Theoretical aspects of supply chain management. Development of the concept of supply chain management in Russia

22.08.2020

The main activity of any organization is the operations during which products are created and delivered to consumers.

Logistic operation - a set of actions to manage or transform material flow.

To carry out these operations, various initial components are required, which are then converted into the desired ones.

The initial components include raw materials, components, employees, information, money and other resources. Operations include production, etc. The main products are goods and services.

original constituents, transformable desired combinations

The operations performed are usually divided into a number of interconnected sections (departments and workshops in the enterprise). Therefore, logistics also deals with the movement of material resources through different departments within the organization itself, taking them from internal suppliers and delivering them to internal customers.

The movement of materials into the organization from suppliers is called inbound logistics, the movement of materials to customers and consumers is called outbound logistics, the movement of materials within the organization itself is called material management.

Organizations do not operate in isolation from each other. In fact, each of them acts as a customer when it buys materials from its suppliers, and then becomes a supplier itself when it delivers its products to its own customers. Most types of products pass through multiple organizations during creation, moving from entry-level vendors to end-users.

All of these activities have different names:

- if the emphasis is on operations, they talk about the process;
- if marketing is emphasized - the logistics channel;
- if added value is put in the first place - value chain;
- when analyzing the satisfaction of consumer demand - the chain of demand.

With regard to the movement of materials, the term "supply chain" (logistics chain) is used.

A supply chain is made up of a series of activities and organizations through which materials pass as they move from entry-level suppliers to end-users.

AT general view the logistics chain looks like: supplier - purchases - warehouse - production - warehouse - sales - consumer. In some logistics systems, a number of links (warehouse / production) may be missing. The movement from one link of the chain to another is carried out with the help of transportation, managed and controlled by the information flow in speech, paper and / or electronic forms.

Each product has its own supply chain, some of which can be very long and complex (starting with cocoa beans grown on plantations, ending with the delivery of chocolate bars to consumers). Along the way, materials can pass through raw material suppliers, manufacturers, logistics centers, warehouses, intermediary operators, transport companies, wholesalers, etc. Sometimes the supply chain does not end at the end consumer, but additionally covers the stage of recycling and reuse of materials.

The easiest way to present a supply chain is to show how a product moves through a series of organizations, each adding value to it. If we consider the flow of product movement from the point of view of an organization, then the activities performed before it, i.e. the movement of materials to this organization are called previous ones, and those that are carried out after the materials leave the organization are called subsequent ..

In practice, most organizations receive materials from many different suppliers and distribute their products to a wide variety of customers. Therefore, passing through different levels suppliers and through different supply chains, various inputs "meet" each other in the organization, pass through it, and products appear at the output, which then, moving through different levels of consumers, diverge again.

Each product has its own supply chain, so the total number of different chain configurations is huge. Some of them are very short and simple.

Supply chains are so complex that sometimes the question arises whether they can be dispensed with. This is sometimes possible when products are moved directly from the manufacturer to the final consumer.

So, logistics is responsible for moving and storing materials as they move along the supply chain, which includes the following activities:

1. Supply (purchases). Purchasing selects the right supplier, negotiates terms of delivery, arranges shipping, handles insurance and payments, and does everything necessary to ensure materials reach the organization on time.
2. Incoming traffic or freight transportation. This activity involves the movement of material flow from the supplier to the receiving area. It is necessary to choose the most appropriate mode of transport, suitable transport company, draw up an itinerary, check the fulfillment of all legal requirements, ensure security, ensure timely delivery.
3. Acceptance. The process during which the conformity of incoming materials with the order is determined, confirmation of their receipt is sent, unloading is carried out vehicle, checking materials for safety and their subsequent sorting.
4. Warehousing. Send materials to storage and take care of them until they are needed. Many materials require special conditions(frozen food, drugs, chemicals).
5. Stock control. This type of activity takes into account the nature of the materials in storage, the total investment, the level of customer service, the volume and lead time of orders.
6. Order picking. Operations are related to the selection of materials in storage, and their combination into orders that are being prepared for shipment to consumers.
7. Cargo handling of materials. The movement of resources during operations performed in an organization. In this case, materials are moved from one operation to another. The goal is to ensure efficient movement of short routes in the warehouse, using the most suitable equipment with minimal damage to products, and, if necessary, special packaging.
8. External transportation. Receiving products in the dispatch area and delivering them to the consumer.
9. Management of physical distribution. Activities in which finished products are delivered to consumers. Often linked to marketing.
10. Recycling, product return, waste disposal. Activities that return materials to the organization are called reverse flow logistics (reverse distribution). For example, damaged materials are returned; not those in quantity and type that were ordered; materials for reuse - delivery boxes, coils; materials for processing.
11. Choice of placements. Logistics must find the best places for specific operations (eg storage), determine their number and size. These decisions affect the overall structure of the supply chain.
12. Communication. The flow of information links all parts of the supply chain, passing data on products, requests, materials, time, volume, problems, and so on.

