For large enterprises consisting of a number of branches, the most appropriate type of structure is presented in Fig. 1.2.2.
A feature of this type of structure is that the divisions have their own supply services with functions for planning and operational regulation of the supply of production workshops and sites with material resources, as well as for monitoring their implementation.
The formation of a regulatory framework, forecasting and development of plans for material and technical supply, establishment of economic relations, and coordination of the work of supply services included in the enterprise are concentrated on the basis of the supply service of the enterprise. The interaction of the divisions of the supply service of the enterprise is carried out on the basis of functional connections, and not administrative subordination.
One of the links in the organization of material and technical supply is warehousing, the main task of which is to receive and store materials, prepare them for production consumption, and directly supply workshops with the necessary material resources. Warehouses, depending on their connection with the production process, are divided into: material, production, and sales.
Deputy director of the enterprise
Administrative subordination Functional subordination Warehouses Warehouses
Rice. 1.2.2 Diagram of the organizational structure of the supply service
Material warehouses, or logistics warehouses, are mainly designed to carry out warehouse operations with all incoming material and technical resources. These can be: raw materials, materials, semi-finished products, components, etc.
Industrial warehouses are designed to carry out warehouse operations with materials of own production. These can be warehouses for storing your own equipment and tools.
Sales warehouses are designed to house finished products of the enterprise.
Other specialized warehouses at the enterprise are designed to carry out warehouse operations with special-purpose materials.
Thus, the logistics supply of an enterprise with material resources includes the following functions:
· procurement and delivery of materials;
· warehousing and ensuring their safety;
· processing and preparation of materials for industrial use;
· logistics management.
1.3 Ways to improve the organization of the supply system
Many businesses are looking to improve their bottom line cost savings by leveraging sourcing and procurement functions. By highlighting supply operations as profit centers, forward-thinking companies strengthen relationships with suppliers and give supply a greater role in the strategic development of the organization.
Supply issues traditionally receive special attention from company management. In recent years, the influence of the efficiency of supply system management on the problem of maintaining their own competitiveness by enterprises has increased significantly. It's no secret that one of the best and time-tested ways to increase profitability, maintain high quality products and stimulate innovation is to reduce the cost of purchased materials and services. To achieve this, a holistic approach to supplier relationship management is needed, which would link supply strategy with its implementation and strengthen the participation of suppliers in the company's work.
Selecting a supplier is the basis for creating a sustainable supply base for any enterprise
The supplier must satisfy the quality and volume of products supplied, terms of product delivery, price and level of service. When choosing a supplier, important factors are its technical condition, infrastructure development, financial situation, labor relations and location.
Decisions about choosing a supplier can be considered as a choice under conditions of uncertainty, which is associated with a fairly high risk. The risk will increase when purchasing unknown raw materials or products. Therefore, you should turn to additional sources of information.
All this suggests that supplier evaluation is an ongoing process of monitoring the performance of existing suppliers. Typically, customer enterprises divide existing suppliers into two groups. The first includes new suppliers whose reliability has not yet been verified. The second group consists of suppliers who have already proven themselves in previous years. These suppliers are constantly evaluated from formal and informal perspectives. The informal assessment involves assessing personal contacts with the supplier and its employees. It is important to evaluate the activities of not only the existing supplier, but also the potential one. Verifying the activities of a potential supplier often requires a significant investment of time and money. When evaluating potential suppliers, the most important factors are the supplier's technical and engineering capabilities, its production and financial plan, and its ability to effectively manage production.
The main direction for improving the management of the material and technical supply process is the development of economically feasible direct long-term economic ties between enterprises. They create more flexible supply and sales conditions, ensure the required rhythm of product deliveries, increase production efficiency and labor productivity, improve the use of production assets of consumer enterprises and at the same time contribute to the formation of sustainable order portfolios from suppliers.
