CRAFT PRODUCTION LOGISTICS SUPPORT
Abstract
Crafts have always played an important role in ensuring personal well-being and meeting human needs. In addition to ensuring individual well-being, the potential of crafts is also realised in supporting sustainable development, social integration of communities, development of the local resource base, preservation of historical heritage and formation of the identity of territories. Craft production is focused not so much on scale as on the uniqueness of products, authenticity of materials and author's approach. All of this shapes the importance of craft business for the development of local economies. Despite the micro-scale of the business, craftspeople also need to pay considerable attention to developing their business and marketing skills, establishing logistics channels for the supply of materials and sales of their products.
Today, international markets are witnessing a growing trend in demand for ethically sourced, environmentally responsible handmade goods that have a strong history and are handmade to a high standard. This is happening against the backdrop of higher prices for craft products than for mass-produced goods. The craft market is characterised by stable demand for ceramics, textiles, wood products, jewellery, glass and leather goods.
A study of the European craft market shows that the main consumers of craft products are mainly women. The age range of consumers has virtually no impact on the intensity of purchases of craft products, with a slight advantage in favour of consumers in the 20-35 age group. The main consumers are employees of companies (43%), freelancers and self-employed individuals (25%), i.e. those who potentially generate effective demand. Their average annual expenditure on craft products is EUR 318 and EUR 440, respectively. Pensioners are not frequent buyers of craft products, but their average annual expenditure is higher than that of employees, at EUR 415. The frequency of purchases of craft products is on average 1-4 times per year. The average receipt for such purchases ranges from 30 to 200 euros. The purpose of purchasing craft products is to satisfy their own needs or for gift-giving purposes It is crucial to ensure that logistics for craft production are in place to guarantee the economic success of a craft brand and to maintain strong relationships with regional markets. This helps minimise logistics costs and strengthen ties with all participants in the logistics chain, enhancing their loyalty to the brand. The logistical support of craft production includes a set of measures that ensure effective planning, organisation, and management of supply, production, and distribution of craft products. It is crucial for the success of craft businesses, which often have limited resources and need to secure their competitive advantages.
The number of craft producers in Ukraine potentially exceeds 2,000. The hostilities have not only slowed down the logistics of craft producers, but also led to a complete shutdown of activities in the temporarily occupied territories of the country. A significant number of them were relocated, losing access to local raw materials. Consequently, in the regions of the country least affected by the war, there is a tendency for craft producers to become more competitive. A common problem for all is the decline in the purchasing power of the population. Given that craft products are usually not consumer goods and are characterised by high prices, some producers have faced a decline in income amid rising raw material prices and logistics costs. Therefore, craft production should take into account not only the direct creation of products, but also distribution. The outbound logistics of craft businesses can benefit significantly from the use of geographical indication goodwill. This will improve sales and reduce logistics costs, as the product will be created by several craftspeople who are equally involved in its commercial promotion and delivery to customers. Geographical indications will help promote the region's brand
The need for logistics support for craft production is also driven by a number of factors related to the uniqueness and nature of craft activities. Since craft production is largely dominated by manual labour, one of the logistics parameters - time - requires constant monitoring, given the complexity of product detailing. The level of productivity in craft production is significantly lower than in mass machine production, and therefore affects the formation of a commercial batch of products. This creates an obstacle for sales logistics due to the impossibility of simultaneously fully loading vehicles to send products to the consumer. For this reason, it is possible to use the option of delivering craft products through the consolidation of cargo. In this way, groupage logistics will make it possible to maximise the use of transport capacity and reduce the cost component of cargo delivery, while avoiding the cost of storing products and ensuring timely delivery.
The craft industry is characterised by an exclusive heritage of crafts and industrial goods. The effectiveness of its functioning is based on the principles of intellectual property rights protection, trust and recognition of products, their authenticity and reputation. Logistical support for craft production should be based on supporting the stimulation of interest in traditional crafts, improving producers' access to the resource base and facilitating consumer search for authentic products. To do this, it is proposed to focus on the following areas: synchronisation of production logistics with the territorial logistics where craft producers are represented; development of logistics cooperation between craftsmen to promote production identity and facilitate operational logistics; logistics support for the movement of the craft brand throughout the value chain; logistics support for events related to the formation of craft product content (conferences, travelling exhibitions, fairs, etc.). Further research should focus on studying the logistics costs of craft producers and developing tools for managing them.