Depending on the circumstances, many other activities can be classified as logistics (sales forecasting, production scheduling, communication with external partners, etc.). It is important not only to draw boundaries between functions, but also to take into account that they all must be performed together in order to ensure efficient material flow.

The links of the logistics system, being ordered in a certain way, constitute a logistics chain or supply chain. In the foreign terminological dictionaries ANNEX and APICS, the supply chain is defined as an interconnected sequence of pairs of links (subdivisions of the company and / or its logistics partners) - "supplier-consumer", through which a product or service is delivered to the end consumer, organized in order to achieve the planned goal. At the same time, no obligations are imposed on the linear ordering of the links in the logistics chain. In turn, A.N. Rodnikov, in his terminological dictionary, emphasizes precisely the linear ordering of the supply chain, namely: the supply chain is a linearly ordered set of physical and / or legal entities(suppliers, intermediaries, carriers and others) directly involved in bringing a specific batch to the consumer.

There are other definitions of the supply chain, for example: a supply chain is a set of links in the logistics system, ordered by the main and / or accompanying flow in accordance with the parameters of the end user order within the functional area of logistics or a logistics channel. Thus, the supply chain is usually designed within an independent functional area of logistics. The initial parameter for the formation of the logistics chain is the consumer's order. The formation of the supply chain can be carried out purposefully through legal merger and acquisition of firms, as well as through voluntary cooperation of various services, departments and firms with appropriate legal and organizational registration. The supply chain can be carried out on the basis of a modular principle in management, while two mutually exclusive principles are taken into account: corporations and cooperation on the one hand, and competition on the other. This formation of the supply chain allows you to use the free resources of the participants in the supply chain in order to smooth out fluctuations external environment. The flexibility of such a chain through special one-time deliveries through the network of distribution and transportation channels created at the same time makes it possible to even out peaks in consumption, while the inevitable risks are noticeably reduced. The links between the individual elements of the supply chain are now implemented using the latest information technologies. The construction and study of chains formed according to information and financial flows has an extremely important practical value, since the movement of material resources and finished products does not coincide with the corresponding information and cash flows. The problems that arise with thread asynchrony make it much more difficult to adopt effective management decisions.

Thus, the supply chain is a set of links in the logistics system, ordered by the main and / or accompanying flow in accordance with the parameters of the end user order within the functional area of logistics or a logistics channel.

Supply chain management systems

The term "Supply Chain Management" - "Supply Chain Management" - was proposed by American consultants in the early 1980s. and subsequently gained great popularity. Since 1989 scientists from different countries are trying to structure this concept. Many researchers in the US and EU contrast SCM with logistics proper. The general position is that logistics is part of a broader business concept -- SCM. In 1998 The Council of Logistics Management (USA) revised the definition of logistics in 1985: "Logistics is part of the supply chain management process and is the planning, execution and control of the efficiency of the flow and stock of products, services and related information from the point of origin to the point of consumption in accordance with customer requirements" .

Supply chain management systems (English Supply Chain Management, SCM) are designed to automate and manage all stages of the supply of the enterprise and to control the entire movement of goods in the enterprise. SCM system allows you to significantly better meet the demand for the company's products and significantly reduce the cost of logistics and procurement. SCM covers the entire cycle of purchasing raw materials, production and distribution of goods. Researchers typically identify six main areas that supply chain management focuses on: production, supply, location, inventory, transportation, and information.