It is also important to expand and improve wholesale trade in means of production through territorial supply and sales bases, warehouses and shops. Wholesale trade includes the sale of products supplied through direct economic relations, through bases, warehouses, stores of territorial supply authorities, as well as commission trading of surpluses available from individual enterprises. It allows you to create more flexible conditions for supplying consumers in accordance with their orders, to better identify the actual need for materials and products of enterprises and organizations, both in volume and range, and in time.
2. ANALYSIS OF THE EFFICIENCY OF THE ORGANIZATION OF THE SUPPLY SYSTEM AT THE ENTERPRISE LLC "BEREG"
2.1 Brief description of the activities of the enterprise Bereg LLC
Limited Liability Company "Bereg" was founded in 2006. The main activity of the enterprise is wholesale and retail trade in fish products, carried out in the Samara region.
The head office is located in Samara, and one of its structural divisions is in the city of Samara. Tolyatti. Careful selection of partners, constant expansion of the assortment, and the formation of a flexible pricing policy allow the enterprise to be profitable and increase its share in the fish products market.
Basic operating principles of Bereg LLC:
Wide range of products
High quality of supplied products
Strict compliance with sanitary and hygienic rules and requirements
Low prices
Regularity of deliveries
Qualified personnel
Individual approach to each customer.
Let us present in Table 2.1.1 the data characterizing the structure of retail turnover for 2008-2009. for the main groups of goods sold in the division of Bereg LLC in Tolyatti.
Table 2.1.1
Structure of retail trade turnover for 2008-2009 by main product groups
If you analyze the structure of retail trade turnover, you can identify a change in the shares of goods sold in the presented groups, which is explained by changes in consumer preferences and the emergence of new competitors providing different payment terms.
Determining the procurement method
The organization of the supply process includes:
· creation of process infrastructure;
· creation of an organizational structure for supply management.
Let's look at each of these components.
1. The supply infrastructure includes divisions of warehouse and transport facilities.
2. The basis for determining the organizational structure of supply management should be the principles that provide all the functions of managing a set of divisions. These are, first of all, low-level management, flexibility, an effective communication system, the principle of unity of command and a clear delineation of functions.
There are 2 main options for organizing supply, which fundamentally differ from each other in their ability to implement a systematic approach to managing material flows in the process of providing the enterprise with raw materials:
· centralized;
· decentralized.
How exactly supply is organized depends on the type and size of the organization. In a small organization, one employee may be responsible for all purchasing. A medium-sized organization may have a department staffed by purchasing staff, freight forwarders, warehouse workers, etc. In a large organization, procurement may involve hundreds of people coordinating huge purchases of materials.
If an organization approaches the procurement process from a decentralized position, then department employees will independently carry out procurement, each for their own department (Appendix 1).
Advantages of this approach:
1. the user knows the department's needs better than anyone else;
2. the ability to more quickly satisfy the need for material resources.
Disadvantages of decentralized procurement:
1. while solving operational issues, employees may not notice trends in changes in the planning of the organization as a whole;
2. insufficient professionalism of employees and problems in determining supply opportunities;
3. no department can be large enough to carry out functional analysis in areas such as customs, transport services, warehousing, inventory management, purchasing analysis, etc.
As you can see, the tasks “what to buy” and “how much to purchase” are decided by the service provision directorate. Work on storing purchased items of labor is also carried out here.
The tasks of “who to purchase from” and “under what conditions to purchase” are resolved by the procurement directorate. The above supply work is also carried out here, i.e. contracts are concluded and their implementation is monitored. As a result, the function of managing material flow in the process of supplying an enterprise with raw materials is divided between various services and its effective implementation is difficult.
To carry out centralized procurement, one procurement department is usually organized, concentrating all supply functions of the organization, which allows obtaining certain benefits:
1. consolidation of all purchases of similar or similar materials, which makes it possible to receive discounts for large orders;
2. coordination of related activities to reduce transportation, storage and maintenance costs;
3. eliminating duplication of operations and unnecessary techniques;
4. having a single point of contact with suppliers and providing them with the necessary information and services;
5. concentration of responsibility for supply, which facilitates the implementation of management control (Appendix 2).
6. This option involves the concentration of all supply functions in one hand. This structure creates ample opportunities for logistical optimization of material flow at the stage of procurement of labor items.
