Sustainability is the state of equilibrium between manufacturing sphere, social one and the
ecology itself. For this purposes we are going to use the model hierarchy, which describes
relationships between different components of firm and society beyond.
We are conceptually analyzing opportunities of using the idea of sustainability as maintain factor
for the company’s surviving. Traditionally, problem of sustainability means the process of
reaching some state of equilibrium in next components:
1) Economical grow
2) Protection of environment
3) Social justness
Nowadays, there are a lot of definitions of ‘Sustainability’, as we have saw from different
sources and that indicatives of enormous multidimensionality of this category. The matter is
different aspects of economical, social and political sustainability, all the society and regional or
national structures. But we are interested in the logistics sustainability. Our command suggests
next definition of Logistics.
Logistic – science about planning, controlling and managing the processes of the motion and
temporary storekeeping of material and attendant labor, energy, financial, information and
service flows.
And relative to the definition of sustainability in Logistics itself we understand that state of
company’s systems, which allows to control and manage movement of material, informational
and financial flows on condition that it is necessary to maintain the balance of all the society’s
spheres and the human’s environment. The teams of our University decided to think that this
definition is the most full description of sustainability’s problem.
All the sustainability’s factors were divided to groups:
1) Social sustainability in Logistics;
2) Ecological S., which is harmless for ecology;
3) Economical S.;
4) And the technology process.
But we couldn’t forgot about the political factors, which we won’t to describe in this project. It
associated with that this research is about S. in logistics and it conducts in micro level as distinct
from political factors, which affect on S. in macro level.
Modeling, as it known, is universal method of approach for analysis of complex systems in
different knowledge domains including business logistics. improving
Model which we’ll use for making a close study of S. problem in logistics is the B.E.R.I. model.
For our model we make some assumptions:
1) Wage includes in conditions of work as a factor;
2) Charity considered as method of public image’ improving;
3) Score in estimate of factors and indicators varies from 0 to 10 (0  k  10);
4) Weighted sum is 100 ( i  100 );

5) Political factors have fixed value and it is negligible in our micro level research of S.;
6) In indicators we examine the amortization fund, payments of dividends, solving the
losses and enlarging of capital funds, it means that we can't to analyze it properly;
7) The standard of some indicators is null, it means the manufacturing stability without
progress or regress;
8) For the 'Raising the level of staff's skill' indicator's standard we took payments at the
expanse of 50% costs on the duty of company;
9) Dividend's payments we examine as articles of company's costs, it means that increasing
the part of payments from the whole profit affects negatively to the economical part of
Sustainability. B 
Pby
d

by
d
Pty
ty
, where
d
t(b)y
is the sum of dividend's payments in
current year or the basic one, Pt(b)y is the profit of company for defined year (current or
basic) and the payment's index, which we will use in creation of our Quick-Scan model;
10) The 'Storage Equipment' indicator we examine in the aspect of Logistical operation's
Security;
11) Under the 'PR' indicator we mean records about the company in the mass media (both negative
and positive), which weren't accounted by Marketing strategy.
Ecology
Company
Natureconservative
measures
Waste release
and it’s
classification
Distribution
of Profit
Social Package
Conditions of
work and
salary
Forming the
company’s
funds
Routes
optimization
Raising the
level of staff's
skill
Charity
Social sphere Economical sphere
Management
and managing
the Human
Resources
The sports’
support
Sphere of Technology
Compliance of
fuel and
machines with
the
International
standards
Naturerestoration
measures
Adoption of
new
technologies
Storage
technologies
The losses of
company's
activity
Factors
1) Social Package
Definition of ‘Social package’ is not assigned legislatively, nevertheless in the Labour Code of
Russian Federation is the part dedicated to guarantees and benefits for employees. Packages are
divided into three groups:
a. Commitment P.
b. Compensatory P.
c. Motivational P.
First one bases at the employers obligations which are established by government.
Into the second group putted down to measures, which employer takes for returning employees
private funds, which employee spends attending to his duties.
Motivational package includes all exceptional benefits which employer grants on his initiative
such as medical insurance, transport, education etc.
Sources of data: Labour Code, Administration of company, HR department, Accounting.
2) Conditions of work and salary
It includes specter of psycho-physiological, hygiene and sanitary, psycho-social factors, which
affect at health and efficiency of employee, his attitude to work, productivity of it, living
standard and social development. With our model’s consumptions we consider it right to include
the salary in this category because C. of work is inseparably linked to S. and it is stimulus to
people’s successful activity therefore the hole company’s too.
Sources of data: HR department, Accounting.
3) Raising the level of staff's skill
High professional skills of specialists give increase of the company’s competitiveness it terms of
market’s growth. And it is not worth to forgot that this factor engendered by adoption of new
technologies, and that shows correlation between the spheres described in our definition of S.
Sources of data: Labour Code, Administration of company.
4) The sports’ support
Promotion of healthy style of life as the way to increase labour potential and its efficiency and
creating of appropriate conditions for going in to sports is the one of significant ways of
corporate culture developing.
Sources of data: Company’s site.
