MATEC Web of Conferences 134, 00018 (2017) DOI: 10.1051/matecconf/201713400018 LOGI 2017
The Design of Integrated Logistics Management System of an Industrial Company
Martin Hart1,* 1Tomas Bata University in Zlin, Faculty of Logistics and Crisis Management, Logistics Department, T.G. Masaryka 5555, 760 01 Zlin, Czech Republic
Abstract. In the contemporary global business markets environment, when the business markets are getting more and more commercial, there are growing demand for effective management of material flows. The effectivity and effectiveness of planning, management and control the material flows across an industrial company and its distribution networks, represents one of the main pillar regarding the high level of competitive advantage within the frame of supply chains. Thus, the company information management system design should have also included a module of integrated logistics management system to ensure required level of material flow management effectivity and effectiveness. The article deals with brief description of the issues on company management, company information management systems and logistics management. Further it’s stated the methodology to created integrated logistics management system, which is containing the methodics to design logistics management sub-systems of purchasing, manufacturing, distribution and reverse material flows. The essential methodics of the stated methodology is the methodics to create independent demand forecasting sub-system.
1 Introduction Global business environment and business markets commercialisation enhance by distinctive manner the requirements putting on industrial companies within the context of competitive advantage high level achievement and living environment protection. Wide range of the products and services in the industrial or business markets is the factor to seek the ways for costs reduction, which are connected with their production or distribution. The one of the ways, how to reach mentioned costs reduction, which are related to the products manufacturing, it’s the design or the optimization of the company’s management systems, which embody the high level of effectivity and effectiveness. That’s the one of the prospective ways, how to increase competitive advantage level in the current markets. The one of the main modules of the company’s information management systems in the contemporary turbulent global business environment is the integrated logistics management system. The effectivity and the effectiveness of the planning, management and control, the material flows of the industrial companies or the entire supply chains, represents important
* Corresponding author: [email protected]
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/). MATEC Web of Conferences 134, 00018 (2017) DOI: 10.1051/matecconf/201713400018 LOGI 2017
potential source to reach the high level of competitive strength in the up to date commercialized business mar ets. The integrated logistics management system of an industrial company should be formed by the sub systems of the planning, management and control, the particular functional areas. Those functional levels, namely purchasing, manufacturing, distribution and reverse material flows, are crosscut by the material flows. ell, the design or optimization of the company’s information management systems or more precisely the design of the integrated logistics management systems is the field, which should be ta en into account by all the nodes or the elements of the contemporary supply chains.
2 Enterprise management and enterprise information system The success and the prosperity of the current enterprises are given by the high uality company’s management. The enterprise management is constituted by the effective design and the cross connection of the particular company’s functional fields. The essential functional fields of the company are • research and development, • purchasing, • manufacturing, • logistics – distribution, • finance accounting, • sales mar eting, • human resources. The companies or the organisations of the particular industries, at present time of the global dynamic mar et environment, are still more realising the importance of the company management uality – stability and flexibility. This fact is not just from the company’s T point of view, but it’s especially from the first rate managerial decisions ma ing process point of view . The single functional levels of the company it’s necessary, in current dynamic market environment, to ta e as the systems . These systems should have been composed in the sense to reach re uired level of stability, fle ibility, resilience and living environment protection. Thus, firstly there are created particular functional areas – the systems and the processes which are running in them. ubse uently the functional areas are integrated thru the process management principles including the planning, management and control of the all flows, which are streaming in the internal or the external company’s supply chains . The company’s management includes the application of the e act methods developed for the analysis and synthesis given processes, which are running in the particular functional fields or across the functional fields. Further it’s important to apply the methods for the decision ma ing process purposes, within the scope of the decision support systems . The company management should represent the process of the effective treatment management relevant nowledge and information from the given company functional levels, which should cooperate at the in advance defined level – basis . nterprise information management system constitutes wholly important part of the successful company. ffective transmission, analysis, synthesis and the storing of the relevant data and information is the essential function of the enterprise information management systems. That fact can represent considerable competitive advantage, if it’s respected the principle of the data – information effectivity and effectiveness .
