• Title/Summary/Keyword: Performance Based Logistics

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Study on the Effect of Product Line Pricing on Loading Efficiency and Logistics Cost (상품라인별 가격결정이 적재효율 및 물류비에 미치는 영향에 관한 연구)

  • Jung, Sung-Tae;Yoon, Nam-Soo;Han, Kyu-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.55-69
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    • 2014
  • Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in

    , loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.

  • Perceptional Difference of Logistics Service Contract between Shipper and Logistics Service Provider (화주기업과 물류기업의 물류계약 인식차이에 관한 연구)

    • Kim, Jin-Su;Song, Sang-Hwa
      • International Commerce and Information Review
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      • v.14 no.3
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      • pp.281-306
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      • 2012
    • Global competition has resulted in companies' expectations to heighten competitiveness and enhance customer service through ownership companies' reduced investment on logistics costs, in turn focusing on the development of core competence, in addition to logistics companies' increased tendencies to satisfy customers' needs and requirements through logistics outsourcing. However, a partial perspective of the logistics contract exists due to its flexible characteristic in order to act accordingly in times of sudden changes and uncertainty. Therefore, this study is designed to test through a survey the standard of desired format of logistics contract in comparison to the currently existing format based on the results of researcher's previous study on the specific clauses in the logistics contract and its effect on the logistics outcome. A hypothesis has been designed to test the differences of perspective between two test groups, and a t-test &IPA (Importance-Performance Analysis) was performed. As a result, firstly, there was a significant difference of perspective between the ownership companies and logistics companies when dealing with the logistics contract; secondly, a significant difference of perspective was also expressed between the two groups on how to guide and re-direct the present standard of logistics contract. In addition, the two groups also showed a difference of expectations between the current and future service standard. Therefore, this study is designed to specify the difference of perspective and expectations between the ownership companies and the logistics companies in order to provide a gateway for the two groups in order to further develop and enhance the field of logistics.

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    Warehouse Picking Efficiency influence Analysis of Product location by Delivery Frequency (출고빈도별 제품 로케이션 배치에 따른 피킹효율 영향 분석)

    • Yim, Woo-Taek;Park, Hyun-Ho;Kang, Kyung-Sik
      • Journal of the Korea Safety Management & Science
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      • v.16 no.3
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      • pp.363-368
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      • 2014
    • During the fierce competition among the companies, improvement of logistics center managing efficiency is importantly recognized. Among them, studies on improvement of picking work process on about 55% of logistics center managing costs are continuously conducted. And, most of studies focus on analysis on strengths and weaknesses of picking method performable on the stage of logistics center design, etc, so the purposes of this research are to define load location rule by product releasing frequency in logistics managing environment based on conveyer and suggest expected effects by simulation analyzing method to improve picking managing efficiency.

    An Application of Benchmarking Method to Improve Port's Competitiveness (항만의 경쟁력제고를 위한 벤치마킹기법 적용에 관한 연구)

    • 방희석;김새로나
      • Journal of Korea Port Economic Association
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      • v.18 no.1
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      • pp.85-106
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      • 2002
    • Across many industries, benchmarking is considered useful method to improve their service quality and achieve competitive advantage. Benchmarking, especially, has emerged as an increasingly important approach to improving the performance of logistics system and enables successful logistics services and doing good business in logistics services. There are no, however, literature approach for the relationship between benchmarking and port. It is the highest worth researching the application of benchmarking method on the port, since port is the most important component in supply Chain. Therefore, this paper tries to demonstrate the application of the benchmarking method on the port. To do this study, the literature approach developed by several researchers for logistics benchmarking is used as the basic framework. In addition, the following studies are executed: First, the survey of previous studies on logistics benchmarking. Second, finding the indicator and selecting the target in the port benchmarking. Third, the systematic execution schemes of the port benchmarking. Finally, based on the above studies, this paper provides a background for discussions on the future prospects for the application of the benchmarking method on the port.

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    A Genetic Algorithm Approach for Logistics Network Integrating Forward and Reverse Flows (역물류를 고려한 통합 물류망 구축을 위한 유전 알고리듬 해법)

    • Ko, Hyun-Jeung;Ko, Chang-Seong;Chung, Ki-Ho
      • IE interfaces
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      • v.17 no.spc
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      • pp.141-151
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      • 2004
    • As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for the backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, they should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since the network design problem belongs to a class of NP-hard problems, we present an efficient heuristic algorithm based on genetic algorithm (GA), of which the performance is compared to the lower bound by Lagrangian relaxation. Finally, the validity of proposed algorithm is tested using numerical examples.

