The Efficiency of the Logistic System in Georgia

Abstract

The intensification of competition in the modern global economy and the accelerated processes of economic integration put the need for significant changes in the optimization of logistics potential on the agenda. Economic growth is the main aspiration of countries. A perfect market is a prerequisite for economic growth, in which logistics plays a decisive role. Considering the favorable geographical location, Georgia has the potential to become the main logistics hub of the Caucasus and Central Asia. Logistics has an important place for the development of the Georgian economy, therefore, the creation of an efficient transport and logistics system is one of the main and necessary factors for increasing the competitiveness of the country. Logistics is an important part of Georgian economy. Its share is 12 percent of the country's gross domestic product. The development of the logistics sector leads to the integration of Georgia into the global logistics network and its effective connection with the world's leading markets. Logistics is one of the main factors determining the competitiveness of regions and companies, which directly affects their successful positioning in the global market. Developed logistics provides high-quality service, cheap and efficient supply network, which is a necessary condition for increasing competitiveness both for Georgia as a whole and for productions operating in the country. The article discusses problems in the forwarding service complex of Georgia, which are divided into three main groups: deficiencies in the management system, deficiencies in the production sector, and deficiencies due to external factors. Is analyzed the necessity of the concept of a modern transport and forwarding complex system, which determines the following goals and means for its further development. Keywords: logistics, hub, forwarding, index, infrastructure, business.