The role of distribution centres in the logistics infrastructure of Kazakhstan

Abstract

Distribution centres play a key role in the supply chain and their insufficient number will entail supply chain disruptions —supply delays and problems, as well as lost profits. Currently, distribution centres in Kazakhstan are located only in large cities. However, the growth of e-commerce (from 11729.9 billion tenge to 15763.7 billion tenge in 2022 compared to 2020) determines the need to solve this problem. Our study establishes the dependence between the areas of distribution centres and the e-commerce volume. This analysis, unlike the existing ones, examines the effect of the growth of e-commerce volumes on the increasing number of distribution centres as a prerequisite for the development of the logistics infrastructure of Kazakhstan against the background of the increase in the volume of goods supplied from China in transit to Europe. The aim of the study was to analyse the role of distribution centres in the logistics infrastructure of Kazakhstan. We justify the need to increase the number of distribution centres due to the increase in both turnover in goods transit, wholesale, and retail trade. The introduction of distribution centres ensures the continuous movement of goods and strengthens the connection between suppliers and consumers. The emergence of new technologies and innovations, combined with favourable market conditions and political support, creates favourable conditions for the development of reliable distribution centres that can improve logistics efficiency and contribute to the overall economic development of Kazakhstan.