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
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
Influence of Logistics Costs on a Company’s Financial Performance Indicators
MAGAZINE №5(88) October 2018
AUTHORS
VOLKOVA E.М.- Cand. of Ec. Sc., Assistant professor, Department of Logistics and Supply Chain Management, National Research University Higher School of Economics (St. Petersburg, Russia), Department of Transport Economics, Emperor Alexander I St. Petersburg State Transport University (St. Petersburg, Russia)
CATEGORY Controlling Analysis in logistics and SCM Transportation in logistics
ABSTRACT
The search and design of links between the company’s performance indexes and results of logistics activity nowadays is a relevant tool for increasing competitiveness of Russian companies. Situations, when the influence of certain logistics costs groups on financial performance indexes is underestimated, occur considerably often. And in these cases it is meant huge amount of financial resources involved. Thus, the attempt of designing the analytical models for assessment the correlation between logistics and business performance indexes is a relevant issue, which requires further investigation and improvement.
In the article given the analysis of Russian and foreign literature sources, devoted to the topic studied; identified the main trends and given the possible way for further investigations. The article has analytical models for assessment the influence of different logistics costs groups on ROI (return on investment) index; numerical example is given.
Keywords:
Chemical Logistics – Importance of Logistics in a Global Key Sector
MAGAZINE №2 (79) April 2017
AUTHOR KRUPP T.
CATEGORY Analytics and reviews Industrial companies’ corporate logistics
ABSTRACT
Chemical Industry is a global key industry. Requirements for logistics in this sector are very heterogeneous, as products differ from hazardous bulk goods to individually packed consumer product, production processes from continuous to batch production. Nevertheless its logistics structures and challenges have come into a scientific and management focus only a few years ago. Five different perspectives on chemical logistics help to analyze structures and processes and to identify potentials for improvement. Chemical logistics are still widely determined by static production processes, but smart supply chain management and logistics strategies can provide a much-needed counterweight to the tremendous complexity, risk, volatility and disruption that characterizes today’s chemical industry. In the increasingly commoditizing global markets for chemical products modern, tailor-made logistics services are more and more detected by chemical companies as a crucial lever for success. Implementing modern logistics and supply chain concepts base on cooperation between between supplier, manufacturer, customer and logistics service provider
Keywords:
The Economic Order Quantity Model: Estimation of Stability and Accuracy
MAGAZINE №1 (78) February 2017
AUTHORS
TCHIROUKHIN V.A. - Cand.of Eng. Sc., Associate Professor, Department of Supply Chain Management National Research University Higher School of Economics (St. Petersburg, Russia)
CATEGORY Analytics and reviews Inventory management Optimization and mathematical modelling
ABSTRACT
The problem of the inventory management modern theory development is relevant and one of the priority directions of development of economic science to reduce logistics costs in the supply chain and to improve their efficiency.
The article deals with the model of economic order quantity (EOQ) and its place in the inventory management theory; the model base and corrected version which allows differing the accounting of costs related to the current stock storage have been analyzed; the approach for the assessment of the stability of EOQ model,
reflecting the deviation of total logistics costs of their optimal value depending on changes in the value of the order quantity have been proposed.
The accuracy of economic order quantity calculation dependson many factors: how many components of the costs are taken into account and their relationship, what version of the model is selected, but primarily on the accuracy of the parameters included in it; to evaluate the accuracy of the economic order quantity calculation
and, consequently, the total costs derived formulas to determine themean values and standard deviations of these values based on the linearization of distribution functions of random arguments; for approval of the proposed dependencies the calculations examples have been done; the possible directions of EOQ model further research have been generalized. In particular, there is need for a reasonable complexity of the model, its differentiation, without which it is impossible to bring the analytical dependences for practical applications.
