The paper was presented at the International Logistics Conference “Logistics 2002 – Flexible supply chains – concepts, experiences, challenges”. Poznań, May 14-15, 2002.
Modern supply chain
Currently, logistics development is driven by elements such as: raw material and production resources available almost anywhere in the world, increasingly open consumer markets, increased availability of goods and services, and the development of information technology and telecommunications. Logistics chains are becoming increasingly flexible and intelligent, which positively influences the integration and cooperation of enterprises. The role of logistics operators and the scope and quality of services they provide are also growing.
Enterprises wanting to achieve a competitive advantage are trying, among other things, to modernize their supply chain. A modern supply chain can be defined as:
– capable of rapid response, skillfully satisfying rapidly changing demand,
– flexible, able to achieve an optimum of costs incurred and service levels,
– capable of optimal utilization of company resources,
– intelligent, maximizing the use of all available information.
It is impossible to imagine the implementation of this concept without using technological achievements, primarily in IT. These include, among others, the implementation of an integrated ERP-class system supporting enterprise management, as well as modern communication methods, primarily the Internet. Unfortunately, its use in Poland is still mostly limited to checking e-mail. Yet solutions such as e-commerce or e-procurement, widely used in the West, can help a company reduce operating costs and accelerate service delivery times.
In Poland, there is currently growing interest in systems supporting logistics management or IT systems designed specifically for the needs of supporting supply chain management. The process of implementing such solutions in Polish enterprises has accelerated over the last few years. The solutions from SAP, Baan, Oracle, and JD Edwards enjoy the greatest interest. The benefits of implementing such integrated systems for an enterprise include:
– reduction of costs of capital frozen in raw material stocks and their storage costs,
– reduction of the risk of errors in production plan and schedule calculations,
– shortening of the production cycle,
– increased delivery punctuality,
– easier introduction of new products to the offer, as well as implementation of new systems, e.g., quality management,
– easier access to information that is more reliable.
The return on investment for these systems is estimated to be very fast. ROI in some cases is estimated at even 47% within the first 12 months of system use.
Factors influencing supply chain flexibility
According to H. Pfohl (“Logistics Management”), we distinguish between “Built-in” flexibility and operational flexibility. The former is aimed at making the enterprise resistant to environmental influences by dispersing activities across different markets. It is also possible here to shift part of the risk to market partners. This is a rather defensive strategy. In turn, operational flexibility is aimed at increasing the enterprise’s ability to react to various types of stimuli. We can distinguish three types of operational flexibility:
– action flexibility (degree of freedom of action),
– process flexibility (speed of action),
– structural flexibility (readiness for action).
We can achieve an increase in the speed of action through faster information flow, thanks to the use of new communication and data processing technologies (EDI). Thanks to faster information flow and planning, the moment of which will be situated earlier, we can improve both the process and the quality of the decisions we make. Thanks to greater speed of action, we will be able to manage crisis situations. We will be able to use even the weakest signals about changes in the environment. Speed of action also serves to synchronize planning and execution processes, in such a way that these processes are partially performed simultaneously.
Readiness for action depends on the quality of current assets, qualifications and motivation of employees, as well as the organizational structure. Speaking of the quality of current assets, one must mention the flexibility to adapt to production changes and model changes, and variant flexibility (referring to variant operations, changeover speed). It is also required to have employees with appropriate logistics education and experience so that they are able to recognize logistics problems and be able to modify the system so that it copes better in such situations. As for the organizational structure, it turned out that decentralization and delegation of authority increase readiness for action.
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