BUSINESS PROCESSES OF DISTRIBUTION COMPANIES: ECONOMIC ESSENCE, TYPES AND STRUCTURE

Abstract

Abstract. The article discusses the importance of business processes for the successful operation of modern distribution company. It presents scholars' approaches to interpreting the essence of the concept of «business process». Attention is focused on the fact that all definitions of business processes described in scientific literature relate to the onset of processes of activation and acceleration of digitalization in the country and do not consider the specificity of their implementation during digitalization. To better understand the essence of the main question of this article, it is supplemented with certain characteristics. The article describes classifications of business processes in distribution companies according to certain categories. It is argued that from a functional approach, the classification of types of distribution activities is based on the chain of stages of movement and transformation of logistic flows. In this regard, the distribution activity of the company is considered as a combination of procurement, transportation, production, sales, warehouse logistics, inventory logistics, and information logistics. It is emphasized that the need to adapt business processes of Ukrainian enterprises to the requirements of the international market is particularly acute and relevant in the context of structural transformation of Ukraine’s economy on the basis of innovative management approaches, mobilization of Ukraine after joining the WTO, and on the path to integration into the European Union. This includes a general characterization of the largest distribution and logistic companies in Ukraine. The information is summarized, and the opinion is formulated that in the conditions of the new economy, during fierce competition, rapid aging of technologies, professions, ideas, and the penetration of the Internet into all parts of the economy, digitalization has reached a new level of importance for business organizations. Modern distribution company are increasingly using an ERP system in their activities, which is a comprehensive management system that integrates the resources of the distribution company across various departments. ERP includes management of all types of distribution company resources, including modeling, various analytical tools, and optimization of management decision-making.