კონფერენცია

∘ Eter Sheverdashvili ∘ Shota Totikashvili ∘
THE ROLE OF LOGISTICS IN THE DEVELOPMENT OF THE GEORGIAN ECONOMY

Summary

The paper reviews the role of logistics in the development of the Georgian economy. Georgia has a favorable geographical location, hence it can become the main logistic hub of the Caucasus and Central Asia. Logistic development is an important issue for the revival the national economy of Georgia. Logistics share is 12% of the country's GDP (Gross Domestic Droduct). However, it is noteworthy that logistics infrastructure is weak. This opinion is about the fact that about 50% of agricultural products are experiencing a downturn, Which is due to lack of warehousing infrastructure and technological backwardness.

Logistics is an important factor in the development of the trade. In spite of this, notice there are some problems in logistics, In particular: The main problem is the fragmentation of logistics market, this is due to the fact that in most cases the forwarding companies do not have their own transport and logistics infrastructure.

In addition to the existence of problems in the logistics sector, there is also progress, namely the World Bank Logistics Index, Georgia ranks 119th out of 160 countries.

There are constantly negotiations with the neighboring countries in terms of logistics development and economic relations.

There are many ways to solve all above mentioned problems:

Development of transport infrastructure,
Attract foreign and local investments,
Improve the legal base of transport and trade
Development of short-term and long-term strategies
Attracting international partners

Georgian Logistics Association (GLA) was founded in 2011 and represents a non-profit organization in logistics, transportation and supply chain management. Its members are international and local companies involved in transport, logistics and supply chain. From the end of 2013, GLA is a representative of the US Supply Chain Council (SCC) in Georgia, the main purpose of which is to increase the effectiveness of logistics and supply chain processes in Georgia by implementing international standards and sharing the world's leading experience.

In this paper is presented our opinion about future strategies for logistics development, There are also information about solve all above mention problems.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Eter Sheverdashvili ∘ Shota Totikashvili ∘ THE ROLE OF LOGISTICS IN THE DEVELOPMENT OF THE GEORGIAN ECONOMY Summary The paper reviews the role of logistics in the development of the Georgian economy. Georgia has a favorable geographical location, hence it can become the main logistic hub of the Caucasus and Central Asia. Logistic development is an important issue for the revival the national economy of Georgia. Logistics share is 12% of the country's GDP (Gross Domestic Droduct). However, it is noteworthy that logistics infrastructure is weak. This opinion is about the fact that about 50% of agricultural products are experiencing a downturn, Which is due to lack of warehousing infrastructure and technological backwardness. Logistics is an important factor in the development of the trade. In spite of this, notice there are some problems in logistics, In particular: The main problem is the fragmentation of logistics market, this is due to the fact that in most cases the forwarding companies do not have their own transport and logistics infrastructure. In addition to the existence of problems in the logistics sector, there is also progress, namely the World Bank Logistics Index, Georgia ranks 119th out of 160 countries. There are constantly negotiations with the neighboring countries in terms of logistics development and economic relations. There are many ways to solve all above mentioned problems: Development of transport infrastructure, Attract foreign and local investments, Improve the legal base of transport and trade Development of short-term and long-term strategies Attracting international partners Georgian Logistics Association (GLA) was founded in 2011 and represents a non-profit organization in logistics, transportation and supply chain management. Its members are international and local companies involved in transport, logistics and supply chain. From the end of 2013, GLA is a representative of the US Supply Chain Council (SCC) in Georgia, the main purpose of which is to increase the effectiveness of logistics and supply chain processes in Georgia by implementing international standards and sharing the world's leading experience. In this paper is presented our opinion about future strategies for logistics development, There are also information about solve all above mention problems.