Journal of Management and Economics
48
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TYPE
Original Research
PAGE NO.
48-55
OPEN ACCESS
SUBMITED
26 April 2025
ACCEPTED
22 May 2025
PUBLISHED
24 June 2025
VOLUME
Vol.05 Issue06 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
Concept of Improving
Management Efficiency of
Oil Enterprises Under
Transformation of The
Digital Economy
Abduhakim Yuldashev
Tashkent State University of Economics, Tashkent, Uzbekistan
Abstract:
This article covers the concept of improving
the management efficiency of oil enterprises. Also,
effective management of the enterprise and rational
solution of the existing problem, and the main goals in
the field of production were widely studied and
analyzed. In addition, the main functions of
management systems and the influence of modern
concepts and technologies on the process of enterprise
management are widely evaluated. In addition, the
concept of integrated supply management, which
emerged in the last decade, has been widely analyzed as
the concept of related flows such as "design - purchase
- production - distribution - sales - service" in the
integrated business structure. The connection between
ISO 9000 and the concept of TQM is scientifically based
on the need to combine orders from different suppliers
into one delivery, instead of delivering small batches
from different suppliers on time. Conclusions and
suggestions on improving the management efficiency of
oil enterprises are given.
Keywords:
Digital economy, transformation, digital
technologies, oil enterprises, management efficiency,
effective management of the enterprise, Concept of ISO
9000 and TQM, enterprise strategy.
Introduction:
In the conditions of globalization, the
competition in the vegetable oil market is actively
introducing
information
technologies
into
the
management process of oil companies. Providing the
enterprise with high-quality raw materials has a special
place in improving the management activities of the
enterprise. Satisfying the oil company's demand for raw
materials by using modern methods in the purchase of
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raw materials depends on the presence of important
factors of increasing the business efficiency of the
company. Improving the management system in
enterprises requires modern tools for studying the
process, learning new management methods, at the
same time focusing on expanding the scope of analysis,
applying the principles of resource theory. Enterprises
are forced to rethink production, marketing, supply,
transportation, warehousing and information systems
in the transition to the digital economy [1].
Figure 1. Effective management of the enterprise and rational solution to the existing problem
[2]
In the conditions of the digital economy, the role of
food enterprises as an economic object is significantly
manifested. In the conditions of economic reforms,
previously unknown problems appear, which require
effective management of the enterprise and a rational
solution to the existing problem. (Figure 1).
According to the results of studies on the management
of an industrial enterprise in the context of
globalization, according to many scientists and experts,
management is a complex, multifaceted, dynamically
changing process. According to this definition,
management is considered as an activity from the
establishment of an enterprise to its vision [3,4].
In the conditions of the market economy, the process
of optimal distribution of resources and actions in the
economic organization, in accordance with the
previously developed plan and constantly monitoring
the results of the enterprise management;
According
to
another
definition,
enterprise
management is "the process of planning, organization,
promotion and management necessary for the
formation of management-organization goals and its
achievement", and it is intended to achieve the set goal
based on the plan [5].
In general, summarizing the opinions of the experts
mentioned above, we think that it is appropriate to
define that "Based on modern positions, management
is a continuous process of influencing the human group
to improve the organization and coordination of the
enterprise, as well as to achieve maximum results with
minimum cost.". Because the main role of
management is to maintain a balance between the
main processes that take place inside and outside the
enterprise, as well as to attract resources for their
implementation [6].
Literature review
Issues of enterprise raw material management foreign
scientists D. Bowersox, D. David Kloss, M. Christopher,
D. Lambert, Dj. Stock, Michael R. Lindere, E. Harold, C.
Skowronek, Thomas T. Stollkamp, D. Waters, D. Hadley,
T. Whitin, E. Mate and others have been reflected in
scientific research [7,8,9,10].
B. Anikin, V. Bautin, I. Bogomolova, D. Gavrilov, K.
Kuznetsov, V. Lukinsky, E. Makarov, Yu. Nerush, V.
Nikolaychuk, B. Plotkin, Yu. Salikov, V. Sergeev from the
scientists of the CIS countries and others have made
significant contributions to the study of raw material
inventory management [11,12,13,14,15].
Some problems of managing the raw material stock of
enterprises in Uzbekistan N. Yoldoshev, Ya. Karrieva, D.
Rakhimova, Sh. Zaynutdinov, D. Suyunov, A. Hashimov,
Sh. Ergashkhodjaeva, A. Fattakhov, T. Akramov, M.
