Digital Transformation of Retail Supply Chains
MAGAZINE №4 (93) August 2019
AUTHORS DYBSKAYA V.V., SERGEEV V.I., SERGEEV I.V.
CATEGORY Analytics and reviews Modern concepts and technologies in logistics and SCM Retail companies’ corporate logistics Information technologies in logistics and SCM
ABSTRACT
The article is devoted to actual problems of digitalization in the network retail industry. The role of supply chain management (SCM) in network retail is shown, and attention is focused on key trends in SCM, many of which are associated with the digital transformation of supply chains. The best practices in the field of digitalization of supply chains of industrial and commercial enterprises are analyzed. In particular, the article considers the experience of digital transformations of large world corporations supply chains, such as HP and Nokia, as well as the analytical reports of the leading consultants in SCM companies Gartner, Deloitte and Accenture on digitalization of enterprises in various sectors of the economy.
Based on the analysis, key trends in retail digitalization were identified and methodological approaches to the transformation of a conventional chain retailer's supply chain into digital were identified. The main digital technologies used today in Russia by network retail operators are identified.
A methodological approach to the digital transformation of the supply chain of a network retailer based on process (SCOR) modeling is proposed. Using the example of the largest network retailers of the Russian Federation, Magnit, X5 Retail Group, and M. Video companies, a SCOR model of a typical supply chain of a retail chain enterprise is constructed, based on which a possible list of digital technologies, systems and devices corresponding to each process in determined models.
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On the Issue of Terminological Definition of Supply Chain Vulnerability: Factors, Causes and Formation of Adaptive Management Model
MAGAZINE №3 (92) June 2019
AUTHORS
GORYACHEVA I.A. - Doctor of Ec.Sc., Professor, Economic Security and Innovation Management Department, Yuri Gagarin State Technical University of Saratov (Saratov, Russia)
TREGUBOV V.N. - Doctor of Ec.Sc., Professor, Commerce and Engineering of Business Processes Department, Yuri Gagarin State Technical University of Saratov (Saratov, Russia)
CATEGORY Supply chains reliability and sustainability The uncertainty and risks in supply chains Terminology in logistics and SCM
ABSTRACT
In today's business environment, there is an increase in the variety and degree of influence of disturbing influences on the processes of supply chains, reducing their stability and reliability, which requires a timely response to various kinds of disturbances, taking into account changes in the segment-forming properties of the market. At the same time, high rates
of internal and external changes lead to the need to promptly introduce new technological, technical and informational solutions for the implementation of basic processes in order to achieve balance and improve performance. The relevance of the study is determined by the need for a fundamentally new focus of supply chain management processes in the presence
of a disturbance flow based on the application of the concept of vulnerability to timely identify vulnerabilities, disturbing influences affecting the stability of the functioning of the chain and the formation of preventive control actions of a multilevel nature in leveling disturbances.
A constant diagnosis of the factors and causes of the supply chain vulnerability is needed, which is defined as the sensitivity of the chain to the probabilistic possibility of the configuration match of the corresponding threat and the vulnerable (weak) place of the chain, resulting in the risk of compositional matching of the force field of influence at the point of application. The special focus of the study (article) is on building an adaptive supply chain management model based on the vulnerability concept, which will allow an identified assessment of the likelihood of chain vulnerability to be rated and the degree of hazard based on a structured approach (FMEA analysis) to identify chain vulnerabilities and potential threats that may affect the sustainable functioning and security of the supply chain while ensuring the achievement of target areas.
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Logistics Systems Modelling for Achieve Operational Sustainability Based on Dynamic Links
MAGAZINE №2 (91) April 2019
AUTHORS
MAIOROV N.N. - Cand. of Eng. Sc., Associate Professor, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St. Petersburg, Russia)
BORODULINA S.А. - Doctor of Ec.Sciences, professor, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St. Petersburg, Russia)
KOROLEVA E.A. - Doctor of Tech.Sc., professor, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St. Petersburg, Russia)
CATEGORY Analysis in logistics and SCM Supply chains reliability and sustainability
ABSTRACT
The success of any logistics provider under the development of a digital economy di-rectly depends on the decision-making system, taking into account the dynamic nature of the environment and the optimal construction of the internal structure. In an effort to ensure a stable economic position in a competitive market, they pay more attention to both process monitoring, management system analysis and forecasting tasks. At the same time, classic models based on imitating modelling of processes and systems are proposed; for the study of control models, it is necessary to supplement the analysis based on structural diagrams and dynamic links. The use of dynamic links significantly expands the functionality of modelling methods and allows not only to investigate the stock turn, but also to simulate the con-trol actions on the system to achieve the specified parameters. Modelling processes based on dynamic links allows us to investigate the stability of logistics systems, to assess the im-pact of disturbances on the system and elements. The proposed management model for the logistics system is implemented according to the feedback control principle, which additio-nally contributes to the formation of a more accurate decision-making system. The develo-ped model has the ability to scale for different levels of planning and takes into account the dynamic nature of the processes in the logistics system, taking into account the influence of the environment. The article additionally outlines the limits of application of simulation mo-delling in the AnyLogic environment for the study of control systems, which substantiates the practical importance of using structural diagrams and dynamic links for logistic systems.
