The article analyzes the business models of combined transport, used in the transport service of continental (not including a sea) supply chains. Described are the common characteristics of business models as well as fundamental differences specific to the transport systems of the North America and Europe. Based on a comparison of structural and functional analysis the article reveales the most significant parameters of the business models of both types, as well as the conditions under which they can be sustainable. Examples of business models implementation in the North American and European practices are given and the mechanisms the final logistic product within different models are revealed.
Transportation is a key logistic function involving removal and relocation of material assets, production in progress, and finished products in vehicles using an established transportation technology.
According to statistical data, the total logistic spending on performance of logistic operations in supply networks varies, in different countries, from 10% (e.g. in the US) to 20% of the GDP (Singapore, the Russian Federation). A large-scale analysis enables categorizing these expenses by basic components: transportation (40-45%), storage and stock management (30-40%), and administrative and managerial functions (up to 15%). It is obvious that the reduction of transportation costs is a burning issue whose settlement will improve efficiency of the logistic systems.
A promising solution to the established problem is development of the methodological support including relevant models and methods of evaluating the transport and logistic operations. However, the methods considered in research publications are fragmentary and incomplete while the existing analytical apparatus used for optimizing the costs in transport and logistic systems needs rework and concretization that would take into account the specifics of the supply networks.
The article deals with transportation management methods in supply chains and presents the author's flowchart to choose a delivery system in supply chains, that summarizes modern methodology approaches and solutions connected with transportation in supply chains, describes the methodology to do an economic evaluation of made decisions in transportation management on the basis of KPIs, describing company’s logistics based on the cost management concept.
Transport efficiency assessment today is an important issue of modern logistics management. According to the summarizing of different literature sources, transportation occupies the biggest part of total logistics costs. The challenge of designing efficiency transportation indices deserves special attention. Hereby some questions still need consideration, such as what an assessment system should look like? What issues should be considered while conducting analysis of transportation activity? Is there any complex of assessment indices that could be proposed? The article attempts to answer all these and other questions of logistics management based on works of Russian and foreign researchers. The article will be useful for scientists and specialists dealing with efficiency assessment issues.
Analysis of logistics market has showed that currently companies are trying to make their efficiency higher. That is why even on the stage of planning there is a need to design a system of indicators, that will analytically compare planned and current performance indexes. Here a serious analytical model is needed, that can evaluate all performance indexes. Anyway, most literature sources deals with assessment methods, based on average figures (for example, average order complication time, average speed, average trip distance, average time spend per a storage unit, etc.), or compare with the “best practice”. Evidently, that leads to a wide data dispersion, which restricts accurate assessment of supply chain. That is why, in the author’s opinion, there is a need to focus on particular performance indicators for each enterprise. Thus we can talk not just about modeling supposed indicators, but about certain performance indexes. There is a complex of equations for analytical calculations in the article. The equations could be easily detailed for a certain enterprise. Thus, assessment is conducted on the basic of analytical models that leads to a principally new level of planning and performance assessment.
The paper is devoted to a new formal approach to logistics service development optimization in the wholesale business. Logistics service development is required to choose strategic direction of customer service in logistics, to identify key performance indicators of its implementation, and ultimately to make a choice of logistics services package. To solve these problems taking into account the preferences of decision-maker, it is suggested to use the analytic hierarchy process (AHP).
It is a first time that AHP has been employed several times within an optimization model: the approach worked-out consists of two stages. The first stage determines an optimal set of key performance indicators to control the strategic direction of logistics under consideration. The second stage identifies an optimal logistics services package taking into account its impact on the key indicators selected at the first stage.
The approach application is exemplified by a wholesaler that supplies foreign components to domestic manufacturers. Numerical solutions of AHP are shown in the article. The data for calculations are taken from statistical reports of the company at hand.
Supply chain management is one of the main sources for competitor advantages. Market environment claims more and more requirements for its participants, increasing logistics efficiency in particular. Diminution of costs is the main stream of optimization. Wherein reducing of logistics costs, and as a result, increasing enterprise competitiveness, can be achieved due efficient logistics.
The growing interest in increasing supply chain efficiency claims the higher requirements to assessment system of logistics. This is due to logistics methodology, which allows integrating different aspects of economic knowledge in order to develop new scientific ideas within material, financial, service and information flows. That provides the increase of supply chain and optimization of flow distribution insuring social impact and ecological requirements.
