scholarly journals DROP SHIPPING DEVELOPMENT UNDER COVID-19 CIRCUMSTANCES AS THE MOST COMMON METHOD OF E-COMMERCE

2021 ◽  
Vol 2021 (2) ◽  
Author(s):  
S. Pokhylko ◽  
T. Dvorianova ◽  
E. Voloshyna

This article is devoted to analysis of the theoretical foundations and economic essence of drop shipping and the influence of COVID-19 on drop shipping development. The authors conducted bibliometric analysis of the most relevant publications in the Scopus database. The most cited publications on this theme are presented in the paper. Systematization of the scientific background shows that e-commerce exponential growth enhances the impact of drop shipping on developments in business processes. Thus, such an e-commerce drop-shipping supply chain has many advantages. One of them is evident in collaboration with manufacturers and the search for consumers to be supplied for buying their goods and services. Concomitantly, a drop shipper advertises a product to a producer on drop shipper’s own websites employing all the marketing strategies and taking orders from the clients. The authors particularly noted the features of inventory management when such a method of e-commerce is used. The reason is that there is no need for a drop shipper to store any products. Hence, the inventory costs are drastically cut. This paper analyzes the main drop shipping tools and their advantages for improving business indicators. The paper embodies the essence of dropshipping from a drop shipper side. The article carries out an analysis of drop shipping types, the most common e-commerce platforms and marketing tools to improve the running the business. This work compares advantages and disadvantages of drop shipping for both a seller and a buyer. Author's algorithm of drop shipping– steps of the drop shipping model functioning - is presented in the work as well as current statistics of the interrelation of the pandemic COVID-19 and a tremendous growth of e-commerce. It was defined that the sales amount among some product categories has soared several times as the pandemic started in the world. Clients preferred to purchase toiletries, medication, food, books, clothes and shoes in online stores. The results of the scientific study are analysis of the major indicators of the drop shipping market and forecast for the future rise in such purchases without a straight participation of producers. Due to the fact that this drop shipping innovative concept provides flexibility and time saving, the clients do not have to visit brick-and-stick stores. Which is attractive to clientele and used widely during the lockdown.

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Mykola Parkhomets ◽  
Nataliia Pochynok ◽  
Liudmyla Uniiat ◽  
Igor Matviy ◽  
Liudmyla Sybyrka ◽  
...  

The article discusses the option of modelling a business process using a logistics concept to optimise costs. The issues of influence on the formation of the model, the concept of optimising transport costs, and the costs of inventory management, in terms of production and economic efficiency, are considered. The mathematical and economic model of a typical business process is shown as a formed economic paradigm that materialises the process of conceptual integration of technological and logistic approaches in the process of implementing critical business processes of the company's current activities.The article also touches upon the issues of calculating logistics costs, both in the context of their points of origin, that is, by functional areas, and general accounting in the context of each business process. The options for calculating this category of costs are considered, in the general flow of both material and financial resources of a separate business process. From the standpoint of a logistic approach to managing the total operating costs of key business processes, options for a comprehensive study of the impact of logistics costs on the general operating activities of the company are analysed.The methodology for constructing a mathematical-economic model of a typical business process is described, taking into account the factors of influence of logistics concepts. Practical use of this methodology in real economic conditions is considered, and recommendations are given for adapting the methodology to specific parameters of the subject of the economic system. The proposed model outlines the fundamental approaches to the mathematically verified analysis of vital economic parameters that characterise the fluid nature of the economic components of the modern free market. The stated methodology, while not claiming to be complete coverage of the issues presented, nevertheless assumes the possibility of practical implementation of simulation modelling, economically crucial for current operational activities, fundamental business processes.


