Main Influencing Factors And Improvement Approaches Of Mongolian Business Logistics Development

In the last decade the strategic role of logistics operations has increased, which led to fast improvements in management and methodology. Evidence has shown that organizations seldom achieve the competitive advantage offered by logistics and supply chain management technique. This may be attributed to the fact that current methodologies for analyzing logistics are not sufficiently comprehensive, particularly when it comes to understanding the complexities of logistics and supply chain management and organization performance in unified context.The purpose of this paper is to support empirically the financial analyze of development stages in logistic management, look at the different characteristics of logistics phases of supply chain management and investigate the operational and financial consequences of staying at a particular development level in organization. In Mongolia when business launches its process then they frequently face with transportation cost related problems such as companies are disabled to transfer their goods in long distance due to fuels cost lose. Reasoning from Mongolian current business difficulties which mentioned previous, we used financial analyzing method in the domain of logistics factors which are transportation cost, warehouse cost and inventory cost in order to eliminate their cost significantly.Furthermore, our research approach extended to analyze influencing main factors with organization’s sales and total profit correlation then made a regression analyze of them. Based on the regression analyze result that ANOVA analyze is done and assisted to choose greater variation from main factors which influence to logistics strongly and has better possibilities to eliminate its cost.Particularly, this case study would be useful for Mongolian business companies which have logistics difficulties currently due to our study data material based on Mongolian market and business environment. Through this case study we persuaded possibilities of operation cost elimination including transportation, warehouse and inventory as logistical factors. In the nutshell, among the influencing factors to Mongolian logistics that transportation cost reduction could be brought greater benefit to the organization is referenced by our research result. Besides, this result also demonstrates that business organizations are being under the pressure of fuel cost due to Mongolia disabled to produce their demanded fuel by itself. From a perspective of author’s side, our research could contribute new methods to estimate Mongolian business organization’s current logistic shame during its improving procedure and affording significant facilitations.