MAGAZINE №3 (62) June 2014
AUTHOR KOVALCHUK A.G.
CATEGORY Analytics in logistics and SCM Optimization and economic-mathematical modeling Controlling Simulation
ABSTRACT
High level of competition is an essential feature of modern business. In Russian business practice – logistics departments are the main cost centers and the fact that logistics creates the additional value for the customer is simply ignored.
System modeling helps to solve some of the issues related to the logistics contribution into company value. As a possible result – the release of the company's facilities, updated logistics strategy, reducing the share of logistics costs in the final price of the product.
The article highlights issues such as the impact of logistics on the profitability of the company's capital, the ability to assess this impact. Within the paper the model to estimate this impact is developed. A series of simulations to develop a model were held, including simulations on using real figures from one of the leading Russian pharmaceutical companies.
During the simulations the individual impact of factors on the company’s capital, and the influence on it of a group of factors was assessed. Analysis after the simulations allowed to establish the relationship between components of the model. Revealed patterns can be used in the future for the development or correction of the company’s logistics strategy. Regularities, identified within the simulations can be approximated to the actual dependencies, with the statistics accumulation and taking into the consideration the environmental factors (geopolitics, demographics, etc.).
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