In order to properly organize the supply process at an enterprise, it is necessary to know supply planning methods, from which you can select a specific method or group of methods for implementation in the enterprise and effective use in the future.
Methods of supply planning at an enterprise include the following main systems: MRP I, MRP II, JIT, CIM, ERP, etc.
MRP I (“Material Requirements Planning”) is a system consisting of a series of logistically related procedures, rules and requirements, synchronized in time for each unit of components required to meet the production schedule.
The goals of this system:
· meeting the needs for materials, components and components for production planning;
· planning production operations, delivery schedules, purchasing operations.
The MRP I system begins its work by determining how many final products need to be produced and in what time frame. The system then determines the time and required quantities of material resources to meet the needs of the production schedule.
At the output, the system provides a set of documents, including schemes for the delivery of material resources by department, volumes and delivery times. Thus, MRP I is planned to “push” material resources across departments.
MRP II (“Manufacturing Resource Planning”) is a closed-loop system related to detailed production planning, financial planning of materials and production costs, and production progress modeling. This system differs from MRP I in the flexibility of planning, providing better organization of supplies and better response to changes in demand. An important place in MRP II is occupied by demand forecasting, ordering and inventory management blocks.
As a result of using this system, material resources in the warehouse are reduced, problems of optimizing material flows and other positive effects are solved.
JIT (just-in-time concept) is characterized by minimal inventories, short supply chains, and purchasing relationships with a small number of reliable suppliers and carriers.
CIM (the concept of “computerized integrated production”) - involves the integration of all subsystems of the management system (supply management, design and production preparation, transport and warehouse systems, etc.)
ERP (Enterprise Resource Planning) - includes advanced planning and scheduling, final resource planning, product data management, etc. The main task of the ERP system is to achieve optimization (in terms of time and resources) of the listed processes.
When the form of organization and supply planning is formed and selected, the management of the enterprise decides on the choice of procurement method.
The choice of procurement method depends on:
· on the complexity of the final product;
· on the composition of components and materials.
You can consider the most commonly used methods.
1. Purchase of goods in one batch. The method involves supplying goods in large quantities at a time (bulk purchases).
Its advantages: ease of paperwork, guaranteed delivery of the entire batch, increased trade discounts.
Disadvantages: large need for warehouse space, slower capital turnover.
2. Regular purchases in small quantities. In this case, the buyer orders the required quantity of goods, which is supplied to him in batches over a certain period.
The advantages are as follows: capital turnover is accelerated, since goods are paid for as individual shipments are received; savings on storage space are achieved; The costs of documenting the delivery are reduced, since only an order is placed for the entire supply.
Disadvantages: likelihood of ordering excess quantities; the need to pay for the entire quantity specified in the order.
3. Daily (monthly) purchases according to quotation sheets. This purchasing method is widely used where cheap and quickly used goods are purchased. Quotation statements are compiled daily (monthly) and include the following information:
· full list of goods;
· quantity of goods in stock;
· required quantity of goods.
Advantages: acceleration of capital turnover; reduction of warehousing and storage costs; timeliness of deliveries.
4. Receiving goods as needed. This method is similar to regular delivery of goods, but has the following features:
· the quantity is not set, but determined approximately;
· suppliers contact the buyer before completing each order;
· only the quantity of goods delivered is paid for;
· upon expiration of the contract, the customer is not obliged to accept and pay for goods that have yet to be delivered.
Advantages: no firm commitment to purchase a certain quantity; acceleration of capital turnover; minimum paperwork.
5. Purchase of goods with immediate delivery. The scope of application of this method is the purchase of infrequently used goods when it is impossible to obtain them as needed. Goods are ordered when they are needed and shipped from suppliers' warehouses.
The disadvantage of this method? in increasing costs associated with the need for detailed documentation for each order, fragmentation of orders and multiple suppliers.
Organization and planning of supplies, as well as the choice of procurement method, are not possible without accompanying information support for the procurement activities of the enterprise.