Keywords:
Estimation of economic efficiency the «just in sequence» deliveries
MAGAZINE №2 (73) April 2016
AUTHORS
KUZIN D.A. - Candidate of Technical Sciences, Associate Professor, Department of Production Management
and Logistics, National Research University Higher School of Economics (Nizny Novgorod, Russia)
KIRIENKO A.S. - National Research University Higher School of Economics (Nizny Novgorod, Russia)
CATEGORY Logistics production Corporate logistics industrial companies Modern concepts and technologies in logistics and supply chain management
ABSTRACT
The article discusses the features of the practical implementation of the concept of supply «just in sequence» (JIS). Relevance of the topic due to the need to improve the traditional methods of supply in connection with the expansion of the range of consumer preferences in the highly competitive market and the need to reduce logistics costs. The general principles and the practical results of the implementation of JIS-deliveries on the example of automobile plants are given. The formulas to calculate the costs per unit of JIS-deliveries are given. The analysis of the JIS-deliveries economic efficiency compared to deliveries «just in time» (JIT) is made. The findings suggest that the compact arrangement of products supplied to the JIS-carts, and their turnover can reduce the cost per unit of delivered products several times. In addition, the application of the concept of JIS-deliveries brings significant economic advantages as a result of logistics «pull» techniques and lean production that can reduce buffer zones for storage of semi-finished products and reduce storage areas for delivered products. According to the criterion of logistics costs per unit of output, investigated the optimal scope of JIS – deliveries depending on transport distances. The study showed that the JIS-deliveries over short distances (up to 10km) are more beneficial than those deliveries over long distances.
The reasons of reducing the effectiveness of the JIS – deliveries over long distances are given as a result of violation of the principle of «through-load unit.» Practical recommendations are given for the broad implementation and improvement of economic efficiency of JIS-deliveries; the requirements to unified information system are formulated.
Keywords:
Logistics performance evaluation of the Customs Union and Ukraine on the methodology of the World Bank
MAGAZINE №2 (55) April 2013
AUTHOR Kurochkin D. V.
CATEGORY Reviews and Analytics Controlling
ABSTRACT
The results of a study on the efficiency of logistics methodology of the World Bank for 2007-2012. Draws attention to some of the subjectivity of the study. The basic problem of logistics in the Customs Union and Ukraine. The recommendations for improving LPI index of the Customs Union and Ukraine.
Keywords:
Analysis of international practices of logistics costs accounting and classification in supply chains
MAGAZINE №6 (67) December 2014
AUTHOR SERGEEV V.I., ZININA D.I.
CATEGORY Reviews and Analytics Terminology in Logistics
ABSTRACT
The paper considers the problems related to accounting, control and analysis of logistics costs both at the global level (country, industry) and at the level of an individual company that is of highly topicality in the context of different approaches comparison and best logistics solutions identified. The analysis of international accounting practices and classification of logistics costs in the supply chain are conducted. In particular, the article considers the unique experience of assessing logistics costs during controlling of logistics in renowned German consulting companies ZLU and Barkawi Management Consultants GmbH & CoKG. It is shown the importance of comparing the existing international system of estimating the total logistics costs, as the last metric is the main indicator of processes effectiveness in the supply chains.
It is studied the principles and methodological approaches of structuring logistics costs, the requirements of information collection and the costs dynamics of non-industrial companies in Europe. A review and comparative analysis of possible approaches to the assessment of logistics costs used in the works of domestic scientists are provided. It is posed practical recommendations for monitoring and analyzing of logistics costs in Russia at macro and micro level as well as it is signified the problems of total costs components evaluation in supply chains of Russian companies.
Keywords:
Supply chain network model
MAGAZINE №2 (61) April 2014
AUTHOR KOVALEV M.N.
CATEGORY Supply Chain Management Terminology in Logistics and SCM Optimization and economic-mathematical modeling
ABSTRACT
The supply chain is considered from the standpoint of object-oriented systems approach. Clarifies the definition and properties of the supply chain. The classification of the supply chain. A variant of the network model of the supply chain in the SCM system and the comparative analysis of this model with the traditional network model. A mathematical model for the problem of minimizing logistics costs in the supply chain of industrial enterprises in general.
Keywords:
