THE ROLE OF LOGISTICS IN CREATING COMPANY VALUE

The management of production companies as a dynamic and complex process is aimed primarily at the efficient and effective use of limited resources in order to realize the set goals. In this way, the successful competitive position of the company is conditioned by an adequate and capable management that follows the changes in the environment, which manifest as opportunities and risks for the company. In modern business conditions, as an area with extremely high potential for creating a favorable competitive position is logistics, i.e. supply chains, as the aspiration of business entities to integrate their business activities and extend their influence all the way to consumers. Such an open system influences the value creation process and offers much greater potential for profit.

Different scientific methods will be used for the purposes of research.Within the scope of the research, special attention is focused on the application of methods and techniques that are commonly used in research practice to collect, process, analyze and synthesize data in the field of logistics.The methods of scientific research will be combined in such a way as to contribute to the realization of a real permanent verification of the scientific basis of the research and the assumptions made in it.
General scientific methods, as well as special methods characteristic for the investigation of phenomena in the field of economics, will be used in the RSDA.
The subject of the research will be researched on the basis of expert studies, original documents, as well as information from scientific disciplines that study the phenomenon of logistics and supply chains from different aspects.kompanija Supply chain management) predstavlja zadovolji komunikaciju i is (Baske, 2012

Introduction
The role and importance of efficient logistics management on the business results of manufacturing companies has become the subject of numerous researches in the world and in our country.Porter (1985) emphasized the fact that the management of business entities is a dynamic and complex process, which is primarily directed towards the use of limited resources in order to realize the goals defined by the business strategy.In this way, the competitiveness of a business entity is conditioned by the efficiency of using School, Serbia, email: dasicmil@yahoo.com 42assistant professor, Janko Todorov, Ph.D., Faculty of Business Studies and Law, Union University "Nikola Tesla", Jurija Gagarina 149a, Belgrade, Serbia, email: janko.todorov@gmail.comthe advantages of the business environment and their alignment with internal strengths and capabilities.
In modern business conditions, as an area that provides great opportunities for increasing the company's competitive position and strategic positioning, the area of logistics stands out.According to Chen et al., (2017), logistics arose as a need for companies to coordinate their business activities and increase business efficiency.Dolgui et al. (2018) this way of performing business activities, which implies cooperation with other elements of the supply chain, which with their activities also influence the process of value creation, gives a significantly greater opportunity for profit creation.
Many authors distinguish the concepts of internal and external logistics.According to Sekereza (2009), the process of internal logistics implies a set of activities that take place within manufacturing companies, with the aim of enabling the smooth flow of materials, parts, unfinished production and finished products to their customers and end consumers.Logistics is a complex system that consists of a number of elements, namely: procurement, reception, storage and handling of material and parts, then operations or activities of production, assembly and testing, and finally the outgoing logistics activities of packaging, transport, delivery and after-External logistics is related to the functioning of the supply chain itself, because its activities are related to stakeholders, that is, the establishment of strong mutual ties and cooperation with other factors such as customers and suppliers.This means that logistics is a part of the supply chain composed of a series of activities that are implemented gradually inside and outside the company, with the requirement to deliver value to the end consumer.

