitions of
logistics coexist. The first consists of a range of physical
operations, a changing location of goods in space and time, and
comprises transport, handling, packaging, sorting, and
warehousing. Logistics is also the name of a branch of
management sciences, considering the firm and the
relationships between firms as a system of flows (flows of
products and flows of information), allowing a comprehensive
monitoring and steering of “supply chains”. Finally, logistics is
an emerging industry, gathering several traditional professions
into a single integrated one (i.e. logistics service provision),
including its real estate and integrating post offices henceforth
competing on an open courier and freight market. Freight
transport roughly represents the half of total logistics costs.
Biggest logistics third-party providers (3PL) originate from the
transport industry. Still, a substantial share of logistics activities
continues to be carried out inside agricultural, industrial or
commercial firms (in-house, or own-account, logistics). All
7th International Conference on Modeling, Development and Strategic Management of Economic System (MDSMES 2019)
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these three definitions of logistics make sense and one does not
have to choose between them, but to combine them [3].
M. Hesse and J-P. Rodrigue consider the issues of
movement and distribution of goods in geography terms.
according to scientists, the flow of goods is influenced by
information flows, structural changes in production,
financial factors [4]. Z. Bokor consider a ways to improve
the methods of costing in transport logistics [5].
V. Lukinsky and V. Dobromirov also review methods of
evaluating transportation and logistics operations in supply
chains. Also, scientists pay attention to the classical model
of Harris-Wilson [6].
Supply chains, logistics and freight have been facing
increasingly complex challenges posed by transitions in
economic structures, urbanization, city design and transport
systems, as well as by the externalities associated with
logistics activities in urban areas. This has driven a great
deal of research recently. Yet, there are no sufficient
contributions clarifying the current state of thought in this
field. First, to provide a framework with geographical and
functional elements of urban logistics. Second, to identify
the scope of the literature, vested into a typology. And third,
to define the terms that may embrace the various analytical
interests of the urban logistics field, namely city logistics,
urban goods distribution and last mile logistics [7].
Analysis of the issue of «transport logistics» suggests
the existence of different points of view among scholars on
the essence of the concept itself. The term «transport
logistics» shall be construed as:
the whole science, which is related to the search for
opportunities to increase the efficiency of the movement of
material flows, the purpose of which is to ensure the
transport of high-quality;
functional area of logistics that optimizes logistics
operations on the way of material flow from supplier to final
consumer, carried out with the use of vehicles;
a system for organizing the delivery of goods by road,
from one point to another along the optimal route, which
allows maximum reduction of terms and financial costs of
delivery;
the field of activity in the management of cargo
transportation, that is, the change in the location of material
assets using vehicles;
a comprehensive approach to the development of all
logistic elements, including transport, on the basis of which
the formation of innovative transport systems for the
collection and distribution of material products.
Transport is not just one of the elements of logistics, but
the main means by which logistics, regardless of its scale, is
expressed in life.
The general function of transport logistics is the
management of material flows throughout the length of the
logistics channels, from the source of generation to the
destination.
The purpose of transport logistics is to promote material
flows to the consumer strictly according to the schedule at a set
time, with minimal costs for all participants in the movement of
goods. And the very implementation of the concept of transport
logistics helps to find rational solutions to complex socio-
economic problems in real time and in the future.
The purpose of transport logistics is determined by the
goal of the logistics company: the required cargo must be
delivered at the right time to the right place in the right
amount in the right quality and with minimal cost.
The functions of transport logistics applied in practice
include:
the system-forming function is manifested when the
resource management process is ensured; the formation of a
commodity management system (the formation of economic
ties); organization of product movement through
warehouses; formation and regulation of product stocks;
development and organization of logistics centers;
integrating – while ensuring synchronization of sales
processes; storage and delivery of products with their
orientation on the market of means of production and
provision of intermediary services to consumers; ensuring
coordination of interests of logistic intermediaries in the
logistics system; ensuring the functioning of material flows
at all stages of reproduction of the final product; a
combination of the processes of «supply – production –
processing – marketing» in one logistics chain;
regulatory – the management of material flows is aimed
at saving all types of resources; Reducing the cost of living
and pre-owned parks at the junction of different
organizational and economic levels and industries;
the resulting function is directed at the supply of certain
products in the required quantity, the given quality, at the
specified time and place, with minimal expenses;
reproducing – a constant exchange of goods in the form of
continuous material flows, which are provided by transport.
Tasks of transport logistics:
creation of transport systems, in particular the creation
of transport corridors and transport chains;
joint planning of transport processes in different types of
transport;
ensuring the technological unity of the transport and
warehouse process;
coordination of transport and production processes;
choice of vehicle type;
ensuring the technological unity of the transport process;
definition of rational delivery route;
eliminating conflict methods, reducing transportation
costs and improving warehouse costs.