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The Concept of «Supply Chain Control Tower»: Design Methodology and Practical Implementation
MAGAZINE №2 (91) April 2019
AUTHORS DYBSKAYA V.V., SERGEEV V.I.
CATEGORY Controlling Information technologies in logistics and SCM
ABSTRACT
The advanced concept of control, monitoring and management of complex supply chains «Supply Chain Control Tower – SCCT» is considered. The basic terminology is given, the problematics is indicated and the key stages of the evolution of the SCCT concept are analyzed in the direction of increasing the maturity level of projects from version CT 1.0 to version CT
4.0. The shortcomings of earlier versions of the Control Tower (1.0-2.0) are analyzed. The article describes the design methodology of modern SCCT, including ensuring end-to-end visibility of the supply chain, building and exchanging data in a Multi-party Network, synthesis of a digital model – a twin of the physical supply chain; creation of information hubs for reli-
able storage and transmission of information using digital technologies, in particular, the blockchain. Examples of the implementation of the Control Tower 4.0 company One Network are set. The advantages of using advanced versions of Control Tower 4.0 for controlling and adaptive management of complex supply chains using predictive analytics and artificial intelligence are shown.
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Optimization of the Contract Model of the Supply Chain under Many Criteria Considering Pure Risks
MAGAZINE №1 (90) February 2019
AUTHORS BRODETSKIY G.L., GUSEV D.A.
CATEGORY Optimization and economic-mathematical modeling
ABSTRACT
For the task of managing contracts in the supply chain in terms of choosing the optimal contract model, the article for the first time presents the optimization procedures at many criteria. The paper shows that such a format of the model allows to consider pure risks that can be formalized as private individual criteria. In this case, they can be taken into account in a special format for presenting estimates of particular criteria. As such a format, the article discusses a method of presenting them corresponding to a generalized selection criteria. For this approach, the article presents optimization procedures for choosing the type of contract based on traditional selection methods. The article illustrates that this approach may lead to different solutions for the alternatives that expands the tools for adapting optimization procedures to the preferences of the decision maker. For the first time the paper proves that according to the format of the selection criterion for the geometric mean (and the same for the multiplication criterion), the transition to the format of generalized data does not change the best choice and ranking of alternatives. The appropriate modeling results are presented within the framework of the pure risk concept.
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A Conceptual Model to Overcome Information Asymmetries in Supply Chains
MAGAZINE №6(89) December 2018
AUTHORS
GRIGOREV M.N. - Cand. of Eс. Sc., Associate professor, St. Petersburg State University of Economics (St. Petersburg, Russia)
CATEGORY Analysis in logistics and SCM Supply chain management
ABSTRACT
Supply chain management is based on the use of rather heterogeneous and uncertain information. The uncertainty of the market information or product gives rise to the asymmetry of information – the circumstances in which some of the participants in the transaction possess the important other participants do not have. This problem was first noted by K. Arrow in 1963.
In 1970 G. Akerlof proposed a mathematical model of the market with asymmetric information. In such a market, the price of goods tends to decline even for goods with perfect quality. There are options for the development of a situation in which such a market disappears completely.
The problem of asymmetric information has since been studied in relation to different markets and products, such as insurance markets, used car models and others, but the problem has been little studied in relation to supply chains.
The presence of various types of uncertainty in supply chains makes it possible to apply the theory of fuzzy sets. Application of the fuzzy set theory allows to combine all kinds of information into a single whole and adequately consider it. To do this, it is necessary to provide information about the functioning of logistics systems in the form of membership functions.
Using the tools of fuzzy set theory, it is possible to develop a conceptual model for overcoming information asymmetry in supply chains between different market participants, which will improve the transparency and reliability of their supply chains.
When modeling the processes of overcoming information asymmetry in supply chains, it is possible both to increase and reduce the number of signs affecting the manageability of supply chains, depending on the complexity of the logistics systems. Due to this, this model can be adapted to a variety of forms of interaction between logistics and trade organizations, regardless of their size and scope of activity.
Thus, this model allows to establish the degree of reliability, transparency and manageability of supply chains between their different participants and to find:
- the best ratio of qualitative and quantitative features characterizing certain supply chains between different organizations with the existing information asymmetry between them;
- ways to reduce information asymmetry and increase information transparency depending on the values of the indicators that characterize the supply chain and choose the best one.
Keywords:
Optimal Profit Distribution in Supply Chain
MAGAZINE №5(88) October 2018
AUTHORS MIRONOV V. L.
