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TOPICAL ISSUES OF LOGISTICS. Учебное пособие для студентов-магистров направления «Экономика»

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civilizations tried to build the best possible works of construction for living and protection. Now construction logistics has emerged as a vital part of construction. In the past few years, construction logistics has emerged as a different field of knowledge and study within the subject of supply chain management and logistics.
There is also Military logistics
Logistics Management is that part of the supply chain management and supply chain engineering that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of
consumption in order to meet customers’ requirements. The
complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is often called a logistician.
Supply Chain can be defined as having the right item in the right quantity at the right time at the right place for the right price and is the science of process and incorporates all industry sectors. The goal of logistic work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization.
There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a
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network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project
(e.g., restructuring a warehouse). Many companies specialize in
logistics, providing the service to manufacturers, retailers and other industries with a large need to transport goods. Some own the full gamut of infrastructure, from jet planes to trucks, warehouses and software, while others specialize in one or two parts. FedEx, UPS and DHL are well-known logistics providers. Typically, large retailers or manufacturers own major parts of their logistics network. Most companies, however, outsource the function to third-party logistics providers.
Task 1. Answer the questions
1. What are the main functions of a qualified logistician?
2. How can Supply Chain be defined?
3. What is logistic management?
4. What is the operating responsibility of logistics?
5. How many forms does logistics have?
6. Is logistics an art or a science?
7. What is the goal of logistical work?
8. What are the principle types of logistics?
Task 2. Give terms according to the definitions
1. the geographical repositioning of raw materials, work in
process, and finished inventories
2. art and science of managing and controlling the flow of
goods, energy, information and other resources from the source of production to the marketplace.
3. part of the supply chain management and supply chain
engineering that plans, implements and controls the
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efficient, effective forward and reverse flow and storage of goods, services
4. logistic processes within a value-adding system
5. specific time-critical modes of transport used to move
goods or objects rapidly in the event of an emergency
6. activities required to set up or establish a plan for
logistics activities to occur
7. attempts to measure and minimize the ecological impact
of logistics activities
8. activities required to set up or establish a plan for
logistics activities to occur
Task 3.
Grammar Revision: Find the sentences with Attributive groups (String compounds) and translate them into Russian
Unit 2. Top 10 Supply Chain Trends in 2021
1. Resilience is a key focus of risk prevention. Supply chains are complex, global and increasingly interconnected. When one part of the network is exposed to risk, all are vulnerable to disruption. Focusing on supply chain resilience in conjunction with risk prevention will enable companies to mitigate adverse events faster than the competition, take market share and outperform.
2. E-commerce boom elevates consumer expectations of flexible shipping and fulfillment options. As previously mentioned, the pandemic impact of consumers shopping online is forcing companies to create new and innovative last-mile delivery solutions such as turning retails stores into fulfilment centers, delivery vehicles into pickup points and passenger vehicles into delivery vehicles. Distribution centers and
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transportation hubs will move closer to key retail partners to enable better real-time tracking and logistics optimization.
3. Using digital supply chain proactively. The transformation from loosely connected sets of data, processes and people toward a fully integrated, end-to-end supply chain will significantly enhance visibility. Information-sharing and global
data harmonization and standardization will shift today’s focus
on putting out fires to predicting them. Likewise, large-scale vaccine distribution will be impossible without a visionary digital approach.
4. Introduce supply chain career path early. Supply chain organizations need a robust strategy for hiring and retaining diverse talent. Partnerships with universities and other organizations will develop flexible programs to prepare current and future industry professionals to drive the supply chains of the future. Companies must do their part to influence the younger generation, women and minorities to pursue a supply chain career.
5. 3D printing to the rescue. COVID-19 gave the world a glimpse of how 3D printing can be used temporarily to alleviate the strain on supply chains during demand surges and shortages as it did with medical equipment. Inventors are combining 3D printing with traditional processes creating unique combinations of parts that perform better with lower cost that can be manufactured closer to the customer, all while being more sustainable.
6. Accelerated use of analytics and automation across the supply chain. Implementation of artificial intelligence and machine learning for predictive and prescriptive analytics will continue to accelerate, with broad-reaching effects across the end-to-end supply chain. Businesses that harness the power of big data and automation will have a competitive advantage in visibility, executional efficiency, quality and profitability.
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7. Cybersecurity is a prerequisite for survival. The explosion of data and data-driven organizations through artificial intelligence, blockchain and the Internet of Things (IoT) is creating much more interwoven areas of vulnerability in systems and tools. Social engineering, ransomware and exploiting even the tiniest gaps of vulnerability will continue. Supply chains must protect their networks, devices, people and programs.
8. Low cost and reliability increase IoT usage. The IoT continues to revolutionize supply chains by increasing visibility and real-time tracking for both raw materials and final products not to mention life-saving vaccines. Cheap and reliable are making networks more responsive and competitive. Cheap and reliable sensors that provide large amounts of data will be essential.
9. Corporate citizenship comes with challenges. The ethical and ecological expectations of consumers will drive supply chains to determine how they source, produce and serve their products in sustainable, eco-friendly and profitable ways. This could create challenges for all constituents, including consumers, who may experience price increases, quality issues or product availability problems.
10. Changing demographics. Migrations to cities are creating new urban landscapes that have different supply chain and infrastructure challenges. Populations in the West face an ongoing talent shortage, as populations shrink while the workforce ages. As consumer and talents pools continue to evolve, supply chain leaders will need to be fixated on ways to optimize performance to be responsive while also managing sourcing and logistics costs.
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Task 1. Answer the questions
1. What is a key focus of risk prevention?
2. Why is cybersecurity of vital importance?
3. Why could ethical and ecological expectations of
consumers create challenges?
