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DOI: https://doi.org/10.34069/AI/2023.66.06.20
How to Cite:
Zrybnieva, I., Pichugina, J., Sigaieva, T., Saienko, V., & Korolkov, V. (2023). Benchmarking in the logistics management system of
Ukrainian enterprises. Amazonia Investiga, 12(66), 206-224. https://doi.org/10.34069/AI/2023.66.06.20
Benchmarking in the logistics management system of Ukrainian
enterprises
Evaluación comparativa del sistema de gestión logística de las empresas ucranianas
Received: May 31, 2023 Accepted: July 7, 2023
Written by:
Iryna Zrybnieva1
https://orcid.org/0000-0003-4156-4702
Julia Pichugina2
https://orcid.org/0000-0002-7862-8274
Tetiana Sigaieva3
https://orcid.org/0000-0003-0948-7233
Volodymyr Saienko4
https://orcid.org/0000-0003-2736-0017
Vladyslav Korolkov5
https://orcid.org/0000-0002-3593-8512
Abstract
The relevance of this study is manifested in the
need of Ukrainian logistics companies to
effectively manage and increase their
competitiveness. Establishing benchmark
enterprises and applying benchmarking allows
identifying best practices and management
principles. The use of statistical data on the
economic and economic activity of the logistics
industry allowed for statistical, parametric and
correlation analyzes, which contributes to an
objective study of trends in the transport and
logistics industry of Ukraine. The proposed
hypothesis on the use of a wide sample of
statistical data reflects the potential for
developing an algorithm and implementing the
benchmarking methodology in the logistics
industry management system. It is found that
motor transport enterprises occupy leading
positions in the Ukrainian market of transport
and logistics services. Freight and logistics
services, in particular transportation of ore
products, prevail in the field of motor transport.
1
Doctor of Economic Science, Associate professor, Economic faculty, Marketing, innovation and regional development, Yuriy
Fedkovych Chernivtsi National University, Chernivtsi, Ukraine. WoS Researcher ID: D-3438-2016
2
PhD in Economics, Associate Professor, Department of World Economy and International Economic Relations, Faculty of
International Relations, Political science and Sociology, Odesa I.I. Mechnikov National University, Odesa. WoS Researcher ID:
IZP-9588-2023
3
PhD, Associate Professor, Department of Management, Logistics and Economics, Faculty of Management and Marketing, Simon
Kuznets Kharkiv National University of Economics, Kharkiv, Ukraine. WoS Researcher ID: IZP-8147-2023
4
DSc. (in organization and management), Department of Innovation Management, Faculty of Social Sciences, Academy of Applied
Sciences – Academy of Management and Administration in Opole, Opole, Poland. WoS Researcher ID: J-9099-2016
5
Ph.D in Economic Sciences, Docent, Dean, Economics and Management Faculty, National University Zaporizhzhia Polytechnic,
Zaporizhzhe, Ukraine. WoS Researcher ID: AFX-2598-2022
Zrybnieva, I., Pichugina, J., Sigaieva, T., Saienko, V., Korolkov, V. / Volume 12 - Issue 66: 206-224 / June, 2023
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The analysis of regional peculiarities revealed
that Dnipropetrovska oblast, Kyiv and Donetsk
oblast are favorable for freight and logistics
activities. It was also found that privately owned
companies predominate among the specialized
enterprises in this industry. The benchmarking
analysis confirmed that it is possible to use
profile data to identify benchmark enterprises
with the best economic performance and to use
their experience to improve the competitiveness
of other companies. Such analysis reveals the
strengths and weaknesses of enterprises,
provides opportunities for improvement and
development, and facilitates informed decision-
making to improve the productivity and quality
of logistics processes. Thus, the benchmarking
methodology proves to be an effective tool for
assessing and comparing the economic and
financial performance of logistics companies,
contributing to their competitiveness and market
position.