The article contains methodological approach, which allows including transport indicators to total logistics costs model. Developed equations provide the ability to estimate dependence between transports operations on TLC (total logistics costs) on the base of integrated method of economic analyses.
Developed methodology is supposed to be used for analyses of dependency between transportation costs and TLC; and dependence between production indexes and transportation costs.
Logistics service has a significant impact on both the effectiveness of the companies receiving logistics service and the productivity of the companies which provide it. The provision of the common level of service for all customer groups leads to the inefficient use of the available resources of the company: the less profitable customers receive high levels of services, while the most commercially viable ones, on the contrary, get excessively low levels of logistics services. The case like this is the result of a lack of the thoughtful approach to the elaboration of the customer service policy from the perspective of logistics. The previously published article proposed a new approach to the development of the customer service policy in terms of logistics in the generalized view. Only the first stage “Strategic basis of service policy” was defined in a detailed way. The current article intends to offer the ultimate presentation of the integrated approach to the elaboration of the customer service policy from the perspective of logistics with a detailed description of the other four stages. The approach established is the result of the generalization, critical analysis and reconsideration of the existing best practices in the development of service policy for the company as a whole, in the formation of logistics service, in the customers’ support provided by service provider, in the consideration of the peculiarities of logistics activities. The article work out the stages of the elaboration of the customer service policy from the perspective of logistics and reveals the nuances of the development of logistics service. As well, the concept of “standard of logistics service” is refined. The proposed approach lays the foundations for the logistics service management: to some extent it helps to plan logistics services being provided. Despite the comprehensiveness and systematicity, the approach is flexible to account special features of its application to organizations acting in various business fields. The article demonstrates the transformation of the approach incorporation on the example of the manufacturing and trading companies as well as logistics providers.
The internet retail development entails a changes in supply chain structure, as well as the need for a complex logistics service to online retailers. The logistics providers can cope with these challenges and changes. The author justifies the expediency of this cooperation. The justification is based on several theses: the availability of a logistics provider infrastructure, the obtaining of additional services by internet retailers in the interaction with 3PL-provider, the transaction costs reducing of internet retailers, the scale economies in logistics service to online retailers, the current situation in the market of services etc.
Based on the analysis of references the author notes that insufficient attention is paid to the logistics service development for internet retailers. As a result, the author has developed a procedure of the logistics service system development for internet retailers and the requirements for its implementation by service provider. The special attention in this procedure in addition to the process requirements and logistics infrastructure formation is paid to the development of 3PL-provider services standard.
The current situation in the world economy has a significant impact on the imbalance in the use of different types of natural resources. International energy supply chains are a crucial element of energy security, and their sustainability affects market conditions in most countries. The primary purpose of this article is to form the foundations of the theory and methodology of supply chain management of pipeline transport. Authors identified opportunities for the application of the method of the logistics to pipeline transport systems. By analyzing the features of pipeline transport in general, the authors propose the use of methods and models of logistics and supply chain management in the planning of the oil and gas transportation systems, taking into account the characteristics of flows while using this type of transport.
The most sophisticated supply chains that integrate activities of producers from different countries and sectors are created in transnational corporations. Paying a lot of attention to sustainable development principles implementation into business activities and supplier relationship, leading global corporations contribute considerably to the spread of sustainable business practices in developed and developing countries. Research into experience in establishing sustainable supply chains by companies that pursue multinational strategy and cooperate predominantly with local suppliers is of great importance.
The main goal of the research is to explore experience of the leading world food processor company Nestlé in establishing its sustainable supply chain. Within the article methodological underpinnings of creating sustainable supply chains are examined, specifics of establishing global supply chains are explored, influence of company’s international strategy on building relationships with suppliers is analyzed, Nestlé initiatives and practices in the field are thoroughly explored.
Adherence to sustainable development principles is an integral part of Nestlé activities: clear, mandatory for employees, suppliers and contactors standards and requirements are set for every step of production and supply processes. Conducting operations in foreign markets Nestlé doesn’t not only set requirements for local farmers and producers, but exercises extensive support, consults and motives its suppliers in safety and health issues, prudent use of resources, quality of products and other issues. While sourcing predominantly from local producers, Nestlé stimulates them to implement best practices, assess sustainability of their activities on the regular basis, become more responsible in every business operation. Nestlé efforts in establishing sustainable supply chain contributes greatly to the transition of global society to sustainable development and can serve as a guideline for big corporations and small and medium-sized enterprises of any country of origin.
