Shows the effect of logistics service quality on the profitability of the business network retailer. On the example of the company that sells appliances and electronics, shows the impact of the availability of inventory profits and profitability. The structure of logistics costs, depending on the dynamics of sales of the company that bears the season. Shows the need for a flexible approach to planning, inventory and accounting of the dynamics of the balance of the «cost / service» to maximize return on network retailer.
Author presents the main problem in stock management of automotive spare parts – its extremely wide variety of assortment. It is proposed to combine advantages of classic approaches (independent and fully coincident models of stock optimization) within the model of aliquot periods. At the same time separate product groups with similar demand volumes become joint in mutually ordered deliveries, which allows to get the low discrepancies between groups and individual optimums. The method consist of breakdown of products by groups with aliquot order-to-delivery lead time. Author considers the practical example of applying of aliquot periods strategy under the constant demand level. Applied approach allows to decrease costs on 35% vs. the strategy of separate optimization.
The paper considers the terms of reverse logistics and return material flow. The place and importance of the return material flow are defined. The reverse logistics situation in different business areas is analyzed. It is shown that rational reverse logistics management approach development has outstanding interest in service companies. The paper classifies return material flows for service companies. An economic evaluation approach of the return rationality of packing, commodities and materials is given. Effective reverse logistics management procedure for service companies is developed.
The article presents a model of optimization of inventory control strategy in terms of risk in the supply chain enterprises meat industry. On study the approach to the transformation of the model under conditions of uncertainty in the model of risk management by using the method of decision tree. Based on the method of decision tree for the corresponding model in terms of risk determine the optimal strategy, which provides a different attitude to risk.
The article embraces the study of the major approaches to coordination and intra-organizational conflict management in the management theory. The purpose of the study is to raise efficiency and effectiveness of the logistics coordination. Foreign sources as well as the results of the author’s own empirical research, employing methods of questionnaire survey and statistical data analysis, prove that the issues of interfunctional coordination are of high importance for the absolute majority of business organizations. One of the main reasons for that lies in the dominance of the linear-functional type of organizational structure featuring artificial barriers between the company departments. The author reviews standpoints of the representatives of the classical management theory, human-relations school, systems and contingency theories. With regard to each of the schools the paper exams priority means of interfunctional coordination along with the major strategies for interdepartmental conflict management. Based on the research and application of the comparative analysis method, the author suggests systematization of the approaches to interfucntional logistics coordination and outlines respective coordination mechanisms (means of hierarchy, horizontal communication, standardization of the processes, their results, skills and competencies as well as norms and values). The article reveals a number of contingency factors that influence the selection of interfunctional logistics coordination mechanisms along with the choice of appropriate strategy for the organizational conflict management. The author proves the effectiveness of “compromise” and “cooperation” strategies in tackling interfunctional logistics conflicts and describes major conditions of their choice. The paper finally shows that coordination tools and ways of settling conflicts developed in the theory of management can be applied to solve logistics issues in organizations of various business environment.
Despite the development of technologies focused on material flow management improvement in retail, the problem of poor on-shelf availability (OSA) is still the main challenge for both producers and retailers. The difficulty to increase the availability of goods is associated with a lack of clear understanding of its low value causes. On the one hand, current out-of-stock causes’ groupings reveal a different degree of problem elaboration in the literature. On the other hand, they help to clarify a general viewpoint on the problem in the academic sphere and to explore the factors influencing OSA.
OSA may differ significantly for different categories of goods, variously affecting performance of a retailer. Management of goods with limited shelf life, i.e. “Fresh”, is the most problematic from material flow management standpoint. Poor OSA causes for fresh food are grouped in the article. The classification takes into account the characteristics of goods with limited shelf life and the specifics of a retailer that use automatic replenishment stores’ system. This classification aims to be the first step in the “Fresh” on-shelf availability management.
The article analyzes a key order fulfilment process component of steelmaking companies –melt shop and caster scheduling. The main optimization objectives of melt shop and caster scheduling are defined as: minimization of earliness and lateness of orders, maximization of tundish utilization, minimization of steel grade changes and minimization of mold width changes, minimization of stock, minimization of over grading, management of iron inventory. Key problems of scheduling in the past are analyzed. The following key problems are defined: underdeveloped optimization algorithms for the problem and insufficient computer performance.
Based on this analysis the key provisions of a new method of melt shop and caster scheduling are proposed. This method significantly improves quality of planning. It includes the following three stages: production capacity allocation; heat building; sequencing. Several key requirements on program solution which is based on the proposed method are defined: high performance, manual changes, online visualization, prioritization of optimization objectives, scalability. An experience of successful development and implementation of specialized software solution based on the new method at Czech steel maker is provided.
In conclusion, the results of implementation of the specialized software solution at Czech steel maker and recommendations of improvement implementation are provided.
This article deals with the problems of implementing major investment projects of the transport and logistics centers (TLC) and other objects of the logistics infrastructure with the use of the mechanism of public-private partnership (PPP). It examines the international experience, possible forms and models of PPP, requirements for the parameters and conditions of entry of private capital in the project for TLC, the basic duties and rights of participants of PPP. Much attention is paid to the risks inherent in the construction of logistics centers, the problems of limi-tation and distribution among partners, to achieve maximum synergy from the creation of TLC.
Organization of transportation significantly affects the performance indicators of logistics systems. Therefore, more and more attention are paid to the development of organizational and managerial measures, the implementation of which helps to reduce delivery time, to ensure their reliability at an economically viable total cost based on digital technologies. Automated management of the entire transport and logistics system of the port is becoming a mandatory requirement to ensure high-quality logistics in the supply chains. It is the precise organization of the logistics process that contains significant resources to reduce costs, increase speed, as well as reliability and quality of supply chains, but without the synergy of logistics and information technology, this is not possible. The aim of the study is to increase the efficiency of the seaport and the provided port services by coordinating the flow processes formed by all participants in legal relations arising in the process of transshipment and processing of cargo in the seaport. In the formation of the reliability and quality of transport services, to which port services can be fully attributed, basically two methodological approaches are used: a process and a system approach. The article focuses on the role and importance of seaports, as well as the formation of the quality of port services based on the application of the process approach. A classification of port services is proposed, which implies a wider list of classification features that consider the role and place of port services in the technological process of port operation. The analysis of the main technological processes associated with the passage of state control procedures in the seaport. The necessity of developing a unified network technological process of the seaport is identified and the principles of its formation are described. The results of the study allow us to conclude that the interaction between all participants in the technological process of cargo handling in the seaport is low, which negatively affects the quality of port services and the competitiveness of the port. The development of a unified network technological process of the seaport will allow us to systematize the main processes of the seaport and to reveal the systemic links between them, which ensures stable and efficient operation of the port, as well as the interaction between the flows of information, cargo and transport.
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.