Opportunities of supply chain cooperation to influence the volume of return finished goods flows
MAGAZINE №6 (67) December 2014
AUTHOR ERMOLINA M.V.
CATEGORY Reverse logistics Green Logistics& Supply Chain Logistics integration and coordination Planning the supply chain
ABSTRACT
Retun flows are becoming of larger interest to supply chain managers as “green logistics” awareness and opportunities for recycling and use of returned goods and materials grow. Reverse logistics definition fully corresponds with the definition of logistics as it is except that it refers to the material flow running from end consumers to suppliers. So, one might suggest that cooperation in return flows management would give the same benefits as cooperation in direct supply chain. And, above all, it must influence the volume of return flow, that is, ability to maximize or minimize it depending on the constituents of the flow and business goals. The article refers to the options allowing to include issues of the desired return volumes management into existing supply chain cooperation practices. It demonstrates that mostly cooperation helps to minimize probability of unplanned returns emerging, and proposes that it is most advisable to include return flows issues into the existing cooperation processes rather than start new cooperation basing on return flows.
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Formation of complex decision-making methods in the management of transportation in the supply chain
MAGAZINE №6 (67) December 2014
AUTHOR LUKINSKIY V.S., LUKINSKIY V.V.
CATEGORY Transportation
ABSTRACT
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.
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Analysis of international practices of logistics costs accounting and classification in supply chains
MAGAZINE №6 (67) December 2014
AUTHOR SERGEEV V.I., ZININA D.I.
CATEGORY Reviews and Analytics Terminology in Logistics
ABSTRACT
The paper considers the problems related to accounting, control and analysis of logistics costs both at the global level (country, industry) and at the level of an individual company that is of highly topicality in the context of different approaches comparison and best logistics solutions identified. The analysis of international accounting practices and classification of logistics costs in the supply chain are conducted. In particular, the article considers the unique experience of assessing logistics costs during controlling of logistics in renowned German consulting companies ZLU and Barkawi Management Consultants GmbH & CoKG. It is shown the importance of comparing the existing international system of estimating the total logistics costs, as the last metric is the main indicator of processes effectiveness in the supply chains.
It is studied the principles and methodological approaches of structuring logistics costs, the requirements of information collection and the costs dynamics of non-industrial companies in Europe. A review and comparative analysis of possible approaches to the assessment of logistics costs used in the works of domestic scientists are provided. It is posed practical recommendations for monitoring and analyzing of logistics costs in Russia at macro and micro level as well as it is signified the problems of total costs components evaluation in supply chains of Russian companies.
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Domain entities representation of network operators supply chain management in information models
MAGAZINE №1 (66) February 2015
AUTHOR NOVIKOV V.E.
CATEGORY Information Technology in Logistics and SCM
ABSTRACT
The article covers designing the information model of product circulation domain for supply chain management for network companies. Special attention is paid to information representation of Product, the key domain entity. The article analyses different properties of this entity, which are required when designing the information model of supply chain for network operators. The requirements for characteristics description which those properties may posses are formulated.
The article also covers the relations between Product and other entities of product circulation supply chain domain: Supplier, Customer, Supply. The properties and characteristics of these relations have been analyzed. Special attention is paid to relations between Product, Customer and Inventory entities. The article defines such properties of Inventory as reserves, price indicators, time and accounting area.
The purpose of this work is to describe the supply chain domain semantics for designing an adequate information model and effective product circulation management instrument for network companies. In author's opinion, it is very difficult to create a quality information support for network companies’ logistics without utilizing the solutions recommended in this article. The information systems (IS) that do not posses the functionality described in this article cannot be seen as an effective instrument of network operators supply chain management.
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Supply chain master planning of Magnitogorsk iron and steel works
MAGAZINE №1 (66) February 2015
EREMIN A.A. director for economics OJSC “Magnitogorsk Iron and Steel Works” (Magnitogorsk, Russia)
RUZANKIN V.K. head of production economy department of economy direction OJSC “Magnitogorsk Iron and Steel Works” (Magnitogorsk, Russia)
SOLODOVNIKOV V.V.
CATEGORY Corporate logistics industrial companies Planning the supply chain
ABSTRACT
The article analyzes practical aspects of master planning process organization with the usage of linear programming methods at one of the largest Russian metallurgical companies.
Planning process analysis before improvements is provided. Its key disadvantages are defined which are simplification of model, absence of scalability, and absence of optimization capabilities. The conclusion is done about necessity of formalization of planning process, development of economic-mathematical model of company’s supply chain in specialized tool with optimization capabilities.
It is highlighted that the new master planning process was based on own company’s experience and elements of Supply Chain Management concept from Global Supply Chain Forum (GSCF). Particularly elements and principles of the demand management process of GSCF were used.
The key stages of planning system implementation were analyzed. Qualitative and comprehensive items design is highlighted as very important and resource consuming task.
The technologies for master planning are defined and reasons for their usage are proved. It is highlighted that integrated approach to tactical planning with the usage of linear programming methods allows a company to form comprehensive understanding of key factors which influence the final result, find out potential appearance of undesired situations and define best alternatives in company’s business.
In conclusion the description of achieved results at the metallurgical company is provided, also economic reasons for improvement implementation is defined.
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The impact of technological gaps on the supply chains efficiency
MAGAZINE №2 (64) April 2015
AUTHOR FEDORENKO A.I.
CATEGORY Logistics infrastructure
ABSTRACT
In the article the questions of the efficiency of supply chains and the analysis of the market of transport and logistics services and the volume of outsourcing them. Considered in detail the technical equipment of the individual elements of transport and logistics infrastructure of the supply chain. The concept of technological discontinuities between elements of transport and logistics infrastructure of the supply chain and pre-assessed their level. Under consideration, the impact of technological discontinuities on a commercial speed of delivery of goods in supply chains and transportation costs for rail, road, inland waterway, Maritime and air transport. Also examined trends in the development of services warehouse operators.The examples of the existing terms of delivery of goods in international supply chains.
Keywords:
Tactical Supply Chain Planning Of Pipe Producer
MAGAZINE №3 (68) June 2015
AUTHOR SOLODOVNIKOV V.V.
CATEGORY Corporate logistics industrial companies Planning the supply chain
ABSTRACT
The article analyzes practical aspects of tactical planning process implementation using the methods and mathematical programming models at pipe producer.
A review of terminology, including terminology of basic concepts of supply chain management - SCOR and GSCF is provided. The importance of organizing effective tactical planning at industrial enterprises in connection with the ongoing trend in the complexity of the material, financial and information flows in their supply chains is highlighted.
Overview of past and present of Russian pipe producer as well as an overview of its development programs are provided. A key risk of the development program is defined as unsynchronized and unbalanced flow of materials through the supply chain. This notes the need for organizing effective tactical planning.
The analysis of the traditional process of tactical planning and its relationship with other levels of planning is conducted. Problem areas were identified. The basic principles of advanced tactical planning process are defined, including: feasibility of the plans; holistic view of the supply chain; optimality; performance.
Tactical modelling technology of supply chain is defined. The recommendations for the organization of an iterative approach for the creation of a model are provided, which is the gradual complication of the model as the implementation phases of the project. The results of the zero phase of the project at the pipe company are presented.
In conclusion, there are the results achieved in the whole pipe company, recommendations for the implementation of improvements.
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Theoretical Aspects Of Resilience Of Supply Chains
MAGAZINE №3 (68) June 2015
AUTHOR SERGEEV V.I., KOLCHUGIN D.M.
CATEGORY Reliability and stability of the supply chain Uncertainty and risk in the supply chain Terminology in Logistics and SCM
ABSTRACT
The article discusses the theoretical and terminological aspects of the resilience of supply chains. The basic stages of formation of sustainable supply chain management and supply chain resilience, their relationship with each other. The authors identify and analyze the main elements of the resilience of supply chains. The analysis shows the absence of a common terminology and approaches to supply chain resilience. As a basis to ensure the resilience of supply chains are invited to consider Tripple-A-approach, which includes elements such as agility, adaptability and alignment. The authors proposed a decomposition of each of these three elements, highlighted directions of achieving them.
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Strategic modeling of the coal company's supply chain
MAGAZINE №2 (61) April 2014
AUTHOR SOLODOVNIKOV V.V.
CATEGORY Planning the supply chain Corporate logistics industrial companies Simulation Analytics in logistics and SCM
ABSTRACT
The article provides an overview of implementation project of strategic supply chain modeling system at International Coal Company. The detailed analysis of project phases and associated risks is performed. Author provides recommendations regarding minimization of the project implementation risks and optimization of planning business processes.
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Considering options of supply chains in promotion of the new product to the market
MAGAZINE №4 (63) August 2014
AUTHOR LUKINSKIY V.V., STRIMOVSKAYA A.V.
CATEGORY Logistics distribution
ABSTRACT
The growing interest in increasing supply chain efficiency claims the higher requirements to designing of supply chains. Searching and choosing options of different supply chains is supposed to be of a current interest in our country. By achieving this goal Russian enterprises could benefit significantly. To solve the problem of supply chain efficiency we consider the complex attitude to designing supply chains for new products, which are delivered to the market through the existing logistics channels, i.e. infrastructure and configuration.
The main idea is to propose a complex logistics network between supply chain designing from the very beginning and reengineering. In other words, the core idea is to develop different ways of decision making in order to promote new product to the market.
In the article ‘new product’ is determined as a product with significant differences from previous product lines by its’ customers’ features, demand, weight, forms, retail volumes and product life cycle. Apparently, changing weight and forms of the product could lead to the change of packaging. As a result, amount of units per one delivery will change too. In addition to this, we should think whether to change the existing logistics supply chain configuration or leave it untouched. Integral criteria could be used as an evaluation tool.
Developed methodology is supposed to be used in design of logistics networks in general. At the same moment, developed methodology could be applied to systems of smaller scale and certain logistics functions, such as storage, transportation, warehouse management, etc.
Article contains critical literature overview, methodological proposals and algorithm, example of calculations.
In the article is considered the topic of designing supply chains for a new product with the existing logistics configuration and infrastructure. The article deals with development of the new approach to supply chain management between designing supply chains and reengineering.
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