Designing a Closed-Loop Supply Chain Inventory Management System for a Plastic Recycling Company
MAGAZINE №1 (102) - 2021
AUTHORS
FEDOROVA T.V. - environmental projects specialist, «EcoTechnologies» (Moscow, Russia)
CATEGORY Green Logistics& Supply Chain Inventory management Return flows management (reverse logistics)
ABSTRACT
Over the past 70 years, the production of plastics worldwide has increased 215 times – from 1.5 million tons in 1950 to 322 million tons in 2015 [Darrin Qualman, 2017], and already in 2017, production volumes exceeded 400 million tons [UN Environment, 2018]. Plastics are produced from by-products of the oil and gas industry, primarily from associated petroleum gas. According to Plastics Europe – the European Association of Plastic Producers, between 4 and 6% of the oil produced is used for plastic production [Plastics Europe, 2017]. According to experts, this figure may reach 20% by 2050, due to the growing demand for plastic products, which increases the need for their production. Although renewable, the Earth's oil and gas reserves are limited, and they cannot be used forever to make new polymer products.
According to the report of the multinational company "BP" [BP, 2018], the world's oil reserves will last for 50.2 years, gas-for 52.8 years. In Russia, as one of the largest countries producing hydrocarbon raw materials, oil and gas reserves with existing exploration technologies will last for 25.8 and 55 years, respectively. At the same time, many products can be produced completely or partially without the use of polymers. In addition, plastic waste can be used as a secondary raw material, so that the demand for oil and gas processing products can be reduced.
Plastic waste produced by businesses and the public is a global problem [UN Environment, 2018] that threatens the health of people and the entire ecosystem of the Earth. At the same time, plastics take a very long time to decompose in the environment. For different types of plastic, these terms are in the range from 100 to 500 years. Plastic breaks down into small particles – microplastics that cannot be completely recycled by the ecosystem, such as paper or wood. This microplastic penetrates into the soil, as well as into water bodies and thus ends up in the stomachs of animals and fish. The United Nations estimates that every year 1 million seabirds, 100,000 marine mammals and turtles, as well as countless fish die from microplastics entering their bodies [Sustainable Development United Nations, 2017].
Damage to the ecosystem can be avoided if non-degradable waste is not allowed to enter the environment. To do this, the production cycle must be closed. Thus, many companies around the world began to move from linear supply chains to closed ones, in which return flow management or reverse logistics appeared. Therefore, the task of organizing work with plastic waste is quite relevant in scientific and practical terms.
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Transforming the Fashion Industry’s Supply Chain in the Face of a Pandemic
MAGAZINE №6 (101) December 2020
AUTHORS GLUSHKOVA Y.O.
CATEGORY Supply chains reliability and sustainability Analytics and reviews Supply chain management
ABSTRACT
The conditions of the pandemic have changed many aspects of economic life, including logistics in some areas. In the current situation, people were isolated from offline purchases of certain types of goods, but the need for purchases themselves remained, so the distribution of goods and services on the Internet is actively developing – the fashion industry is considered as an example. In the context of the pandemic, and as a result, a decline in sales and failures in the supply chain, priority logistics tasks for players in this industry are the development of online sales channels and their digitalization; transformation and digitalization of supply chains in order to increase their reliability, reduce the order execution cycle and ensure a quick response to changes in consumer demand. The features and specifics of the fashion industry for effective design and supply chain management in this industry are revealed. The prerequisites, conditions and factors of structural changes in the supply chain in the context of the coronavirus pandemic are determined. The article proposes a transformed model of the supply chain in the fashion industry which responds to the current conditions for the sector functioning and consumer needs.
Keywords: supply chain logistics delivery delay purchase delay online sales offline sales
Disruptions to Supply Chains in Automotive Industry During COVID-19 Pandemic
MAGAZINE №6 (101) December 2020
AUTHORS BORZOVA T.
CATEGORY Analysis in logistics and SCM Industrial companies’ corporate logistics Supply chains reliability and sustainability Sourcing Supply chain management
ABSTRACT
The COVID-19 pandemic severely hit most industries and revealed a number of problems businesses were not prepared for. Manufacturing was one of the most vulnerable industries unlike companies involved in software development. Global lockdown and border closures broke the supply chain of materials and car parts. Car manufacturers and their suppliers were forced to find creative solutions to cope with the situation within a short period of time. The author of this article analyzes the effect of the pandemic on the U.S. vehicle manufacturing – members of the automotive supply chain from suppliers of raw materials to distributors and final consumers in particular. In addition, the author considers positive and negative effects of the government support. Finally, the author suggests several ideas that would make supply chains more flexible and adaptive to serious global issues in the future.