To optimize the level of stocks of operating resources and the associated costs of procurement and maintenance, it becomes necessary to determine such differentiated indicators as the costs of performing for individual logistics functions and operations. The resources purchased by coal companies to ensure their production activities are quite diverse in terms of their absorption by various types of costs that differ in the way they are included in cost of goods sold and accounted. The results of accounting conducted by all enterprises of the coal industry do not meet the goals and objectives of optimizing costs associated with procurement and stocks of operating resources. To determine the contribution of each category of purchased resources to a company's total costs and to assess possible savings reserves it is necessary to redistribute the initial data by activity, functional units of a company or resource categories using indicators that are traditionally referred to as cost application base. The calculations are performed using various application bases for indirect costs, at which the ambiguous nature of the results obtained and their interpretation for making managerial decisions is shown. In addition, the ways of correlation-regression analysis apparatus usage were proposed for estimating the tightness of the connection between different categories of costs and for performing calculations for planning individual components of a company budget. Based on the calculations given in the article it is concluded that usage of the traditional indirect costs application bases can lead to significant distortions of the analysis results and to negative consequences for the business profitability. Therefore, when managing the costs of operating resources purchasing at coal companies, it is necessary to conduct a value engineering analysis of the cost of goods sold for individual stock items for logistical functions and operations.
In recent years, the number of articles and studies about digital supply chain management (Digital SCM) has increased. It is associated with the development of digital technologies that transforms business processes in supply chains, and new area of economic activity - the digital economy.
The aim of this work is a comprehensive study and description of the main trends, characteristics, practices, benefits and future possibilities in the development of Digital supply chain management. The method of the paper is the theoretical analysis of the works on logistics and supply chain management as well as analytical articles and reviews on the use of digital technologies in the SCM and their impact on logistics processes and the effectiveness of the management of supply chains. To illustrate the effectiveness and future possibilities of applying Digital supply chain management, the study will also present practical examples of implementation and use of various digital technologies: Big Data, IoT (Internet of Things), Cloud services, etc.
The digital supply chain management meets modern trends of business development and information technology, which will allow companies to gain new competitive advantages (cost, service and order fulfillment time). The application of these solutions increases the level of cooperation and transparency (visibility) in the supply chain. It creates a base on which modern logistics technologies and strategies such as CPFR, S&OP, EDI, ECR, JIT, QR or VMI can be implemented and additional benefits for the effective management and development of supply chains can be created.
What is Sales and Operations Planning: attractive theory or real tool uaseful in Russian enviroment? The article says about S&OP implementation experience in one large FMCG company. The story starts with discovering reasons of company problems then investigate implementation issue and demonstrate S&OP benefits when it’s in use
The article is devoted to 10-year anniversary of the Department of Logistics and the International Centre for Training in the field of logistics (ILC) State University – Higher School of Economics (HSE). The history of the formation of logistics in Russia in the framework of three generations of state educational standards of higher professional education in logistics and supply chain management (SCM), and programs to the Executive Education implemented ILC. Show the main stages of formation of the Russian school of logistics and SCM in the HSE, as well as promising directions and trends of its development in the aspects of theoretical studies, international relations and scientific-applied activity.
Global consumer electronics market experienced considerable changes regarding the list of top-producers and configuration of their global supply chains over the past few decades. The main goal of the research is to analyze the evolution and identify up to date approaches to establishing global supply chains in consumer electronics industry. The research explores the supply chain models implemented by companies from different countries of origin: industrialized, newly industrialized and emerging economies. Companies of industrialized countries concentrated supply chain stages with the highest added value under own control transferring standardized operations to the emerging countries using ways of outsourcing and offshoring. Aggressive expansion of East-Asian producers did not allow some of them to maintain leadership. The model of South Korean companies consisted, on the one hand, in transferring own research centers to the industrialized countries, which allowed companies to enhance their technological edge, and on the other hand, in shifting standardized processes to countries with cheaper production. Chinese manufacturers chose the model of global supply chains establishing by means of mergers, acquisitions and entering into international strategic alliances. Nowadays, the leading consumer electronics producers switch to implementation of latest approaches to supply chain formation – reshoring, backshoring and nearshoring. It is recommended that companies pay close attention to the analysis of a possibility of full or partial onshoring strategy implementation, expediency of which is related to the formation of new world centers of consumer electronics consumption. The research results can form the basis for the development of supply chain management strategic decisions for the market players of the industry and its related market sectors as well as create a basis for elaborating the directions of state policies of concernedcountries in order to ensure their most effective participation in global value chains.