Keywords: benchmarking analysis, logistics
industry, economic efficiency, competitiveness,
statistical analysis
Introduction
Logistics plays an important role in Ukraine's
economy, ensuring the efficient organization and
coordination of the movement of goods and
material resources from suppliers to end users. Its
role is to solve complex problems related to
optimizing the supply chain, reducing costs,
improving service levels, and implementing
innovative solutions in the field of logistics
(Popelo et al., 2023; Kolodiichuk, Cherevko &
Popivniak, 2023; Zomchak & Starchevska,
2023). An efficient logistics system contributes
to the productivity and competitiveness of
enterprises. It reduces the time of delivery of
goods, optimizes the use of transport resources,
reduces stocks in warehouses, and avoids delays
in production. This has a positive impact on
product quality, customer satisfaction, and
increased profitability (Komchatnykh,
Klymenko & Levishchenko, 2022; Kozlova,
2022; Ding, Wang & Chan, 2023). Logistics is
also an important factor in the development of
international trade and foreign economic
relations of Ukraine. Effective management of
logistics processes allows to ensure fast and
reliable delivery of goods abroad, increase the
competitiveness of Ukrainian enterprises in
foreign markets, and attract foreign investment
(Liashenko, Khaustova & Trushkina, 2023;
Dyczkowska & Reshetnikova, 2022; Lee et al.,
2022). In addition, the development of logistics
contributes to the creation of new jobs and
employment in Ukraine. Expansion of logistics
infrastructure, development of transport
networks, warehouses, and logistics services help
to expand opportunities for businesses and attract
new investments. This helps to stimulate
economic growth and development of various
logistics-related industries (Khaustova, Boiko &
Trushkina, 2022; Yurchenko & Yarova, 2022;
Trushkina, Buhaieva & Skoptsov, 2022). It is
important to take into account that effective
logistics management has a significant potential
to increase the competitiveness of Ukrainian
enterprises in global markets. It allows for a
quick response to changes in customer
requirements, flexible adaptation to market
conditions, and a high level of service
(Kovalenko et al., 2021; Riabov & Riabova,
2021; Bushman, 2021). However, there are some
challenges and problems related to the
development of logistics in Ukraine.
Infrastructure instability, insufficient
development of transport networks, bureaucratic
procedures, and insufficient funding are key
factors that limit the development of logistics in
the country. Solving these problems requires
government attention, effective partnerships
between government, business, and academia, as
well as the development of a favorable business
environment (Horoshkova & Sumets, 2023;
Sirenko, Baryshevska & Melnyk, 2023;
Doroshuk, Mironova & Protsyuk, 2022).The
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full-scale unprovoked military aggression of the
Russian Federation in Ukraine creates serious
problems in the organization of logistics.
Restricted access to the territories, destroyed
transportation networks, and danger to personnel
complicate the transportation of goods and
ensure normal logistics activities. In addition,
economic instability and rising security costs
lead to difficulties in financing logistics
operations. Given these factors, organizing
logistics in times of war requires adapting to the
conditions of conflict, ensuring the safety of
personnel and cargo, and finding alternative
routes and sources of supply (Gruenwald, 2022;
Zrybnieva, 2022; Jankowski-Guzy & Kamińska,
2022).Thus, logistics plays an important role in
Ukraine's economy, contributing to the
efficiency of enterprises, development of foreign
economic relations, job creation and stimulation
of economic growth. However, in order to
achieve the full potential of logistics in Ukraine,
it is necessary to continue to address the
challenges and problems affecting the
development of logistics. One of the methods to
improve the efficiency of logistics enterprises in
Ukraine is the benchmarking method (Uusitalo &
Laine, 2022; Chen et al., 2022; El Ouadi,
Malhene, Benhadou, & Medromi, 2022). The
theoretical part of the research establishes the
conceptual foundations of benchmarking, its
principles of application, and its potential impact
on the management system of logistics
enterprises. In the practical part of the study, a
statistical analysis of the subject area was
conducted, which subsequently enabled the
application of benchmarking analysis to selected
specialized enterprise. Based on the results of
comparative analysis, an optimal benchmarking
implementation scheme for the logistics sector of
Ukraine was developed.
The purpose of the study is to develop effective
mechanisms for the implementation of
benchmarking methods in the system of
management of logistics activities of Ukrainian
enterprises.
Research Objectives:
1. Conduct a theoretical analysis of the
conceptual framework of benchmarking
analysis and assess the likelihood of its
application for optimizing the logistics
sector in Ukraine.
2. Perform a statistical analysis of the subject
area, identifying leading sectors, top
companies, and indicators suitable for
benchmarking analysis.
3. Carry out benchmarking analysis for a
selected leading enterprise.
