In 2012, gross retail sales volumes finally reached and exceeded the pre-crisis period of 2008. The industry is fully recovered from the recession, and majors set new milestones for business growth. Therefore the important task for logisticians in retail companies is to analyze main stages and projections for industry development, strengths and weaknesses of chosen market strategies, its impact to decision making process within distribution network designing. The article presents the periodization of the development of retail trade in Russia, market performance and description of market leaders in the industry at the current stage, key market trends and major strategic concerns. All these aspects are considered by the author in linkage with logistics management, structure and configuration of distribution network for retail companies.
The article discusses specifics of storage and material handling processes of e-tailers’ goods at the 3PL’s warehouse considering in the first place fashion retail. The authors outline major steps of the processes in question as well as requirements for their fulfillment. Possible methods of order picking and packing operations, that constitute the most complicated part of material handling process, have been reviewed along with the comparative analysis of their benefits and disadvantages. The article features essential requirements for a 3PL’s logistics infrastructure when it comes to providing services to e-tailers. In addition the authors examine specifics of warehouse services tariffication in case of internet retailers.
In modern world, organizations, both in business and in the humanitarian sphere, have to look for the ways to improve their efficiency. As a result logistics has become a crucial factor for the competitiveness of commercial companies. Now it is getting more importance for humanitarian organizations as well. The article is dedicated to the specifics of logistics in humanitarian sphere. The authors study the disaster cycle and define its main stages: ramp-up, maturity and ramp-down. For each of the stages they highlight goal of logistics, typical problems as well as specifics of the logistics processes organization. The results of the comparative analysis have shown major distinctions between humanitarian logistics and the commercial one. Criteria for the comparison included such factors as the primary objective, types of stakeholders, presence of clear division of functions and responsibilities between supply chain participants, structure of logistics activity, type of promotional strategy, specifics of the new product development, requirements for production/operations, peculiarities of inventory management, etc. The study is based on case analysis and review of the foreign bibliography. The research has revealed potential areas for exchange of experience and best practices between commercial entities and humanitarian organizations. Thus, companies might take advantage of the humanitarian supply chains strengths including flexibility, swift reaction, ability to form partnerships and alliances, making use of local suppliers in order to reduce lead times, open information exchange between all the parties involved. The authors show that strategic partnership proved to be one of the most effective organizational forms for mutual training of commercial and humanitarian supply chains participants.
Both the block diagram and the methodological recommenda- tions for the use of the new improved algorithm for optimizing the parameters of the multinomenclature supply strategy taking into account the features of transport support in the format of EOQ models are presented for the first time. The procedures for optimizing the supply strategy for the simulated situation illustrate their features and specifics for the first time, with allowing factoring in the important attributes of the supply chain operation. In particular, they include the factor of used vehicles cargo capacity, as well as the vehicle types' choice for the orders supply. The factor of profitability, in turn, requires taking into account the conditions for the expediency of deliveries using several vehicles at once (at discounts on such deliveries cost) when optimizing. At the same time, the time value of money requires an adequate assessment of the cash flows effectiveness of the supply chain itself (in particular, taking into account the specificity of the indicator of the return on working capital, depending on the vehicles load for the order delivery). The corresponding re- commendations are illustrated by the special type EOQ-models example. We are talking about models in which supply special efficiency is assumed a priori: the profit will be received at each deli- very of goods. At the same time, the proceeds from the delivery can be used both to cover part of the costs for such delivery, and to pay for the next order delivery. Accordingly, it is illustrated how in the optimization algorithm format it is necessary to take into account the conditions, the fulfillment of which allows to ensure the possibility of making such payments from the proceeds. For the first time the attention is drawn to the possibility of using the methods of choice at many criteria in situations where the minimized costs indicators slightly differ in the analyzed alternatives amono themselves.
The article provides an overview of the current state of the steel industry in the world and in Russia in particular. It was noted that over the past decade the supply chain leading steelmakers have gone through a series of transformations that have radically changed the requirements for their management. A study of the evolution of supply chains of ferrous metallurgy companies are provided, analysis of the factors that demonstrate large-scale shift in the global steel markets is presented. The paper examines the structure of a typical supply chain of a ferrous metallurgy company. The generalized model of the supply chain, including mining and metallurgical complexes based on the upgraded SCOR notation is proposed. Increase in attention to the creation and development of partnerships/strategic alliances between players of metallurgical market and the joint efforts of customers and producers to stimulate growth and innovation opportunities is highlighted. The main features of metallurgical production are analyzed in terms of their planning: the main bottleneck of production, production cycle, volatility of metallurgical processes, production campaigns. The analysis of the key challenges for the steel companies for the coming years are presented: the excess of supply over demand, a large amount of excess capacity. The following areas of improvement are proposed: cost minimization, differentiated service for customers, standardization and transparency of processes and operations in the supply chains, the development of new technological products, reducing emissions. The appropriate improvement tools are proposed: methodology change based on the principles and processes of Supply Chain Management, as well as IT tools to support planning of supply chains of steelmakers – Advanced Planning and Scheduling systems for Metals. On the basis of practical experience estimates of the impact of the organization of the planning processes in accordance with best practices and appropriate information support to key performance indicators of companies are provided.