2 MATEC Web of Conferences 134, 00018 (2017) DOI: 10.1051/matecconf/201713400018 LOGI 2017 potential source to reach the high level of competitive strength in the up to date commercialized business mar ets. The integrated logistics management system of an industrial company should be formed 3 Logistics management by the sub systems of the planning, management and control, the particular functional The logistics management represents the one of the most important enterprise management areas. Those functional levels, namely purchasing, manufacturing, distribution and reverse fields. The effective management of the material flo s in the internal and external material flows, are crosscut by the material flows. ell, the design or optimization of the company’s supply chains is the area, where there are just applied the logistics management company’s information management systems or more precisely the design of the integrated principles and methods. Thus, the logistics management plays the key role during enterprise logistics management systems is the field, which should be ta en into account by all the strategies and plans creation – e.g. the issues, hich are concerning ith the re uired nodes or the elements of the contemporary supply chains. customer service setting, the suppliers relationships, manufacturing plants and arehouses locations, the distribution, inventory management or demand forecasting, and others . 2 Enterprise management and enterprise information system The one of the re uirements of the contemporary industrial or business markets, hich is putting on the organi ations, is the achievement of the high level responsiveness. uch The success and the prosperity of the current enterprises are given by the high uality re uirement should be met at the lo est possible costs and the created added value should company’s management. The enterprise management is constituted by the effective design be on the other hand as the highest as possible. This matter of fact is the challenge to design and the cross connection of the particular company’s functional fields. The essential ne approaches or principles of the planning, management and control in the logistics functional fields of the company are management – the creation of the ne methodologies or methodics . • research and development, • purchasing, • manufacturing, 4 Methodology of integrated logistics management system • logistics – distribution, creation • finance accounting, • sales mar eting, The integrated logistics management system should be based, in up to dates • human resources. companies, on the process management principles applied across particular enterprise The companies or the organisations of the particular industries, at present time of the functional fields. The design or the application of the should be realised continuously global dynamic mar et environment, are still more realising the importance of the company together ith the actualisation or the implementation of the enterprise information system. management uality – stability and flexibility. This fact is not just from the company’s The enterprise management system should have, in context of the enterprise management T point of view, but it’s especially from the first rate managerial decisions ma ing systems integration across the supply chains, a module for collaborative planning, process point of view . forecasting and replenishment F – as a foundation for other management modules. The single functional levels of the company it’s necessary, in current dynamic market should be designed for the management as the internal so the external material environment, to ta e as the systems . These systems should have been composed in the flo s of the given company and that in context ith the information and data gained ith sense to reach re uired level of stability, fle ibility, resilience and living environment the F module utilisation. protection. Thus, firstly there are created particular functional areas – the systems and the processes which are running in them. ubse uently the functional areas are integrated thru 4.1 Methodology of the integrated logistics management system design the process management principles including the planning, management and control of the all flows, which are streaming in the internal or the external company’s supply chains . The methodology, hich is still under development, is no composing by methodics to The company’s management includes the application of the e act methods developed design forecasting or logistics management sub systems, as it is stated in the follo ing for the analysis and synthesis given processes, which are running in the particular points functional fields or across the functional fields. Further it’s important to apply the methods . ethodics of independent demand forecasting sub system design for the decision ma ing process purposes, within the scope of the decision support systems . ethodics of purchasing management sub system design . . ethodics of manufacturing management sub system design The company management should represent the process of the effective