MANAGEMENT OF ASSESSMENT OF RELIABILITY OF SUPPLY CHAINS
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Date
Authors
Oleg Zagursky
Tadeusz Pokusa
Mykola Ohiienko
Svitlana Zagurska
Alona Ohiienko
Liudmila Titova
Ivan Rogovskii
Journal Title
Journal ISSN
Volume Title
Publisher
Academy of Applied Sciences Academy of Management and Administration in Opole
Abstract
The transition to a post-industrial society is marked by cardinal changeschanges
that require the development of new methods and approaches in the functioning
of society. Logistics as a field of human activity is also undergoing changes.
Network, informational, cognitive features of the new economic formation
determine approaches to flow management. New requirements appear, the
requests of the end consumer become the priority, in connection with which the
logistics of individual business processes is replaced by the concept of supply
chain management. Given the new economic conditions, an effectively
functioning supply chain must meet all the requirements of the economy of a post
industrial society, in particular, a quick response to changes in demand,
fulfillment of orders with high quality of service. In this regard, during the
construction of modern logistics systems, the policy of selling manufactured
goods is replaced by the policy of production of goods for sale or services;
constant work is carried out to minimize the terms of passing products through
the technological process, reduce groups of resources and processing, reduce all
types of downtime and irrational intra-production transportation.
In the modern economy, one of the basic competitive advantages of any
organization is the ability to quickly and efficiently satisfy consumer requests in
accordance with their requirements. The most important tool in the process of
achieving this goal is the logistics orientation of the organization as a whole, since
the formation of an effectively functioning logistics system allows for the delivery
of the goods needed by the consumer to the right place, time, in the required
quantity, of the required quality and with the lowest costs. However, a
combination of adverse external factors, both global (wars, pandemics, financial
crises, natural disasters, depletion of natural resources and degradation of ecosystems) and purely economic, associated with price fluctuations, arbitrary
increases in supply batches, deviations from planned deadlines and production
volumes, leads to disruptions or failures in the supply chain, and therefore to
reduced supply reliability and increased costs. Due to the existence of many
factors that affect each of the participants in the supply chain, its system is prone
to variability and is subject to randomness, which directly affects the reliability of
the entire supply chain. Accordingly, the question of how to analyze and increase
the reliability of the supply chain is becoming more and more relevant and is
receiving more and more attention.
However, despite the obvious need to improve the reliability of supply
chains, the number of companies paying due attention to this issue is still
insignificant. Domestic and foreign specialists in logistics and supply chain
management note that in today's unpredictable and changing market environment,
the vulnerability of supply chains is constantly increasing. This is due to the fact
that logistics systems and supply chains are becoming more complex due to the
division of labor, and the more complex the system is and the higher the degree
of interdependence of its elements, the more it is exposed to uncontrollable events.
In addition, during crises due to network configurations and complexities of
business cycles, optimal selection of supply system complexes, as well as
complex demand forecasting processes, operational difficulties arise for all
participants in supply chains. Therefore, modern business must be prepared for
the possible consequences of this kind of outrage and be ready to apply the
necessary tools to increase the reliability and sustainability of its own supply
chains. Insufficient attention to the problem of improving the reliability and
sustainability of supply chains can lead not only to short-term financial losses, but
also to the deterioration of the overall perception of the supply chain in the market,
which ultimately leads to a decrease in the capitalization of the company and
negatively affects the results of operational activities.
Management of the reliability and stability of the supply chain, as a rule, is
associated with the choice of one or another tool that allows in specific conditions
or for a specific business process to achieve the continuity of its work.
Accordingly, increasing the reliability of the logistics system in general, as well
as its individual elements, along with the minimization of logistics costs, is one
of the directions for increasing the efficiency and sustainability of the supply
chain. The main problem of choosing an adequate method of managing the
reliability of supply chains is that for both participants and consumers all the main
properties of an effective supply chain (failure, economy and security of supply)
are equally relevant. Therefore, it is necessary to jointly use the tools of reliability
theory, planning methods built on the basis of operations research and risk
management methods.
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