Eshov, G. Abdurakhmanova and studied in the scientific
research works of others. The above-mentioned foreign
and domestic scientists have conducted many research
works in the field of management of raw material
reserves of the enterprise. At the same time, problems
related to methods of increasing the efficiency of raw
material supply to food production, as well as issues of
improving enterprise management on the basis of
increasing the efficiency of production of raw materials,
have not been researched as an independent research
object. This determines the relevance of this
dissertation research [16,17,18,19,20].
Effective management of the enterprise and rational solution to the existing problem
Formation of enterprise
strategy
Creating competitive
production
Management of
innovation processes
Update product type
Achieving
compliance of
products with
market requirements
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In our study, the approval of the President of the
Republic of Uzbekistan No. PF-4947 of February 7,
2017 "On the strategy of actions for the further
development of the Republic of Uzbekistan", No. PF-
6079 of October 5, 2020 "Digital Uzbekistan-2030"
strategy and measures for its effective implementation
on" Decree No. PF-6096 of October 27, 2020 "On
Measures to Accelerate Reform of State-Participated
Enterprises and Privatization of State Assets", PQ-3484
No. of January 19, 2018 "Measure for Rapid
Development of Oil Network -measures", No. PQ-4118
of January 16, 2019 "On additional measures for the
further development of the oil industry and the
introduction of market mechanisms in the
management of the sector", No. PQ-4643 of March 18,
2020 "Agrarian and on measures to further improve
the management system of the food industry" dated
May 1, 2020 No. PQ-4700 "Enhancing food safety
during the coronavirus pandemic provide, rational use
of available resources, serves to a certain extent in the
implementation of the tasks specified in the decisions
on additional measures of state support for agriculture
and other regulatory legal documents in this
direction[21,22].
METHODS
To better understand the problem, we focus on the
concepts of "resource", "source" and "material". In our
opinion, resource means the materials used in the
production process. They become finished products as
a result of successive technological processing
(processing). A resource is a tool necessary for the
production of goods and services. Materials are referred
to as all resources and individual components that make
up the final product. Based on the given information, we
were able to distinguish the concepts of "resource",
"source" and "material". In the conditions of the market
economy, the method of effective management of the
enterprise with specific competitive relations is
determined by studying the market conditions,
forecasting demand and supply, ensuring product
quality, delivery on time, and minimum costs[23].
Figure 2. The main goals of enterprises in the field of production
The starting point of the management process consists
in setting goals and determining the tasks to be
performed based on the possibility of management
actions to achieve them. The only goal of every
enterprise is to increase its development and
production efficiency, and the following can be cited as
the goals of many enterprises in the field of production
(Fig. 2).
In the above picture, the ultimate goal of enterprise
management is the efficient organization of the
production process, including production management,
ensuring the enterprise's profitability as a result of the
development of the technical and technological base.
Enterprise profitability depends on the efficiency of
production and marketing activities. production results
are realized by minimizing production costs (raw
materials, energy, labor costs) [24].
According to Henri Fayol, "Management is to lead the
enterprise towards the goal" and the main direction of
management is to define the goals. In such conditions,
Goals of the enterprise in the field of production
Improving the use of production capacities
Increase production and sales volume
Saving raw materials and energy resources
Improvement of product types
Reduce non-production costs
Reducing production costs and increasing profits
Increase labor productivity and product quality
Improvement of technologies
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the purpose of managing the enterprise is to
constantly overcome dangerous situations not only
now, but also in the future, to take quick measures for
them and to adapt to changing conditions, a certain
reserve and a certain independence are required in
economic activity. The benefit of enterprise
management is not the existence of the enterprise, but
the result of its activity, and is a guarantee intended to
create conditions for the successful operation of the
enterprise in the future. Because only the profit will
allow to create various reserve funds that can be
accumulated in the enterprise for the further activity of
the enterprise, to limit and overcome the risks related
to the enterprise's activity. Goals and tasks of
management in a general form is presented in Figure
3[25].
Figure 3. Functions of enterprise management
The above figure also shows the functions of enterprise
management. In this function, management as a field
of activity implies three stages of solving management
problems in relation to the system and its parts [26]:
Figure 4. Main functions of control systems
1. Macro-level (meta-control), which includes solving
the problem of self-organization of the control system.
This is the policy of setting goals in general, the
strategy of development of the management system,
its structure and functions of subsystems.
2. Management of the effectiveness of the interaction
of the object and object of the control system, the
implementation of general management functions in
relation to real goals.
