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ISSN : 2288-4637(Print)
ISSN : 2288-4645(Online)
The Journal of Asian Finance, Economics and Business Vol.2 No.3 pp.33-36

Innovative Mechanisms in the Procurement Logistics of Kazakhstan

Erzhan B. Zhatkanbaev*,Ernur S. Mukhtar**,Maiya M. Suyunchaliyeva***
*The High School of Economics and Business, Al-Farabi Kazakh National University. [71 Al-Farabi Avenue, Almaty 050040, Republic of Kazakhstan
**Ph.D. student, Department of Management and Marketing, The High School of Economics and Business, Al-Farabi Kazakh National University. [71 Al-Farabi Avenue, Almaty 050040, Republic of Kazakhstan.
***Department of Management and Marketing, The High School of Economics and Business, Al-Farabi Kazakh National University
May 1, 2015 July 30, 2015 August 10, 2015.


Innovations in the procurement logistics now is very popular in Kazakhstan. Nowadays there are a lot of documents of transport infrastructure and Kazakhstan logistic system is developing more and more. Procurement logistic is the direction where you can count, sometimes you can buy some products or transport equipments. Logistic in Kazakhstan is new direction, there are a lot of young people who choose this specialty and will stay demanded. Our president said a lot of words in strategies about development in logistics and so there will be new methods that will be used here. Innovations are new technologies that are used in different spheres so this structure as procurement logistic will develop in Kazakhstan and every citizen of our republic will support it. Transport systems are used for transitions different products so there are a lot new transition roads for example Western China - Western Europe; Astana-Almaty; Astana-Ust-Kamenogorsk; Astana-Aktobe, Atyrau; Almaty - Ust-Kamenogorsk; Karaganda - Zhezkazgan - Kyzylorda; Atyrau-Astrakhan, it helps Kazakhstan to support international links between other countries.

JEL Classifications:R40. R41, R42, R48.


 1. Introduction

Innovations, innovation processes, using of innovative mechanisms are slowly beginning to make sense and be practical.Reading the message of the President of the Republic of Kazakhstan N.A. Nazarbayev, the first thing he noticed - the development of innovation in transportation logistics infrastructure. It will be implemented through the formation of macro-regions on the basis of hubs. In this framework infrastructure will connect with Astana and interconnected macro-regions trunk road, rail and airlines from the radial principle. First of all, you need to implement major road projects. This Western China - Western Europe; Astana-Almaty; Astana-Ust-Kamenogorsk; Astana-Aktobe, Atyrau; Almaty - Ust-Kamenogorsk; Karaganda - Zhezkazgan - Kyzylorda; Atyrau-Astrakhan (Government Program, 2014).

The priority should still developing and improving transport routes, the development of such areas as logistics. Procurement logistics is one of the areas of logistics, the main purpose of which is directed to materials management in the process of enterprise material resources, and includes the following tasks: identification of the need for material resources; market research procurement; choice of supplier; procurement; control of supply; procurement budget preparation; coordination and system procurement relationship with the production, marketing, storage and transportation, as well as with suppliers. The relevance of this study, namely the study of the mechanisms of innovation in procurement logistics has its own prerogatives. No such thing as logistics is already gaining your target audience. The President of the Republic of Kazakhstan N.A. Nazarbayev raised in his speech the main question about application of new methods of investigation, settlement analysis in the areas of procurement and supply of material resources (Government Strategy, 2012).

Comparing the foreign experience of development in this direction, in many foreign countries Logistics has long since become a practical business tool. The gross of national product of leading industrialized countries receive 20-30%, which is associated with logistics systems. As international experience shows, a decrease of 1% of logistics costs equivalent to an increase in sales of the company by almost 10%.

2. Main Part

There are several dozen freight forwarding companies provide transport and logistics functions in Kazakhstan. However, the logistical structure of Kazakhstan is underdeveloped and do not always cope with the increasing traffic, a number of reasons, among them - scattered and uncoordinated actions of participants in the freight market, especially in the regions. Working in the new economic environment, Kazakh business solve their own problems using local solutions. Manufacturing and trading companies are developing their own logistics structure, disproportionately increasing the cost and reducing their competitiveness. If you go this route, then the costs will only increase. Only a systematic approach of all market participants transport and logistics services help to solve common problems for everyone. One of the reasons for the low competitiveness of domestic products is the cost of freight forwarding software delivery, the value of which is 2-3 times higher than in developed countries. The explanation lies in the presence of deficiencies in the transport, customs, poor transport network, the existing artificial administrative barriers, etc.

The index of efficiency of logistics systems of the World Bank in 2010, Kazakhstan has the 62nd place. Forecast to 2020 - 40th place. LPI - the index of the World Bank, considering the ease of implementation of the supply of goods and the state of trade logistics and trade at the national level. Lack of Kazakhstan transport and logistics infrastructure, well-functioning system of forwarding service, based on the internationally accepted practice of terminal technology, complicates the process of barter, and reduces the efficiency of transport rolling stock, which generally adversely affects the development of the entire economic complex, not allowing full use of its potential. According of the assessments of companies - Com info Logistics Solutions (Russia) and Kazakhstan Innovation Agency (Kazakhstan) the modern potential of Kazakhstan market of logistics favors is approximately 10-11 billion dollars USA. Building a modern transport and logistics infrastructure will integrate Kazakhstan into the international global transport and logistics system "Western China - Western Europe". This can be achieved by using a multi-modal container service that ensures the formation and transport of transit flows (Ovcharenko & Tityukhin, 2013).