The separation of transportation into a separate
functional area of logistics is conditioned by the following
factors:
1) a large share of transport costs in the total logistics
costs;
2) impossibility of organization and existence of
material flow without transportation.
We propose to determine capacity of transport services
market in a certain region (CMts) by the formula (1):
CMts=Vts1+ Vts2+ Vts3+ Vts4, (1)
CMts – capacity of transport services market in a certain
region;
Vts1 – volume of transport services that provided in a
particular region by local transport companies;
Vts2 – volumes of transport services that provided in a
certain region by transport enterprises in other regions;
Vts3 – volumes of transport services that provided by
own vehicles of non-transport enterprises, population, etc.;
Vts4 – volumes of transport services that were not
provided by carriers due to lack of transport capacity.
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There are the following signs of classification of the
transport component of logistics systems:
according to the type of delivery: direct; with processing
at transport terminals; with processing and storage in
distribution centers;
by type of service: from the supplier or distribution
center to a consumer warehouse or distribution center; from
the supplier or distribution center of the immediate
consumer; from the supplier's production to consumer
production without warehouse storage and processing;
by types of transport: direct; mixed up.
Transport logistics is characterized by key elements:
transport links with suppliers and consumers, freight
shipped. The process of transportation begins from the
warehouse of finished products, ends with the receipt of
goods into warehouses of consumers or intermediaries.
For transport logistics, such elements as warehouses,
stocks of products that connect it with other logistic systems
are characteristic. As an integral part of the transport
logistics, the goods become goods that are transported to
transport for carriage from the moment they are received to
the carriage and until the transfer to the recipient.
The volume of transportation, directions and
nomenclature of transportations is considered by transport
logistics. Defines the subjects of the commodity market,
which belong to the subsystems of transportation logistics,
which are managed and managed. Variants of
transportation, which depend on the types of used vehicles
(rail, road, water, air, pipeline), mixed transport, several
types of transport, are important for transportation logistics.
Thus, the development of logistics has had a significant
impact on transport policy and structural changes in the
nature of the enterprises of this industry, which in the late
70ies of the XX century turned into a kind of narrow place
in the economy of industrialized countries.
Transport plays the role of a connecting link in the
logistic chain production in the conditions of inter-industry,
and inter-sectoral integration. At the same time, transport
provides transportation services on the market, for which
they also make a profit. Actuality of problems of
management and optimization of transport work is
confirmed by the fact that the share of transport costs is 40-
50% of the total amount of logistics costs.
In modern logistics of transport there are many problems.
The study of these problems was dealt with and addressed by
various authors of books, articles on logistics and transport
logistics, and conferences on their study and decision.
Generalization of the problems of transport logistics in
Ukraine is of great importance. There are 9 groups of global
problems of transport logistics in Ukraine under the
conditions of European integration and formulate the main
directions of overcoming these problems [8] (Figure 1,
Table I-II).
Fig. 1. Groups of global problems of transport logistics in Ukraine in
conditions of European integration
TABLE I. GLOBAL PROBLEMS OF TRANSPORT LOGISTICS IN UKRAINE IN
CONDITIONS OF EUROPEAN INTEGRATION
Group name
List of problems
Financial
problems
1) lack of investments and lack of own funds for
reconstruction of roads, renewal of rolling stock,
signaling system, communication, improvement of
service quality;
Technical
problems
1) non-loading of rolling stock, in particular
insufficient use of load-carrying capacity or useful
internal volume of a vehicle's body;
2) the quality of transport services;
3) the complexity of transportation by several types
of transport;
4) outdated material and technical base, low level of
mechanization of transshipment, considerable
physical and moral depreciation;
5) operational incompatibility of transport networks,
in particular their exhaustive bandwidth;
6) lagging speed (on European railways 200-250 km
/ h, Ukrainian - 160 km / h);
Technological
problems
1) the use of vehicles, which have already several
times worked out their technical resources and carry
out significantly higher emissions of harmful
substances;
2) low quality of internal roads, which increase fuel
consumption due to poor quality roads;
3) out-of-date technologies that do not meet current
standards;
4) the backwardness of the transport infrastructure;
low technical and technological level and level of
organization of transportation management;
Information
problems
1) complexity in the construction of optimal routes of
traffic (transportation);
2) insufficient information support of carriers;
3) lack of information about programs that allow
automation of the transportation process;
Economic
problems
1) a constant increase in the cost of all types of
transportation, including oil prices, fuel, lubricants,
light and dark petroleum products, energy resources;
2) different conditions for payment for the use of
infrastructure by carriers, including Ukrzaliznytsya;
International
problems
1) not predictable risks associated with changing
climatic conditions;
2) the lack of a single register of vehicles (in
practice, it leads to the fact that the same car can be
simultaneously booked on different routes by
different dispatchers);
3) failures of submission of motor vehicles in agreed
dates for loading;
Environmental
problems
1) pollution of the environment;
2) absence of additional charges for environmental
pollution and noise;
Labor
problems
1) insufficient number of skilled logistics personnel,
including logistic operators;
2) insufficiently developed cooperation between
commodity producers, which complicates the
processes of integration and cooperation;
3) decrease of competitiveness of Ukrainian carriers.