1.3.1. Organizational issues of the supply department
The organization of supply depends on the type and size of the organization. In a small organization, one employee may be responsible for all purchasing. A medium-sized organization may have a department staffed by purchasing staff, freight forwarders, warehouse workers and clerks. In a large organization, procurement may involve hundreds of people coordinating huge purchases of materials.
Main issues of organizing the work of the procurement department:
1) how to organize procurement: centrally or locally?
2) what issues will the procurement department be authorized to resolve?
3) what will be the status of the procurement department, to whom will the purchasing director report?
4) what will be the organizational structure and distribution of responsibilities within the procurement department?
Organizations whose divisions are geographically remote from each other may, in some cases, resort to local options for organizing procurement. But usually the supply of an enterprise is organized by one department, which allows you to benefit from centralized procurement:
· elimination of duplication;
· consolidation of all purchases of similar or similar materials, which allows you to receive discounts;
· coordination of related activities to reduce transportation, storage and maintenance costs;
· presence of a single point of contact with suppliers;
· reduction of costs for transportation, storage and maintenance;
· concentration of responsibility for supply, which facilitates management control.
In Fig. 10.1 presents two options for the organizational structure of an enterprise, which fundamentally differ in the possibilities of implementing a systematic approach to managing small enterprises.
In the version shown in Fig. 1.1a, the MP management function in the supply process is divided between various services, which reduces the efficiency of its implementation. The structure shown in Fig. 1.1, b, eliminates this separation by combining inventory management, purchasing and warehousing in one hand.
The rank of the manager to whom the purchasing manager reports is a good indicator of the status of the purchasing department in the enterprise. If the director of purchasing is a vice president and reports directly to the head of the company, this shows that procurement is recognized as a function at the senior management level. But there are situations when the purchasing department reports to the executive director for production, or the vice president for administrative issues, or the financial director of the enterprise, or the chief engineer service.
1.3.2. Standard procurement procedure
Having selected a supplier and entered into purchasing agreements, the organization must then follow a specific procedure, which depends on the type of product being purchased. In Fig. 1.2 presents typical steps of the procurement cycle, which can become more complex or simpler.
The first three steps lead to the selection of materials and supplier, and then, in step 4, comes the main point of placing a purchase order. Here, the organization agrees to buy specific materials from a supplier, after which the purchase order sets in motion the entire supply chain (along with the necessary production planning, shipping agreements, financing, etc.). Purchase order is part of a legal contract between an organization and its supplier. The remaining steps lead to clarification of delivery details.
Rice. 1.1. Options for implementing the supply function at an enterprise
Rice. 1.2. Typical steps in the purchasing cycle
All these actions lead to certain costs, Sometimes quite high, which leads to a search for ways to reduce them.
There is another problem - significant time required for their implementation. Sometimes it can take one day for materials to arrive from a supplier, although arranging the delivery itself can take up to five weeks.
1.3.3. Electronic supply
Most organizations today use electronic procurement in one form or another. A number of surveys have concluded that since the early 2000s, over 50% of European companies have used this supply option. The main benefits provided by electronic procurement include:
· gives instant access to suppliers located anywhere in the world;
· creates a transparent market in which products are easily accessible and the conditions for obtaining them are acceptable;
· automates procurement using standard procedures;
· significantly reduces the time required for transactions;
· reduces costs (usually by 12–15%);
· integrates its own information system with similar systems of suppliers.
It should be remembered that electronic procurement primarily provides much better communications, but does not necessarily improve physical material flow. The main impact of electronic procurement is not only in increasing the speed of procurement, but in its effect on the supply chain. Now customers can buy from many suppliers, geographically distant from each other. In addition, they can buy directly from manufacturers or entry-level suppliers, and can also take advantage of a variety of specialized web retailers.
1.3.4. Methods of purchasing and supplying purchased materials
Organizations vary the sophistication of their procurement procedures based on the types of materials purchased. Generally speaking, the higher the material costs and the more complex the material requirements, the more time and effort the purchasing department requires.