As part of the SCM system, two subsystems can be conditionally distinguished:

SCP - (Eng. Supply Chain Planning) - supply chain planning. The basis of SCP are systems for advanced planning and formation calendar schedules. SCP also includes systems for the collaborative development of forecasts. In addition to solving operational control problems, SCP systems allow strategic planning supply chain structures: develop supply chain plans, simulate various situations, evaluate the level of operations, compare planned and current indicators. SCE - (English Supply Chain Execution) - execution of supply chains in real time.

Supply Chain Management (SCM) is a process of planning, execution and control in terms of reducing the costs of the flow of raw materials, materials, work in progress, finished products, services and related information from the point of origin of the application to the point of consumption (including import, export , internal and external displacements), i.e. until complete customer satisfaction. Supply chain management is a business strategy that ensures the efficient management of material, financial and information flows to ensure their synchronization in distributed organizational structures.

In most foreign sources, the definition of "supply chain" is more common than "supply chain management". Some scientists and experts define the CP as a series of firms that send materials and services. Usually, several independent firms participate in the production and delivery of goods to the final consumer in the CP: suppliers (manufacturers) of raw materials, materials and components, manufacturers of finished products, wholesalers and retailers, carriers, freight forwarders, etc. -- they are all links in the CPU. Others talk about the CPU as a formed alliance of firms that deliver goods or services to the market. It should be noted that almost all definitions include the end user as a link in the CPU. One of the common definitions states that the DP is a network of organizations participating through external and internal relations in various processes that bring profit in the form of goods and services supplied to the final consumer. In other words, the CPU consists of several firms, both external (supply of goods, services) and internal (own divisions of the central company), as well as end-users.

A synthetic definition of the supply chain, based on a generalization of the opinion of most foreign scientists and specialists, is as follows: “A supply chain is three or more economic units (organizations or individuals) that are directly involved in external and internal flows of products, services, finances and / or information from source to consumer.

Based on this definition, it can be concluded that there are three levels of CPU complexity: "direct CPU", "extended CPU", and "maximum CPU". A direct CPU consists of a central company (industrial or commercial), a supplier and a buyer involved in the external and/or internal flow of products, services, finances and/or information. one:

The extended CPU includes second-tier providers and consumers, i.e. suppliers supplier of the central company. An example of an extended CPU is in Fig. 2:

Figure 2 Extended supply chain

Continuing these considerations, we can come to the maximum CPU, which includes, to the left of the central company (industrial enterprise), all counterparties necessary for the manufacture of certain products, up to suppliers - the enterprise for the extraction of initial natural raw materials. To the right of the central company, the CPU expands to the final (individual) consumer and further to the enterprise that closes the functional life cycle product, for example in terms of its disposal. An example of a maximum supply chain is shown in Figure 3:

Figure 3 Maximum supply chain

From this example, it can be seen that a financial intermediary can, at a certain risk, provide loans and financial advice to members of the chain, a logistics intermediary performs related transactions between CPU companies, and a market research firm provides the central company with information about the end consumer, supporting the most competitive CPU. This diagram briefly illustrates some of the many functions that a CPU can perform successfully.

1.1. Supply chain management: economic essence, significance and role in the modern economy

Modern science offers many different op-

definitions of the concept of Supply Chain Management (SCM) - “Management

supply chain management”, while the range of opinions is very wide and depends on the country, the logistics school (direction) and the particular researcher. To date, there is no consensus on the content of the concept of "supply chain management", it is constantly being refined and changed. A synthetic definition of the supply chain, based on a generalization of the opinions of most foreign scientists and specialists, may sound as follows: “A supply chain is three or more economic units (organizations or individuals) directly involved in external and internal flows of products, services, finances and / or information from source to consumer.

Currently, the emphasis in the interpretation of this concept is increasingly shifting towards an expanded understanding

Supply Chain Management (SCM), given in the collection

"Standards for logistics and supply chain management".

Supply chain management (SCM) is the organization, planning, control and execution of the flow of goods, from design and procurement through production and distribution to the end user in accordance with market requirements for efficiency in order

spending. Logistics is the planning, execution and control of the movement and placement of people and/or goods, as well as the supporting activities associated with such movement and placement, within an economic system created to achieve its specific goals.