The GDP due to logistics formed 20-25% in the EU. Development of integration processes in recent years have opened a clear perspective for Kazakhstan to make logistics quite profitable segment of the economy. Within two years - 2014-2015, fully formed network of transport and logistics centers (TLC) with the participation of the private sector. Today the combined capacity of warehouses of this type is 800 sq. meters. Lack of space in 2012 amounted to 2 million sq. meters and by 2020 will require more than 4 million sq. m. meters of storage capacity. The total investment is about 500 million. Dollars. USA. The share of private sector in the implementation of the project - about 70% of the TLC network configuration will provide complete coverage of the domestic needs of logistics service and reach the neighboring markets Ural-Siberian region, Central Asia as distribution centers (Mamin, 2013).

Kazakhstan's position among the major trading partners China and the countries of the European Union dictates the main challenge for the development of transport and logistics system. In 2011, the trade volume between China and the European Union amounted to 567.2 billion. Dollars, the volume of traffic - 12.6 million. Twenty-foot equivalent (hereinafter - TEU). The share of Kazakhstan in providing transit of this volume is less than half a percent, and the vast majority of imports from China into the European Union should be by sea through the Suez Canal. Accelerated development of China's western provinces will increase traffic through Kazakhstan. By the results of 2012 Kazakhstan took 86th place in the World Bank index effective procurement logistics and planned comprehensive measures to improve the quality of procurement, as well as the removal of physical and non-physical barriers provide Kazakhstan rise to 40th position in this ranking. With regard to the development of innovative activity in Kazakhstan in 2013-2014 years. It has increased by almost 2 times. Significant improvement in the position of Kazakhstan is observed by a factor of "Innovation potential," according to which Kazakhstan improved its ranking by 19 positions and took the 84th place. At the same time sub factors "The ability to innovate" as the country rose to 74th place, increasing the ranking by 18 positions (Table 1).

Source: Ovcharenko & Tityukhin (2013).

<Figure 1> The Forecast Traffic Growth in the Direction of China - Europe and Transit through Kazakhstan

<Table 1> Dynamics of Change in the Position of Kazakhstan in the Context of Subfactors of Innovation and Technology

Source: author’s development resources

Gradually unfolds in Kazakhstan strategy of innovativenbreakthrough. Concrete steps for the implementation and promotionnof innovative programs are made with the adoption of thenStrategy of Industrial and Innovation Development of Kazakhstanntill 2015, the laws "On innovation activity", "On Science", thenState program for accelerated industrial and innovative developmentnof Kazakhstan for 2010-2014 . Its initial stage is connectednwith the problem of overcoming the technological backwardnessnand modernization of basic sectors. This involves thendevelopment and implementation of high technologies, increasingnreturns of important sectors of the economy (GovernmentnReport, 2013a).

Also important factor in the logistic operations, as analyzes ofnsupply resources and their management. Given the data statisticalnagencies, the state of this factor is significantly improvedncompared to previous years. It says only that Kazakhstan beginsnto introduce new techniques, innovative mechanisms for thenpromotion and implementation (Figure 2):

Source: Compiled by the author based on the data on website

<Figure 2> The Proportion of Purchases Made in the Field of Logistics Operations in Kazakhstan in 2012-2014.

3. Discussion

Program for the development of transport infrastructure, as well as works on them operations in the Republic of Kazakhstan for 2010-2014 years. Investments provided a total of 1.8221 trillion tenge (12.1 billion US dollars), which recalculation on the length of the road network will be about 125 thousand US dollars at the average cost of reconstruction of 1 km of roads 2.7 million (that is, at best, will be financed by only about 4.6% of the existing needs) (Transport Statistics, 2015).

Over the last decade on the development of road transport infrastructure in-Kazakhstan in the field of equipment (including local road networks) allocated more than 6.5 billion USD (995 billion tenge), with the volume Financing for increased almost 8 times. However, this does not mean that the development of logistics infrastructure is at a proper level. Kazakhstan seeks to gradually realize its goals and objectives. The study indicates that even in terms of hard budget constraints phenomena in the field of investment in infrastructure and transport development such direction in Kazakhstan as procurement logistics are a necessary component of public policy, as they contribute to accelerate socio-economic development of the regions (Government Report, 2013b).




  1. Government Program (2014). Message from the President of the Republic of Kazakhstan Nursultan Nazarbayev of Kazakhstan to citizens "NurlyJol". Astana: Government Printing Office.
  2. Government Report (2013a). The 2013 report on trends in the development of innovations in the Republic of Kazakhstan and the world (The Ministry of Industry and Trade of the Republic of Kazakhstan // JSC "National Holding" Baiterek "// JSC" National Agency for Technological Development). Astana: Government Printing Office.
  3. Government Report (2013b). Kazakhstan: trade facilitation and logistics development strategy report. Astana: Government Printing Office.
  4. Government Strategy (2012). Message from the President of the Republic of Kazakhstan Nursultan Nazarbayev to citizens Kazakhstan "Strategy" Kazakhstan-2050. Astana:Government Printing Office.
  5. Mamin, A. (2013). Kazinfo. Available from
  6. Ovcharenko, N., & Tityukhin, H. (2013). Model transport and logistics system of Kazakhstan. Available from
  7. Transport Statistics (2015). The Agency of the Republic of Kazakhstan Statistics. Available from tran/Pages/default.aspx