Types of materials requiring different purchasing approaches:
· for non-essential materials , providing low profits and creating little risk in supplies, simple procurement procedures are used;
· materials the absence of which may cause difficulties in operation, and availability provides low profits and creates higher supply risk, require establishing long-term contacts with alternative sources to avoid potential problems;
· strategic materials , providing high profits, require the conclusion of more formal relationships with suppliers for a longer period, possibly the creation of associations and partnerships.
The choice of procurement method is very important because... the turnover of inventories and capital of the enterprise, the costs directly for the purchase of materials, for placing orders, for storing inventories, warehouse space, etc. depend on it. The choice of procurement method depends on the KM policy, the complexity and significance of the final product for the enterprise, the composition of components and materials.
Basic procurement methods
· Purchase of goods in one batch involves the delivery of goods in large quantities at a time (bulk purchases). In this way, goods can be purchased, the need for which arises unexpectedly, and which do not require long-term storage. Pros: ease of paperwork, guaranteed delivery of the entire batch, increased trade discounts. Cons: Greater need for warehouse space, slower capital turnover.
· Regular purchases in small quantities . The buyer orders the required quantity of goods, which are supplied to him in batches over a certain period in accordance with the demand schedule. Pros: capital turnover accelerates, since goods are paid for as individual shipments are received; savings in warehouse space are achieved; the costs of documenting delivery are reduced, because Only an order for the entire delivery is placed. Cons: probability of ordering excess quantities of goods; the need to pay for the entire quantity of goods specified in the order.
· Daily (monthly) purchases according to quotation sheets used where cheap and quickly consumed goods are purchased. Quotation sheets are compiled daily (monthly) and include the following information: a complete list of goods; quantity of goods in stock; required quantity of goods. Pros: acceleration of capital turnover, reduction of warehousing and storage costs, timely deliveries.
· Purchases as needed similar to regular supply of goods, but characterized by the following features:
The quantity of goods supplied is not set, but determined approximately;
Suppliers contact the buyer before fulfilling each order;
Only the quantity of goods delivered is paid, i.e. upon expiration of the contract, the customer is not obliged to accept and pay for goods that have yet to be delivered.
Pros: absence of firm commitments to purchase a certain amount of goods, acceleration of capital turnover, minimum paperwork.
· Forward purchases can be produced in two forms:
The organization orders more materials than it currently needs and stores the excess in inventory;
Concluding contracts for the delivery of MP at a specified time in the future.
· Various combinations of the above methods.
Supply chain management must become a strategic customer-centric program. A comprehensive reorientation of the traditional supply chain is required. Procurement should be related to strategic supply chain management. The construction of a supply system should be based on such principles as:
ü systematic - supply of goods according to demand for it;
ü rhythmicity - delivery of goods at relatively equal intervals of time, which creates optimal conditions for the operation of wholesale and retail trade enterprises, warehouses, transport and other parts of the supply chain;
ü efficiency - implementation of the process of supplying products depending on changes in demand for it;
ü profitability - minimal costs of working time, material and financial resources for product delivery.;
ü centralization - purchase of goods by specialists centrally for all divisions of the company, based on a unified policy for working with suppliers;
ü technological effectiveness - use of modern procurement and supply technologies
To achieve efficient functioning of the supply system, the logistics system management mechanism must be subordinated to the goal or task implemented with its help. The main goal of the supply process is for the consumer to receive the required quality and quantity of products, at the right time, in the right place, with the required level of service (both before and after sale) and at the right price.
Considering the stage-by-stage construction of a supply management system, it is advisable to highlight the main components, giving them a detailed explanation. Thus, the supply process can be divided into the following components: purchasing, transportation, warehousing and distribution.
The supply process in the company presented in the diagram can be attributed to a multiline (functional) structure of distribution of powers. In such a structure, the distribution of responsibilities among functional units is carried out in accordance with the specifics of equivalent specialized tasks, i.e. it is assumed that various types (functional areas) of the logistics activities of the enterprise are carried out by specialized functional units. Thus, the entire procurement process consists of four components.