There are many examples of different interpretations of the terms "supply chain management" and "logistics". It is rather difficult to cover the whole range of these interpretations, consisting of many different types, changeable terms of logistics and supply chain management. There are a number of reasons that led to this state of affairs:

1. Historically short time of development. Both logistics and supply chain management are quite young and rapidly developing sciences. The term Supply Chain Management was first proposed in 80s of the XX century. Terminology and conceptual apparatus in this field of knowledge are constantly being refined and changed, filled with new content.

2. The presence of various national schools and trends in logistics and supply chain management. At present, we can talk about the existence of an American school ( D. Bau-

Ersox, J. Kloss, D. Waters, J. Stock, D. Lambert, etc.),

serious research in various European countries, in

including the UK M. Christopher, J. Mentzer, K. Oliver, M. Weber and etc.). Of particular interest are the studies of Australian scientists who have a significant impact on the development of the Asian logistics school. In particular, the works John Gatorna by a recognized world-class specialist in logistics and Supply Chain Management from Australia have been translated into Japanese and Chinese and are now highly recognized in Asian countries.

3. The interdisciplinary nature of logistics and supply chain management and the combination of economic and engineering disciplines in them. Supply chain management over the past few decades has been one of the most dynamically developing concepts at the intersection of marketing, logistics, operational management and strategic management.

4. The presence of a large number of terms from various areas knowledge. This is also due to the fact that the leading specialists in this field of knowledge are initially specialists in other areas: management, marketing, commerce, various engineering specialties.

5. The absence of some logistics terms in various languages, as well as their inaccurate understanding in different countries. The use of different terminology can be explained by the authors' belonging to one or another logistics school, as well as the desire to focus on certain aspects of the logistics process. For example, the term "physical distribution" was used in the United States in the second half of the 20th century as a synonym for modern concept logistics, and in

standing tense it denotes one of functional areas logistics and is synonymous with the term "distribution".

1.2. The evolution of the concept of supply chain management

The concept of supply chain management is one of the most dynamically developing areas of scientific and practical activities over the past decades.

The term "Supply chain management - SCM" - "Supply chain management" - was proposed by the system integrator - the company "i2 Technologies" and a consulting company "Arthur Andersen" in the early 1980s. The emergence of the concept of supply chain management is also associated with the article K. Oli-

Vera and M. Weber "Supply chain management: Logistics Catches up with Strategy", released by them in London in 1982.

AT In the process of evolution, the conceptual apparatus of the concept of supply chain management has changed significantly, because its terminology is in constant development. AT In the 1980s, many industries in advanced economies experienced a situation in which the cost of production decreased as much as was practically possible. To maintain competitiveness, there is a need for new concept business management. With the emergence of the concept of "supply chain management" in the 1980s. the idea of coordinating the flows of materials and finished products appeared not only within one firm, but also in a number of firms interconnected by a technological chain. Therefore, it has become clear to many foreign companies that effective supply chain management is the next step they need to improve their competitiveness.

AT In the process of studying the theory and practice of the concept of supply chain management, four main stages in its development can be distinguished (Table 1.1).

Table 1.1

The evolution of the concept of supply chain management


			Characteristic

Stage 1. Zaro-		Arises		need
			concepts			management
		business as ideas for coordination
		the flow of materials and go-
			products
		within the same firm, but also
		a number of companies associated with
		a technological chain
		coy. At this stage of development
		the concept of "management
		supplies” in terms of content
		niyu only slightly from-
		personalized			extended
		interpretations		integrated
		logistics and almost completely
		was assigned to her
Stage 2. Depart-	The first half	going on			isolation
theory	wines of the 1990s	supply chain management theory
		ment from logistics, appear-
		self-reliant
from logistics		management
		supplies as a science, as well as
		regions		use
		concepts			practical
		activities.				going on
		shift and separation between
		do logistics and SCM understand

		individual terms. Fuss-
		shows the need for a system
		matization		applied
		concepts and terms of logistics and
		supply chain management