Transport activities in market relations should develop in
the following directions: in-depth study of demand using
transport balances of regions; improving the quality and
reliability of customer service; improvement of the whole
complex of loading and unloading and storage works;
provision of information and forwarding services; increase
of contractual relations; development of service services; the
creation of enterprises that would be part of different
associations, joint-stock companies partnerships, leasing
companies, etc.; creation of intermediary firms for the
Global problems of transport logistics in Ukraine
in conditions of European integration
Environmental
Financial
Economi
c
Customs
International
Labor
Information
Technological
Technical
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supply of rolling stock, logistics, marketing, advertising;
distribution of container usage.
TABLE II. DIRECTIONS TO OVERCOM ING PROBLEMS
Group name
Directions to overcoming problems
Financial
problems
1) development of programs for the purchase of fixed
assets and rolling stock in leasing;
2) development of targeted financing and investment
programs, modernization, reconstruction and
updating of rolling stock;
Technical
problems
1) an effective renovation of the car park, capable of
providing sufficient transport services of adequate
quality and satisfaction;
2) optimization of the transportation process itself by
collecting consolidated cargo from several senders,
compiling optimal routes of routing, connecting a
more efficient mode of transport on a certain route;
3) the introduction of technical policy at motor
transport companies with the coordination of
maintenance procedures for types of rolling stock and
the introduction of a modern system of spare parts
supply, based on the control and analysis of the
causes of failure of parts, units and nodes;
Technological
problems
1) search for new products and technologies;
2) integration into the pan-European transport system;
3) increasing the level of transport security;
4) implementation of SAP software;
5) change of approaches to management of all
economic processes;
6) to create a network of automated traffic
management, with the reduction of reloading
operations;
Information
problems
1) the application of the latest computer technologies
in transport and logistics for the processing of large
amounts of information, the exchange of data in real
time with minimal cost;
Economic
problems
1) the return to the methodology for calculating the
cost of transportation and taking into account not the
market price per 1 km, but the individual profitability
of each transportation;
2) comprehensive accounting of logistics costs;
3) refusal of cross-financing of passenger
transportation;
International
problems
1) Adaptation of the national legal framework to
international conventions, agreements, European
acguis communautaire;
2) attraction of additional volumes of transit traffic
through the territory of Ukraine and branching of the
MTK network due to new directions of movement;
3) cooperation with the EU countries in the
development of Trans-European Networks (TEN-T),
transnational axes;
4) creation of a common aviation space between
Ukraine and the EU;
Environmenta
l problems
1) reduction of atmospheric air and soil pollution,
protection of surface and groundwater from pollution;
2) reduction of transport noise and vibration;
3) protection of flora and fauna from the harmful
effects of transport;
Labor
problems
1) improvement of transport legislation;
2) «erosion» of the borders with EU countries, which
will ensure the attractiveness of the transportation
sector;
3) increase of transport operators, increase internal
competition and promote tariff crash;
4) increase of wages of drivers.
Thus, the general strategic direction is to improve the
transport complex of Ukraine in the conditions of European
integration, according to which the state of transport
communications of Ukraine should meet the needs of
European integration. That is why it is necessary:
complexly at the state level to put problems associated
with the development of the transport network, identify
tasks and ways to solve them, find appropriate support:
financial, logistical, resource, organizational, legal;
to develop and implement the State Program for the
development of the transport complex in Ukraine (the
complexity of managing such a program is complicated by
an increase in privatization processes in the transport
system);
to develop a number of motives, levers, methods and
methods for the development of the transport system in the
country (the development of the transport network is a level
of technological progress and civilization of the country);
a steady tendency towards Ukraine's recognition of the
international community as a European state, with which it
is desirable to have stable and broad-based business
relations and which in the long run will have a serious
impact on key issues of European politics;
the existence of an approved concept for the creation and
functioning in Ukraine of a national network of international
transport corridors.
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