4. What ensures predictive and prescriptive analytics ?
5. What does the abbreviation IoT stand for ?
6. What can increase IoT usage ?
7. Why does E-commerce boom elevate consumer
expectations?
Task 2. Fill in the gaps
1. ……. are complex, global and increasingly
interconnected.
2. The pandemic impact of consumers shopping online is
forcing companies to create new and innovative …….delivery solutions.
3. Distribution centers and ……. will move closer to key
retail partners to enable better real-time tracking and logistics optimization.
4. The IoT continues to revolutionize …….. by increasing
visibility and real-time tracking.
5. Cybersecurity is a prerequisite for …….
6. ……..expectations of consumers will drive supply
chains to determine how they source, produce and serve their products in sustainable, eco-friendly and profitable ways.
Task 3.
Grammar Revision: Find the sentences with ing-forms and translate them into Russian
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Unit 3. Nodes of a Distribution Network
When a company is founded, it is usually small and so only has one production plant and a limited number of customers to be served. Therefore, goods are generally delivered to customers straight from the production plant, with no intermediate steps. The company then sees its business grow in terms of both size and geographical coverage. The number of products (which may be manufactured in different plants) increases, and so does the number of customers (who may also be located in areas a long way from the original customers). At this point, to serve the most distant customers with a complex mix, it could become necessary to create the first local infrastructures, through which the goods can transit prior to delivery to customers. But this is not enough. Customer service also has to be upgraded. To achieve the necessary level of service, it is essential to establish a very complex distribution network, consisting of several levels (plants, regional depots, local depots, etc.), which allow goods to be placed closer and closer to a very large number of far-flung customers.
Considering the “distribution network” part of the logistic
system from an evolutionary viewpoint, which means analyzing how a network generally changes during a company’s lifetime, we can identify two basic major changes:
1. Consolidation of market position
After the rapid growth phase, a company normally enters a phase when it consolidates its market position and thus its business and its customers. In this phase, the underlying concept of every strategy is often one of efficiency. In practice, the intention is to keep offering an excellent level
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of service, but to do so without waste. The distribution network is therefore carefully analyzed and often rationalized: naturally, the plants, and also the regional warehouses, remain the same, but there is some reduction in the local depots. This may be because the management may have thought too big, or perhaps because of a rise in the number of customers placing large orders, which can therefore also be shipped directly from the plant or the regional warehouse.
2. The search for profitability
This objective is dominant both when the business is going well (enough has been invested and now it is time to harvest
the benefits) and when there is a “crisis looming” (only
choices which guarantee immediate returns can be adopted).
In these situations, the network will be modified again. In practice, the rationalization process launched in the previous phase becomes more intensive, affecting all facilities: fewer plants, fewer depots and fewer customers (only the most
important are retained). Basically, the distribution network’s structure is now similar to that in the company’s initial
phase.
The nodes of a distribution network include:
- Factories where products are manufactured or assembled
-Warehouses for storing merchandise (high level of
inventory)
The concept of a traditional warehouse is simple; it’s a
large building that stores bulk quantities of product or ecommerce inventory. Distribution centers for order
processing and order fulfillment (lower level of inventory)
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and also for receiving. In order for a business to grow and
compete with other brands that sell similar items, they need more than just inventory storage they need expertise, technology, and processes to help streamline their ecommerce supply chain. That’s why distribution centers are replacing traditional warehousing. Rather than businesses storing inventory in a warehouse and handling fulfillment themselves, ecommerce businesses rely on distribution centers that provide value-added logistics services to meet customer demand.
- Distribution centers offer the fulfillment infrastructure and technology that help online stores offer affordable, accurate, and fast shipping.
A distribution center is a specialized warehouse that serves as a hub to strategically store finished goods, streamline the picking and packing process, and ship goods out to another location or final destination. Often used interchangeably with the term fulfillment center, distribution centers handle order fulfillment and other value-added services.
- Transit points for cross-docking activities, which consist of reassembling cargo units based on deliveries scheduled (only moving merchandise)
Cross-docking is a lean supply chain model that involves the immediate or faster transfer of finished goods directly from suppliers or manufacturers to customers or retailers with little to no handling or storage (e.g., stopping a truck at a distribution center to put it on another truck without storing the inventory inside the warehouse). This enables faster replenishment, reduced middle- and last-mile shipping costs by positioning inventory closer to the end customer (e.g., using a distributed inventory model), and better servicing of
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your end customers. In most cases, finished goods are unloaded from the incoming transport (from the supplier) into the inbound dock, sorted and consolidated at the cross­docking terminal, and promptly loaded onto an outgoing vehicle (to the customer or retailer) at the outbound dock. This saves time and labor at the receiving dock and helps get the inventory on to the next leg of its trip. With cross- docking you can fast-track the retail fulfillment process for bulk shipments and eliminate the need for long-term (or even short-term) warehousing.
Benefits of cross-docking are: a leaner supply chain ideal for businesses to accelerate their order fulfillment process, reduce costs, and speed up the time it takes for products to reach hubs and/or customers; faster shipping & receiving times, reduced costs and time savings; provides a central site for handling products. - when last mile delivery occurs from one central location, known as the cross-dock warehouse, it can help optimize your supply chain. In other words, a distribution center acts as a sorting facility. At the cross­docking location, product is sorted and then assigned to multiple carriers based on the shipment’s destination. Additionally, having a central hub to handle inventory is a great solution for B2B fulfillment that doesn’t require the need to store inventory and pick and fulfill single items; Reduce material handling - Cross-docking operations involves less material handling, i.e., less need to track movement, facilitate storage. With cross-docking, you’re able to maintain a high inventory turnover.
Types of cross-docking Today, many ecommerce players are switching from the traditional distributional management model to a cross-docking approach. There are two major types of cross-docking: pre-distribution and post-