    International Trade and Logistics of Kazakhstan and Its Trading Partners: Contribution to Economic Growth and Distribution of Trade Flows

    • Zhanarys RAIMBEKOV;Zhibek RAKHMETULINA;Tana ABYLAIKHANOVA;Bakyt SYZDYKBAYEVA;Aigerim RAKHMETULINA
      • Journal of Distribution Science
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      • v.21 no.9
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      • pp.67-79
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      • 2023
    • Purpose: To investigate the intensity of bilateral international trade of the Silk Road Economic Belt (SREB) countries with Kazakhstan, its relationship with logistics (LPI), to assess their contribution to economic growth and distribution of commodity flows. Research design, data, and methodology: The method of analyzing the bilateral trade flow was applied by using the trade intensity index (TII) and a multidimensional regression model describing the relationship between LPI and its components, TII, the volume of exports and imports, GDP. Results: The nature and directions of the relationship between TII and the key components of logistics, the positive impact of LPI on the intensity of trade are established. It is revealed that the intensity of trade between the countries in the direction of the EAEU-Kazakhstan has a greater impact on the growth of LPI than in the opposite direction. At the same time, the higher the level of trade integration and the volume of GDP, the stronger their impact on the efficiency of logistics and distribution of commodity flows. Conclusions: Effective distribution of commodity flows will require the development of logistics components based on the direction of bilateral trade and the size of countries, the intensification of state reforms in the field of international trade and distribution logistics.

    A Study of the Priority of the Local-Logistics Policy in the Incheon Metropolitan City (인천광역시 지역물류정책의 우선순위에 관한 연구)

    • Roh, Kyoung-Joon;Song, Sang Hwa
      • Journal of Korea Port Economic Association
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      • v.32 no.1
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      • pp.59-77
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      • 2016
    • This paper reviews the current local logistics policy of the Incheon Metropolitan City and prioritizes policy agenda based on fuzzy AHP and IPA (Importance Performance Analysis). The analysis recommends that the city needs to keep up the current good works at the policy agenda such as early expansion of the international logistics hub and improvement of the provincial highway network.The policy agenda including the logistics parks, the transport networks and the hinterland activities are evaluated as overkilled agenda. Revitalization of the logistics database, establishment of an integrated business support center, modal shift, and public logistics support were classified as low-priority policy agenda. The policy agenda of urgent concentration includes development of new logistics business and air cargo industry.

    A Study on a Real Time Freight Delivery Planning for Supply Center based on GIS (GIS기반의 실시간 통합화물운송시스템 계획에 관한 연구)

    • 황흥석;김호균;조규성
      • Korean Management Science Review
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      • v.19 no.2
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      • pp.75-89
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      • 2002
    • According to the fast-paced environment of information technology and improving customer services, the design activities of logistics systems improve customer centric services and delivery performance implementing e-logistics system. The fundamental design issues that arise in the delivery system planning are optimizing the system with minimum cost and maximum throughput and service level. This study is concerned with the integrated model development of delivery system with customer responsive service level for DCM, Demand Chain Management. We used a two-step approach for this study. First, we formulated the supply. center facility planning using stochastic set-covering problem and assigned the customers to the supply center using clustering algorithm. Second, we developed vehicle delivery planning for a supply center based on GIS, GIS-VRP. Also we developed a GUI-type computer program for proposed method for supply center problem using GIS and Geo-DataBase of Busan area. The computational results showed that the proposed method was very effective on a set of test problems.

    RFID-Based RTLS for Improvement of Loading Productivity in Container Terminals

    • Park, Doo-Jin;Nam, Ki-Chan
      • Journal of Navigation and Port Research
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      • v.30 no.4
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      • pp.285-290
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      • 2006
    • Shipping companies consider most of the ship turnaround time as a critical factor when selecting a rolling port for reducing costs. So, many researchers have been studying for the optimization of preplanning and high~performance of the Gantry Cranes (GCs) in container terminals for faster loading and unloading. Therefore, in this paper, we propose an RFID (Radio Frequency Identification) based RTLS (Real-Time Location System) for reducing the ship turnaround time in ubiquitous port environment. In addition, pre-planning based on ubiquitous computing environment will support the GC and Yard Tractors (YTs), and reduce ship turnaround time more effectively. Especially, the proposed method enormously enhances the productivity of loading for the twin-lift system It will reduce the whole lead-time in the process of port logistics.

    Research Trend Analysis of Green Logistics by Using Social Network Analysis (SNA를 활용한 친환경 물류 연구 동향 분석)

    • Jiarong Chen;Jiwon Lee;Hyangsook Lee
      • Korea Trade Review
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      • v.47 no.6
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      • pp.55-69
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      • 2022
    • Within the worse of the environment, Climate change caused by global warming is becoming serious around the world, and green logistics to pursue sustainable development in the logistics sector are receiving more and more attention. Along with the acceleration of the global economy, eco-friendly issues are playing an increasingly important role in the logistics industry, and various policy measures are being pursued to establish the green logistics system. This study aims to analyze research trends in eco-friendly logistics, and the SNA methodology was applied by extracting keywords from 518 domestic and foreign papers from 2013 to August 2022. The period is divided into three stages: 2013-2015, 2016-2019, and 2020-2022, and 'logistics' and 'sustainable development' were derived as top logistics eco-friendly keywords at all stages. Besides, In the first stage(2013-2015), the term 'environmental performance' and 'freight transport' attracted the attention of scholars. In the second stage(2016-2019), keywords such as 'third-party logistics' and 'lean logistics' have attracted the attention of scholars. In the third stage(2020-2022), the 'internet of things' and 'circular economy' received the attention of scholars. In line with the growth of the economy, it was confirmed that research related to eco-friendly logistics is gradually expanding to a sustainable concept. Based on this study, it is possible to grasp the research trends of the academic community to cope with recent environmental changes and provides reference materials to consider future research directions.