treatment . ethodics of distribution management sub system design management relevant nowledge and information from the given company functional . ethodics of reverse material flo management sub system design levels, which should cooperate at the in advance defined level – basis . ach of the above stated methodics can be further orked out into comprehensive nterprise information management system constitutes wholly important part of the methodology to design given forecasting or management information sub system. successful company. ffective transmission, analysis, synthesis and the storing of the relevant data and information is the essential function of the enterprise information management systems. That fact can represent considerable competitive advantage, if it’s 4.2 Methodics to design independent demand forecasting sub-system respected the principle of the data – information effectivity and effectiveness . The methodics or the steps succession, hich are necessary to realise for design or for optimi ation of the enterprise forecasting sub system, it’s possible to sum up into 9 follo ing points
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an enterprise description or a description o its plants or which about to be created independent demand orecasting system sales or consumption , a supply chain isuali ation – internal and e ternal parts, the oundation o a point or the points o the supply chain di iding – the order penetration point theory, an e tensi e port olio segmentation o the accumulated material items – an in entory o e g the inal products, semi inished products or raw materials in the order penetration point or points o the supply chain, the analysis o the e isting systems or independent demand orecasting, a determination and statistical processing o the input data or demand orecasting sales or consumption , a basic analysis o demand pattern – a trend, a seasonality, an increase or a decrease, a creation process o the most suitable models or independent demand orecasting o the particular material items segments – the in entory which is accumulated in the order penetration point o the supply chain their application to orecast, 9 9 a creation o module collaborati e planning orecasting and replenishment or the purpose to integrate the company’s forecasting system with the forecasting systems o the other companies, organi ations or the retailers within the scope o gi en supply chains bo e stated methodics o the independent demand orecasting system is uni ersally applicable in any industry or in any tertiary sphere organi ation
4.3 Methodics to design purchasing logistics management sub-system he methodics to design purchasing logistics management sub system, it’s possible to sum up into ollowing points the current state analysis o the purchasing management system in the company, a creation or an up dating o the raw material or purchased items warehousing spaces layouts, a creation o the particular management sub systems a data sub system b orecasting sub system c planning sub system d in entory management sub system e a selection and an e aluation suppliers sub system, supply uantity determination a setting particular logistics processes sub system g personal sub system h economic sub system ch purchasing administration sub system i control sub system – a setting o per ormance measurements j sub system o ris analysis and li ing en ironment protection, an integration o created sub systems, a putting into operation , tated methodics to design purchasing logistics management sub system is uni ersally applicable in any industry or tertiary sphere organi ation
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an enterprise description or a description o its plants or which about to be created independent demand orecasting system sales or consumption , 4.4 Methodics to design manufacturing logistics management sub-system a supply chain isuali ation – internal and e ternal parts, the oundation o a point or the points o the supply chain di iding – the order he metho ics to esign manufacturing logistics management sub system, it’s possible, as penetration point theory, well as the metho ics regar ing a purchasing, to sum up into following points an e tensi e port olio segmentation o the accumulated material items – an in entory o e g the inal products, semi inished products or raw materials in the order penetration the current state analysis of the manufacturing management system in the company, point or points o the supply chain, a creation or an up ating of the manufacturing spaces layouts inclu ing associate the analysis o the e isting systems or independent demand orecasting, warehouses, a determination and statistical processing o the input data or demand orecasting sales a creation of the particular management sub systems or consumption , a ata sub system a basic analysis o demand pattern – a trend, a seasonality, an increase or a decrease, b forecasting sub system a creation process o the most suitable models or independent demand orecasting o c planning sub system the particular material items segments – the in