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Risk assessment of potential logistics problems in agricultural enterprises

Risk assessment of potential logistics problems in agricultural enterprises

The functioning of logistics in agricultural enterprises aims to provide support for the production processes carried out within them. On one hand, it is logistics of a managerial nature, strongly linked to process management, and on the other, logistics of a technical nature, providing the forces and means to implement basic and logistical processes.

In agricultural enterprises, logistics pays special attention to increasing the efficiency of supply organization, storage and transport processes, as well as distribution by increasing value added, moving goods and services to recipients, and creating a logistics chain for agricultural products (Wojciechowski, 2011).

The subject of logistics in agricultural holdings is the flow of materials and raw materials, finished products, and the information that accompanies them. The basic logistical tasks facing agricultural enterprises are: supply planning, inventory control, transport, storage, and the sale of agricultural products. The listed logistical tasks in agricultural holdings are determined by: the size and nature of production, the degree of complexity of production and its value, the volume of sales, and to a large extent by the spatial scope of the conducted activity (Kuboń, 2007).

A significant reason indicating the need to assess the risk of logistics problems in agricultural enterprises is the high level of logistics costs in this activity. This was confirmed by pilot studies conducted in this regard in several selected agricultural enterprises, where the share of logistics costs in total production costs was determined to be at a relatively high level, ranging from 35% to 42% (Wajszczuk and Wielicki 2004; Wajszczuk 2005).

Another important reason that determines the need to assess the occurrence of risk is the relatively high share of transport processes in logistics processes. Some estimates indicate up to a 50% share of transport in the time consumption and costs of agricultural production (Krysztofiak, 2010). The features of agricultural enterprise activity cited above confirm the need and importance of logistics and logistics management in the operations of these enterprises. The consequence of this state of affairs is the necessity to assess the risk of logistics problems occurring in agricultural enterprises.

Source: Logistyka Magazine 4/2012
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