Logistics occupies an important role in the organizational structure of modern business management. With the transition to the concept of supply chain management (SCM), its responsibilities also include coordinating functions. On the other hand, SCM is a critical area for multinational corporations with enough market power. This article aims to bring together scientific knowledge in the field of organizational design of multinational corporations (MNC) and the construction of organizational structures for logistics management.
A key feature of designing the organizational structure of logistics management in MNCs is the increased importance of national culture. This is confirmed by the articles on the role of the human factor in the SCM. Besides, other articles show the influence of the national culture criteria on the practices of crossfunctional coordination. In this regard, it is important not only to understand the peculiarities of national cultures, but also to be able to use them when implementing SCM practices, in other words, to be culturally intelligent. The article demonstrated the possibility of considering these characteristics both in theoretical terms and in practice, using an illustrative example of a large MNC. In addition, the specificity of the divisional organizational management structure development was demonstrated, where, on the one hand, both regional and product specificities are considered, on the other, the principle of dual subordination is absent. The developed methodology seems to be effective as it expands the knowledge of the manager responsible for building a rational organizational structure for managing logistics.
When choosing a vehicle by many criteria, when risks are taken into account as specific criteria, a practicing manager may face the need to analyze a huge number of alternatives, among which one should choose the best. In such situations, preliminary filtering of alternatives may help significantly (in terms of reducing the volume of required procedures for analyzing such alternatives), if it does not lead to a loss of quality of the solution. The article analyzes the features of filtration procedures and their influence on the search for the optimal solution for choosing a vehicle, if such procedures are implemented on the basis of the strict order relation (in the format of the theory of binary relations). It is shown that the following procedures will always precede the tasks of vehicle selection according to many criteria: 1) it will be necessary to provide the same optimization directions for all particular criteria; 2) it will be necessary to eliminate the so-called dimension phenomenon. The article analyzes three possible approaches to eliminating this phenomenon. For the first time it is proved that any of them provides in the future the same result when filtering alternatives based on the considered binary relations. It is shown that for the selection of a vehicle by many criteria, the corresponding filtration procedures can affect the ranking of alternatives. Moreover, it is proved that the undesirable phenomenon can relate to these problems: filtering of this type may not be replaced by alternatives that will be a priori Pareto optimal. Of course, this can affect the quality of the solution found. Therefore, the article notes what precautions are required to be taken into account by the manager so that the choice can correspond to the preferences of the decision maker.
An integrated volume planning in the form of sales and operations planning is considered as a default universal method applicable to any business in any industry. Meanwhile, numerous researches on implementation of this process focus mainly on the downstream industries, such as automotive, FMCG etc, leaving the upstream extractive industries without due attention. But the latter industries also need a managerial mechanism allowing foreseeing and reacting to the expected imbalance between forecasted demand and resources available to fulfill it.
Thus, this article reviews necessity and specifics of sales and operations planning in gold mining holdings. The specifics include, firstly, the rules of the demand formation and prolonged supply deficit on the market, and secondly, the need to involve numerous business units of vertically integrated business structure into the planning process. Basing on the specifics revealed an aggregated model of planning process is proposed and main questions to deal with on each step of the process are articulated. The model proposed differs from the standard one by
(a) the stages sequence: particularly, new product and demand planning are proposed to be held in parallel to each other, and operations planning starts from the definition of mining volumes and only then procedes to the processing capabilities;
(b) planning objects on each stage: for instance, new product planning should focus on new gold ore minings, and demand planning – on forecasting of the price rather than demand volume;
(c) an additional planning contour on the level of business units, in line with the main process flow on the corporate level.
During the last fifteen years wholesalers faced a great number of challenges including the desire of production companies to establish direct contacts with clients, bypassing wholesalers, and weakening suppliers influence. So, wholesalers started to find the way out of this situation. Some companies have changed their development course and strategy, others have begun to look for internal reserves to overcome hardships and to restrict their business in order to adapt to new conditions. One of the universal methods that can improve the efficiency of the company is a Sales and Operations Planning. Nowadays implementation of S&OP is one of the main trends in different branches of industry such as FMCG, vertically integrated fields of heavy engineering, automotive and aircraft industry and some others.
Wholesalers are in need of the mechanism that would allow them to plan their activities for several months ahead, basing on the current business conditions in industry, market forecasts and the analysis of available resources. Considering the fact that the ability to respond to the demand for the wholesale company is of a crucial importance to provide stable further development of the company and increase the resource efficiency, Sales and Operations Planning process implementation seems to be extremely appropriate for the wholesale company.
The main features and prerequisites of the organization of Sales and Operations Planning for enterprises of wholesale trade are described in the article. The general algorithm the Sales and Operations Planning cycle for the wholesale company is also represented and the participants of the S&OP process and their roles are described. Furthermore, the peculiar features of Sales and Operations Planning for various supply chain configurations for the wholesalers are additionally discussed in the article.
Problems of terminology of logistics both in the general plan, and in a context of application of terms and developments of a conceptual framework to objects of logistic infrastructure, in particular are considered: to the logistic centers, terminals, warehouses, etc. The critical analysis of a conceptual framework of the modern logistics presented in the Russian textbooks and manuals is given.