4. Develop an optimal algorithm for
implementing benchmarking analysis in the
Ukrainian logistics sector.
5. Formulate analytical conclusions regarding
the feasibility of applying benchmarking
strategies in the management system of
Ukrainian logistics enterprises.
Theoretical Framework or Literature Review
Benchmarking is a strategic tool used to
systematically compare an organization's
performance, processes or practices with the best
performance of well-known companies or
sectors. Its purpose is to identify shortcomings,
identify potential opportunities for improvement
and adapt the best practices of other business
entities to your own activities. Benchmarking is
the process of systematically comparing an
organization's performance, processes or
practices with the best performance indicators of
well-known companies or sectors.
Benchmarking involves collecting and analyzing
data, setting metrics and performance indicators,
and comparing the results with defined standards
or successful leading organizations (Pratap et al.,
2023; Angelina & Mulia, 2023; Shirin, 2023).
There are different types of benchmarking
systems, depending on the object of comparison
and the purpose of the study. The main types of
benchmarking are internal, competitive,
functional, and strategic (Kashyap, Kovrijnykh,
Li & Pavlova, 2023; Basuki & Adriansyah, 2023;
Yesmine et al., 2023):
o Internal benchmarking: This type involves
comparing performance indicators and
processes between different internal units or
departments of an organization. The goal of
internal benchmarking is to identify best
practices within your own organization and
apply them to other parts of the company to
improve overall performance.
o Competitive benchmarking: This type
involves comparing the performance,
strategies and processes of an organization
with its competitors in the market. The
purpose of competitive benchmarking is to
identify advantages and disadvantages
compared to competitors, which helps in
developing strategies to increase
competitiveness and take a leadership
position in the market.
o Functional benchmarking: This type
involves comparing specific functions or
processes of an organization with similar
functions or processes in other
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organizations, regardless of their industry or
market status. Functional benchmarking
helps to identify best practices that can be
used to improve a specific function of the
organization. This type of benchmarking
allows an organization to observe successful
practices in other industries and transfer
them to its own functional processes. It can
help to identify effective strategies,
innovative approaches, and innovative ideas
that have already been used successfully in
similar areas of activity.
o Strategic benchmarking: This type of
benchmarking is used to compare strategies
and management approaches between
organizations that may be external to their
own industry. The purpose of strategic
benchmarking is to obtain insights and ideas
from other industries that can be applied to
develop the strategic directions of your own
organization and achieve competitive
advantage.
Benchmarking parameters include various
factors and metrics against which organizations'
processes, performance, and results are
compared. Some of the main benchmarking
parameters include (Disch, 2023; Goswami,
Daultani, Chan & Pratap, 2022; Nurgaliyeva,
Ismailova & Sarybayeva, 2022, Ihnatenko,
2022):
➢ Costs: A comparison of the costs of
producing, distributing, storing, and
transporting goods or services. This can
include general costs, resource costs,
personnel, materials, etc.
➢ Time: Analyzing the duration of processes
and the speed at which tasks are completed.
This may include production, delivery, order
processing, and other important criteria
related to time efficiency.
➢ Quality: An assessment of the quality of a
product or service, which may include
criteria such as accuracy, reliability, quality
standards, customer satisfaction, and other
quality indicators.
➢ Productivity: An analysis of resource
efficiency and labor utilization, including
measures such as production capacity, cost
per unit of output, labor hour productivity,
and other performance indicators.
➢ Innovation: Assessing the level of
innovation and adoption of new ideas,
technologies or practices. This may include
indicators such as the number of
innovations, patents, and the level of
research and development.
➢ Customer satisfaction: Assessment of
customer satisfaction and the requirements
of their needs. This may include customer
surveys, customer ratings, repeat purchase
rates, and other measures of customer
satisfaction.
In the context of applying the benchmarking
method in the management system of logistics
activities of enterprises, let us consider the
relevant and up-to-date studies.
The study (Stojanović & Ivetić, 2020) confirms
that the use of Incoterms clauses in assessing and
benchmarking a country's logistics performance
is a significant tool for improving the
management of logistics processes. This study
emphasizes the importance of using Incoterms in
the context of logistics, as well as its potential to
increase competitiveness and improve a
country's logistics performance.