2015 ◽  
Vol 21 (4) ◽  
pp. 928-963 ◽  
Author(s):  
Anna Corinna Cagliano ◽  
Alberto De Marco ◽  
Carlo Rafele ◽  
Andrea Bragagnini ◽  
Luca Gobbato

Purpose – The purpose of this paper is to propose a systemic methodology to assess the potential of and facilitate policies for the diffusion of a smartphone based service enabling supply chain (SC) operations in the e-grocery sector. Design/methodology/approach – A System Dynamics (SD) model combining the Bass paradigm for innovation diffusion and an inventory management framework is developed. Semi-structured interviews are conducted to understand the industry business processes; a simple SD model is designed to capture the most important variables together with the relationships among them; a detailed SD model is calibrated and simulation outcomes are analysed. Findings – The efficiency and reliability of the service drive its diffusion among producers and consumers, who in turn persuade retailers to adopt. The assessment methodology can be part of feasibility studies and marketing investigations in order to understand the impact of e-commerce tools on SC processes. Research limitations/implications – This contribution stresses the need to analyse how mobile information technologies may benefit all the business processes of the e-grocery SC, and not just one single process or stakeholder. Practical implications – The approach offers a roadmap to identify the factors influencing the diffusion of mobile e-grocery services as well as the associated impacts on SC processes. Originality/value – The work contributes to overcoming the lack of approaches studying the diffusion of e-grocery by taking into account all the relevant aspects and stakeholders involved and not only the consumer perspective.


Author(s):  
Dmitry Ivanov

AbstractEntering the COVID-19 pandemic wreaked havoc on supply chains. Reacting to the pandemic and adaptation in the “new normal” have been challenging tasks. Exiting the pandemic can lead to some after-shock effects such as “disruption tails.” While the research community has undertaken considerable efforts to predict the pandemic’s impacts and examine supply chain adaptive behaviors during the pandemic, little is known about supply chain management in the course of pandemic elimination and post-disruption recovery. If capacity and inventory management are unaware of the after-shock risks, this can result in highly destabilized production–inventory dynamics and decreased performance in the post-disruption period causing product deficits in the markets and high inventory costs in the supply chains. In this paper, we use a discrete-event simulation model to investigate some exit strategies for a supply chain in the context of the COVID-19 pandemic. Our model can inform managers about the existence and risk of disruption tails in their supply chains and guide the selection of post-pandemic recovery strategies. Our results show that supply chains with postponed demand and shutdown capacity during the COVID-19 pandemic are particularly prone to disruption tails. We then developed and examined two strategies to avoid these disruption tails. First, we observed a conjunction of recovery and supply chain coordination which mitigates the impact of disruption tails by demand smoothing over time in the post-disruption period. Second, we found a gradual capacity ramp-up prior to expected peaks of postponed demand to be an effective strategy for disruption tail control.


2021 ◽  
Vol 7 (167) ◽  
pp. 40-45
Author(s):  
M. Novikova ◽  
O. Nebylytsia

The conditions for the functioning of the modern economy, which are characterized by fierce competition, require the management of companies to constantly modernize the business processes of the enterprise, the use of innovative tools and technologies in general and marketing in particular. This study is devoted to the generalization and substantiation of the essence of modern innovative marketing tools for business development. Thus, the paper reveals the essence of the most common marketing tools on the Internet, namely SEO (search engine optimization), contextual advertising, email marketing, SMM (promotion on social networks), event marketing (event marketing) and chatbots. It should be noted that in recent years, modern business is very active in its marketing activities of mobile devices. Therefore, the article also provides an analysis of recent studies to assess the impact of mobile devices on the world economy. It is concluded that mobile traffic is rapidly displacing desktop traffic, and companies need to take this into account when formulating a strategy. It was noted that the most modern example of this in Ukraine is an experimental draft concept in the field of electronic administrative services, which was announced by the 6th President of Ukraine - Volodymyr Zelensky - "State in a smartphone". The generalization of the use of chatbots by modern enterprises as one of the effective innovative tools has made it possible to identify the main advantages and disadvantages of their use. Recommendations for the formation of an effective marketing strategy of a modern enterprise were also offered. Among which were identified: 1.The use of marketing tools in the enterprise should be expanded and modernized. It is necessary to use modern innovative technologies, especially Internet technologies. 2. Business needs to focus on people. Almost all successful companies and brands in the long run are those that successfully satisfy the desires and needs of people. 3. It is advisable for marketers to focus on those tools that are most important for this business. The focus should be on more rational tools than using the budget to try to apply most of them.


