INTEGRATION OF LOGISTICS AND PRODUCTION IN THE COST MANAGEMENT SYSTEM AND SUSTAINABLE DEVELOPMENT OF THE ENTERPRISE
Abstract
In today’s dynamic environment of intensifying global competition and ongoing economic instability, enterprises face the urgent need to simultaneously optimize operational costs, ensure uninterrupted business processes, and achieve long-term sustainable development goals. One of the key areas for improving efficiency is the integration of logistics and production processes, which enables cost reduction, enhanced flexibility and service quality, development of a sound pricing policy, and strengthened competitive positioning. The purpose of the study is to substantiate the theoretical and methodological principles and to develop an original integration model of a logistics-production system as a tool for reducing production costs, forming prices, and ensuring sustainable development based on the principles of digitalization, ESG, and the circular economy. The research employs methods of logical analysis, modeling of logistics and production processes, integration matrix construction, comparative assessment of management systems, KPI-based efficiency analysis, and a systematic approach to evaluating the impact of digital technologies. An original five-stage model for integrating logistics and production is proposed, covering all key phases – from planning to distribution. An integration matrix has been developed that accounts for interaction types (informational, process-based, infrastructural) and respective analytical indicators. Digital tools that reduce costs in logistics, procurement, inventory management, and data processing have been identified. The study substantiates the connection between integration and economic, environmental, and social effects – particularly through cost reduction, waste minimization, increased productivity, and improved operational transparency. The integration of logistics and production processes combined with digital solutions is an effective mechanism for optimizing costs, forming competitive pricing, and achieving strategic sustainability goals. The proposed approaches can be applied to enhance operational efficiency across various economic sectors.
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