Factors 1-4 have direct impact on quality of logistic operations because the basis of L. are
people. Sustainability of Logistics depends on their attitude to work, their health and
interpersonal relations, self-appraisal and professional skills.
5) Charity
Considering assumptions of our model, it is the method of public image’ improving and the way
to involve new clients.
Sources of data: Accounting.
Involving new clients raises the Logistics’ base load and intensity of material flows’
movement.
6) Waste release and it’s classification
There are a lot of types of waste products, which are realizing directly into environment every
day. In case of Logistic services providers there is no any differences. It may be releases in air,
sea or even directly into ground. That’s why in this project we need to describe this factor.
Waste releases commit a gross distortion in ecological equilibrium. In this way we can’t speak
about sustainable company’s activity. Also we can monitor growth of costs and negative
influence on company’s reputation.
7) The losses of company's activity
When the waste releases grow above the planned rate of output, the harm for ecology becomes
critical. Therefore reaching the equilibrium becomes impossible.
Sources of data: Law, Accounting.
Law describes penalties for pollution of the environment.
8) Nature-restoration measures
Besides the penalties there are special taxes on additional waste releases and that also influences
at company’s budget. And in case of this measures, it’s cost subtracts from profit.
Sources of data: Tax Code, Accounting.
We thought that nature-restoration measures could solve a bit the problem of pollution,
therefore company becomes sustainable.
9) Nature-conservative measures
These measures are maintained by government what represents in tax benefits and different
subsidies
Sources of data: Accounting, Company’s site.
This factor increases the company’s reputation and encourages the sustainable growth of
Logistical operations.
10) Forming the company’s funds
The necessary condition of successful performance of company is discrete distribution of profit
among the funds. There are different classifications of funds and reserves. Our team considers
the next division of funds as most full. This division bases at sources of funds’ foundation.
a. Funds, formed at the expense of profit, which stays in company’s disposal
1. Accumulation fund
2. Consumption fund
3. Fund of the organization’s supervisor
4. Risk fund
5. Capital fund, reserve funds
b. Distribution of profit
c. Funds formed at the expense of gross income
d. Funds formed at the expense of sums, freed as result of tax benefits
e. Using funds and reserves to solve the losses, enlarging the authorized capital (funds),
distribution between founders
f. Reserves at doubtful debts
g. Reserves formed at the expense of manufacturing and distribution costs
h. Amortization funds
Sources of data: Administration of company, Accounting.
Economical factors are maintain in definition of ‘Sustainability in Logistics’, because all the
factors and activity of company depend on money assets. And forming of funds helps to realize
the economical policy of company according to objectives were set.
11) Routes optimization
There are two kinds of routes in the material flows’ moving: internal and external.. It’s
required to optimize both. Optimization includes rational organization of the routes and the
deliveries.
Sources of data: Logistics department, Accounting.
Adoption of automatic systems increases efficiency of labour of company at the expense of:
a. Fuel economy
b. Decreasing the mileage
c. Increasing the speed of material flow movement
d. Economy the working time
e. More careful maintenance of delivers’ schedule
All that sub-factors involve increasing of profit.
12) Storage technologies
Process of storing includes operations from goods income into the storage zone after their
receiving to the moment of ending the orders selection.
Conditionally, the whole process of storage could be divided into three groups:
1.
Operations directed to the coordination of procurement department
2.
Operations, directly connected with handling of goods and it's
accounting
3.
Operations directed to the coordination of sales Department;
Sources of data: Logistics department, Accounting.
Maintaining the appropriate standards of storing material flow in process of it’s movement
guarantees it’s security for environment.
13) Adoption of new technologies
Nowadays, technical progress is the basic component of our evolution. We won’t to say that it’s
definitely good, but now it’s the main value in the world, so it is necessary to touch upon this
issue in our project.
Data sources: Logistics department, Company’s site, Accounting.
This factor involves increase of labour competitiveness, employees’ skill level and inflow of
new investments. Adoption of new technologies maintains stable progress, because new
technologies decrease the level of pollution in environment and automate manufacturing
process.
14) Compliance of fuel and machines with the International standards
Modern science allows to maintain safety interaction between machines, incl. internalcombustion engines and environment at the expenses of it’s modernization, and modernization of
fuel it use.
Data sources: Technical passports of engines and Accounting about the fuel purchasing.
All this facts allow to decrease the harmful influence on companies to different spheres of
Sustainability.
15) Management and managing the Human Resources
Nowadays the management’s problem is very actual and it has a reflection in modern developing
of economy. Our team marks out the managing of HR and management itself. The majority of
world’s companies creates special Management departments and his fact confirms he relevance
of this factor.
Data sources: Technical passports of engines and Accounting about the fuel purchasing
Considering the influence of social factors on Sustainability we have show their enormous
relevance. But it is not worth to forgot about managing of HR because decisions in HR
management are as important as the resources themselves.
16) PR and marketing
This factor is actually one of the main ways to attract new clients and as effect one of the
main ways to increase the company’s profit.
Data sources: Account reports, web-site, administration
The Increasing of the demand entails increasing the logistic load and the velocities of the
material flow moving.