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BEST PRACTICES IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT The Case of Poland
BEST PRACTICES IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT The Case of Poland
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As educators involved in the teaching of logistics and supply chain management, particularly in the context of global business developments, we feel it increasingly hard to convey to students how many things have changed in logistics and supply chain management, and also how many challenges remain.The forces of globalisation, technology and competition continue to redefine markets making it harder than ever for managers to rely on traditional concepts,approaches, techniques, methods or processes. In fact, the consensus of many is that those traditional concepts, approaches, techniques, methods or processes are not only obsolete but dangerous. In the current global economy of the 21st century, where companies more than ever are being forced to optimise their operations as a matter of survival, the term "best practice" gains more relevance and more interest from key management personnel every year.

Best practices have been the subject of much discussion in recent years, and a growing body of knowledge has emerged that purports to define best practices and quantify their value to an organisation. They have been described by many names including "the best way", "better practices", "expert practices", or "current thinking". For more than the past decade, businesses around the world have been developing, identifying, implementing, and adapting best practices as one means of achieving the excellence of efficiency and superior customer service that would set them apart from their competitors. The term "best practices" does not refer to whether these ways are best ornot. Th e phrase "best practices" is only the name we use to define them. The important thing is that they serve an educational purpose. Using proven patterns as a base saves us from encountering problems that others have alreadye xperienced. It pays to work wisely by leveraging on and building upon existing information or proven patterns to fit our need.The aim of this publication is to familiarise our WSE students with the basics of the best practice theory as well as Polish business, logistics and supply chain environment. We also hope that both Polish and foreign practitioners can learn much from the insightful conclusions arrived at in this book.

The focus of this up-to-date book, written from an international perspective in an easy-to-read format, is on best practices with special emphasis on those developed and implemented by companies in Poland. It tries to summarise the current state of the art with respect to best practices for logistics and supply chain management. The underpinning of the theoretical as well as case analyses contained in this book is based on research work being undertaken by the Logistics Department at Warsaw School of Economics over recent years. While the information this book contains was to the best of our knowledge correct at the time of writing, the rapid pace of change in Poland means that the described practices are unlikely to remain static. We would therefore urge readers to treat this publication as a general overview and to seek specific advice before any implementation decisions are taken.

The book is divided into easy-to-use sections, with particular emphasis being given to implementation of best practices in leading companies acting within the Polish marketplace. It presents a good mix of theoretical overview of best practice phenomenon and real world case studies based on first hand Polish experience.

The book is comprised of six chapters and two appendices. The opening Chapter of the book seeks to establish a framework for understanding, searching, identifying, implementing, and adopting best practices in logistics and supply chain management. The aim of this Chapter is to provide an introduction to the best practices concept and a context for the remainder of the volume. Initially, the breadth of definitions and the essence of the phenomenon of best practices in business are described. Subsequently, the best practices are discussed in the light of concepts of corporate social responsibility, sustainable development, and the Triple Bottom Line theory. The Chapter would not be complete without a short review of selected best practices in logistics and supply chain management in light of selected research on an international scale.

Chapter 2 explains the need for understanding the problems facing companies when they transfer practices in today's intensely volatile and dynamic world. It considers, how business best practices applied in one supply chain can be transferred from one organisation or country or region to another. The work presented in this Chapter is based on the analysis of cases collected by BestLog project partners across Europe.

The first chapters provide a context for the detailed case studies that follow. The following chapters present practical logistics and supply chain management stories through the eyes of WSE researchers. In this book we have gathered together some real life case studies that we have designed and developed with our business partners in the Department of Logistics and then structured and refined in the framework of two research projects, namely within the BestLog project (case studies described in Chapters 3, 4, and 5) and within the statutory research project of the Collegium of Business Administration at WSE (the case presented in the Chapter 6). Th e informative real-world case studies from a wide range of industries in Poland illustrate the points discussed and give practical examples to show the applicability of the best practice concept.

Our aim was to cover the latest examples of leading edge companies and practices. In the Authors' view, the content of the cases described perfectly reflects the spirit of the smart opinion of D. Blanchard on best practices' essence: "Best practices" don't just happen by throwing a lot of money at your supply chain problems. ... It takes money, but it also takes time, talent, energy, focus, commitment from senior management, and a lot of guts to pull off a supply chain transformation. Those are the qualities that the best-run companies in the world share, and it's why they're on top.