This structure of distribution of responsibility contributes to the rapid accumulation of professional knowledge among employees, but there are certain disadvantages - in this case, the connections between employees of functional departments are weakened, which can negatively affect the overall performance result.
The supply policy consists of the following elements:
ü description of the organizational structure of the supply department;
ü identification and study of sources of resources and suppliers of products;
ü determination of needs and calculation of the quantity of ordered products;
ü order flow diagram;
ü establishing the quantity and timing of deliveries and monitoring them;
ü inventory management;
ü accounting and control of the progress of fulfillment of contractual obligations.
To satisfy the wishes of a client or consumer, and this is the main goal of any company and the work of the supply department in particular, it is necessary not only clear interaction between the functional divisions of the company that ensure the supply process, but also a clear understanding of the needs of customers as such, that is, those expectations, requirements, which the client presents to the company. This is due to the fact that supply work directly depends on the desires of the consumer, who forms the market and demand for products of any kind. By formalizing the supply process, the company's goal is to constantly improve indicators such as costs, processing time (orders) and quality. In this case, the basic indicator is the quality of the processes carried out. Because it is through the quality of processes and improved supply operations that reliability increases. And with reliability, it is possible to reduce the processing time. Reducing the time required to complete the processes required to replenish stocks allows for a faster response to changes in customer wishes. And this means increasing the company’s competitiveness in the market and gaining certain advantages over other competitors.
Despite the fact that the speed of order processing and fulfillment is one of the main factors influencing the quality of customer service, it is necessary to give a complete list of factors that allow you to become a market leader in a fiercely competitive environment, namely:
ü speed of order fulfillment (time from the moment the order is sent to the receipt of the product);
ü possibility of urgent delivery of products upon special order;
ü the supplier’s readiness to accept back the delivered products if a defect is found in them, and replace them as soon as possible with high-quality products (or accept back the products without finding out the reasons for their refusal);
ü ensuring various volumes of product shipments;
ü ability to choose the most suitable type of transportation;
ü the presence of an effectively functioning consumer service service;
ü the presence of a reliably functioning distribution and warehouse network;
ü sufficient level of product reserves;
ü the price level at which services are provided to consumers.
All of the above factors can be grouped and two main areas of work of the supply service can be distinguished: the ability to deliver the necessary goods to the client as quickly and efficiently as possible, i.e. fulfill the order and build an effective system of interaction with suppliers of goods.
Information readiness is determined by the ability of the enterprise to provide the data requested by the consumer at all stages of order fulfillment.
Main tasks of the information system:
· continuous provision of the management bodies of the logistics system with reliable, relevant and adequate information about the movement of the order (about the flow of functional and information processes);
· continuous provision of employees of functional departments of the enterprise with adequate information about the movement of products along the supply chain in real time;
· implementation of an enterprise operational management system based on key indicators (cost, cost structure, profitability level);
· ensuring transparency of information about the use of invested capital for management;
· providing information for strategic planning;
· providing management with information on the structure of total costs and expenses;
· ensuring the possibility of timely identification of bottlenecks;
· ensuring the possibility of redistributing enterprise resources;
· providing the ability to estimate the timing of fulfillment of consumer orders;
· ensuring the profitability of the enterprise by optimizing logistics business processes.
Advantages of using information systems in the field of procurement:
1. Computerized processing of procurement procedure data reduces manual processing to a minimum. This reduces the number of possible errors and reduces processing time.
2. Accounting information becomes more accurate and accessible upon request. This ensures better preparation of negotiations, better prices and quality.
3. Control over operations is improved not only due to the availability of information for making the right management decisions, but also due to the ease of processing large amounts of data. Consumers are freed from repetitive tasks and have more free time to devote to value-added tasks.
4. Operations are improved through the availability of operational data and improved control over operations. Employees of an enterprise's purchasing department can more fully integrate their actions with the actions of employees in other departments of the enterprise.
5. Supplier relationships can be improved by accelerating the flow of accurate data.
Information support for logistics at an enterprise is the activity of forecasting, processing, accounting and analysis of information and is a tool for integrating elements of the logistics management system.