CATEGORY Logistic integration and coordination Optimization and mathematical modelling
ABSTRACT
The paper features application of corporate game theory to logistics illustrated by a problem of optimal profit distribution in supply chain.
The supply chain is given as a direct graph with edges as chain units and state points as transshipment points. All graph edges are marked; each mark indicates a supplier which owns a chain unit of that edge and the edge capacity. Two state points are specified in graph: a source (from where the product comes) and a stock (where the product is delivered). By combining their chain units, the suppliers can transfer several (maximal) units of products from the source to the stock, whereby the volume that is transferred by common efforts is superior to individual suppliers' capacities.
In that context there naturally occurs a problem of optimal (fair) distribution of total profit among suppliers.
The main article result is a calculation of suppliers’ shares in the most optimal distribution of total profit. For this purpose suppliers are considered as players of a coalition game, and their shares are determined with Shapley value.
As an example, a chain with 3 suppliers is considered and then a general case is described – any supply chain with any number of suppliers.
In conclusion two problems are defined and resolved with practical examples. In the first problem a supplier invests funds in buying chain units of another supplier; in the second one – in increasing of carrying capacities of own chain units. It is also noted that application of Shapley method allows suppliers to optimize future investments in chain development, i.e. foresee their commercial activities.
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Assessment Approaches Development of Digital Economy Technologies Impact on Logistics Costs
MAGAZINE №5(88) October 2018
AUTHORS
SULEIMANOVA K.P. - Graduate student, National Research University Higher School of Economics (Saint-Petersburg, Russia)
PLOTNIKOV V.A. - Cand.of Polit.Sc., Leading expert of the Centre for Applied Research and Development, National Research University Higher School of Economics (Saint-Petersburg, Russia), Gazprom corporate Institute (Saint-Petersburg, Russia)
CATEGORY Analytics and reviews Information technologies in logistics and SCM
ABSTRACT
Within the framework of the digital economy development in Russia, one of important areas is “digital logistics/ supply chain”. In the market of freight and passenger traffic the use of digital technologies gives a competitive advantage, therefore their implementation is becoming inevitable for the entire logistics industry. This article considers trends, advantages, prospects and barriers to the implementation of digital technologies in the Russian Federation; the main types of these technologies and their influence on logistics business processes efficiency. A scheme for digital technologies (Big Data, IoT (Internet of Things), Blockchain, Cloud Services, 3D Printing) using in the supply chain are also presented. This paper provides the analysis of digital technologies use impact and a methodology for assessing the relationship with the components of the model of total logistics costs (TLC) in supply chains.
It should be noted that proposed TLC model does not only include logistics operations costs, but also the costs associated with complete customer satisfaction.The use of digital technologies in logistics makes it possible to increase efficiency,precision and speed of logistics operations, however it requires significant financial investments, personnel training, accounting long-term physical movement over long distances, problems of customs clearance and terminal handling of goods.
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Methods of Assessing Key Performance Indicators in Supply Chains
MAGAZINE №4(87) August 2018
AUTHORS STRIMOVSKAYA A.V., BAZHINA D.B.
CATEGORY Controlling
ABSTRACT
Among logistic management issues nowadays the most urgent one is the problem of method choice for assessing supply chain efficiency performance indexes. Mostly, that could be explained by fragmented nature of conducted research works among Russian and foreign experts. Herewith the lapse of any united analytical and methodological basis for conducting calculations complicates the efficiency assessment task and deprives it of almost any economic sense, because, in our opinion, application of comparing methods or just orientation to an «ideal» performance in the industry do not fully correlate with criteria of accuracy and adequacy of numeric examples.
The paper contains analysis of the leading research works devoted to the problem of developing efficiency assessment methods for supply chains; proposes ways of developing existing approaches considering analytical models and methods; provides sample calculations.
Keywords:
Intellectual Supply Chain Creation
MAGAZINE №4(87) August 2018
AUTHORS KOREPIN V.
CATEGORY Analytics and reviews Information technologies in logistics and SCM Modern concepts and technologies in logistics and SCM
ABSTRACT
This article examines main influence of the Fourth industrial revolution announced in 2011 and of a lot of new technologies penetrating everyday life on existing processes in supply chain management and on its future development. The article reviews components of intelligent supply chains which are divided into two unequal groups: revolutionary and evolutionary technologies. The former ones are Internet of things, machine learning, 3d printing, blockchain, artificial intelligence and bots -all of which radically change the logic of supply chain work. The second group – evolutionary technologies – is more about successfully developing graphic technologies and functional organization of a workplace. The article mainly focuses on the first group. As a result, the article concludes that all these technologies closely intersect, which forms additional synergic effect of their contact; and that functions and responsibilities of an expert of supply chain management in a company should be thoroughly revised.
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