Keywords: supply chain planning procurement suppliers supplier map purchasing power unemployment distribution maketoorder
Digital Labeling in Supply Chains: Trends and Challenges
MAGAZINE №6 (101) December 2020
AUTHORS SERGEEV I.V.
CATEGORY Modern concepts and technologies in logistics and SCM Supply chains reliability and sustainability
ABSTRACT
The article analyzes the problems associated with the methodology and tools for digital marking implementation in supply chains of business organizations. It shows the importance of integrating labeling and packaging functions to ensure the sustainability and transparency of supply chains, consumer protection and environmental issues. The main trends in the development of digitalization in relation to the labeling of goods, in particular, ensuring end-toend traceability, content management, technology of digital transformation of supply chains in relation to labeling, have been researched. The impact of globalization on digital labeling is analyzed.
Keywords: supply chain labeling digitalization transparency traceability packaging content management
The Concept of Supply Chain Resilience, Assessment and Improvement of Resilience: a Literature Review
MAGAZINE №5 (100) October 2020
AUTHORS BORISOV M.S., ORLOV M.G., PANFILOVA D.S.
CATEGORY Analytics and reviews Supply chain management Supply chains reliability and sustainability The uncertainty and risks in supply chains
ABSTRACT
In a highly competitive environment, building resilient supply chains plays an extremely important role in ensuring the regular flow of material. The main problem in this issue is the lack of a common understanding of the concept of supply chain resilience and the main characteristics of a sustainable chain. This article analyzes the main components of the concept of supply chain sustainability, presents the classification of possible risks leading to failures, and the model of a viable supply chain. Scientific approaches to definition, evaluation and improvement of resilience from the point of view of domestic and foreign research works are also considered.
Based on the results of this work, it was concluded that in many works of modern domestic and foreign researchers, resilient supply chains are endowed with many similar features and that there is a sufficiently large potential for further research in the field of assessing the resilience of chains. Key areas for improving resilience were also highlighted.
Keywords: supply chain resilience reliability logistics risk assessment resilience improvement
Information Support for the Promotion of Branded Goods in the Supply Chains of Network Retail Operators
MAGAZINE №4 (99) August 2020
AUTHORS NOVIKOV V.E.
CATEGORY Information technologies in logistics and SCM Retail companies’ corporate logistics
ABSTRACT
The article discusses current issues of information system support for the movement of goods subject to mandatory labeling in the supply chains of network retail operators. Special attention is paid to the presentation and support of logistic business processes of working with aggregation of commodity forms in information systems. Attention is drawn to the new requirements for information systems, and the increased complexity in managing the supply chain of the logistics network due to the need of working with labeled goods. Solutions to a number of problems in supply chains, as well as to the interaction between information systems and cloud services to support working with labeled goods, are proposed. The aim of the work is to develop solutions for information systems of business processes support for working with labeled goods in supply chains in network retail companies. According to the author, in the current conditions and in the nearest future, the network trading company successful business becomes impossible without solving the considered problems.
Keywords: supply chain retail chains retail labeled goods information systems cloud services
The Supply Chain Transparency: Terminological Aspects and Value for Chain Partners
MAGAZINE №4 (99) August 2020
AUTHORS SERGEEV V.I., SERGEEV I.V.
CATEGORY Analysis in logistics and SCM Logistic integration and coordination Modern concepts and technologies in logistics and SCM Supply chain management Terminology in logistics and SCM
ABSTRACT
The content of the concept of supply chain ensuring transparency, currently attracting middle and senior managers' attention in a wide range of companies and industries, is disclosed. The article provides analysis of the reasons for the increased interest in the issues of transparency in supply chains, in particular: pressure from the government, consumers, nongovernmental organizations, etc. on the management of focus companies, to open more information about their supply chains. It has been shown that the reputational costs associated with not meeting these requirements can be very high. The article explains the meaning of supply chain transparency and provides guidelines and methodology for mapping and expanding progress in understanding SC-Transparency. The analysis is based on overseas DRM experience shared by dozens of companies in all industries of all sizes over the past decade with consistent advances in DRM. Particular attention is paid to the analysis of the experience of the Massachusetts Institute of Technology (MIT) – an initiative founded at the MIT Transport and Logistics Center; research by Sourcemap, a provider of supply chain transparency solutions; and research in this area by leading experts and analysts
Keywords: supply chain focus company visibility transparency traceability methodology terminology
Using Digital Twins to Monitor FMCG Supply Chains
MAGAZINE №3 (98) June 2020
AUTHORS DYBSKAYA V.V., SERGEEV V.I.
