Exploring Features of Digital Transformation in Logistics Industry
MAGAZINE №1 (102) - 2021
AUTHORS
BOREIKO A.E. - CEO, Intelligent Transport Technology, Ltd. (Moscow, Russia)
GROMOV I.S. - Outbound logistics manager, Supply chain department LLC «MVM» (Moscow, Russia)
CATEGORY Analytics and reviews Information technologies in logistics and SCM
ABSTRACT
Business processes transformation and enabling new business models with digital technologies are the main processes of modern business enviroment. These phenomena are associated with such terms as «digital economy», «digitalization», «digital platforms», «digital ecosystem», «digital services», «digital transformation» etc.
Process, industrial and technological approaches to digital transformation, conceptual elements of «Supply Chain Management 4.0», «Digital supply chain compass», and the main conclusions of «Digital transformation in Russia – 2020» research are considered based on the analysis of treatises and investigations of such consulting companies as McKinsey & Company, Gartner, PwC, KMDA.
Intergovernmental strategic decisions in digital transformation are fundamental for digital platforms development, creation of new models of interaction between global supply chains participants in the VUCA world and regulation methods. This paper describes digital services as part of Eurasian Economic Union digital transport corridors ecosystem development, as well as key regulations and projects on digital transformation in logistics industry support.
Keywords:
Application of Process Mining to Supply Chain Management
MAGAZINE №6 (101) December 2020
AUTHORS VORONOVA A.P., ZAKHODYAKIN G.V.
CATEGORY Information technologies in logistics and SCM Supply chain management
ABSTRACT
Currently businesses are adapting their business processes to the ever-changing market conditions. This involves a continuous monitoring and improvement of business processes. Process Mining is a useful approach to automated reconstruction of business process models from event logs collected from a company's information systems, and to detecting deviations from the assumed process model and monitoring of process KPIs. There is a growing trend towards implementing Process Mining tools in logistics and supply chain management. This paper presents key concepts of Process Mining. The methods are illustrated with a practical example of a logistical process analysis. We consider three main types of Process Mining. Finally, an overview of research and business cases for Process Mining in logistics and
supply chain management are provided.
Keywords: Process mining business process process analytics BPM supply chain management digital twin
BlockChain Technology Application in Supply Chain Management for Food Industry Enterprises
MAGAZINE №5 (100) October 2020
AUTHORS KORNIENKO P.A., SHMAKOV E.N.
CATEGORY Industrial companies’ corporate logistics Information technologies in logistics and SCM Logistic integration and coordination Modern concepts and technologies in logistics and SCM Supply chain management
ABSTRACT
In the era of digital and Internet technologies growth, digital transformation of supply chains already seems to be an unavoidable process that most companies have to face if they want to maintain their competitive advantages in the market or acquire new ones. Today "blockchain" technology is one of the breakthrough technologies that is increasingly attracting business representatives because it is designed to solve most of the problems of various companies. "Blockchain" technology is especially relevant for manufacturing enterprises, because they often face the problem of counterfeit goods, a low level of trust between contractors and problem of weak information security. The use of "blockchain "technology can eliminate all these problems; however, any company expects difficulties in implementing and adapting" blockchain" before the above problems are solved. One of the key challenges of implementing blockchain technology in the supply chain is the scale of digitalization accompanied by huge costs for purchasing Internet of things devices, creating digital tags and other elements of the digital supply chain. Over the past three years, the ecosystem of "blockchain" projects has changed dramatically: there are many more projects, the scope of application of the technology has expanded, and commercial software solutions for various types of companies have begun to appear on the market. This article will discuss the basic principles of the "blockchain" technology, types of "blockchain" systems and best practices in the use of technology in the management of supply chains of food industry enterprises.
Keywords: supply chain management Blockchain transparency digitalization smartcontract Best Practices food industry Internet of Things IOT
Application of Artificial Intelligence Methods and Technologies in Digital Supply Chains
MAGAZINE №4 (99) August 2020
AUTHORS LYCHKINA N.N.
CATEGORY Analytics and reviews Information technologies in logistics and SCM Modern concepts and technologies in logistics and SCM Simulation modelling
ABSTRACT
The article provides analysis of the main directions and technologies of artificial intelligence and their application in digital supply chains; specifies prospects of intelligent information systems application to improve interorganizational cooperation and participants’ collaboration in integrated and network structures of supply chains. Particular attention is paid to the research of possibilities of modern multi-agent technologies and intelligent systems in supply chain management aimed at interorganizational cooperation of partners, conflict management and consensus reaching between network partners, real time risk management, dynamically reconfigurable network structure formation of supply chains.
Keywords: supply chain management Artificial Intelligence AI knowledge management multiagent systems digital twin
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
Three-Leveled Model For Integrate Inventory Management in Supply Chains
MAGAZINE №2 (97) April 2020
AUTHORS ASLAKHANOV A.R., GERAMI V.D.
CATEGORY Inventory management Optimization and mathematical modelling Supply chain management
ABSTRACT
In the theory of inventory management, various models of inventory management are widely known. All of them are based on two fundamental factors: order size and the time between two adjacent deliveries. The variety of additional conditions (discounts depending on the size of the delivery lot, penalties due to deficits, the volume of safety stock, etc.) make the task of developing a working model to minimize total costs extremely difficult. It is another factor that looks interesting - the multi-level structure of reserves allocation.
In (Aslakhanov A.R., 2017; Lukinskiy V.V., Aslakhanov A.R., 2017), an integrated inventory management model was developed that would take into account deficit costs, randomness of demand and logistics cycles duration, as well as a predetermined planned level of end-user service. The model was developed for cases of two-level supply chains, which is a serious limitation for applying the model in practice.
