Overall performance of all companies which are engaged in manufacture or distribution of the goods, in many respects depends on correctly built logistical processes. Expenses for a cost of transportation, storage, pre-sales preparation make powerful percent from final cost of the goods. Besides, logistical processes are connected with interaction of different divisions and frequently of different companies. Thus, the logistics organization exercises direct influence on the financial plan and organizational structure of the company, influences price decisions and can be both a serious competitive advantage, and an obstacle to company development and growth. So, if the company manages to reduce logistical costs at the expense of correctly built processes, the end production cost price decreases, hence, the company has possibility to establish competitive price of the production. At the same time absence of clearness and coordination at realization of logistical operations can lead to failure of deliveries and, as consequence, losses of trust of Clients.

Also, at present in Russia there are numerous companies, rendering different logistical services: freight traffic, forwarding services, safekeeping, warehouse processing. For such companies it is very important to orientate themselves in the market of logistical services not to concede to competitors on service and the price, thus keeping high profitability of business.

CONCOL company has a significant experience in the sphere of logistics:

• logistic operators market research and analysis;
• logistics set up from scratch, including working out of all processes (from purchase planning to the delivery to a specific customer);
• support at creating the effective inventory control system (stock management);
• present logistics system evaluation, including ABC-analysis, quickness of orders collection and delivery to the customer (consulting logistics);
• designing and technological support of logistics complexes;
• drawing-up of planning sheets and time schedules for warehousing logistics;
• business description and automation, optimization problems decision;
• effective logistics decisions development and implementation: “deliveries planning on the basis of simple and efficient methods of the optimum order buildup”, “ work with import deliveries and customhouse broker”, “warehouse area optimization”, “ stock optimization: ABC, XYZ –analysis”, “control set-up and logistics processes evaluation (KPI-processes and employees)”, “improvement and optimization of terms and quality of warehouse processes operation”, “optimum delivery of orders”, “exception cases processing: returns, shortfalls, regarding, overplus”, “ carrying out of stock-taking inventory”;
• selection of transport and warehousing services supplier based on requirements and peculiarities of Customer’s goods;
• carrying out of stock-taking inventory and optimization of cargo disposition, etc.

The efficiency of any department operation, including logistics department, depends on quantity and quality of the personnel, employees work checking system organisation, segregation of functional duties, motivational policy (personnel motivation). CONCOL specialists in the course of work on enhancement of logistics efficiency, make a calculation of optimal manpower, specify employees functional duties, and in some cases organise personnel professional improvement and training.

Among basic problems, characteristic for Russian logistics, our experts mark out lack of professional and experienced personnel, and also deficiency of multimodal possibilities in the market.

Among internal problems, according to our experience, the most often met are the following:

• insufficient understanding of logistics importance by a company top management;
• low level of present entities automation;
• absence of clear instructions for emergency situations (shortfalls, overplus, etc.);
• absence of clear rules of interaction and interdepartmental flow of documents;
• absence of regulated and tested rules and procedures of interaction with logistics operator;
• irrational usage of warehouse spaces;
• cargo traffic low profitability;
• shortfalls and overplus high percentage;
• absence of custom oriented service from the side of warehouses and transport divisions (permanent delays in deliveries).

As an illustration we would like to show our experts project on optimisation of a Russian slaughtering and meat processing plant work, which has been in operation since Soviet time. The plant management did not request our company to optimize logistics processes. The director was concerned about high cost price of the production run, which forced them to raise prices for the products. According to the management the only reason of the present situation was poor equipment needed urgent upgrading, however the plant did not have enough means for all the equipment stock replacement.

In the course of case analysis our specialists found out that besides faulty equipment the problem is in low level of most processes automation. (operations carried out, performed «by hand», cooperation between employees takes place only via oral discussions), and logistics functions on the same principle that was 20 years ago.

The authority was offered to take following measures:

• to describe clearly and to upbuild logistics processes all over again, to draw reorganization of business unit;
• to optimize warehouse spaces: was offered to lessen spaces with the use of partition on particularized operational zones and to rent out the overplus;
• to transfer transport logistics to outsourcing: most of the clients bought production from the factory with self-delivery, that’s why there was no need to keep a truck fleet;
• there were developed and implemented computerised warehouse control systems that let simplify the processes of cooperation between factory warehouses and transport companies, put down the percent of short-delivery and faulty production.

Assumed measures let lower primecost of manufacture and raise the factory income. Finally the chief of the factory had the opportunity to start the process of equipment upgrading.

We help cargo owners to make the right choice of logistical operator and to optimize expenses for logistics, and logistical operators – to work up a new share of the market and to improve quality of service.

You can get a hold of our specialists by the phone:

(499) 145 74 77
(495) 763 28 63

Or by e-mail info@concol.ru