The bases of coordination development as the emergent quality of investment goods supply chain

Abstract

In this paper article the authors point out the importance of actions aimed at reducing waste, increasing productivity and reducing costs in the supply chain, which will ensure the development of coordination as an emergent function of the supply chain and contribute to the formation of responsibility to internal stakeholders; they also note the difference between logistics and supply chain management (SCM), which, primarily, is that logistics usually refers to the activities taking place within one organization, and supply chains belong to the network of companies working together and coordinate their actions to product supply to the market. The authors point out that the development of partnership in supply chains makes it possible to perform collaborative planning on a common information base, collective management of stocks, risks and all this provides reasons to coordinate activities in the supply chain, i.e. the dependence of «exit» on «entry» becomes homogeneous. Particular attention is paid to the ways of improvement the supply chain functioning, which is proposed to carry out at three levels. The highest level includes the processes taking place throughout the supply chain, and concerns the relationship between all participants [10]. At the operational level (the second level), the constraint theory recommends to use the LPS (Logical Product Structure) method. At the current actions level (the third level) TOC proposes to use the concept of management of the production system DBR (English: Drum – Buffer – Rope), the application of which enables to increase the capacity of the production system. In order to identify the area of necessary changes, the authors propose to build a detailed flowchart of processes, actions and functions from receiving the order from the customer (either external or internal) up to the moment of order fulfilment and delivery to the customer, which makes it possible to analyze sequentially the system operation in the current time and identify the areas of necessary changes, as well as to increase the level of meeting the customer needs, ensuring the efficiency of material and information flows, strengthening the manufacturer status in the market.