The SCOR Framework as a Basis for the Model of the Company’s Logistics Cost and Service Level Optimization
MAGAZINE №4 (99) August 2020
AUTHORS RYBAKOV D.S.
CATEGORY Logistics service management Optimization and mathematical modelling Supply chain planning
ABSTRACT
The current state of management practice is characterized by the presence of a demand to improve the efficiency and effectiveness of logistics processes, on the one hand, and an insufficient level of application of one of the main tools for achieving this goal – optimization modeling, on the other. One of the main reasons of this phenomenon is the lack of a universal basis of the proposed optimization models that does not allow them to be applied widely enough in companies with different business process structures. The aim of the research was to develop a universal, based on the SCOR framework, integrated model for optimizing the logistics service of an enterprise. During the research process, the overview of the developed models for logistics service optimization, the analysis of the limitations of the logistics system optimization models, the adaptation of the map of SCOR process metrics have been carried out; the influence diagram of the optimization model components has been developed; the models of cost optimization and logistics service optimization have been combined into a single integrated optimization model; an algorithm for the optimal solution search has been elaborated; the implementation of the model and algorithm as a program for the solution search has been introduced. As a result, the integrated optimization model based on the components of the SCOR model has been developed, combining the cost and service level optimization models, using the outputs of one model as inputs for another when searching for an optimal solution. Building the optimization model on the basis of the SCOR model components provides universal character of its application, taking into account the set of costs, arising in a logistics system, including indirect ones, and the set of metrics of logistics service reflects the links between functional departments, the ability to maintain a level of total costs at the efficiency frontier, achieving the goal of the profit maximization at the same time, provides a link between the tactical and operational levels of decision-making, which together leads to an increase in the reasonableness and quality of management decisions, and creates prerequisites for the overall optimal functioning of an enterprise logistics system.
Keywords: SCOR optimization Optimization Models optimization modeling logistics service logistics costs logistics processes business process metrics performance indicators KPI
Formation of a Moivation System in Logistics Companies when Applying the Relevant Approach in Management Accounting
MAGAZINE №3 (98) June 2020
AUTHORS BAZHENOV M.B.
CATEGORY Controlling Transportation in logistics Human resource management and motivation
ABSTRACT
Most companies, including transport ones, represented on the Russian market of logistic services, use a system of employee motivation in their work. Its use is determined by the effectiveness of department employee's work, which positively affects a company's entire financial performance. The selection of the necessary KPI metrics (Key Performance Indicators), their economic feasibility, implementation, their application in the work of the company is a labor-intensive process. From a large number of different performance indicators, it is necessary to single out the main ones that affect the company's performance to the fullest extent.
In this article, using an example of a transport and logistics company with its own fleet, we will consider the formation of a motivation system for company logisticians when a company's fleet is involved in cargo transportation.
Keywords: logistics costs management accounting logistic costs management KPI motivation cost reduction
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.
Keywords:
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.
Keywords:
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.
Keywords:
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
Keywords:
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:
The Assessment of Сold Chain Indicators in Perishable Cargoes Logistics
MAGAZINE №2 (79) April 2017
AUTHOR USHAKOV D.V. - Cand. of Eс. Sc., Lecturer Deputy Director General for Intermodal Transport Department of Logistics and transport system management Moscow State University of Railway Engineering GC «Agency Refperevozki» (Moscow, Russia
CATEGORY Logistic infrastructure Transportation in logistics
ABSTRACT
Tools for the quality evaluation of cold chain as the optimal technology of perishable сargoes delivery raise interest in the sphere of perishable products transportation logistics now. In the conditions of the rapidly changing directions and extent of food products cargo flows, it is extremely important for consignors to be confident in safety and deliveries of their freight in the specified time frame. The effective control and monitoring system of the freight set temperature can be the determining competitiveness parameter for the logistic providers. The complex of indicators of quality of cold chain offered by the German Lloyd gives only the assessment of logistic infrastructure in statics, disregarding features and specifics of separate cargoes transportation and passing of delivery routes certain sites. In the article the evaluation method of the intensity of temperature deviations from the specific freight set mode on separate links of cold chain is offered. The offered tool of the quality evaluation of perishable goods transportation technology allows to reveal problem zones and sites when passing a cargo flow through various links of a delivery chain. Together with the cold chain quality indicators by the German Lloyd the evaluation method of temperature deviations intensity from the set mode can provide a complex quality evaluation of a separate link of Cool Chain. Diagnostics of both compliance of the technological infrastructure elements involved in process of perishable goods transportation to required standards and these elements functioning in direct certain freights delivery processes on certain sites of cold chain is performed.
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