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

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Task 1. Answer the questions
1. Why does customer service also have to be upgraded?
2. How does a network generally change during a
company’s lifetime?
3. How is consolidation of market position of a company
achieved?
4. What objective is dominant both when the business is
going well and when there is a “crisis looming?
5. What do the nodes of a distribution network include?
6. What are the types of retail stores?
7. What is the difference between traditional retail stores
or service providers and a consumer cooperative?
Task 2. Give terms according to the definitions
1. …......is a large building that stores bulk quantities of
product or ecommerce inventory
2. ……… name is popularly used for private and family-
owned businesses
3. …….. sell all products at a good discount which attracts
the customers.
4. With ………, the large load is broken down into smaller
batches to make it easier and quicker to transport to customers.
5. …….. have a lot of products under their roof.
6. ………. exists to deliver goods or services rather than to
maximize profit from selling those goods or services.
7. ……… accumulates orders from several employees and
user groups within the same organization over a defined time period – the more orders, the lower the unit price all buyers in the group pay for their portion of the order.
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Task 3.
Grammar Revision Find the sentences with for-phrases and translate them into Russian
Unit 4. Blockchain in Logistics
For centuries, businesses and in some cases entire industries have been built on the simple principle of trust between multiple parties. However, this business of trust is about to be disrupted and transformed with the advent of
blockchain technology.
Blockchain can be defined as a distributed ledger
technology that can record transactions between parties in a
secure and permanent way. By ‘sharing’ databases between
multiple parties, blockchain essentially removes the need for intermediaries who were previously required to act as trusted third parties to verify, record and coordinate transactions. By facilitating the move from a centralized to a decentralized and distributed system), blockchain effectively liberates data that was previously kept in safeguarded silos.
Global supply chains are highly complex, with diverse stakeholders, varying interests, and many third-party intermediaries – challenges that blockchain is well suited to address. In the logistics industry, blockchain can be harnessed in two key ways, namely, to drive efficiency and enable new
business models:
Drive efficiency: Blockchain can potentially improve
efficiency in global trade by greatly reducing bureaucracy and paperwork. For example, a multi-stakeholder process with a lengthy paper trail could be replaced with an automated process storing information in a tamper-evident digital format.
Enable new business models: Micro payments, digital identities, certificates, tamper-proof documents and much more can be introduced and radically improved using blockchain-
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based services. For example, driver training organizations could replace easy-to-fake paper-based certificates with tamper-proof digital versions that can then lead to new identity­related services. Just as the Internet began a revolution of communication, blockchain technology could disrupt current business practices and models.
The transformative power of blockchain comes through the unique combination of its differentiating features and characteristics. Below is a summary of the four key features – these are data transparency, security, asset management and smart contracts. 1. Data transparency – Blockchain technology includes mechanisms to ensure stored records are accurate, tamper-evident, and from a verifiable source. Thus, instead of multiple parties maintaining (and altering) copies of their own dataset, now every stakeholder receives controlled access to a shared dataset creating a single source of truth. This gives confidence to everyone working with this data that they're using the most recent, accurate, and reliable dataset. 2. Security – Traditional ledgers typically provide a blanket layer of security which, once breached, allows access to all stored data. In a blockchain-based system, the security mechanisms make sure that individual transactions and messages are cryptographically signed. 3 This ensures essential security and
effective risk management to tackle today’s high risks of
hacking, data manipulation, and data compromise. 3. Asset management – Blockchain technology can be used to manage
the ownership of digital assets and facilitate asset transfers. For example, it can be used to track the ownership of titles (e.g., land titles and diamond certificates) and rights (e.g., copyright and mineral rights). It can also be used to manage the digital twin of a physical object in the real world. 4. Smart contracts – Manual processes that are normally guided by legal contracts can be automated with a type of self-executing computer program called a smart contract. A smart contract is a
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component of a blockchain-based system that can automatically enforce stakeholder-agreed rules and process steps. Once launched, smart contracts are fully autonomous; when contract conditions are met, pre-specified and agreed actions occur automatically. These capabilities can be deployed across two types of blockchain-based system: public permissionless blockchains where anyone can participate (e.g., the bitcoin network) and private permissioned blockchains where participants must be safelisted.