Literature review
According to De Giovanni (2018), the effective management of internal logistics means the connection and cooperation of several business processes within the company.In addition, the connection of other elements in the supply chain with the basic goal of providing maximum value while minimizing costs is also important.Cai et al., (2021) believe that all relevant factors within the value chain, regardless of their position within the chain, must be organized so that they perform joint activities as efficiently and effectively as possible, which would ensure the realization of the synergy effect, i.e. that the value of the final of products and services, created by a given chain, will be greater than the simple sum of values that would be realized by its individual links.The establishment of such strong cooperation and collaboration, based on trust and the mutual exchange of ideas and information, should be supported by the awareness that the benefit achieved by one of the participants in the value chain inevitably benefits all other participants, that the narrow selfish interests of one of the links, sooner or later, they can reduce the overall value produced by the chain as a whole.
Research by Zhao et al. (2013) is considered the first research, in which the mutual relationship between supply chain integration and company performance is presented.They investigated the impact of risk on the integration of supply chains and the impact of supply chains on company performance on a sample of 288 companies whose primary activity is manufacturing.The units of investigation in this case are companies and they are selected in ten different countries.The obtained results of the research showed that risks negatively affect the integration of supply chains, among which the risk of delivery is significant.Also, it was determined that the impact of supply chains on company performance can be positive or negative, depending on the type of supply chain integration.icant research.(2021), who found a significant relationship at the firm level between competitive advantage and strategic acquisitions.The survey included a sample of 124 manufacturing companies.They aimed to examine a company's procurement model that achieves competitive advantage.They determined that by using the strategic procurement model, a competitive advantage is achieved by limiting the number of business partners, promoting better business cooperation between the company and its partners in the supply chain, and establishing a management model in which all participants in the supply chain would achieve profit in the long term.Wang et al. (2020), define the integration of supply chains as part of the overall logistics that arises in the mutual relationship between suppliers and customers, who represent one link in the supply chain.Each link in the supply chain is both a customer and a supplier at the same time, e.g. a manufacturer of essential computer parts is at the same time a buyer of smaller parts and a supplier of a large computer manufacturer, who is not the last customer in the supply chain.In the supply chain on the specific market, as a link, you can also find companies that carry out retail and wholesale sales, the number of which depends on the structure of the supply chain itself, that is, on the sales and distribution channels.
According to Lahane et al. (2020), supply chain integration is more often used in numerous literatures, because the term logistics cannot be said to represent the mutual relationship between organizations within a specific sector.Supply chain integration is a broader term than logistics and includes procurement, sales and the relationships that arise in these activities.In research whose subject includes the integration of supply chains, production companies that have a significant network of their business partners, both customers and suppliers, are most often taken as samples.
Tang et al. (2020), from the perspective of manufacturing companies, see logistics as an unproductive process.They state that logistics is a process in which solid distribution channels are established with a constant number of suppliers and customers.On the other hand, the modern way of doing business leads to the obsolescence of the logistics process, which makes it impossible to achieve a competitive advantage in the long term.In this way, manufacturing companies must not surrender to the established logistics process, but should reduce their dependence on a constant narrow number of suppliers and customers and find other opportunities for procurement processes, in accordance with their needs and market conditions.Also, modern business affects the markets, makes them more complex, which allows the logistics process to be applied in various forms.It leads to the fact that one company can be a participant in the market at the same time, and in different market relations.Also, one company can be a participant in several different supply chains, depending on the way of doing business, the diversity of its own products and services, and the established relationship with its business partners.
Goffnett (2018) explains the logistics process, which has recently been increasingly present in the industry and in various market segments, with the existence of a large number of market relations and various relations of participants within industrial supply chains.It distinguishes two supply chain groups, one of which is focused on the procurement process and establishing a good relationship with suppliers.Another group of supply chain focuses on fulfilling demand requirements and establishing a good relationship with customers.As in today's world, products and services should be "pulled" by current market requirements, rather than "pushed" towards customers, it is important to note that the achieved level of performance, which refers to the procurement of goods and their transport from the supplier to the customer, includes collection of data from retail (eng.point of sale) in real time.This ensures that data is effectively transmitted to all participants in the supply chain (Sekereza, 2009).

The impact of supply chain management on the performance of manufacturing companies
Supply chain management is a market concept that should meet the expectations of end consumers in a timely, expeditious and reliable manner.In today's world, competitive advantage in the market is achieved through supply chain management.Positioning on the competitive market is done according to the degree of satisfaction of the end consumers, that is, the competitive advantage will be achieved by the supply chain that most successfully satisfies the consumer's requirements.
An essential condition for realizing the competitive advantage of a certain supply chain in the market is that all participants of supply chains have excellent mutual communication and the same vision for the satisfaction of end consumers (Baske, 2012).Participants must follow the demands of consumers, examine what it is they want and how to make it possible for them.Due to the increasingly strong competition on the market and greater demands of users of products and services, communication between participants in the supply chain must be excellent, they must work harder on activities and ways to satisfy the demand of end consumers.The result of the success of the partners in the supply chain, in this regard, is viewed from the point of view of creating value for the end consumer.By adopting the principle of "the right product at the right place and at the right time", manufacturing companies decide to integrate their supply involves adapting to market conditions, with the aim of reducing costs for manufacturing companies and generating value for end consumers.
According to Yang et al. ( 2019), it is necessary for participants in the supply chain to establish more frequent communication with end consumers, which will ensure an uninterrupted flow in both directions of the supply chain, thus fulfilling the basic goal of all market participants.Detailed analysis of all market requirements and their interpretation through the supply chain is considered a necessary step in supply chain management.Also, the analysis of market requirements is considered an important step, which implies the grouping of consumers according to the characteristics of the products and services offered control over the ability of the supply chain to maintain a certain target market niche in the required manner.A market niche means a small part of the market, where the participants have similar characteristics and needs.Establishing control and monitoring activities creates a bridge that connects the production, organizational and marketing capabilities of the entire supply chain, including every supplier and customer in that chain.Masteika & Cepinskis (2015) claim that the vision of marketing should be implemented into logistical reality.Abbey & Guide (2018) define the design and organization of a supply chain, which could support its final products and services.Through the design and organization of the supply chain, the information about the requirements collected from the target market niches should serve to engage all participants in the satisfaction of those requirements.In recent years, significant attention from the front supply chain has been directed towards the back supply chain, i.e. from suppliers to customers, i.e. end consumers.Customers have the greatest power in the market in today's world and their demands and needs define the organization and structure of the supply chain.In this way, customers, i.e. end consumers put first.Numerous authors treat supply chain management as