2021 ◽  
Vol 30 (30 (1)) ◽  
pp. 164-170
Author(s):  
Laura Barna ◽  
Bogdan Ionescu

The business environment has evolved over time, so that it has become a dynamic and hyper-competitive environment. The business environment presents many risks. The purpose of the risks is to highlight the success or failure in the business, because some risks are inevitable and some risks can be controlled by companies. For a company to succeed and survive in a dynamic and hyper-competitive business environment, they must find and introduce radical and incremental innovations simultaneously. Over time, many small, medium and big companies have succeeded in implementing accounting information systems, in order to make their activity more efficient. Investing in accounting systems has a positive impact on the company because they improve the efficiency and effectiveness of the organization, as well as increase the performance. Increasing efficiency and effectiveness means better management and dissemination of information within the company, so that employees have easier access to information and based on them to take the best decisions. The research method used was quantitative using the questionnaire based on which we identified the main advantages and disadvantages of using accounting information systems, as well as the influence of these systems on the organization and the criteria underlying the choice of these systems. The most relevant results we obtained through our research were: accounting information systems offer both advantages and disadvantages, these systems improve the performance of the organization, and the criteria for choosing these systems depends most on the speed of implementation of the systems.


2020 ◽  
Vol 288 (6) ◽  
pp. 48-53
Author(s):  
V. LYSAK ◽  

The formation of the ERP is a complex and time-consuming process, and therefore for the successful completion of the project it is necessary to develop a strategic plan for management automation and the use of modern approaches to assess its effectiveness. An important aspect of the formation of an effective ERP is to identify, analyze and assess the impact of external and internal factors that affect the satisfaction of future users of the implemented system – staff and managers at all levels. The article analyzes common approaches to identifying factors influencing the effectiveness of projects for automation of industrial enterprise management. The application of common approaches to assessing the effectiveness of an automated enterprise management system at different levels of maturity of its IT infrastructure, indicating their main advantages and disadvantages, and gives priority to the total cost of ownership as a key. It is proved that to increase the productivity and efficiency of ERP-system enterprises should take into account the factors that affect user satisfaction. At present, it is actually possible to determine the effectiveness of IT investments for Ukrainian enterprises is the analysis of whether it is possible to achieve the set goals at the expense of funds allocated for automation, formulated not in the form of their return coefficient, but in terms characterizing the parameters of automated processes. In general, for most modern enterprises before the implementation of AMS it is necessary to conduct an audit and reorganization of their activities to create rational technologies and business processes. Reorganization in this case does not necessarily mean a change in the organizational structure of the enterprise, but the optimization of processes to achieve greater productivity at lower cost. Prospects for the development and maintenance of the system are important for domestic enterprises, which are mainly determined by the developer (supplier) of the automated system, as well as a set of standards that is embedded in the system and its components. In addition, an important role in choosing a supplier is the form of its presence in the domestic market, which is formed by the presence of a network of certified technical support centers, authorized training centers, “hotlines” for consultations and more.


2015 ◽  
Vol 35 (3) ◽  
pp. 346-369 ◽  
Author(s):  
Robert Jack ◽  
Sharif As-Saber ◽  
Ron Edwards

Purpose – Perceived differences in the composition of goods and services forms the basis of a significant degree of analysis of the firm internationalisation process. In particular, product inseparability is highlighted as a distinguishing feature of service offerings and purports to explain the different approaches to internationalisation strategy adopted by service firms. The research, however, proposes that the division of goods and services into distinct products is outmoded. Rather, it is important to understand the extent of service components that embody, or are embedded in, a product offering. The authors argue that this “service embeddedness” influences the process by which a firm internationalises. The paper aims to discuss these issues. Design/methodology/approach – Based on ten case studies of Australian international firms, this paper examines the impact of service embeddedness on a firm’s internationalisation process. Findings – The research underlines that firms approach internationalisation with a view of ensuring that the various activities that combine to form their product offering are available to their international clients. Research limitations/implications – From an academic perspective, a dichotomous approach to products (good or service) underestimates the role that embedded services have on a firm’s internationalisation process. The research, therefore, has implications for researchers and practitioners as it highlights the importance of delivering products internationally that comprise of both good and embedded service components. Originality/value – The research develops a deeper understanding of the extent and nature of separability within individual product categories from international production and operations perspectives.


