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.
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.