Task 1. Answer the questions
1. What is blockchain?
2. How can blockchain be harnessed in logistics?
3. What are key features of blockchain?
4. How can blockchain improve efficiency in global trade?
5. What mechanisms are included in blockchain data transparency?
6. What new business models does blockchain enable?
7. What ensures security and effective risk management ?
Task 2. Fill in the gaps
1. By ‘sharing’ databases between multiple parties,
blockchain essentially removes the need for ……
2. Every stakeholder receives ……. to a shared dataset
creating a single source of truth.
3. In a blockchain-based system, the security mechanisms
make sure that individual transactions and messages
are …..
4. Blockchain technology can be used to manage the
ownership of ….. and facilitate asset ……
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5. Micro payments, ……., certificates, tamper-proof
documents and much more can be introduced and radically improved using blockchain-based services.
6. A smart contract is a component of a blockchain-based
system that can automatically enforce …… rules and
process steps.
Task 3. Grammar Revision: Find the sentences with modal words and
translate them into Russian
Unit 5. Five Technologies That Will Self-Orchestrate
the Supply Chain
From unmanned mobile robots in warehouses to drones
for online fulfilment, the current supply chain is undergoing a major transformation. With the possibilities in artificial intelligence, the future supply chain holds the promise of being completely autonomous and self-orchestrated. A fleet of trucks using a swarm algorithm could increase throughput in cargo yards; a trusted peer-to-peer ledger on the blockchain architecture could revolutionize the meaning of compliance in the industry, and a host of wearables, mobile robots, as well as machine learning approaches, could rapidly fasten the pace of order fulfilment. Furthermore, IOT platforms for e-brokerage could connect retailers to couriers and transporters with a single click.
The supply chain of tomorrow will be leaner, faster and
most importantly, self-orchestrated. This unprecedented pace of change will be driven by a few radical technologies that will be cautiously adopted by industry participants over the next 15 years. Here is a view of the top five Frost & Sullivan has identified from its comprehensive analysis on the Future of
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Logistics. While the study looks at three scenarios for the industrytechnology, business and market/industry, this post will detail the research’s key findings on the technology-driven 2030 logistics scenarios.
Technology Scenario 1: Autonomous Fleet Brings Greater Efficiency
Drones are definitely the poster child at the moment and have stirred up a lot of conversation since Amazon announced its plans to launch drones for last-mile deliveries. While this is and will be an integral part of our view of the future, I would like to focus on the other types of fleets within the industry that could become completely autonomous. Before drones were
experimented with, the first “vehicles” to become autonomous
in the supply chain were actually forklifts. Man travel is among the most unproductive, time-consuming tasks within a
warehouse; the new forklifts, called “vision-guided fully
autonomous mobile robots,” not only address this specific
issue, but also have the ability to process orders (pick and on­board for delivery) four times faster than a human.
There is a real possibility of fleets becoming totally autonomous as well. Truck platooning and autonomous trucks could be a reality by 2030. Semi-autonomous trucks will reach a penetration rate of 5 percent by 2030. Rolls Royce has announced plans to launch autonomous cargo ships (or as The
Economist called it, “Ghost Ships”) by 2030. While replacing
or aiding man was a critical criterion for autonomous technology in material handling, for fleets, the value of autonomy centers around fuel economy. Truck platooning, for example, could mean saving as much as 20 percent on fuel costs.
While fuel is still the most overbearing influence on the assets and fleets of the industry, with all this autonomy and technology, a new influence is emerging that could have a far-
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reaching impact on the supply chain Big Data, well not only Big Data, but “Good Data.”
Technology Scenario 2: Data Replaces Fuel as the Biggest Influencer
With Big Data we are seeing the conversation shift from estimating the volume of data, or Big Data, to the variety and value of data. This is a useful conversation to have because an unbelievable 90 percent of data sometimes captured is pure spam. Amazon, for example, is building capabilities to cull out that spam and create predictive analytics around your shopping behaviour
Amazon wants to ship your products even before you know you want it. In its current model, Amazon receives an order and delivers the order through UPS or UPSS. It has been trying hard to compete with brick and mortar stores to provide instant gratification, the one thing it cannot provide right now. All of its efforts with drones and robots have been focused on cutting that delivery time and getting you what you want as soon as you want it. Last year, Amazon said it is working on drones that could make deliveries of small packages directly from warehouses to homes.
Its current patent on “anticipatory shipping” exemplifies
a strategy where Amazon will send out deliveries to partial street addresses or zip codes to get the products as close as possible to the consumer and then in-transit complete the address and route it to someone who has placed the order. This might work well for new product launches such as the iPhone 7s. How many people have searched for the iPhone 7 recently
using the keyword “launch rumors"? Interest in the item is
shown even before any sort of buying decision. Anticipatory shipping is coming; predictive models combined with new-age fleets could lead to zero fulfilment time.
