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
Interorganizational Logistics Coordination in Distribution Network of the Food Manufacturing Industry
MAGAZINE №2 (79) April 2017
AUTHORS DYBSKAYA V.V., POSTERNAKOVA M.I.
CATEGORY Industrial companies’ corporate logistics Logistic integration and coordination
ABSTRACT
For the last twenty years the problem of coordination and close cooperation with key partners has being actively discussed by both academic community and business practitioners. In this article the problem of interorganizational collaboration is considered through the prism of various scientific schools, such as economic sociology, institutional economics, supply chain management and so on. In the crisis period most businesses faced with the challenge of keeping the market position, and thus reduced total cost while supporting the level of logistics service stated in the contracts . Business process of order planning and execution includes significant reserves for optimization of operational efficiency of the company's activities in the context of improving cross-functional and the closely related interorganizational logistics coordination. The authors proposed a method to identify potential bottlenecks and deal with them. A hidden reserve to increase the operational efficiency of any business is not only the internal logistics component of each economic player of the supply chain, but also the potential of interorganizational cooperation.
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Analysis of an Applicability of Existing Approaches to the Distribution Network Design for Retail Companies
MAGAZINE №1 (78) February 2017
AUTHOR SVERCHKOV P.A.
CATEGORY Retail companies’ corporate logistics Distribution logistics
ABSTRACT
The article deals with different approaches to the design of the distribution network, developed by a number of Russian and foreign researchers, and the applicability of these approaches to problems of network optimization in retail companies. The relevance of the article creates by the role that logistics plays for businesses in Retail, and the possible effect on the value of logistics costs and service levels that can be achieved with the use of modeling tools and logistics networks optimization. In the first part of the article, the problem statement and the relevance are described in detail. In the second part, the author presents a comparison of the five most wellknown and commonly used approaches to the distribution network design, using a specific set of comparison criteria. In the conclusion, the author analyzes the specifics of the selected approaches and how it can be improved in order to adapt the algorithms to network design problem in Retail. As such, the following areas of improvement are mentioned:
1. Consideration of strategic factors specific to the retail industry, which affect the design of distribution network.
2. Segmentation of the distribution network into regions, product categories, formats of trade and / or distribution channels;
3. The combination in a single algorithm of common sequence of actions for network design with mathematical optimization techniques
Keywords:
The Goods Distribution in a Warehouse Network: Optimal Solutions for Many Criteria
MAGAZINE №1 (78) February 2017
AUTHORS
KULESHOVA E.S. - Planning Manager, Syngenta LTD (Moscow, Russia)
CATEGORY Optimization and economic-mathematical modeling Distribution logistics
ABSTRACT
The paper presents the research of features to determine the best solutions for the goods distribution in the warehouse network problem on many criteria. The authors have shown that the synthesis of the following methods or approaches can be applied effectively to a network for storage of optimization decisions. They are: 1) Simulation of random orders by Monte Carlo method at a regular interval of supply planning time. 2) Analytical hierarchy process to compare the importance of particular criteria, taking into account the decision maker's preferences. 3) Linear programming in order to minimize transportation and storage costs of the goods (in the format of apriori played out random shop’s orders scenarios to be analyzed in relation to the possible adoption of alternatives, and order execution strategies). The synthesis of these methods makes it possible to formalize a set of alternatives for the organization of deliveries from the central warehouse to the distribution warehouse and shops. The task of goods distribution in the warehouse network is formalized as the problem of multicriteria selection. The implementation of this approach to the solutions optimization for the goods distribution in the warehouse network is presented in this article. As partial criteria are considered: 1) the need to reduce the average daily stock levels, pallets (so the figure would be minimized); 2) the requirement to reduce the average daily cost of storage and cargo handling, USD (thus, the rate and should be minimized); 3) the need to reduce the average daily transport expenses, USD (and this figure will be reduced).
Approach to optimize the goods distribution in the warehouse network, presented in this article, has the following characteristics. Along with the optimization procedures in the article it is presented a special modification of indicators of partial criteria, which, in contrast to the traditional theory approaches of multicriteria optimization, allows to take into account the preferences of the decision maker more adequately. This is achieved by the developed synthesis procedures to be taken into account when optimizing the efficient approaches to providing indicators such as in the form of the theory of multicriteria optimization, and in the format of the method of analytic hierarchy. The paper reveals the procedure for determining the best solution on the basis of a) traditional and generalized selection criteria (multiplication, Hurwitz, maximin); b) the method of analytic hierarchy; c) modified selection criteria. The paper also gives recommendations how to adequately take into account the preferences of decision-makers on the importance of particular criteria and also analyzes the impact of changes in their structure on the ranking of alternatives for different selection criteria.
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Main tendencies and directions for the strategic development in retail industry
MAGAZINE №5 (58) October 2013
AUTHOR Sverchkov P.A.
CATEGORY Corporate logistics retailers Reviews and Analytics
ABSTRACT
In 2012, gross retail sales volumes finally reached and exceeded the pre-crisis period of 2008. The industry is fully recovered from the recession, and majors set new milestones for business growth. Therefore the important task for logisticians in retail companies is to analyze main stages and projections for industry development, strengths and weaknesses of chosen market strategies, its impact to decision making process within distribution network designing. The article presents the periodization of the development of retail trade in Russia, market performance and description of market leaders in the industry at the current stage, key market trends and major strategic concerns. All these aspects are considered by the author in linkage with logistics management, structure and configuration of distribution network for retail companies.
Keywords:
Approach to the designing of a rational distribution network for a retail company
MAGAZINE №1 (66) February 2015
AUTHOR DYBSKAYA V. V., SVERCHKOV P.A.
CATEGORY Optimization and economic-mathematical modeling Reviews and Analytics Logistics distribution Corporate logistics retailers
ABSTRACT
A problem of the designing of rational distribution network for a retail industry is observed in the article. The principle of rationality of a distribution network is described as a connection between a distribution network design and goals / requirements of a corporate strategy with a breakdown by different formats, sales regions and product categories. Authors proposed five-step approach for the designing of a rational distribution network, including a classification of a retail company, identification of corporate strategy’ requirements for a distribution network, a linkage of these requirements with strategic goals in logistics for separate elements and objects in a distribution network, mathematical formalization of the joint objective function and the system of restrictions for the network modeling and optimization.
Keywords:
The cascade and proportional convergence of goods reserves system
MAGAZINE №4 (63) August 2014
AUTHOR PENZEV V.N., CHEBANEVA E.Y.
CATEGORY Inventory management Logistics distribution Planning the supply chain
ABSTRACT
The approach to the efficient inventory distribution to warehouses based on cascade and proportional convergence of Goods reserves system is considered in this article. The system of stock replenishment was considered and problem of warehouses demand determination was solved.
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