Creating value in the supply chain
In addition to the continuous engagement of manufacturing companies in the plan of improving supply along the (eng.upstream) specific chain, manufacturing companies are also engaged in the plan of effective implementation of demand management down the (eng.downstream) value chain.The main goal for the parallel engagement of production companies is the existence of the need to correct the negative effects that information about market demand has on the performance of supply chains.This is achieved by establishing excellent communication with customers and developing cooperation between customers and suppliers.In today's world, manufacturing companies harmonize supply and demand processes by investing in reliable and credible information about real market needs (Bevanda et al., 2021).They do so, because there are negative consequences in future predictions of market demand, which is reflected in the existence of a larger or smaller required amount of inventory, slow procedures for solving inventory problems and the creation of higher costs for all transactions in the supply chain (Ivanova & nologies, production companies are enabled to have constant contact with customers, timely collection of information about their needs and the formation of databases, which will be used by all participants in a certain supply chain. Manufacturing companies, by observing the demand line in a certain market, reduce the negative consequences that can arise in forecasting demand.Monitoring the demand line is carried out by establishing better cooperation with participants in the supply chain and mutual exchange of information between them, which must be accompanied by a change and reconstruction of change in consumer preferences must be accompanied by a change in marketing strategy and demand management approaches.Numerous studies have shown that rapid adaptation of manufacturing companies to market demands provides a significant increase in profitability followed by growth in sales volume.This is leading to a shift in the focus of supply chains, from their traditional approach of "pushing" products to consumers, to a "pulling" approach of products to demand.A product-pull approach to demand is aligned with market demands, meaning that demand information is sent upstream in supply chains.Through the process of distribution, production and procurement, information is sent to suppliers, who use the information obtained to produce various materials and parts and provide certain services.Constant use of this approach due to the passage of time reduces the need to forecast demand, i.e. using the "push" approach, which has numerous disadvantages.The response time to the demands of end consumers is a significant indicator of the success of the functioning of the supply chain, when applying the approach of "pulling" products to demand.Customers consider time to be the most important indicator, which is used to achieve a competitive advantage in the market.In the supply chain, manufacturing companies first decide on a supplier who can supply them with material and parts or provide service in the shortest possible time.Unlike manufacturing companies, instead of time, the brand of available products on the market will be an important indicator for the consumer to decide (Sekereza, 2009).
All supply chain participants should aim to increase response time and decrease overall business process time.A significant contribution to this goal is provided by the requirements of JIT (just in time) delivery and the pretentiousness of reducing the product life cycle.The degree of responsiveness to demand is considered the most important indicator of the quality of services provided in the supply chain.It is represented by the time for which the supplier is able to deliver products and services to customers in the market.Time is an important factor in a responsive supply chain, as it requires a manufacturing company to quickly adapt to market demands while reducing costs.Cost reduction is achieved by increasing turnover and reducing the average amount of inventory, acting to reduce downtime, breakdowns and losses (Gligor et al., 2016).In order to reduce costs and response time with better functionality and competitiveness, it is necessary to implement activities in the production company that affect the quality of product and service performance.An essential tool for achieving competitive advantage in the market, manufacturing companies emphasize supply chain management (Dubey et al., 2019).By continuously expanding and harmonizing relationships in the supply chain, manufacturing companies achieve a certain position in the competitive market.In order to reduce costs within a supply chain at the level of a manufacturing company and create value for its stakeholders, suppliers and customers emphasize that it is necessary to establish trust and mutual interaction between participants in the supply chain.
In order for manufacturing companies to meet the demands of their shareholders for the highest possible return on investment and at the same time the demands of consumers for the dominant value of the product, they are obliged to find ways to establish cost control throughout the supply chain.In the automotive or computer industry, up to 80% of product costs refer to those costs incurred in connection with the acquisition of resources.In order to reduce the share of these costs in the total costs of the product, it is necessary to increase the intensity of cooperation and establish excellent direct communication between participants in the supply chain, that is, between suppliers and customers during certain transactions.Communication between participants can also be through specialized organizations on the market, however, this causes a higher percentage of external costs, which are of particular importance for the competitive positioning of products and services on the market, and thus the positioning of the production companies themselves.
The most problematic part of positioning the products of companies in the same industry in the market is the analysis of supply chains in companies with identical activities, processes, customers and suppliers.In this regard, the study of all activities and processes requires building a sustainable competitive advantage.It is performed from the beginning to the end of the supply chain, that is, from the production of primary supplies and materials to their delivery and sale.It aims to create common products and services that will meet the demands of end consumers.Manufacturing companies understand the supply chain, which consists of a series of business activities, as a value-creating system, regardless of whether or not it creates value for customers.This can be explained by the example of a large manufacturing company, which is not able to perform all activities in one supply chain, although it was founded with the aim of providing numerous activities (research, development, production and distribution).However, in order to cover all activities, in one industry there may be a large number of smaller production companies whose activity is focused on performing only one activity.