Supply chains. Today they play a very active role in developing a scheme for the supply of goods and their control in response to already known consumer demand. They control, organize and manage the supply chain from production to consumption. This is the essence of retail logistics and supply chain transformation.
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Lecture 10. specifics of supply of trading enterprises.Supply chains.procurement process infrastructure
Previously, retailers were effectively passive recipients,placing manufacturers' products on store shelves in anticipation of demand for them.Today they play a very active role in developing and controlling the supply of goods,responding to already known consumer demand.They controlorganize and manage the supply chain from production to consumption.This is the essence of retail logistics and supply chain transformation.
Times have changedand along with it, the logistics of retail sales has changed.Retailers command the supply chain and set the pace for logistics.By expanding the scope of control and focusing on efficiency and profitability,(retailers) retailers are making efforts toto create an attitude towards even greater cooperation and cooperation in solving many logistics problems. They admit that there is still a real opportunity to profit from standards and profitability,but this profit can only be obtained through supply channels,that is, in close cooperation with manufacturers and intermediaries,providing logistics services,and not just at the level of work within one particular company.
In 1996 Alan McKinnon analyzed the key components of this retail logistics transformation.He identified six closely interrelated and mutually reinforcing areas:
- Increased control over secondary distribution.
Under "distribution" actions are understoodrelated to the organization of movement of materials,finished products and spare parts from the manufacturer to the consumer.
Retailers have strengthened control over secondary distribution of goods (from warehouse to store) , passing the majority of its supplies through distribution centers.In some sectors,for example food,Today this process can be considered virtually completed.UK retailers are exercising tighter control over the supply chain,than their counterparts in other countries.The logistics activities they control significantly depend on information technology,especially from the integrated inventory replenishment system in large warehouses,which coordinates the movement and storage of a huge number of individual goods.
2. Restructuring of logistics systems
Retailers have reduced their inventory levels and significantly increased cost efficiency by using « mixed distribution of goods"(composite distribution) ( movement of goods,requiring different temperature conditions,through the same wholesale base using the same vehicle) and centralization of low-moving stocks in warehouses specially designed for this purpose.For retail businesses,selling a wide variety of goods,unified premises for storing products have been created,in which inventories are grouped depending on the number of retail outlets and taking into account the demand for a particular product at each individual outlet.
3. Application of logistics « rapid response"(QR)
The goal wasto reduce inventory levels and increase the speed of product flow.It was also important to reduce order fulfillment time and achieve greater frequency of deliveries with smaller quantities of goods, both within the framework of the activities of one company (between the distribution center and the retail outlet) , and when interacting with external partners (between supplier and distribution center) . This approach has significantly increased both the speed of inventory movement,as well as production volumes,"past" through continuous cross-warehousing(cross-docking), and proved to be more efficient than the practice of storing inventory in distribution centers.
« Fast response"(Lawson, King, Hunter, 1999) made possible through the use of electronic data interchange(Electronic Data Interchange - EDI) and " e-commerce points"(Electronic Points of Sale - EPOS). The introduction of the latter has stimulated the installation of the system by many large retailers « fulfillment of orders based on sales"(Sales Based Ordering - SB0). After that, how a particular product was sold by a store,and information about this was passed through a scanning device,the data was sent to the replenishment and order replenishment systems,followed by a quick response to the emerging demand for this product.The transfer of such information to key suppliers leads to subsequent integration of production and delivery systems.Most Englishretailers were able to more quicklythan their counterparts from continental Europe,adapt these technologiesalthough they, too, still have to spread out their work with a large number of small retail enterprises.
4. Streamlining Primary Distribution(factory - warehouse)
Partly influenced by logistics « rapid response» , and partly as a result of increasing competition, retailers have significantly expanded the extent of their control over the distribution center(that is, over the area from the center to the manufacturer) . Trying to increase the efficiency of our own logistics capabilities,Many retailers have integrated their secondary and primary distribution operations into a single"channel systems". As a result, they were able to reduce losses and increase economic efficiency.