Another interesting prospect this creates is the possibility of logistics becoming a data-centric industry where information
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takes precedence in logistics services’ value propositions over
the actual ability to move cargo.
Technology Scenario 3: New Breed of Technology Players is Less Asset-Centric
To say the logistics industry is becoming non-asset based or less-asset centric is a stretch because someone has to own and operate the assets; however, what is interesting to see is the rise of the new breed of logistics providers that own no asset (fleet or warehouses), but are able to provide logistics
services by aggregating “information about assets” from people
who do own them through leveraging data. For example, Shyp and Zipments are logistics companies that provide logistics­related services like offering freight quotes or trucking capacity, but neither own assets and are therefore able to offer more cost-competitive services at almost 50 percent less than industry averages, because they don’t have the costs associated with maintaining assets or dealing with the pressure to ensure economies of scale.
This is indicative of an interesting future where your typical logistics provider and vendor in the market will evolve to a more consulting-driven approach and become more like project managers, rather than actual movers of cargo, leading to new models such as E-Brokerage.
Technology Scenario 4: E-Brokerage Platforms (Uber of Trucks)
Growth in e-retailing, coupled with connectivity technologies, will usher in new solutions for freight and logistics firms. The proliferation of digitalization in trucking will force traditional freight brokers to align their business model toward mobile-based, freight brokerage-type solutions. Mobile apps are critical to a seamless, on-the-move brokerage
system, also known as the “uberization of trucking.” In the
future, mobile-based freight brokers are expected to develop in­house software solutions by creating potential synergic
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partnerships with traditional freight brokers, OEMs and telematics providers to facilitate this change.
Imagine a scenario where a mobile app is incorporated to match truck drivers to shipper needs on rates, routes, and schedules. This is expected to automate a number of processes pertaining to delivery status, dispatch, load-finding and driver payment, apart from providing critical real-time information on consignments right from pickup to delivery. With approximately $20 billion lost in revenue from empty miles and excess capacity issues, the payoffs arising from such business models will result in minimizing operating costs by improving asset utilization and fuel efficiency. The future will witness online services, eliminating traditional freight brokerage firms by offering more agile services in this space.
As new players emerge and the industry unbundles to niche pockets, general operational hurdles of commerce and trade could multiply. For a 150-year-old industry that has been
trading in “trust,” this herd of new players will cause new
compliance complications. The industry will look toward smarter ways of doing business to avoid paperwork, such as the use of blockchain, which is quickly emerging as a great tool for driving quicker compliance.
Technology Scenario 5: Smart Commerce with Blockchain
Just as the Internet has triggered the evolution from client applications to web-based apps, cloud solutions and SAAS, the peer-to-peer model of blockchain is exhibiting the potential to generate new innovation channels on how logistics applications can be developed and deployed. In that sense, the blockchain technology could emerge as the new operating system for supply chain networks that combines B2B connectivity with software apps.
For instance, if you are the warehouse head responsible for flow of goods, there could be occasions where suppliers
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fail to deliver goods intact or on time, leading to potential time-consuming disputes and punitive legal recourse measures. Blockchain technology will avoid such scenarios as it would allow you to negotiate smart contacts with suppliers that clearly define terms, conditions and the mode of functioning between the two parties, while further mandating the sensorization of all goods to generate critical information on the state of goods and the time of delivery. A pre-condition percentage fine is levied and the amount is withheld from the final contacted price in case there is a delay in delivery if goods are not found intact.
The blockchain implication is expected to have a wider reach when compared to any other supplier management tools given that it is expected to track details right from order initiation at the customer level to shipment information, resulting in creating more visibility within a supply chain not seen before and further allowing all parties to access accurate real-time information anywhere, anytime.
With the evolution of blockchain expanding its applications to future supply chains, another prominent aspect is the possibility of supply chain becoming more compliant, transparent and having innovative payment processing that is expected to create more traction in new types of services, such as mobile freight brokerage systems.
The Future: Self-Orchestrated Supply Chain
These five technologies showcase that in today’s
dynamic world, intelligence-embedded supply chains offer a competitive advantage. In this digital age where the mantra is
“transform or be redundant”, companies will leverage these
technologies to create a self-orchestrated supply chain and previously unimaginable efficiencies. Some predictions we could make on these gains are enumerated below. Imagine: