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.
Using the example of international road carriers, we consider approaches to assessing the complex indicator of competitiveness. Based on a sample of the performance results of the best transport companies from different countries, a comparison is made, and the factors that influence the change in indicators are determined. The best indicator values are set, which can serve as a guide for international road transportation companies. Based on the analysis of road transport performance indicators in the EEU countries, it was revealed that there are differences in the development of this type of activity, but all countries are characterized by an unsatisfactory state of the vehicle fleet. The change of generations of equipment in road transport is characterized by a short period, which is only 4 years, with an average change of 8-10 years. Problems with updating the car fleet lead to the fact that six generations of vehicles are simultaneously operating on the market. The paper offers a tool for determining the gap at the level of a country or individual enterprise from the market leaders.
In this study were investigated methods for assessing market openness and were determined the basic lawsof the bilateral agreements development between the parties.Careful attention was paid for the method QUASAR? its use for the market openness evaluation of transportation by air market,transportation algorithm of the method to freight services road market. In addition recomendations were allocated for furthe development of the freight road market.
The article discusses the features of the practical implementation of the concept of supply "just in sequence» (JIS). Relevance of the topic due to the need to improve the traditional methods of supply in connection with the expansion of the range of consumer preferences in the highly competitive market and the need to reduce logistics costs. The general principles and the practical results of the implementation of JIS-deliveries on the example of automobile plants are given. The formulas to calculate the costs per unit of JIS-deliveries are given. The analysis of the economic efficiency of JIS- deliveries compared to deliveries "just in time» (JIT) is made. The findings suggest that the compact arrangement of products supplied to the JIS-carts, and their turnover can reduce the cost per unit of delivered products several times. In addition, the application of the concept of JIS-deliveries brings significant economic advantages as a result of logistics "pull" techniques and lean manufacturing that can reduce buffer zones for storage of semi-finished products and reduce storage areas for delivered products. According to the criterion of logistics costs per unit of output, investigated the optimal scope of JIS - deliveries depending on transport distances. The study showed that the JIS-deliveries over short distances (up to 10km) are more beneficial than those deliveries over long distances. The reasons of reducing the effectiveness of the JIS - deliveries over long distances are given as a result of violation of the principle of "through-load unit." Practical recommendations are given for the broad implementation and improvement of economic efficiency of JIS-deliveries; the requirements to unified information system are formulated.
It is shown that one way to overcome the negative impact of the crisis is to build a strate-gy for supply chain management (SCM). Designated a set of factors motivating companies to enter the level of institutional coordination and integration, the underlying SCM. Select the ex-ample of some typical disturbances in supply chains associated with the economic crisis. The ability of companies to respond to the demand determines the level of integration and technolo-gical flexibility in solving problems of SCM. It is shown that changes in consumer preferences encourage companies to reconfigure the supply chain. All of these processes occupy a key posi-tion in the strategic planning of supply chains.
In the article it is studied the terminology and clarified the concept of «Best Practice» which means the best business practices in logistics and SCM. It is defined constraints and specific factors of best practices analysis and implementation. Best practices in the field of logistics and SCM in such companies as “Prologis” and “Gartner Research” as well as the project “MIT 2020 Council” and prepared by European Logistics Association project “Best Log” are studied as specific examples.
It is shown that in the "Rating of Top 25" companies Gartner Research, the world's best supply chain in 2014, has identified four key trends: a return to business growth after the economic crisis, a focus on the supply chain flexibility increase, a supply chains simplification via standardization of the manufactured products and provided services and an implementation of “multi-local” operational strategies. Analysis of the «Best Log» project shows that advanced logistics practice focuses on simultaneous representation and integration of social, environmental and economic principles that will positively impact not only on the environment and society, but also on economic performance in the long-run time period.
It is proved that the focus on “best practices” allows companies to develop sustainable supply chains, increase market share, build a trusting relationship of focus company with customers and suppliers in supply chains, differentiate its own brand and optimize logistics solutions.
In the article process maturity model selection as an effective tool for diagnosing vulnerability of logistics processes, the characteristic of the process maturity concept and a typology of maturity models used in logistics and supply chain management. Just describe the main stages of development maturity model of logistic processes, the proposed method is demonstrated by the development of maturity model to assess vulnerability of domestic construction companies regarding logistics risks.
This article discusses perspectives of the use of monitoring systems in the enterprises of the manufacturing sector of logistics. The case for the implementation of such systems on real production facilities was considered. The economic efficiency of using monitoring systems was analyzed. For this, three scenarios were created under which it is possible to make mistakes when performing the business process of determining the need for inventory items. The first of them described a situation in which the time of error detection was 1 day; the second scenario suggested an increase in the time of failure to 2 days; scenario 3 described the use of the real-time monitoring system and described situation in which failure in the supply chain caused by shortage of goods was determined instantly. After that, these scenarios were analyzed on the basis of existing contract for production of certain number of finished products. It is shown that the monitoring system can significantly reduce batch production time due to a significant reduction in the probability of making mistakes. Finally, it was shown how the implementation of monitoring and automation system for a number of tasks affects the efficiency of business processes.
The article reveals the problems of implementing in Russia the technological platform “Digital SCM/logistics” which is an indispensable part of digital economy model being currently created in Russia. The article looks at the main problems, prospects and obstacles preventing the formation of Digital SCM/logistics. Overwhelming analysis of functionality of digital SCM/logistics is provided with such parts of the latter as Big Data, IoT, Blockchain technology, Cloud service, e-SCM, 3D Printing and others. Functional organization model of competence Centre of competence in the field of Digital SCM/logistics as a basis for technological platform construction in Russia is given. The role of HSE School of Logistics and International Centre of Logistics in creating and development of digital logistics/SCM is shown. The academic staff’s best practices of scientific project capacities concerning Digital SCM/logistics issues of academic staff are introduced.