Su & Ke (2017) note that benchmarking national
logistics productivity is an important tool for
assessing and comparing the efficiency of
logistics systems in different countries. The study
emphasizes that benchmarking helps to identify
the strengths and weaknesses of national logistics
systems and is used to formulate strategies to
improve and increase the country's
competitiveness in the global logistics context.
The publication (Meryem, Saâd, Mohamed &
Fouad, 2019) analyzes best practices in the
organization of urban freight transport and
benchmarking of urban logistics schemes. The
study captures various best practices in urban
logistics, such as electric vehicles, resource
sharing, and environmental management.
Benchmarking of urban logistics schemes allows
to compare and evaluate the effectiveness of
these practices in different cities.
The goal of the study by Kazançoğlu, Zbiltekin
& Kan-zen (2020) is to develop a sustainable
benchmarking methodology for choosing the
placement of logistics centers. One of the
primary conclusions is that locational criteria for
logistics centers should consider sustainability,
particularly when considering developing
nations. The study demonstrates that a variety of
metrics, including carbon emissions, energy use,
environmental costs, and social responsibility,
can be used to evaluate sustainability.
For example, in a study by Minnow, Eric, and
Bányai (2022), available data from the World
Bank is used to assess logistics productivity
amongst nations. The study's key findings
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include the fact that comparing and evaluating
the effectiveness of logistics systems across
nations using open data is a beneficial tool. In
order to compare countries, the study makes use
of a variety of metrics, including measures of the
effectiveness of logistics and customs
environments.
The overall conclusion from the above studies is
that benchmarking is an important tool for
assessing, comparing, and improving the
productivity and efficiency of logistics and
transportation systems. They demonstrate the
value of benchmarking in identifying best
practices, developing strategies, and improving
competitiveness.
However, one of the unexplored aspects is the
issue of algorithmization of benchmarking
methods to improve the efficiency of economic
activities of transport and logistics companies, in
particular in the context of current conditions in
Ukraine. It is necessary to conduct additional
research aimed at developing algorithms and
methodologies that take into account the
peculiarities of the Ukrainian market and the
realities of transport and logistics companies.
This will help determine the best approaches to
benchmarking that will help improve the
efficiency and sustainability of the industry in the
current environment.
Methodology
In the context of this study, the following
methodological approaches were used:
1. Statistical analysis of the industry: This
method involves collecting and analyzing
statistical data related to the logistics
industry in order to establish trends,
calculate averages, coefficients of variation,
and other indicators. Statistical analysis
allows you to evaluate the distribution and
characteristics of the data under study,
identify dependencies and establish
statistical significance.
2. Parametric analysis: This method involves
the use of statistical methods to study the
parameters of the industry under study. It is
based on the use of statistical models, such
as regression analysis or analysis of
variance, to assess the impact of various
factors and establish statistical relationships
between them.
3. Correlation analysis: Used as a method of
testing a mathematical model on sets of
industry statistics, it allows to establish the
presence and degree of dependence between
different variables in the studied data set.
This method is based on the calculation of
correlation coefficients, which indicate the
strength and direction of dependence
between variables. Using correlation
analysis, it is possible to determine whether
the hypothesis of a relationship between
variables is confirmed, as well as to assess
the strength of this relationship. This allows
you to verify the adequacy and accuracy of
the mathematical model and ensure its use
for forecasting, optimization and decision-
making in the context of the logistics
industry.
4. Algorithmization: This method involves the
development of algorithms and procedures
to perform specific tasks in the logistics
industry. The use of algorithmization
contributes to the automation of processes,
improves efficiency and accuracy, and
allows for standardization of procedures and
repeatability of results.
These methods, such as statistical analysis of the
industry, parametric analysis, mathematical
modeling, correlation analysis, and
algorithmization, are important and useful tools
in the study and improvement of the logistics
management system of enterprises.
Statistical analysis of the industry allows us to
assess the distribution and characteristics of the
data under study, establish statistical significance
and identify dependencies between indicators,
which provides the basis for further
benchmarking and performance improvement.
Parametric analysis is based on the use of
statistical models to assess the impact of factors
and establish statistical relationships. It allows
you to identify significant parameters and
influencing factors on the efficiency of the
logistics management system.