In this paper, the model will be expanded for the case of a three-level linear supply chains in order to assess the scalability potential of the developed model for business situations and to assess the possibility of using the developed model in conjunction with reinforcement learning methods.
Keywords: inventory management Economic order quantity safety stock supply chain management total logistics costs
Recycling of clothes in sustainable supply chains
MAGAZINE №6 (95) December 2019
AUTHORS Lakhno Y.V.
CATEGORY Industrial companies’ corporate logistics Supply chains reliability and sustainability Return flows management (reverse logistics) Modern concepts and technologies in logistics and SCM
ABSTRACT
A significant increase in clothing production, following the optimization of the largest brands supply chains, has led to modern consumers considering the cheapest items of clothing almost disposable. Clothing production, especially from synthetic fibers, leaves a significant environmental footprint, and as a result of the accumulation of things in landfills, environmental pollution has increased markedly. In recent years, in order to remain valuable to consumers, corporations managing the largest fashion supply chains have become more environmentally, socially and business friendly. The growing population and the ingrained need for new fashion items make it necessary to further study the issues of sustainable development of clothing supply chains.
The article is devoted to the study of best practices in the field of clothing recycling management that allow minimizing the negative impact on the environment.
The following issues were researched: to consider measures taken in various countries to reduce clothing dumps, to identify the composition of partners involved in operations for collecting, sorting and processing material flows in the supply chains of fashion clothing; to analyze the experience of major global corporations in involving buyers in clothing processing; to identify problems and prospects for the development of the practice of processing clothing flows in the supply chains.
The following results of Russian and foreign researchers were used as theoretical and methodological basis of the study: first, the diversity of participants in the fashion industry, as well as the increasing scale of the problem of landfills and waste, indicate the need to use a systematic approach to problem-solving; second, modern supply chains do not develop without being transparent, which is provided by digital technologies; third, to ensure sustainable development, companies create closed supply chains, which involves re-designing supply chains and improving the efficiency of return flow management.
The empirical base of the study was made up of the experience of companies included in the Gartner rating of the 25 largest supply chains in 2019, materials from clothing manufacturers ' associations and international analytical companies.
The paper differentiates partners involved in the processing of clothing, identifies areas of use of new technologies that contribute to the processing of second-hand items. Based on the analysis, measures that allow developing the practice of closed supply chains in the fashion industry were identified. The paper concludes that recycling is still an expensive and complex process in the organization, leading to companies finding solutions for the reuse of clothing, giving it a fashionable appearance; ecological design is given more significance when the technology of clothes processing is laid down at the stage of creating clothes.
Keywords: supply chain management closedloop supply chain management recycling reverse logistics reverse material flow Industry 40
Specificity of Logistics Management Organizational Structure Development in Multinational Corporations
MAGAZINE №4 (93) August 2019
AUTHORS DEMIN A.S.
CATEGORY Logistic integration and coordination Human resource management and motivation
ABSTRACT
Logistics occupies an important role in the organizational structure of modern business management. With the transition to the concept of supply chain management (SCM), its responsibilities also include coordinating functions. On the other hand, SCM is a critical area for multinational corporations with enough market power. This article aims to bring together scientific knowledge in the field of organizational design of multinational corporations (MNC) and the construction of organizational structures for logistics management.
A key feature of designing the organizational structure of logistics management in MNCs is the increased importance of national culture. This is confirmed by the articles on the role of the human factor in the SCM. Besides, other articles show the influence of the national culture criteria on the practices of crossfunctional coordination. In this regard, it is important not only to understand the peculiarities of national cultures, but also to be able to use them when implementing SCM practices, in other words, to be culturally intelligent. The article demonstrated the possibility of considering these characteristics both in theoretical terms and in practice, using an illustrative example of a large MNC. In addition, the specificity of the divisional organizational management structure development was demonstrated, where, on the one hand, both regional and product specificities are considered, on the other, the principle of dual subordination is absent. The developed methodology seems to be effective as it expands the knowledge of the manager responsible for building a rational organizational structure for managing logistics.
Keywords:
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.
Keywords:
Digital Transformation of Retail Supply Chains
MAGAZINE №4 (93) August 2019
AUTHORS DYBSKAYA V.V., SERGEEV V.I., SERGEEV I.V.
CATEGORY Analytics and reviews Modern concepts and technologies in logistics and SCM Retail companies’ corporate logistics Information technologies in logistics and SCM
ABSTRACT
The article is devoted to actual problems of digitalization in the network retail industry. The role of supply chain management (SCM) in network retail is shown, and attention is focused on key trends in SCM, many of which are associated with the digital transformation of supply chains. The best practices in the field of digitalization of supply chains of industrial and commercial enterprises are analyzed. In particular, the article considers the experience of digital transformations of large world corporations supply chains, such as HP and Nokia, as well as the analytical reports of the leading consultants in SCM companies Gartner, Deloitte and Accenture on digitalization of enterprises in various sectors of the economy.
Based on the analysis, key trends in retail digitalization were identified and methodological approaches to the transformation of a conventional chain retailer's supply chain into digital were identified. The main digital technologies used today in Russia by network retail operators are identified.
A methodological approach to the digital transformation of the supply chain of a network retailer based on process (SCOR) modeling is proposed. Using the example of the largest network retailers of the Russian Federation, Magnit, X5 Retail Group, and M. Video companies, a SCOR model of a typical supply chain of a retail chain enterprise is constructed, based on which a possible list of digital technologies, systems and devices corresponding to each process in determined models.
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