				Continuation of the table. 1.1
Stage 3. For-		The difference is clearly marked
peace	wines of the 1990s -	between the integrated log-
classical		stick and circuit control
concepts		supplies, control functions
		linga, coordination and integration
		tions in the management of commodity
		stream are fixed for
					"control
		supplies." Main directions
		research
		are sharpened on the processes of in-
		integration and creation of strategies
				partner
		ny, as well as ensuring
		relationship and control
		boiled streams and information
		ono-coordination for
		maintaining communications between
		chain links. General accumulative
		lenny experience of theoretical and
		practical knowledge
		organizes training courses according to the new
		discipline
Stage 4. Co-		There is an even deeper
temporary	wines of the 2000s			study
stage of development		and chain management practices
		supplies and their adaptation to
					markets. Modern
		practice			management
		supplies			focuses on
		internal planning
				resource optimization
			building a relationship
		between the focal com-
		Pania and other members
		supply chain

1.3. Development of the concept of supply chain management

in Russian Federation

Currently, supply chain management as an SCM concept is one of the effective ways increase profits and market share and is actively implemented in the economies of industrialized countries. Many large companies, including Russian ones, are implementing the principles of Supply chain management as a new business ideology. The introduction and development of the strategic advantages of logistics both abroad and in our country are facilitated by national coordination

organs such as European Logistics Association

(European Logistics Association - ELA) and the Council of Supply Chain Management Professionals (CSCMP). In the Russian Federation, these coordinators are currently National

National Logistics Association of Russia (NLA) and National Supply Chain Council . The need for the creation and functioning of these organizations is to:

- develop proposals and additions to legislative and regulatory legal acts of the Russian Federation in terms of logistics, since there is currently no legislation in the field of logistics in our country;

- remove the barriers in the tax, customs, transport legislation of Russia that hinder the effective use of the strategic potential of logistics;

- to form integrated logistics systems covering various areas of business, to create interregional and international integrated logistics, transport, trade and information systems.

National Supply Chain Council – public non-profit organization in the shape of non-profit partnership, open to all market participants ( industrial enterprises, suppliers of products and services, transport and logistics companies, financial and credit organizations, insurance organizations, non-profit associations and centers, consulting, educational and state enterprises). The main goal is to disseminate supply chain management standards in practice real business in the Russian Federation and the CIS countries. The mission of the Supply Chain Council is to develop,

development and dissemination of the supply chain model as the basis of the all-Russian intersectoral standard for supply chain management, which combines the best global and national practices. The supply chain model defines the general concept of supply chains, standard terminology, measurement and evaluation system of the logistics function, generalizes best practices, is a procedural model for the implementation of the logistics software, performs an integrating function when building both intra-corporate and inter-corporate supply chains.

National Logistics Association of Russia pre-

constitutes public organization, the founders of which are the State University - graduate School Economics (SU-HSE), Russian association business education (RABO) and the Association of Freight Forwarders of St. Petersburg. The mission of the NLA is the formation and development of logistics in Russia as a new scientific and practical direction that contributes to the socio-economic development of business entities, sectors of the economy and the country as a whole, as well as improving the welfare of citizens. The main tasks of the organization are the following:

- analysis of foreign theoretical studies and practical experience in the field of logistics in order to adapt and implement them in Russia;

- development of proposals and additions to legislative and regulatory legal acts of the Russian Federation in terms of logistics;

- coordination of activities of enterprises, organizations and institutions engaged in research in the field of design, construction and maintenance of the functioning of logistics systems; exchange of best practices in the application of logistics developments

in the Russian Federation and abroad;

- organization and participation in the certification procedure for logistics specialists in accordance with Russian and international requirements and standards.

Growing globalization, interaction with Western companies, as well as domestic research and publications in the field of logistics and supply chain management make it possible to use world experience in practice. Many foreign companies, expanding the geography of supply chains, include the territory of the Russian Federation as markets for finished products, as well as

the purpose of placement production capacity for its manufacture, into its own supply chain, thus involving Russian partners to global integration.

