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
Indicators System Formation for Preparing Management Decisions in the Field of Retail Companies Marketing and Logistics
MAGAZINE №3 (98) June 2020
AUTHORS BORISOVSKAYA M.A.
CATEGORY Analysis in logistics and SCM Distribution logistics Retail companies’ corporate logistics Supply chain management
ABSTRACT
The article analyses the following current trends in the retail development: changing consumer behavioral models, evolution of strategies and policies of chain retail companies in the field of pricing and promotion, conflict-forming factors of interaction with suppliers and category management, the dynamics of basic elements of the goods costs, the role of digital technologies and the impact of COVID 2019 on retail organization. The current problems of logistics and marketing in retail chain companies in their relationship and interdependence were additionally identified and systemized. A list of indicators, methods of calculation and tools for their analysis and interpretation were developed basing on the determined trends and the study of scientific and business literature, reviews and research, classic works in logistics and marketing, the results of the conducted survey of managers in Russian Federal retail chains and FMCG companies. These indicators are recommended for the preparation of management decisions in marketing and logistics planning at cross-functional and cross-organizational levels.
Keywords: retail supply chain management FMCG marketing logistics performance indicators decision making planning logistics strategy policy
Conceptual Rationale for the Development of a Mining Enterprise Logistics Management Model
MAGAZINE №2 (91) April 2019
AUTHOR SOKOLOVA O.G.
CATEGORY Controlling Industrial companies’ corporate logistics
ABSTRACT
The article is devoted to the formation of a management model of the logistics system of a mining enterprise – the focal company of the supply chain. To ensure its activities, a mining company forms a complex structure – the supply chain, representing a set of organizations creating additional customer value, interacting with the movement of material and other related flows from the source of raw materials to the final consumer. Supply chain management activities include integrative behavior of a focal company aimed at its customers and suppliers. The efficiency of the entire supply chain depends primarily on the effectiveness of the activities of its main link – the logistics system of the focal company of the supply chain.
To solve this problem, the author proposed a conceptual approach based on system analysis to form a model for managing the logistics system of the focal company of the supply chain.
The proposed approach specifies the purpose of the logistics system, conditions and methods for achieving it, the necessary resources, business processes, qualitative parameters to evaluate the effectiveness of managing the logistics system and its subsystems. The need to adapt the proposed model of management of the logistics system to the specific conditions of a mining enterprise activity affecting the mechanism of management of logistics flows is justified.
The author has developed a technique for quantitative assessment of the properties of the logistics system, as well as indicators for the operational control and evaluation of the management efficiency of the mining company’s logistics system.
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Development of Key Performance Indicators to Assess Transport Services
MAGAZINE №5(88) October 2018
AUTHORS
KOROLEVA E.A. - Doctor of Tech.Sc., professor, Head of the Department of Transport Logistics, Admiral Makarov State University of Maritime and Inland Shipping (St. Petersburg, Russia)
CATEGORY Controlling Logistics service management Transportation in logistics
ABSTRACT
The analysis of scientific works devoted to the formation of Key Performance Indicators (KPI) of transport services shows that the long-term path includes the consolidation of a number of basic (key) indicators, the definition of auxiliary indicators, as well as the definition of the company's place among competitors. It is possible to form the appropriate set of models for the calculation of following basic indicators. Productivity (for example, hourly productivity); time parameters (transport time, time for paperwork, time for loading and unloading, etc.); transportation costs (cost of transportation, loading and unloading, storage costs, return flow, etc.); reliability (probability of failure, sustainability of the process and time parameters). We are proposing the original two-level structure of a transport company performance indicators and the model for calculating KPI for assessment of various transport types, that can be used as a basis for development of software contributing to digitalization of transport services.
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Sensitivity of the return on assets at the company to the change of logistics KPI
MAGAZINE №4 (63) August 2014
AUTHOR SERGEEV V.I., KATALOVA V.S.
CATEGORY Controlling
ABSTRACT
The paper considers the problem of estimating sensitivity of the company’s business performance (in particular return on assets (ROA) to the logistics key performance indicators (logistics KPIs). Different impact of each logistics lever (service, costs, performance of the logistics department staff, return of assets, etc.) reflects on the logistics controlling and reporting system of the company due to the KPIs and modifies the return on assets at the company in a variety ways. In turn, the tool of any functional effectiveness evaluation, including logistics, is, for example, the model of strategic profit, which becomes the basis for a Balanced Scorecard (BSC) foundation.
It is (BSC) necessary to install properly the “weight” of each KPI in the BSC in order to motivate efficiently the logistics department staff. Currently in most companies it is done by experts without any objectiveness. The use of sensitivity methods can significantly increase the effectiveness of the incentive system due to the objective calculation of logistics KPIs impact on company’s ROA.
The paper proposes an approach of determining functions and coefficients of the ROA sensitivity to the changes of the logistics KPIs. The approach is based on the dynamic model of assessing the impact of KPI on the financial results of the company: appropriate information in the form of retrospective series of ROA / KPI should be used. The algorithm of specified assessment is suggested, and specific example of calculations of sensitivity functions, foundation of BSC and change of incentive system of logistics department employees of the company taking into account educed sensitivity of performance indicators is provided.
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