ARTÍCULO
TITULO

Use of the Distribution Center in the Ukrainian Distribution System

Ievgen Litomin    
Illya Tolmachov    
Andrii Galkin    

Resumen

With the increase of companies? sustainable turnover, most companies are thinking about creating a distribution center. The consumers should obtain the necessary quality and quantity level of the goods at the right time in the right place, etc., from a reliable supplier, with a sufficient level of service and a minimum level of total costs. Failure to comply with any of these requirements can lead to loss of customers or market share. The research study of the Ukrainian distribution system was made on the example of one of the national companies which sells building materials. The article defines irregularity in functioning of existing distribution channels. At the same time, the authors determine inefficiency of various distribution channels used by the participants of the retailers? network in one region. To solve this problem, combining several material flows has been proposed. Serving clients together allows avoiding seasonality and makes goods volumes more sustainable. In this case, the use of the distribution center is rational. Applying a DC in customers consolidation areas allows increasing productivity and efficiency of the distribution system and improving logistics indicators. Obtained results are based on: scientific and practical analysis of irregular services of material flows; integrated and system approaches to data processing; an experimental method for implementing the distribution center in the distribution system; methods of project analysis evaluating the distribution system effectiveness.

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