Transformation of Logistics in Network Economy

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MAGAZINE №3(86) June 2018

AUTHOR KALUZHSKY M.L. - Cand.of Phil. Sc., Assistant professor, Faculty of Economics and Management, Omsk State Technical University (Omsk, Russia)

CATEGORY  Analytics and reviews Modern concepts and technologies in logistics and SCM Supply chain management


The virtualization of the market has provoked a change not only in the market environment, but also in the institutions of logistics and other applied disciplines (marketing, management, etc.).  These changes are global in character, determining the institutional transformation of markets, regardless of the participants’ and regulators’ will .  Their appearance is due to external causes, so they are difficult to interpret within traditional endogenous methodology of logistics management.  Therefore, the exogenous approach was used as a methodological basis for the study.  The object of analysis was the production of consumer goods as the primary source of network commodity circulation and associated logistics processes.

In the network economy, logistics has become one of the most transformable spheres of economic activity.  Today, the theory lags behind practice.  Logistical innovations spontaneously arise under the influence of consumer demand and market conditions.  They underlie the competitive advantages of market leaders, but only become common property after the loss of their innovativeness.  Then the secrets of market leaders are revealed, spread and innovations become part of the theory.

The main result of the study is the justification of the thesis that in the virtual market conditions the priorities of logistics management are fundamentally changing.  Consumers from an object of market influence are transformed into its subject, taking away this role from sellers, defining parameters and setting the framework for market offers.  The logistics model, in which the logistics chain triggers a management decision, gives way to a model where consumer demand is the source of the launch of logistic processes. Four key factors determine the institutional transformation of logistics: virtualization of markets, transactional competition, sales customerization and logistics providers.  The new reality requires a revision of the fundamentals of the theory of logistics.  This is due to the fact that in institutional practice, institutional changes already determine the competitiveness of the subjects of the virtual market. 

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