Abstract

The paper proposes the use of the integrated logistic approach, application of the cross-functional logistic coordination and integration in managing processes of the distribution center that promotes both to minimization of expenses and enhancing the effective functioning of the distribution center in the supply chain. The SMED analysis of logistic processes and Value Stream Mapping make it possible to identify inefficient operations and to reduce the duration of a logistics cycle. The researches of processes conducted by the author with the use of the logistic tools allowed revealing the reserves and making recommendations on how to enhance the effectiveness of the regional distribution center.

Highlights

  • In the conditions of market economy, the use of tools of logistics by economic entities is represented relevant as it promotes the forming of competitive advantages of the company.According to D.J

  • The SMED analysis and Value Stream Mapping were tested by the author and are recommended for the application in the distribution center as the tools of the analysis of logistic processes [10, 11]

  • The duration of the logistic processes of the completion of the orders, shipments of goods to consumers in Tyumen Distribution Centre (TDC) directly depend on the process of acceptance of the transport returnable container

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Summary

Introduction

In the conditions of market economy, the use of tools of logistics by economic entities is represented relevant as it promotes the forming of competitive advantages of the company. According to D.J. Bowersox, V.I. Sergeeva, in modern business the significant changes, which are characterized by the fact that not the companies but supply chains compete among themselves, happen [1, 2]. The costs for performance of the logistic functions and operations make from 35% to 48% of all expenses of the company in the sphere of retail trade. In the structure of logistic expenses in various branches of industry of economically developed countries 20-40% are the share of inventory management, transportation costs represent 15-35%, expenses on administrative and managerial functions represent 9-14% [2]

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