MAGAZINE №1(84) February 2018

AUTHOR KOLCHUGIN D.M.

CATEGORY  Corporate logistics e-business Warehouse Logistics Logistic service providers  Outsourcing Retail companies’ corporate logistics

ABSTRACT

The internet retail development entails changes in supply chain structure, as well as the need for a complex logistics service for online retailers. The logistics providers can cope with these challenges and changes. The author justifies the expediency of this cooperation. The justification is based on several points: availability of a logistics provider infrastructure, additional services for internet retailers in the interaction with 3PL-provider, transaction costs reduction for internet retailers, scale economies in logistics service for online retailers, the current situation in the market of logistic services etc.

Based on the analysis of references the author notes that insufficient attention is paid to the logistics service development for internet retailers. As a result, the author has developed a procedure of the logistics service system development for internet retailers and the requirements for its implementation by a service provider. The special attention in this procedure in addition to the process requirements and logistics infrastructure formation is paid to the development of 3PL-provider services standard.

 Electronic version

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MAGAZINE №5 (82) October 2017

AUTHORS  

KLOCHKO O.A. 

PARNENKOVA К.V. - Assistant, World Economics Department, National Research University Higher School of Economics (Moscow, Russia)

CATEGORY  Analytics and reviews Supply chain management Industrial companies’ corporate logistics

ABSTRACT

Global consumer electronics market experienced considerable changes regarding the list of top-producers and configuration of their global supply chains over the past few decades. The main goal of the research is to analyze the evolution and identify up to date approaches to establishing global supply chains in consumer electronics industry. The research explores the supply chain models implemented by companies from different countries of origin: industrialized, newly industrialized and emerging economies.

Companies of industrialized countries concentrated supply chain stages with the highest added value under own control transferring standardized operations to the emerging countries using ways of outsourcing and offshoring. Aggressive expansion of East-Asian producers did not allow some of them to maintain leadership. The model of South Korean companies consisted, on the one hand, in transferring own research centers to the industrialized countries, which allowed companies to enhance their technological edge, and on the other hand,  in shifting standardized processes to countries with cheaper production. Chinese manufacturers chose the model of global supply chains establishing by means of mergers, acquisitions and entering into international strategic alliances.

Nowadays, the leading consumer electronics producers switch to implementation of latest approaches to supply chain formation – reshoring, backshoring and nearshoring. It is recommended that companies pay close attention to the analysis of a possibility of full or partial onshoring strategy implementation, expediency of which is related to the formation of new world centers of consumer electronics consumption.

The research results can form the basis for the development of supply chain management strategic decisions for the market players of the industry and its related market sectors as well as  create a basis for elaborating the directions of state policies of concerned countries in order to ensure their most effective participation in global value chains. 

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Published in Analytics and reviews

MAGAZINE №4 (81) August 2017

AUTHORS  

TSVEROV V.V. - Doc.of Ec. Sc., Professor, Department of Logistics and Marketing, Volga State University of Water Transport (Nizhny Novgorod, Russia)

VOLYGINA E.A. - Purchasing Manager, LLC «Soner» (Nizhny Novgorod, Russia)

CATEGORY  Outsourcing Analysis in logistics and SCM Transportation in logistics

 

ABSTRACT

The task of making decisions on the ownership form of vehicles (own, leased, hired) is a widespread practice with well-founded transport support of enterprises. Carrying out practical calculations on existing methods is hindered by the fact that a large number of factors should be taken into account, the significance of which can change within time in a high degree of probability (falling demand, new technologies development), as a result of which the solution may not be appropriate for the created conditions.
In this connection, it is required: to determine the whole range of factors that should be taken into account when deciding on the ownership form of transport means; the development of scientific and methodological approach to the decision-making on the task at hand, allowing, with acceptable labor input, to take into account all the important factors affecting the efficiency of the enterprise's activities insofar as it depends on the ownership form of the vehicles.
The article suggests the method of making decision on the form of transport means ownership in the transportation organization, allowing taking into account the influence of the entire spectrum of identified factors. As a methodological basis, it is proposed to use linguistic variables, through which each of the significant factors is evaluated, with methodological recommendations for determining their level.
The developed method of choosing between outsourcing or insourcing of cargo transportation: allows expanding the number of criteria used for decision-making, which are important for the enterprise, than to increase the validity of the choice of the form of ownership of vehicles for the transport of goods; does not require quantitative indicators of the work of the organization, allowing you to make a decision based on expert qualitative estimates, which greatly simplifies the task and allows you to solve it with relatively little effort.