entory which is accumulated in the order an optimal pro uction batches etermination sub system penetration point o the supply chain their application to orecast, 9 e in entory management sub system 9 a creation o module collaborati e planning orecasting and replenishment or f a particular logistics processes etermination sub system the purpose to integrate the company’s forecasting system with the forecasting systems g personal sub system o the other companies, organi ations or the retailers within the scope o gi en supply h economic sub system chains ch manufacturing a ministration sub system bo e stated methodics o the independent demand orecasting system is uni ersally i control sub system – a setting of performance measurements applicable in any industry or in any tertiary sphere organi ation sub system of ris analysis an li ing en ironment protection sub system of maintenance planning an management, an integration of create sub systems, 4.3 Methodics to design purchasing logistics management sub-system a putting into operation tate metho ics to esign manufacturing logistics management sub system is he methodics to design purchasing logistics management sub system, it’s possible to sum uni ersally applicable in any in ustry or tertiary sphere organi ation, as well as up into ollowing points metho ics briefly escribe abo e the current state analysis o the purchasing management system in the company, a creation or an up dating o the raw material or purchased items warehousing spaces 4.5 Methodics to design distribution logistics management sub-system layouts, a creation o the particular management sub systems he metho ics to esign istribution logistics management sub system, it’s possible, as a data sub system well as pre ious metho ics to sum up into following points b orecasting sub system c planning sub system the current state analysis of the istribution management system in the company, d in entory management sub system a creation or an up ating of the istribution spaces layouts inclu ing associate e a selection and an e aluation suppliers sub system, supply uantity warehouses, determination a creation of the particular management sub systems a setting particular logistics processes sub system a ata sub system g personal sub system b forecasting sub system h economic sub system c planning sub system ch purchasing administration sub system sub system to ehicle full loa ing an an optimal transportation routes i control sub system – a setting o per ormance measurements etermination j sub system o ris analysis and li ing en ironment protection, e in entory management sub system an integration o created sub systems, f a setting of particular logistics processes sub system a putting into operation , g personal sub system tated methodics to design purchasing logistics management sub system is uni ersally h economic sub system applicable in any industry or tertiary sphere organi ation ch istribution a ministration sub system i control sub system – a setting of performance measurements sub system of ris analysis an li ing en ironment protection sub system of fleet management a ministration, planning an management , an integration of create sub systems,
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a p tti i to ope atio e met o i s to esi ist ib tio lo isti s ma a eme t s b system is i e sally appli able i a y i st y o te tia y sp e e o a i atio as t e p e io s met o i s b ie ly es ibe abo e
4.6 Methodics to design logistics management sub-system of the reverse material flows e met o i s to esi lo isti s ma a eme t s b system of reverse material flows, it’s possible, as ell as p e io s met o i s to b ie ly es ibe by t e ollo i poi ts t e e t state a alysis o t e e e se mate ial lo s ma a eme t system i t e ompa y, a eatio o a p ati o t e a e o se layo ts i a e i te e o e e se mate ial lo items, a eatio o t e pa ti la ma a eme t s b systems a ata s b system b o e asti s b system pla i s b system s b system to e i le ll loa i a a optimal t a spo tatio o tes ete mi atio e i e to y ma a eme t s b system a setti o pa ti la lo isti s p o esses s b system pe so al s b system e o omi s b system a mi ist atio s b system i o t ol s b system – a setti o pe o ma e meas eme ts s b system o is a alysis a li i e i o me t p ote tio s b system o leet ma a eme t a mi ist atio , pla i a ma a eme t a i te atio o eate s b systems, a p tti i to ope atio , e met o i s to esi e e se mate ial lo s ma a eme t s b system is also i e sally appli able as t e p e io s met o i s i a y i st y o te tia y sp e e o a i atio
5 Conclusion e s pply ai s o i e i st ial b a es a e etti mo e a mo e omple a t e mate ial lo s, i a e st eami i t em a e etti mo e a mo e b l y , e to ma ets lobali atio , t e i st ial a b si ess ma ets a e etti also t e ma ets mo e o less it omme ial a a te s, t e e a e see i o t t e e ays, as to ai o to etai t e stome s e o e o t e ay is to e e t e osts t t e p o essi e i o matio e te p ise ma a eme t systems, a t at it i t e s ope o lo te m so io e o omi s stai ability a li i e i o me t p ote tio ese systems s o l meet t e e i eme ts o le ibility, stability, esilie e a se ity it o e tio to o tempo a y s pply ai e elopme t e impo ta t pa t o t e i o matio e te p ise ma a eme t systems is, i o te t o p to ate s pply ai e elopme t, t e i te ate lo isti s ma a eme t system e a ti le ealt it b ie e pla atio o t e esse tial otio s e te p ise ma a eme t, e te p ise i o matio ma a eme t system a lo isti s ma a eme t e ma o a ti le pa t as bee t e p ese tatio o t e eate met o olo y to esi i te ate lo isti s
