Construction of KPI-based motivation policy for advancing sustainable procurement logistics of agricultural enterprises: competence approach

In challenging economic conditions, motivational mechanisms capable of maintaining sustainable logistics management of agricultural enterprises are declining. This study aims to specify the forms of connecting the motivational policy, KPI and sustainable logistics of agricultural enterprises. As a result of theoretical research, we have proved that the competencies of logistics managers can be the appropriate connector. We have considered the hypothesis that there are key competencies that logistics managers recognize as the most important and most often implemented for advancing sustainable procurement logistics. To confirm the hypothesis, we collected data from interviews with logistics managers of Ukrainian agricultural enterprises. To process the data, we used the method of integrated ABC-XYZ analysis. As a result, we found that the AX group (the most important and frequently used competencies) includes the high general qualification and the ability to assess the effectiveness of logistics operations and processes objectively. Unlike other studies, the novelty of the presented results is as follows. We advocate the idea of the motivational influence of performance indicators and propose to form KPI system taking into account the importance and frequency of using the established competencies of logistics managers. Our proposals are a prerequisite for developing a flexible motivational policy for sustainable procurement logistics