2020 ◽  
pp. 65-80 ◽  
Author(s):  
Serhii Сhalyi ◽  
Ihor Levykin ◽  
Igor Guryev

The problem of sustainable development of production is directly related to the three components of the "green economy" - economic, social, and environmental. Their harmonious combination makes it possible to obtain results that improve the social relations of both producers and consumers of goods and services. The implementation of the components of the "green economy" is carried out by various projects. The projects are carried out by irregular end-to-end business processes that compete for common resources in the process of their implementation. The impact on the components of the "green economy" is realized by the proposed model and technology. For this purpose, the software tool <ADVISOR DECISION-MAKER> was developed. The use of this tool by the decision-maker employee allows them to find the best solutions for process management. The solution is represented as priorities to access to shared resources by each process. This ensures their fulfillment within the deadlines established by the contracts. The level of innovations, economic indicators, production stability and competitive ability of products in a dynamically changing market is thereby improved. The results of such commercialization of scientific research have an impact on all components of the "green economy".


Author(s):  
Yuriy Kolbushkin ◽  
Oleh Cherpak

This article considers the main approaches to the study of customer loyalty and the reasons that form a certain model of consumer behavior during consumption of goods and services. The place of customer loyalty programs in the company's development strategy and in the system of ensuring its competitive advantages in the market has been established. The importance of consumer loyalty programs as an effective marketing tool for the formation of trusting long-term and mutually beneficial relations of the organization with the consumer is emphasized. The peculiarities of the use of customer loyalty programs by airlines are considered. The "bottlenecks" of customer loyalty programs used by modern airlines have been identified. The key factors influencing the segmentation of the passenger air transportation market are highlighted. The tendencies of growth in the number of airline customer loyalty programs by regions of the world are analyzed. The advantages and disadvantages of the main customer loyalty programs of the world's airlines are systematized. It is established that during the development of a set of measures aimed at increasing consumer loyalty, the airline's management should address the objectives of increasing consumer loyalty, develop a set of measures to increase satisfaction and consumer loyalty, ensure the growth of consumer behavior. In addition, the airline's management should focus on the internal environment and create interest in the airline's staff in the results of the consumer loyalty program, as well as in improving the quality of service and communication with consumers. Effective implementation of measures aimed at increasing consumer loyalty is impossible without regular monitoring of changes in consumer loyalty over a period of time, as well as determining the extent of the impact of measures on consumer loyalty. Having gathered a database of regular customers, the airline gets ample opportunities to analyze the contingent of its customers, evaluate and make operational decisions that will help adjust the customer loyalty program, advertising, and possibly the assortment policy of the airline.


Author(s):  
Uliana Motorniuk ◽  
◽  
Iryna Stelmakh ◽  

Categorical management has been gaining great popularity in the world since the 2000s. In the domestic market, categorical management began to gain momentum only in 2015. Its advantages are obvious compared to the traditional management model, however, categorical management is not a universal solution to all problems. The data of enterprises show that only 6% of enterprises did not have a positive effect from the introduction of categorical management, the rest of the companies had: increased turnover, margins, average check, inventory turnover, increase in the number of customers and total profit. All this indicates that the problems of implementation of categorical management in domestic enterprises should be resisted and solved, because it will help increase their competitiveness. Among the main tasks of category management are: optimization and formation of the company's product range, selection and selection of strategies and business models for each of the product categories, the implementation of automation of category management and more. In the era of e-commerce, categorical management is becoming more popular thanks to online stores and social media stores, of which Instagram and Facebook are the most popular. Due to the division of the company's range into product categories, its time management also becomes more effective. Among the problems of implementation of categorical management at domestic enterprises are: lack of time, financial resources and qualified personnel; insufficient understanding of the mechanism of categorical management by employees, lack of a unified vision of integration into business processes; resistance of personnel to changes; lack of a single clear strategy and automated system; insufficient motivation of top management. There are criteria for the readiness of the enterprise to apply categorical management, namely: mastery of employees in the methodology of categorical management; optimization of organizational structure in accordance with the principles of categorical management, etc. According to these criteria, many domestic enterprises, especially small and medium-sized businesses, are not ready to implement this business category. There are also different concepts of categorical management: impulsive, target, seasonal, routine, competence. All these concepts have their own characteristics according to which the product can be classified. In the future, this facilitates the process of categorical management and not only that, which should serve as an incentive for the introduction of categorical management in domestic enterprises.


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