Management
goals and
objectives
Planning
Leadership
Coordination and
regulation
Forecasting
Control accounting,
analysis
Organizing
The main functions of the control system
Macro
functions
General
management
functions
Develop a tree of objectives for the control system, develop a general policy
for the behavior of the system, develop the structure of the control system and
its development directions, determine the functions and hierarchy of the
subsystems, ensure the integrity of the system, and determine the level of
autonomy of the control subsystems
Private
management
functions
Advance control (planning and forecasting specific parameters of the system),
operational control (organization, motivation, coordination and regulation)
and final control or feedback (management, accounting, analysis)
Planning and forecasting, production organization, production management,
personnel management, supply, economic analysis
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3. The bottom level of the target tree.
The main functions of the management system are to
manage the activities of certain management
subsystems to achieve goals, or as they say, to
implement certain management functions. The main
functions of management systems are macro, general
management and private management.
The main functions of management systems are shown
in the above picture, and the most important factor
that ensures the effectiveness of management systems
is the effective supply of raw materials to the
enterprise. In any field of production, it is necessary to
solve the problems of providing raw materials for the
normal functioning of a single economic entity and the
economy as a whole.
To solve the problems of supply of raw materials, first
of all, it is necessary to clearly define and define the
main tasks and functions. Supply of raw materials is
understood as the organizational structure of the
enterprise, management methods, mutual relations
with suppliers of raw materials, management that can
effectively satisfy the needs of the enterprise for raw
materials. The main goal of resource supply in
developed countries is to meet production needs for
materials with the highest economic efficiency.
RESULTS
The increase in the volume of production in the
enterprise, the development of the raw material
procurement and delivery process are closely related
to its basic concepts. The concept of "concept" in
purchasing 1) concept as a paradigm, guiding idea; 2)
management technology - has two meanings, such as
a standard sequence of execution of processes
emdiving a certain paradigm. In the first sense, it
consists of raw material supply, marketing and
integrated concepts [27].
The informational concept of raw material supply
appeared in the late 60s and is closely related to the
development of information technologies. The main
idea of this concept is focused on specific functions
performed in planning, purchase of raw resources,
production, distribution, etc., within the framework of
this concept, the task of optimizing the process of
managing the volume of raw materials is not set. In the
management of processes, information and computer
technologies have a supporting nature, accounting,
communication, management and decision-making
information systems are used [28].
Practical examples of the use of the information
concept are enterprise management technologies
using widespread systems, information-software
modules and inventory management models: DRP, MER
I, MRP II, ERP, etc.
DRP (Distribution Requirement Planning) is a system of
inventory planning and delivery of finished goods and
materials
in
distribution
channels,
including
intermediaries. DRP, given its uncertainty, is based on
consumer requirements. The DRP system allows you to
reduce the level of inventory, reduce the need for
storage areas, and improve the coordination between
the management functions performed in the
distribution by accurately planning the volume and
place of delivery. All this helps to reduce costs. DRPII
(Distribution Requirement Planning) is a software
module, a planning system using algorithms and
decision-making models.
MRP II - planning of production resources - is a unified
information system, the main task of the system is that
the accounting unit needed for the production of the
product is in stock at the right time, in the right amount.
The system is designed to centralize, consolidate and
process information in order to make effective decisions
in planning, designing, and controlling costs in
production [29].
The main advantage of MRP systems is the formation of
a sequence of production operations with materials and
components that ensure the timely production of units
(semi-finished products) for the implementation of the
master production plan for the release of finished
products. MRP and MRP II are considered the
predecessors of enterprise resource planning (ERP). The
marketing concept has been used since the early 1980s
to create a management system that ensures
competitiveness by optimizing product distribution
decisions. (Figure 5).
Among the concepts widely used in the allocation and
distribution of raw materials are demand-driven
technical requirements / logistics (DDT) and several
other options, including QP, CR, etc. In general, it is
possible to observe the impact of many concepts on the
enterprise management process.
QP (Quick Response) - the essence of "quick response"
technology is to assess demand in real time and as close
as possible to the final consumer. The implementation
of this concept of procurement and inventory
management was carried out after the development of
relevant information technologies, introduction of
electronic document circulation, electronic trade, bar
coding, etc. Real-time sales data is generated by
scanning barcodes, which is then communicated to
suppliers and manufacturers delivered to producers
[30].
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Figure 5. The impact of modern concepts and technologies on the process of enterprise management
QP is aimed at minimizing the reaction time of the raw
material supply system to changes in demand, and the
improvement of information technologies will help to
use this method more effectively in the activities of
enterprises. Based on demand information, the
optimal level of inventory is formed.
CR (Continuous Replenishment) is a technology
developed to eliminate the need for "continuous
replenishment" raw material replenishment orders
and is a modification of QR. The purpose of the
considered technologies is to develop a plan for the
supply of products by various suppliers aimed at
constantly replenishing stocks. Product replenishment
is mainly carried out by the supplier according to the
sales information provided by the buyer.
DISCUSSION
The concept of integrated supply management, which
emerged in the last decade, began to be used to
manage end-to-end related flows such as "design -
procurement - production - distribution - sales -
service" in the integrated business structure. This
concept requires integration of various functional
areas and their participants into a single management
system for optimization. The concepts of JIT, TBL, TQM,
LP, VMI, VAD, SCM, etc., ERP, CSRP systems are used in
the concept of integrated supply management.
TQM ( Total Quality Management ) - universal quality
management - TQM is presented in ISO 9000 standards
as a concept that continuously develops over time and
determines competitive quality without limitations for
its improvement (Fig. 5) [31].
This includes the technical side of quality, as well as the
philosophy of quality management based on the
participation of company employees at all stages of this
process, as well as integration with partners and
consumers, suppliers.
JIT (Just-in-time) is a technology of organizing the
process of development or delivery of raw materials in
a separate functional area, ensuring the delivery of raw
materials, unfinished work, and finished products in the
required amount and on time. The application of the
"just-in-time" concept allows to reduce stocks, reduce
production and storage areas, improve product quality,
reduce production time, make efficient use of
equipment, and reduce the number of non-production
operations.
SCM-
Supply chain management
TQM-
Universal
quality
management
Suppliers
Shopping
Production
Distribution
Consumers
MRP I
MRP II
ЕRP
DRP
CSRP
JIT
- Preparation or delivery of raw materials
VMI
CR
QP
LP
QP
VMI
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Figure 6. The relationship between ISO 9000 and the concept of TQM
Many researchers, in particular, M. According to
Christopher, the concept of JIT is aimed at
synchronizing the operation of all elements of the
chain, early identification of requirements for the
shipment of goods according to the order, ensuring a
strict order of contractual relations. On the one hand,
in order to avoid the accumulation of excess stocks and
to optimize the overall logistics costs, on the other
hand, the task of consolidating cargo is given priority.
Instead of delivering small batches from different
suppliers just in time, orders from different suppliers
should be combined into one delivery. In order to apply
JIT technology, it is necessary to create the closest
relationship between the buyer and the supplier in
terms of information sharing and coordination of
plans.
The JIT concept served as a basis for the development
and implementation of supply management concepts
(technologies) such as Lean Production (LP) and Value
added logistics (VAL).
CONCLUSION
In conclusion, it can be said that the research
conducted on improving the efficiency of raw material
supply to the enterprise allowed the author to obtain
the following results:
1. A systematic analysis of the relationship between the
capabilities and goals of the enterprise supply
department's design, production and delivery, internal
and external enterprise management processes,
comparing with similar functions of suppliers.
2. JIT concept "Lean Production" (LP) and "Value added
logistics" (VAL) development of the supply management
concept and the provision of raw materials to the
enterprise by using the ERP system in its
implementation are highlighted.
3. After determining the need for raw materials and
components, the enterprise's action program is drawn
up.
4. The starting points of the management process,
setting goals, tasks to be implemented based on the
possibility of management actions to achieve it were
determined.
5. In order to effectively manage the enterprise's stock
supply process, it has been proven that it is related to
specific functions.
6. In order to implement the raw material demand
planning system of the enterprise, a raw material
distribution and management planning system was
developed.
7. Compared to the traditional method of digitalization
ISO 9000
standards
The concept of
TQM
Emphasis is placed on the technical
side of quality management
Consumer oriented
Not integrated with corporate strategy
Integrated with marketing and
logistics strategies
Based on technical procedures and
instructions
Based on philosophy, management
operations, tools
Do not involve all categories of
workers in quality management
Emphasis is placed on the
involvement of all employees of the
enterprise in quality management
Do not propose further improvements
in this series of standards
It implies continuous quality
improvement
Applies to a wide range of
departments, organizations and
functions
Everyone is responsible for quality
Can only be departmental
The quality department is responsible
for quality
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of contracts for the supply of raw materials, the
reduction of paper and, accordingly, administrative
costs, the reduction of time for the storage of raw
materials and the reduction of transportation costs
allow to reduce the cost of delivery in the range of 5-
8%.
8. As a result of improving the organizational and
management
mechanism
of
oil
enterprises,
recommendations were developed to assess the
efficiency of management of total raw materials.
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