As an example, consider the activities of Electrolux. This company is one of the largest players in the washing machine market. According to Fortune magazine's annual rating, Electrolux is one of the top 100 largest companies peace. On the Russian market Electrolux has been in business since 2004. In order to gain a foothold in a new rapidly growing market as soon as possible household appliances the company opened its own factory for the production of Electrolux and Zanussi washing machines in St. Petersburg. An important indicator of the plant's activity is the degree of localization of the production of components. Production localization refers to the practice of placing a company's production facilities in close proximity to the sources of their consumption. From the standpoint of logistics and customs, the expediency of opening a factory in Russia to meet the needs of a growing domestic market is obvious. When importing ready-to-use washing machines, it is necessary to pay customs duties at an import customs duty rate of 15% of customs value products in euros or US dollars. Since March 2005, Decree of the Government of the Russian Federation No. 125 "On Amendments to the Customs Tariff of the Russian Federation with regard to components for washing machines" has established a zero duty rate for parts of washing machines (TN VED code of Russia 8450 90 000 0). Thus, part of the components for the production of washing machines began to be imported at a zero duty rate, which made it possible to significantly reduce costs.

Another example of the involvement of Russian potential in global integration is the experience of the automobile concern Ford. In 2002, the official opening of the Ford plant in the city of Vsevolozhsk, Leningrad Region, took place. The functioning of the plant provided for the fulfillment by the company of obligations on a certain level of investment in the implementation of the project and the phased localization of products. To date, Ford's investment in Russian project amounted to about 230 million US dollars. The level of localization of the plant's products is more than 40% of the cost of the car.

Modern science offers many different definitions of the concept of Supply Chain Management (SCM) - "Supply Chain Management", while the range of opinions is very wide depending on the country, the logistics school (direction) and the particular researcher. To date, there is no consensus on the content of the concept of "supply chain management", it is constantly being refined and changed. A synthetic definition of the supply chain, based on a generalization of the opinions of most foreign scientists and specialists, may sound as follows: “A supply chain is three or more economic units directly involved in external and internal flows of products, services, finances and / or information from a source to consumer."

Currently, the emphasis in the interpretation of this concept is increasingly shifting towards an expanded understanding of Supply Chain Management (SCM), given in the collection of "Standards for Logistics and Supply Chain Management".

Supply Chain Management (SCM) is the organization, planning, control and execution of the flow of goods, from design and procurement through production and distribution to the end user, in accordance with market requirements for cost efficiency. Logistics is the planning, execution and control of the movement and placement of people and/or goods, as well as the supporting activities associated with such movement and placement, within an economic system created to achieve its specific goals.

The traditional goal of supply chain management is to minimize total logistics costs while meeting a given fixed demand. These costs may include:

cost of raw materials;

domestic transport costs;

investment in equipment;

direct and indirect production costs;

direct and indirect costs of distribution centers;

inventory maintenance costs;

the cost of intra-factory transportation;

external transport costs.

When building a model to solve specific planning problems, you can explore only a part of the company's overall supply chain and its associated costs.

Experts believe that minimizing total costs is not the main goal of the company when analyzing strategic and tactical plans for the supply chain. On the contrary, the firm should strive to maximize net profit, where net profit = gross profit - total costs. At a certain fixed level of demand, it is assumed that the gross profit from satisfying demand is also certain and fixed, so the firm will be able to maximize net profit by minimizing total costs.

When using optimization models for strategic and tactical planning, it is not enough to focus only on cost control - the model also provides for the cost of production (which should be used in order to increase net profit by appropriate regulation of sales). For example, when planning for next year presented in the form of a model information about marginal cost products supplied to different markets could be used to change the draft sales plan. The company's salespeople should be instructed to promote products to markets with the highest possible margins.

The difficulty in applying the demand management model, even in the modest form we have described, is that this model requires the involvement of marketers who are usually quantitative analysis. Moreover, once marketing and sales decisions are included in the model, it becomes difficult to find limits that can and should be considered. Nevertheless, the integration of supply chain management and demand management is attracting more and more interest from many companies, although this area has not yet been sufficiently studied.

Management decisions about the supply chain and demand are very closely related to corporate finance decisions, especially when planning a firm's strategy. Even more than 25 years ago, scientists proposed optimization models for the analysis of financial decisions related to the corporate balance sheet, such as annual changes in fixed assets, dividends paid, or payments on shares without a fixed dividend. They still have not been widely used, but since these models can be fully integrated into logistics, recently financial managers have become interested in their implementation and use.

