Logistics Aspects Of Firms’ Capabilities To Increase International Competitiveness

The elimination of a great number of trade barriers between countries in recent decades as well as some considerable changes in the supply and demand in different parts of the world have brought a tremendous growth in trade relationships between countries and regions and have led to an increase of international competition in nearly all industries. The enlargement of firms’ logistics systems on a continental and global scale and the associated increased complexity of logistics processes have increased the importance of the development of adequate logistics capabilities, not only to ensure access to the new markets and supply sources but also to increase competitiveness through reduction of logistics costs and improvement of customer service. The current paper utilizes this idea of the development of adequate logistics capabilities as the basis for evaluating firms’ perceived competitiveness. In particular, the study examines the logistics aspects of the strengths and weaknesses of Bulgarian manufacturing firms servicing foreign markets, the extent of invested resources in information systems and technologies facilitating integration of material and information flows, as well as planned actions to improve their capabilities in order to increase their competitiveness in foreign markets. The results reveal the existence of linkages between some logistics capabilities and the international competitiveness of companies.