Supply chain cost analysis
Based on what has been presented so far, we can conclude that the competitive advantage of a manufacturing company is conditioned by differentiation or cost reduction, which represent two main strategic directions of action.Since ancient times, Porter (1985) has pointed out that the factors of competitive advantage are reflected in the creation of conditions for providing greater value to customers at the same costs of the manufacturing company.Accordingly, the main goal of supply chain analysis involves identifying segments whose costs can be reduced and value increased.By identifying numerous causes of logistics costs and analyzing their operation, conditions are created for cost regulation and establishing a balance in relation to other factors of business success.We include flexibility, reliability, time and quality in these success factors of a manufacturing company.These factors contain activities that cause costs, and by changing the way they operate, conditions are created for strengthening the competitive advantage and profitability of a business company.
Comprehensive cost management, in addition to the process of identifying the industrial supply chain, involves identifying and examining ways to achieve competitive advantage.The process of determining and examining ways to achieve a competitive advantage is reflected in the improvement of the control of the success factors of the manufacturing company.Accordingly, the primary goal of a company's competitive advantage should be cost reduction with the ability to create value at an appropriate level.
According to the latest research conducted by Jain et al. (2020) a comprehensive cost analysis should create conditions for the production of value, that is, the reconstruction of activities that do not contribute to maintaining the quality of the value placed on the market.In this way, those activities in production companies that do not provide appropriate quality conditions and create unnecessary costs can be eliminated.
Connecting the procurement, production and distribution processes into one system, in which additional value is created for customers, so that they can buy products at the lowest prices, implies adequate cost management in the supply chain process (Zhou, 2017).This leads to the neglect of the traditional approach of monitoring material flows.It is very important to look at costs from a wider angle, as a situation that arises in all production companies, that is, with all participants in the supply chain.Costs do not arise within the walls of the company, but are widely distributed throughout all companies.Individual costs incurred in an individual manufacturing company affect the overall costs in the supply chain, as well as the products and services available on the market to end consumers.The value of available products and services in the market is obtained by calculating the cost value of all activities in the supply chain process.The special importance of cost monitoring and control is necessary in the conditions of a sudden increase in the application of the outsourcing strategy.In the case when all the traditional activities carried out within the manufacturing company are provided externally, there is a "blurring and erasing" of the business framework of the individual manufacturing company.
With the emergence of a holistic perspective of observing supply chains in the industry, there is an omission in the implementation of a number of business activities that affect the company's performance (Wolf, 2014).Manufacturing companies cannot be seen as individual entities in the market, because all participants in the supply chain are exposed to numerous risks (eg, a sudden decrease in income or an increase in costs).
Supply chain integration and the concept of value creation provide a good organizational basis for effective cost management, as well as a basis for formulating and implementing competitive strategies in the market (De Angelis et al., 2018).With the advent of information technology, numerous concepts were formed within a comprehensive strategic approach, such as activity based costing/management (ABC/ABM), total life cycle costing TLCC) and target cost management (Target cost management -TCM) (Goffnett, 2018).

Conclusion
The basic prerequisite for realizing the competitive advantage of a manufacturing company implies its comprehensive approach to costs.The most important measure of upgrading or preserving the value system of the product is reflected in the fact that production costs are not reduced to a minimum at the expense of impairing the quality of the product that is placed on the market.Accordingly, it can be pointed out that in the modern market, a monopolistic production company is not considered a company that sells the cheapest products by correcting the price based on the destruction of product functionality, but a production company that carefully and intelligently approaches the elimination of costs while preserving the basic value of the product.In addition to a comprehensive approach to costs, a company's competitive advantage also depends on knowing the consciousness of target customers.By analyzing the expectations of customers, it is seen that the intentional customer has a goal that is reflected in the purchase of products of adequate quality with which he will be able to satisfy his needs.On the other hand, this does not mean that the customer will buy an excessively expensive product, because today's customer assumes that the product has passed appropriate quality checks.It is wrong to conclude from this that the cheapest product will have a shorter path to the consumer basket without proper marketing.Bearing in mind the traditional approaches of competing companies, the marketing of a product of appropriate value with minimal production costs and the expectation of customers that the cheaper product has the appropriate quality, modern approaches should strive to unite these two approaches in a cooperative manner.In this way, the appropriate competitive advantage of the company can be ensured in modern conditions of strong competition and high expectations of customers.