Of course, the company must also pursue goals related to customer service, product range, quality, and time. Some authors even argue that, in principle, costs and profits are not important. Instead, to achieve competitive advantage the company should focus on time, product range and other aspects of its activities. Such statements are not true, because after all, the purpose of the company is to make a profit. It just doesn't matter from an analytical point of view which goal you choose. Optimization models can help managers evaluate trade-offs in goal selection.

The supply chain performs two main functions.

1) The physical function of the supply chain is visible to anyone: materials turn into parts, and those into finished products, and all this somehow moves in space.
2) The intermediary function of the supply chain is less obvious, but no less important - what consumers need should come to the market.

Both functions, of course, are performed with some overhead. During the execution of a physical function, there are costs of production, transportation and storage. The intermediary function implies costs of a different kind. When supply exceeds demand, it is necessary to cut prices and sell at a loss, and when demand exceeds supply, there are lost revenues and dissatisfied customers.

Supply chains arise not only to improve the quality of service to consumers, but also to bridge the gaps that arise when suppliers are located at a great distance from consumers. This allows you to perform operations that are performed or can be performed in places located at a great distance from consumers or sources of materials.

In addition to moving materials between geographically dispersed operations, supply chains eliminate the mismatch between supply and demand. In addition, supply chains can make the movement of materials easier.

Benefits of well-planned supply targets:

1) the operation is carried out in the best places for this, regardless of the location of the customers;
2) by concentrating the execution of operations in large structures, manufacturers can save on scale;
3) manufacturers do not store large stocks of finished products, as they transfer these products along the supply chain closer to customers;
4) wholesalers place large orders, while manufacturers reduce unit costs, which makes it possible to provide discounts to buyers;
5) wholesalers keep stocks of many suppliers, which gives retailers ( retail sales) the ability to choose the goods they need;
6) wholesalers are located closer to retailers and respond more quickly to their orders;
7) if wholesalers reliably supply products, then retailers' stocks may be small;
8) retailers can carry out small transactions that allow them to respond more quickly to consumer requests;
9) transportation is simplified and becomes cheaper, because fewer large consignments are transported;
10) organizations can gain experience in performing specific types of operations.

Supply chain management includes not only the responsibility for the movement, but also for the storage of materials during the chain.

If we trace the movement of materials through the organization, we can distinguish the following activities that are included in supply chain management:

- purchase/supply;
- incoming traffic flows;
- acceptance of material;
- warehousing - prompt replenishment of certain positions in trading floor, conditions for the preservation of cargo, safety of packaging;
- inventory control;
- order picking;
- material handling - the goal is to ensure efficient movement along short routes in the warehouse, using the most suitable equipment for this with minimal harm to the material;
- external transportation;
- management of physical distribution;
- processing, product return, waste disposal;
- choice of location;
- communications.

There are some obstacles (barriers) on the way of the supply chain. The following types of barriers in supply chains can be distinguished:

1) traditions;
2) organizational shortcomings;
3) legal aspects;
4) disconnection of the control system.

Traditionally, the management and control of the supply chain is carried out separately for individual functions.

There are also problems that are not related to efficiency - the organization cannot depend on the supplier. Information is another barrier.

Quality and added value are terms that are constantly used in the supply chain and are the most important when designing and building a supply chain. Because the ability to work and efficiency of the entire supply chain determines its weakest element, then the element that does not provide necessary qualities, must be removed first.

Each participant in the supply chain must convincingly prove that his contribution to the common cause adds value to the entire process, and that this cost exceeds all support costs. his contribution.

So good financial results have always been considered the main purpose of business. Accordingly, all activities to create or improve the supply chain should be carried out taking into account the practical results or the final profit, while the company must think not only about its own results, but also about the results of other participants in the supply chain.

As a result of studying this chapter, the student should:

know

the essence of the concepts characterizing the supply chain and the supply chain management process;
relationship between strategic, tactical and operational levels supply chain planning;
supply chain planning technology;

be able to

apply knowledge to supply chain management;
organize the supply chain planning process;

own

supply chain planning methods;
understanding of the role and place of integrated planning in the supply chain management loop.