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Published in Outsourcing

MAGAZINE №4 (75) August 2016

AUTHOR ELYASHEVICH I.P.

CATEGORY Sourcing 

ABSTRACT

In supply logictics one of the strategic objectives is to «Make or Buy» (MOB) decision. For example, a production company before entering into contracts with suppliers, must answer the question: Is not it more profitable to the company to produce individual components for the assembly of the finished product than to buy them from other companies. For traders, a similar problem can be solved, for example, in relation to the procurement of logistics services, as an alternative means of transport agent, is considered the acquisition and operation of their own cars. Thus, companies can achieve significant savings in operational costs and significantly improve the profitability of the business.

In carrying out various activities on their own, the cost structure of the company is a fairly wide range of calculation items, most of which does not depend on the activity of the company in the market. On the contrary, resorting to the services of intermediary companies, the number of elements of costs narrows considerably and most of them goes into the category of variables. This arrangement, on the one hand, allows you to focus on the quality of products and the most complete satisfaction of end users, but at the same time, leaving without due attention to the costly side of the issue and its impact on the profitability of the company.

In solving the problem «Make or buy», used a model «Total Cost of Ownership» (TCO), which in addition to the selling price of the supplier considered wholesale prices, terms of payment and the amount of transport costs, which in turn are determined depending on the type of transport. In addition, the total costs were taken into account marketing and transaction costs associated with the analysis of the market of goods and services, as well as the alignment of interaction with suppliers.

As a result of the calculations made in the article, it was shown that in spite of the generally accepted lately attractiveness of outsourcing, with sufficient scale and regularity of the business, expanding the list of functions and the implementation of additional activities, can have a positive impact on the economic results of the company.

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Published in Sourcing

MAGAZINE №4 (69) August 2015

AUTHOR POSTERNAKOVA M.I., ELYASHEVICH I.P.

CATEGORY Logistics integration and coordination Modern concepts and technologies in logistics and supply chain management Outsourcing 

 

ABSTRACT

The article analyzes the current trends in the economy, associated with the gradual transition of the company from traditional approaches to supply chain management to the "virtual", investigated their underlying causes, as well as an assessment of prospects for the development of this fact.

Currently, in most sectors of the supply chain model, used by Henry Ford, it has long lost its relevance. Today is difficult to meet fully vertically integrated company, which independently produces all the parts and components for their finished products, and controls virtually all links in the supply chain independently. The exception may be the companies working in the field of mining.

The main advantage of vertical integration is the ability to counter the uncertainty in the external environment by reducing the level of volatility in prices and transaction costs in the supply chain, but at the same time, this form of control will inevitably lead to less flexibility in general and the emergence of additional administrative costs. Market organization relationships in the supply chain and the use of logistics outsourcing strategy, in contrast to maximize capacity utilization and expand the resource base through greater coverage of qualified suppliers. But despite the advantages of this form of interaction between organizations may lead to a large total cost due to transaction costs. Virtual integration can be viewed as an alternative control mechanism, which achieves both operational flexibility and an optimal level of total costs by increasing both external and internal control.

Virtual integration necessarily implies a close relationship of logistics and information technology, which allows you to reach a negotiated throughout the supply chain performance of operations and the coordinated planning and control. At the operational level, the use of information technology makes it possible to support interaction between participants in the supply chain when the main logistics operations, and at the tactical level to ensure joint decision-making and monitoring of performance indicators. Currently, the virtual supply chains are showing interest a large number of companies in the long term because they allow you to reduce inventory levels and the execution of client orders, and therefore increase the efficiency of any business.

However, virtual supply chains are not only advantages, but also a number of difficulties, including information security risks, the synchronization of information systems, intellectual property rights and others that should be taken into account. 

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