Development of Effective Ways and Forms of Corporate Governance in Industry Based on the Principles of Logistics Management

Abstract

The work is devoted to the study of issues of efficiency improvement of industrial enterprises corporate governance through implementation of logistics management principles. The main attention is paid to modern trends that emphasize the necessity to move away from traditional functional hierarchical management structure towards process-oriented structures, which, in turn, contribute to increasу of flexibility, reliability and competitiveness of the companies and organizations. Specific recommendations include creation of specialized committees, introduction of end-to-end KPI and active use of modern information and communication technologies. Despite significant progress in the development of logistics management, many researchers and managers continue to perceive it as an auxiliary function, failing to take its strategic importance into account. Meanwhile, modern industry places increased demands on efficient processes that facilitate integration of material, financial and information flows, starting from the stage of purchasing raw materials and ending with the delivery of finished products to consumers. Thus, there is an obvious discrepancy between increased market expectations and limited capabilities of traditional corporate governance. As a result of the research, a new paradigm of corporate governance was formed, in which logistics management has become a central element that plays a crucial role in process efficiency improvement, reducing costs, and strengthening interactions within the enterprise and the partners. Practical recommendations on corporate governance reform were developed, providing for creation of specialized teams, introduction of end-to-end performance indicators and the integration of ERP systems that create necessary conditions for stable growth and increasing the competitive advantages of companies.