Logistics coordination in course of a distribution network development
MAGAZINE №6 (95) December 2019
AUTHORS DYBSKAYA V.V., VINOGRADOV A.В., FEL A.V.
CATEGORY Distribution logistics Logistic integration and coordination Retail companies’ corporate logistics
ABSTRACT
Issues of interfunctional coordination are typical for any company irrespective of its sphere of business. However, problems of the neighboring departments coordination in course of the material flow management seem to be especially acute for the commercial companies. The reasons for that include proximity of the commercial companies to the ultimate consumer, independent demand that such organizations have to meet, ever changing customer priorities as well as active adoption of the geographical expansion strategy in the form of entering markets of different regions of Russia. Economic stagnation, fall of the solvent demand and strengthened competition amplify the issues in question.
The paper focuses on the typical causes of the interfunctional conflicts associated with logistics. These causes involve incompatibility of the neighboring organizational departments' objectives and interests, rivalry for the resources, insufficient regulation of functional responsibilities, etc. The authors examine the notion and specifics of interfunctional logistics coordination, that can be used as a means to prevent conflicts between departments of a company. Based on the analysis of the methods of interfunctional logistics coordination, the authors propose the scheme of division of functions and authorities between departments of a commercial company when carrying out strategic tasks connected to the distribution network development. Such tasks (and potential conflict objects) embrace identification of the prospective sales regions, making decision on the effective range of goods to sell, sales volume planning in each of the identified regions, selection of the rational distribution system, development of the customer logistics service system, market segmentation and identification of the goods supply regions, elaboration of the inventory policy, calculation of the material flows in the distribution network, shaping warehouse network, choice of the delivery technologies.
Keywords: logistics coordination conflict management distribution logistics distribution network interfunctional conflicts
Role and Place of Replenishment Strategies in Distribution Systems
MAGAZINE №4(87) August 2018
AUTHORS BARASHKOV A.V. - Postgraduate student, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St.-Petersburg, Russia)
CATEGORY Distribution logistics Optimization and mathematical modelling Inventory management
ABSTRACT
For complex logistic systems, in particular distribution systems, the issues related to inventory replenishment are one of the key ones in the framework of logistics management. This article discusses the problems associated with the timing of orders and the quantities of orders. One of the most common approaches to solving this issue is the choice of a replenishment strategy. As shown in the article, the choice of replenishment strategies has a big impact on all aspects of the logistic system. It was shown that at the moment little attention is paid to the formation of modified (joint) stock replenishment strategies that would consider existing restrictions both on the part of goods and on the part of supply chains. The article describes the place and role of replenishment strategies in logistic systems, in particular in distribution systems. The main types of basic and joint replenishment strategies are also described, and current methods of strategies selection are surveyed.
According to the study conducted in this paper, it is possible to single out a tendency for companies to move from basic strategies to joint strategies; the tendency is closely related to the increase in degree of the world economy globalization and the following complication of existing supply chains, which necessitates a review of existing replenishment strategies. However, it was shown that, despite the existing trend associated with changing of replenishment strategies selection and switching to the use of joint strategies, the methodological framework underlying joint strategies is just beginning to form, which leads to restriction in their use.
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