CATEGORY Controlling Retail companies’ corporate logistics Modern concepts and technologies in logistics and SCM Supply chain management
ABSTRACT
It is shown that the concept of «Digital Twin» is becoming an increasingly popular method of solving key problems in supply chain management, in particular, when monitoring logistics business processes. A detailed analysis of literary sources and Internet resources on the subject of digital twins is carried out. The basic terminology, the terms of «Digital Twin» and of similar concepts, such as «digital footprint», «digital shadow», «digital thread», are given. The basic properties (characteristics) of digital twins and the advantages obtained by using this concept in supply chains are considered. The methodological aspects of the Digital Twin concept are analyzed both in the academic environment and in the context of the practice of large companies.
It is shown that the problem of monitoring consumer goods can be effectively solved using digital counterparts of the FMCG sector supply chains.
The main variants of the Supply Chain Digital Twin «design» are presented. An FMCG supply chain monitoring system using convergence of digital twins of products and processes in the chain is proposed. An example of the construction of a monitoring system in the supply chain of GHIOTTONE consumer goods using the digital counterparts of the main processes represented by the SCOR model is considered.
Keywords: digital twin supply chain digital transformation monitoring FMCG SCOR
Actual Problems of Risk Minimization in Supply Chains of Goods Containing Intellectual Property Objects
MAGAZINE №5 (94) October 2019
AUTHORS GETMAN A.G.
CATEGORY Logistic services market Logistic infrastructure
ABSTRACT
Today, despite the well-developed issues in the field of logistics, the impact on the size of the logistics costs of the factor of maintaining the intellectual property in the foreign trade commodity flow is not investigated.
The article identifies logistic risks associated with the increase in logistic costs due to costs associated with the movement of foreign trade flow of goods containing the intellectual property.
A comparative analysis of time and material costs arising from the movement of goods containing intellectual property items across the customs border is presented.
The main criteria characterizing the specificity of the commodity flow containing an object of intellectual property are considered.
As a result, the following is proposed:
measures to minimize logistic costs (time and financial) in relation to the movement of goods flow containing the object of intellectual property;
measures to minimize logistic risks of the foreign trade commodity flow the documents for which do not indicate the intellectual property object.
The methodology consisted of the theoretical foundations of the essence of logistic costs and the flow of goods containing IPOs, the current EAEU customs legislation, system analysis.
Conclusion: the article determines main directions for the development of logistic advantages associated with the reduction of time and material costs when moving foreign trade commodity flow containing intellectual property requiring further research.
Keywords: Intellectual property intellectual property objects supply chain logistics customs clearance risks customs legislation EAEU logistics costs
Theoretical Aspects of Transport Items Return Management in Supply Chains
MAGAZINE №4 (93) August 2019
AUTHORS ALYMOVSKAYA N.S., LEVINA T.V.
CATEGORY Analytics and reviews Return flows management (reverse logistics)
ABSTRACT
In the theory and practice of logistics and supply chain management, more and more attention is paid to return flows management. There are a sufficiently large number of research works that has been devoted to the reverse logistics of goods: there are many technologies and best practices that have been successfully implemented.
As for the tasks of managing returns of transport items and packaging, they have been left outside the scope of experts' attention for a long time. Recently, the activity of advertising campaigns for pulling and pallets rental has increased in Russia. Some companies (mainly in manufacturing and trading sectors of FMCG) are going to implement, are already implementing or reporting substantial savings from projects for organizing container return management. Nevertheless, there are still many gaps for researchers and business community.
The article provides an overview of recent publications on the returnable containers management, analyzes terminology in this area, identifies and analyzes the main strategies for managing return flows of containers.
The study shows that the issues of transport items return management have not received adequate coverage in Russian scientific and business literature. Moreover, despite the variety of foreign studies there is no basic terminology in this field and systematization of supply chain configuration alternatives. In addition, fragmentation of information in open sources about the practice of implementing / operating transport items management systems in Russian business makes it relevant to conduct research on this topic.
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