Prospects of Application of Logistics Indicators Monitoring Systems in Manufacturing Enterprises
MAGAZINE №6(89) December 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 Controlling Information technologies in logistics and SCM Industrial companies’ corporate logistics
ABSTRACT
This article discusses perspectives of the use of monitoring systems in the enterprises of the manufacturing sector of logistics. The case for the implementation of such systems on real production facilities was considered. The economic efficiency of using monitoring systems was analyzed. For this, three scenarios were created under which it is possible to make mistakes when performing the business process of determining the need for inventory items. The first of them described a situation in which the time of error detection was 1 day; the second scenario suggested an increase in the time of failure to 2 days; scenario 3 described the use of the real-time monitoring system and described situation in which failure in the supply chain caused by shortage of goods was determined instantly. After that, these scenarios were analyzed on the basis of existing contract for production of certain number of finished products. It is shown that the monitoring system can significantly reduce batch production time due to a significant reduction in the probability of making mistakes. Finally, it was shown how the implementation of monitoring and automation system for a number of tasks affects the efficiency of business processes.
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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.
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Formation of Branch Rating for a Logistics Company Based on Key Performance Indicators
MAGAZINE №2(85) April 2018
AUTHORS
Sotov V.V. - Head of Corporate Programs and Rating Department, Department of Logistics and Planning, JSC Freight One (Moscow, Russia)
CATEGORY Controlling Logistic service providers
ABSTRACT
This article determines the system of rating branches for a logistics company based on key performance indicators.
The purpose of rating is to increase the efficiency of branches for a logistics company.
The rating is used as a comparative performance evaluation of the effectiveness of branch units. The ranking is considered through a point system and based on the level of key performance indicators.
The rating is aimed to solve the following problems:
- to develop measures to meet the targets;
- to use the best practices of some branches;
- to improve the execution of key performance indicators alongside with planning system improvement;
- to develop technologies aimed at reducing costs by making optimal decisions;
- to improve the quality of service;
- to motivate and create a competitive environment between branches.
The rating determines both quantitative and qualitative comparative evaluation in order to implement key performance indicator system. Qualitative assessment takes into account priority indicators and the efforts of the branches in their implementation.
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Design of Efficiency Index Complex for Transportation in Supply Chains
MAGAZINE №3(86) June 2018
AUTHORS
CATEGORY Analytics and reviews Controlling Transportation in logistics
ABSTRACT
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
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Methodical Approaches to Assessing the Effective Involvement of Railway Transport in the Region’s Logistic Systems
MAGAZINE №5 (82) October 2017
AUTHORS
STETSYUK V.V. - Cand. of Ec.Sc., Senior Researcher, Research Department, Russian Customs Academy (Vladivostok, Russia)
KOSTYAEVA K.V. - Magistrant, Far Eastern Federal University (Vladivostok, Russia)
CATEGORY Global logistics projects Logistic infrastructure Controlling Transportation in logistics
ABSTRACT
Transport is the defining link of the modern civilization infrastructure. In this regard, it becomes relevant to assess the expected efficiency of including railway transport in the region’s logistics systems. Three main approaches to the evaluation of the efficiency of the railway transport participation in the region transport systems have been considered in the article. Primary assessment of the region transport system’s potential has been singled out on the basis of indicators reflecting social, technical, temporal and economic properties of an efficient transport system. There is no unified methodology of large state investment transport projects effectiveness assessment. However, the considered methods used in the complex will allow obtaining a fairly accurate estimate based on the multistep analysis, the options of which are given in this article. The study revealed that a preliminary state assessment of the regional transport system and assessment of the transit potential of the territory are the key elements of the introduction of a large-scale, costly investment project to include railway transport in the region transport system. Carrying out an assessment of the region transport system potential enables to observe the principle of innovation. As a result, the article systematizes significant indicators for assessing the transport potential of the region. Usage of such indicators will allow to assess the efficiency and profitability of the introduction of a new railway capital investment project of extending the Trans-Siberian Railway to the Korean peninsula and its incorporation into the system of transport corridors of the country; to receive information about the volumes of railway transportation on the main segments of transit traffic “Europe-Asia” direction; to evaluate the efficiency of cargo transportation regarding time costs; to analyze the demand for a railway project on the international market; to assess the impact of project implementation on the railway freight market and on the scale of the country’s economy as a whole.
Keywords:
Designing Complex Assessment System of Particular Performance Indicators in Supply Chain
MAGAZINE №5 (82) October 2017
AUTHORS LUKINSKIY V.V., STRIMOVSKAYA A.V.