Supply chain management and the place of integrated planning in the control loop

The supply chain is complex economic system, which consists of many manufacturers (producers), suppliers of raw materials and materials, warehouse terminals, distributors, 3P and 4PL providers that have certain functionality and interact in material, financial and information flows, as well as service flows from sources raw materials to the final consumer. The main elements (participants) of the supply chain are shown in fig. 2.1.

Rice. 2.1.

- material flow; – information flow

As a rule, supply chains are complex stochastic systems with a number of features. These features primarily include:

plurality of participants, moreover, legally independent;
the complex nature of the interaction between the participants, who often compete with each other;
each enterprise has its own target function, conflicting interests of enterprises;
constant and rapid emergence, maintenance and disintegration of bonds in chains;
a large number and variety of logistics operations and functions performed by participants in the supply chain;
cooperative and coordinating relations with external suppliers and clients;
difficult to formalize the qualitative nature of the relationships and criteria for the functioning of enterprises;
the stochastic nature of most factors and processes that impede the functioning of enterprises and the supply chain as a whole.

Features of the supply chain dictate the need to form a special management system that would ensure effective coordination joint activities supply chain enterprises and the synchronization of their business processes. In the early 1980s American companies i2 technologies and Arthur Andersen introduced the term "supply chain management" (SCM) into economic practice. Supply chain management is understood as a new business strategy aimed at destroying obstacles, bureaucratic barriers and boundaries encountered in the way of the movement of material, financial, information flow various participants in the supply chain. It is important that the point of view of one enterprise is transmitted to the entire chain. The synergy of cooperation is in the center, and the boundaries of enterprises become unsteady, not limited only by the enterprise itself. Constantly changing environment requires flexible and fast coordination of processes that go beyond the scope of one enterprise. The collaborative work necessary for this, flexible only in content, but rigid in time, can be carried out outside the local organization, but within the framework of supply chain management.

For businesses, implementing this strategy means doing business in a strategic way with their external suppliers and customers.

Supply chain management involves the performance of the functions of organizing, controlling, coordinating and planning the supply chain (Fig. 2.2).

The function of the organization includes the formation of the structure of the supply chain, as well as the creation of a system of cooperative relations in the process of bringing the material flow from the source of its occurrence to the end consumer, which ensure the competitiveness of the supply chain. However, these links are formed in a decentralized way at each section of the supply chain. Each enterprise independently manages interactions with its suppliers and customers.

The nature of connections and interactions can be different, as it depends on the goals of the supply chain and on the characteristics of the products for the creation and promotion of which the chain was formed.

At the same time, the organization is the process of implementing the plans developed in the planning process.

Rice. 2.2.

Control function consists in an objective quantitative and qualitative assessment of the results of the supply chain for subsequent adequate corrective action.

Supply chain control is a system for monitoring, detecting and resolving emerging problems in the functioning of the supply chain. Monitoring is carried out over the network of partners, resources and processes in the supply chain to analyze and evaluate their effectiveness. The control system allows you to track every step at all levels of creation material assets and benefits (from the supply of raw materials, materials to after-sales service end user).

The control process consists of setting standards, measuring the results actually achieved, and making adjustments if the results achieved differ materially from the established standards. The standards are based on the plans developed during the planning process.

Coordination is a control function that ensures uninterrupted and continuous operation logistics processes in the supply chain. The main task of coordination is to achieve consistency in the work of all parts of the organization by establishing rational communications between them.

Without appropriate coordination, the enterprises - participants in the supply chain can focus on ensuring their own interests, and not on the interests of the supply chain as a whole.

The formation of common goals and a single direction of efforts of all members of the supply chain to achieve these goals ensures planning function. Planning is included in all other management functions, acts as their necessary component, which is why it is customary to talk about its "omnipresence". At the same time, planning co-organizes all other functions, giving them, and therefore the entire management as a whole, the necessary degree of organization. Planning is a fundamental function of management.

The integrated planning process allows you to more clearly formulate the targets of the supply chain and use the system of performance indicators necessary for the subsequent monitoring of results. In addition, integrated planning provides a clearer coordination of the joint activities of enterprises, the synchronization of all business processes of enterprises and thus strengthens the interaction of all participants in the supply chain. Planning improves customer satisfaction with chain performance. This means that planning is a continuous process of learning new ways and methods to improve the performance of the supply chain through identified opportunities, conditions and factors.