5. Increasing the volume of recycling of packaging materials and the use of special equipment for recycling
Currently the number is increasingretailers,who actively use the so-called « inversion logistics» operations. This trend became widespread immediately after the approval of the EU packaging directive.Since today the UK is somewhat behind other EU member states in resolving this issue(particularly from Germany), There are still many opportunities to develop new forms of reusable containers,and on the development of new inverse logistics systems,regulating their use.
6. Implementation of supply chain management systems(SCM) and " effective response to the consumer"(ECR)
By increasing the economic efficiency of your logistics operations,Most retailers have come to the need to work more closely with their suppliers.This was driven by a desire to maximize the efficiency of the retail supply chain as a whole.Supply chain management(Supply Change Management - SCM), and within its framework “ system of effective response to the consumer» (Efficient Consumer Response - ECR) help both retailers,and their suppliers can coordinate their activities more effectively.In the UK, appropriate technologies have been developed for SCM and ECR and conditions have been created for the implementation of these systems.
Obviously, that in recent years the trend isdescribed in McKinnon's work (1996 ) , have become a priority for most retailers. Such questions as primary distribution and selling price,consolidation warehouses and warehouses « without stockpiling" and also " joint planning,forecasting and replenishment» ( Collaborative Planning Forecasting and Replenishment- CPFR), attracted a lot of attention.Retail logistics has shifted from specific functional aspects of product movement to an integrative method,consisting in the development of end-to-end(end-to-end) supply chains.This method is called « supply chain management» .
Supply organization involves the creation of an infrastructure for the supply organization process and an organizational structure for supply management.
Components of the infrastructure of the supply organization process.
The supply infrastructure includes warehouse units, transport, procurement farms.Individual enterprises may also have divisions for processing industrial waste and packaging waste.
Warehousing can be represented by a network of general plant warehouses or warehouses of individual production facilities,workshop warehouses and storage areas in large specialized areas.In general, the structure of warehouse facilities at enterprises is determined by the sectoral nature of production,scale and size of the enterprise,size and type of production,as well as the organization of production and management.
To perform technological functions for materials processing,procurement and preparation of products for industrial consumption at enterprises creates a procurement facility,which is included in the organizational supply structure of the enterprise.
The determination of the organizational structure of supply management should be based on the principleswhich provide all management functions for a set of divisions.This is first of all:low level of management, flexibility, effective communication system,the principle of unity of command and a clear division of functions.
There are two main forms of organizing supply management:centralized and decentralized. How exactly is the supply organized?depends on the type and size of the organization.In a small organization, one employee may be responsible for all purchasing.In a medium-sized organization, a department can be createdwhere employees work,carrying out procurement,freight forwarders,warehouse workers and clerks.In a large organization, hundreds of people may be involved in procurement,coordinating huge purchases of materials.
If an organization approaches the procurement process from a decentralized perspective,then department employees will independently carry out purchases,each for his own department.
Advantages of this approach:
1 ) the user knows the needs of the department better,than anyone else;
2 ) the ability to more quickly satisfy the need for material resources.
Disadvantages of decentralized procurement:
- solving operational issues,employees may not notice trends in the planning of the organization as a whole;
- insufficient professionalism of employees and problems in determining supply opportunities;
- no unit can be large enough toto carry out functional analysis in areas such ashow to deal with customs,transport services, warehousing, stock management,procurement analysis, etc.
To carry out centralized procurement, one supply department is usually organized,concentrating all supply functions of the organization,which allows you to get certain benefits:
- consolidation of all purchases of similar or similar materials,which makes it possible to get discounts for large orders;
- coordination of related activities to reduce transportation costs,storage and maintenance;
- eliminating duplication of operations and unnecessary techniques;
- having a single point of contact with suppliers and providing them with the necessary information and services;
- obtaining specialized qualifications and improving procurement operations;
- the ability to concentrate other employees on their own functions,so that they are not distracted by purchasing;
- concentration of responsibility for supply,which facilitates the implementation of management control.
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