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a p tti i to ope atio management system, which has been created on the basis of former author’s research. The e met o i s to esi ist ib tio lo isti s ma a eme t s b system is i e sally methodology is uni ersally applicable in any industry or organi ation of tertiary sphere. appli able i a y i st y o te tia y sp e e o a i atio as t e p e io s met o i s Thru methodology application, it’s possible to create the integrated logistics management b ie ly es ibe abo e system in the practice – the management sub systems of purchasing, manufacturing, distribution and re erse material flows. The created methodology should contribute to the de elopment of the issues regarding 4.6 Methodics to design logistics management sub-system of the reverse the enterprise information management systems in the theory and also in the practice. The material flows article has presented new fashioned approach of enterprise management with the emphasis e met o i s to esi lo isti s ma a eme t s b system of reverse material flows, it’s on the effecti ity and effecti eness connected with the planning, management and control possible, as ell as p e io s met o i s to b ie ly es ibe by t e ollo i poi ts of the internal and external company’s or supply chain’s material flows for which is the methodology also applicable. t e e t state a alysis o t e e e se mate ial lo s ma a eme t system i t e ompa y, a eatio o a p ati o t e a e o se layo ts i a e i te e o e e se This paper is supported by the research project “From horse drawn railway to intermodal transport” mate ial lo items, within Visegrad Fund. a eatio o t e pa ti la ma a eme t s b systems a ata s b system b o e asti s b system References pla i s b system . . . Tammineedi, nfo. ec. . 19, , , s b system to e i le ll loa i a a optimal t a spo tatio o tes . ete mi atio e i e to y ma a eme t s b system . . alind a , Proceedings of the 6th Carpathian Logistics Congress, a setti o pa ti la lo isti s p o esses s b system a opane, oland, pe so al s b system . . a an, Production and Operational Management, p. rague rada, ech e o omi s b system epublic, a mi ist atio s b system . . . . an der alst, . . . ter ofstede, . es e, ect. ot. in om. ci. 2678, i o t ol s b system – a setti o pe o ma e meas eme ts , . s b system o is a alysis a li i e i o me t p ote tio . T. . aghu, . Vin e, ec. up. ys. 43, , s b system o leet ma a eme t a mi ist atio , pla i a ma a eme t a i te atio o eate s b systems, . . alah, . ahim, . . arretero, nter. our. of Bus. xc. 6, , , a p tti i to ope atio , . B . . e met o i s to esi e e se mate ial lo s ma a eme t s b system is also . . attorna, . ay, . argrea es, og. nf. an., 4, , , i e sally appli able as t e p e io s met o i s i a y i st y o te tia y sp e e . o a i atio . F. ilsson, The nter. . of og. an. 17, , , . 5 Conclusion . . art, The Approaches to Independent Demand Forecasting in an Industrial Company, p. issertation Thesis, VŠB T stra a, ech epublic, e s pply ai s o i e i st ial b a es a e etti mo e a mo e omple a t e . . art, . Taraba, . onecny, Proceedings of the 5th Carpathian Logistics mate ial lo s, i a e st eami i t em a e etti mo e a mo e b l y , e Congress, riessnit pa, esen , ech epublic, to ma ets lobali atio , t e i st ial a b si ess ma ets a e etti also t e ma ets mo e o less it omme ial a a te s, t e e a e see i o t t e e ays, as to . . art, . Taraba, . Tomasti , Proceedings of the 6th Carpathian Logistics ai o to etai t e stome s e o e o t e ay is to e e t e osts t t e Congress, a opane, oland, p o essi e i o matio e te p ise ma a eme t systems, a t at it i t e s ope o lo . . art, . Taraba, . onecny, Proceedings of the 3rd International Conference on te m so io e o omi s stai ability a li i e i o me t p ote tio ese systems Sustainable Design and Manufacturing, hania, rete, reece, s o l meet t e e i eme ts o le ibility, stability, esilie e a se ity it . . art, . Taraba, . Tomasti , Proceedings of the 28th Annual Nordic Logistics o e tio to o tempo a y s pply ai e elopme t Research Network Conference Tur u, Finland, e impo ta t pa t o t e i o matio e te p ise ma a eme t systems is, i o te t o . . acmary, . alind a , c. on. lo. 15, , p to ate s pply ai e elopme t, t e i te ate lo isti s ma a eme t system e a ti le ealt it b ie e pla atio o t e esse tial otio s e te p ise ma a eme t, . . acmary, . adero a, . oso a, . tra a, pp. e. and at. 683, . e te p ise i o matio ma a eme t system a lo isti s ma a eme t e ma o a ti le , . www.scientific.net . . pa t as bee t e p ese tatio o t e eate met o olo y to esi i te ate lo isti s
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