CATEGORY Controlling Analysis in logistics and SCM
ABSTRACT
As the analysis of logistics market has shown companies strive to improve their efficiency under the conditions of modern economic activity, which requires, at the stage of planning, to form the system of indicators that will allow to compare the current and planned values of performance indices. This calls for a serious analytical model that will allow to assess the impact of specific actions on the resulting business performance. However, most literature sources suggest assessment methods based on the comparison with either average values (e.g., average order picking time, average trip speed, average trip length, average time of storage unit handling, etc.), or with the ‘best practices’. This obviously leads to a wide data diversity that does not allow to conduct an accurate assessment of specific supply chain units. Therefore, according to the authors, under the modern market conditions, it is advisable to focus on the formation of an individualized system of performance indicators for each specific company. Thus we can talk not just about supposed performance indicators modelling, but about certain performance indices of a particular company. The article presents an approach with a specified system of equations enabling to do calculations and individualize indicators instead of using average values. Along with this the equation system can be extended and complemented considering the specifics of a particular company. Thus, the assessment is based on analytical models, which allows to get to a new level of planning and supply chain performance assessment.
Keywords:
Analytics in Logistics as a Key Instrument for Enterprises Competitiveness Increase
MAGAZINE №6 (83) December 2017
AUTHORS LUKINSKIY V.S., STRIMOVSKAYA A.V.
CATEGORY Controlling Analysis in logistics and SCM
ABSTRACT
There is no unambiguous answer to what is the driver for modern logistics. According to practicing logisticians, optimal solutions can be found only during the process of physical distribution. From the point of view of academic science, all optimization issues in logistics are determined at the stage of theoretical background and project design. Obviously, a more complex approach to solve the problem of increasing competitiveness by means of efficient supply chain management can be found only as a result of synergy between both theoretical research and practical experience. This statement is mostly applicable to a situation when the market is full of goods, and the need for optimizing procedures is recognized not only on the level of logistics, but on the level of all current operations in the national and world economy as well.
The peculiarity of the modern stage of logistics development is in rapid IT implementation of all distribution processes, from the point of origin to the final consumer. This is due to increased manufacturing scale and world trading volume (which has exceeded 8% this year, according to WTO). Hereby it’s crucial to realize that behind each sophisticated software there is a whole complex of analytical models and methods. That is why to be competitive, enterprises should pay special attention to developing analytical approaches to face logistics business challenges.
Keywords:
Spare Parts Inventory Management System Development for Maintenance Support
MAGAZINE №4 (81) August 2017
AUTHORS ZDOROVENKOVA E.O.
CATEGORY Analysis in logistics and SCM Controlling Inventory management
ABSTRACT
This article presents an approach on the organization of spare parts inventory management for maintenance support using the Deming-Shuhart PDCA principle, supplemented with Lean Methodology tools: SMART objectives, continuous improvement, “5 Why?” method, Ishikawa diagram. The approach includes the consistent alignment of the strategic spare parts management goal, coordinated with the overall maintenance strategy, spare parts inventory management system by database creation, spare parts inventory model development, delivery schedule agreement, business processes and KPIs development, plans implementation, results monitoring and
follow-up actions adjustment. The information system is a basis for the effective spare parts management operation. Continuous improvement is provided by the possibility of constant movement through the PDCA cycle.
Keywords:
When the Client «Isn't Right» or Restrictions on Use of an Indicator «Perfect Order» in the Network Retail Companies.
MAGAZINE №1 (78) February 2017
AUTHORS MILOV S.N.
CATEGORY Analysis in logistics and SCM Controlling Inventory management Logistics service management Retail companies’ corporate logistics
ABSTRACT
Nowadays the development of retail chain stores format takes place. Some companies go own way, while others use benchmarking but all of them are interested in profitability maximization on condition that the overstock and out-of-stock levels are optimal. In the article the SCM project results are discussed. It is shown that it helped to reduce stock level by several times in a big federal retail company. After the successful solution of the problem there was detected the aberrant behavior of one of the «Perfect Order» indicator elements. It is the «Quality of the order implementation». This has brought to the extemporaneous short-run losses. In the article the alternative to this indicator is proposed and the realization is demonstrated.
Keywords:
Development of the Transport Key Performance Indicators Model in Supply Chain
MAGAZINE №3 (74) June 2016
AUTHOR STRIMOVSKAYA A.V.
CATEGORY Controlling Transportation
ABSTRACT
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.
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