Correlation analysis establishes the relationship
between variables, which helps to understand
which factors affect the performance of logistics
activities. It allows you to measure the degree of
dependence and identify key aspects that need
attention to improve processes. Procedures for
logistics management can be automated and
standardized with the aid of algorithms. Various
areas, including warehouse management,
transport routing, inventory, and production
planning, can be effectively controlled by
designing algorithms and procedures.
Algorithms help you to optimize resources,
ensure high-quality tasks in logistics activities,
and create systematic, transparent, repeatable
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procedures. The application of these methods in
the management system of logistics activities of
Ukrainian enterprises will allow for scientifically
based research and analysis, establishing
dependencies, identifying problem areas and
identifying potential ways to improve. This will
help to increase the efficiency and
competitiveness of logistics processes, as well as
contribute to the stable and sustainable
development of transport and logistics
companies in Ukraine.
Results and Discussion
Statistical analysis of the logistics sector in
Ukraine.
Research. In accordance with the definition of
benchmarking, applying the analytical methods
discussed, we will study the economic indicators
of the focus industry in order to establish a
reference enterprise. Based on the results
obtained, we will further form an algorithmized
sequence of implementation of the studied
technology for improving the economic
performance of logistics enterprises, which
provides for the application of the best practices
of the leaders of the focus industry (the actual
implementation of the benchmarking method),
adequate to the purpose of the study. In
accordance with the established methodology,
we will perform a statistical analysis of the
economic indicators of the focus industry
according to the state statistical database (State
Statistics Service of Ukraine, 2023). The
transport and logistics situation in Ukraine is
determined by the statistical typification of
transport modes, which is established based on
the results of a retrospective statistical analysis -
Figure 1 - Figure 4.
According to the analytical data provided (Figure
1 - Figure 4), it was found that the main cargo
and logistics flows in Ukraine are road, rail and
pipeline modes of transport, with the road freight
transportation flow remaining the leader of the
focus industry during the study period. Taking
into account the leading position of this type of
logistics companies, we will establish the
prevailing areas of application of road transport
among the existing range of transport and
logistics services offered on the Ukrainian
market - Figure 5 - Figure 8.
Figure 1. Retrospective Statistical Analysis of the Transport and Logistics Situation in the Ukrainian
Freight and Transportation System.
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
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Figure 2. Retrospective statistical analysis of the leading mode of transport that has the greatest impact on
the transport and logistics situation in Ukraine.
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
Figure 3. Retrospective statistical analysis of the load on cargo and logistics flows of Ukrainian cargo
turnover.
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
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Figure 4. Retrospective statistical analysis of the specific load of the most used modes of transport in
Ukraine (by cargo turnover)
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
Figure 5. Retrospective statistical analysis of the areas of application of freight and logistics services
involving motor vehicles (total indicator)
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
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Figure 6. A retrospective statistical analysis to determine the leading sphere of attracting road freight and
logistics flows (total indicator)
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
Figure 7. A retrospective statistical analysis of the areas of application of freight and logistics services
involving motor vehicles (transportation in international traffic)
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
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Figure 8. A retrospective statistical analysis to determine the leading sphere of attracting road freight and
logistics flows (transportation in international traffic)
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
According to the analytical data (Figure 5 -
Figure 8), it was found that the predominant area
of application of motor vehicles is cargo and
logistics services for the transportation of ore
products, but in the international road traffic in
the study period, the transportation of food
products prevails.
It is also worth considering the regional aspect of
the use of freight and logistics services involving
motor vehicles, according to which (Figure 9),
the largest logistics centers in 2021 are Dnipro
region, as well as the city of Kyiv and Donetsk
regions. Thus, it should be assumed that transport
and logistics companies in these regions are more
successful in the context of the benchmarking
method of adopting best practices.
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Figure 9. Evaluation of the regional aspect of the use of freight and logistics services involving motor
vehicles based on the results of 2021.
Source: created by the author based on statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)
Similarly to benchmarking methods, we study
the quantitative and qualitative structure of
participants in the Ukrainian market of
transportation and logistics services using motor
vehicles - Figure 10, Figure 11.
Figure 10. A retrospective statistical analysis of the quantitative and qualitative composition of participants
in the Ukrainian road transport market of cargo and logistics services.
Source: created by the author on the basis of statistical data from the State Statistics Service (State Statistics
Service of Ukraine, 2023)