The best practice project of IKEA and its two suppliers - COM.40 and Correct concentrates on the reconfiguration of the IKEA supply chain structure and processes, and this is described in Chapter 3. The project idea reflects the elements of the IKEA low-prices strategy, such as close cooperation with suppliers, consolidation and shipments of large volumes on long distances, efficient transport and distribution systems. Two Polish suppliers play the role of consolidation points in the IKEA supply chain and prepare shipments of its own goods and products originating from 26 smaller suppliers. The implementation of the best practice results in the higher competitive advantages of all engaged business partners.

Chapter 4 follows on by providing a valuable insight into an unique business practice implemented in the BSH factory of clothes dryers and its logistics centre located in Lodz, Poland. The company has designed the product in the way, which enables to increase warehousing and transport efficiency. Changes regarding size, weight and packaging of the manufactured appliances were made. The practice reflects the impact that decisions taken in the first stage of the value chain have on the effectiveness of final products' flows on the next stages. Moreover, the implementation of proper initiatives in many areas at the same time determinates the operational excellence of the company.

Chapter 5 describes the best practice of FM Logistic which has an impact on the efficiency of logistics processes. The mentioned practice is pooling, commonly recognised as sharing of transportation, warehousing and distribution facilities. FM Logistic has introduced this solution for customers from the fast moving consumer goods sector, as this was where there was the greatest potential for processes improvement. Th e most important achievements were the optimisation of warehousing capacity and the utilisation of transport facilities. Not only was the delivery frequency higher, but also product availability was secured for consumers searching for fresh goods on distributors' shelves.

Chapter 6 focuses on the transformation and continuous improvement of the transportation network at DB Schenker in Poland. The best practice is oriented towards the achievement of company strategic goals and helps the company to maintain its competitive position within the marketplace. It also played a major role in the improvement of the company's operational ability thanks to process optimisation. Th e described practice not only had an influence on business aspects and the company's dynamic growth but also on environmental and social matters. The benefits of its implementation are multidimensional and are of big importance for today's market.

The book also contains two appendices, supplementary material addressed first of all to our WSE' foreign students. Appendix A looks beyond the issue of best practices and discusses the main factors influencing the investment attractiveness of Poland. It is noted that such factors as Poland's strategic geographical location in Europe, large domestic market, the access to big foreign trade areas, strong economy, labour skills and costs or EU membership, had a major impact on sourcing, production and distribution decisions of foreign firms, especially when choosing a potential project localisation.

Appendix B provides insights into the context of developments of logistics, transportation, and warehouse markets in Poland. It describes thesedevelopments in Poland and CEE, and provides a brief review of the current state of the art. It highlights the changes in the transport system and warehouse market in Poland and discusses their profound impact on companies' logistics and supply chain requirements.

 

[[[separator]]]

About Department of Logistics at WSE

 

About the Authors

 

Preface

Krzysztof Rutkowski

 

Acknowledgments

Krzysztof Rutkowski

 

CHAPTER 1. The best practices in business - between the hammer of economic demands and the anvil of corporate social responsibility

Krzysztof Rutkowski

1. The essence of the phenomenon of best practices in business

2. Stakeholders and their influence on the perception of the best

practices

3. The social responsibility of business and the best practices

4. The best practices in light of the theory of sustainable development and the Triple Bottom Line concept

5. The best practices in logistics and supply chain management in light of selected research of an international scale

5.1. Prologis

5.2 MIT Supply Chain 2020

5.3. AMR

5.4. BestLog Project

6. The best practices - The Holy Grail of contemporary business?

 

CHAPTER 2. Transferring Best Practices - one solution fi ts all?

Richard Cuthbertson, Wojciech Piotrowicz

1. Introduction

2. Methodology

2.1. Transferability limitations (STEEP)

2.1.1. Social

2.1.2. Technological

2.1.3. Economic

2.1.4. Environmental

2.1.5. Political

2.2. Process and product differences

3. Summary

 

CHAPTER 3. Reconfiguration of supply chain structure to increase the role of railway transport. Best Practice Case of IKEA and COM.40/Correct

Barbara Ocicka

1. General description of company and sector

1.1. History

1.2. IKEA on the global arena

1.3. The Polish furniture sector

1.4. IKEA in Poland

1.5. Products

1.6. Porter's 5 forces analysis

1.7. Business strategy of IKEA

1.8. SWOT analysis

2. Supply chain management

2.1. Supply chain structure

2.2. Transport

2.3. Sourcing

2.4. Distribution

2.5. Logistics customer service

2.6. Need forecasting

2.7. Outsourcing and evaluation of logistics processes

3. Reconfiguration of the supply chain structure - Best Practice

presentation

3.1. Challenge to IKEA - supply chain restructuring

3.2. Project implementation

3.3. COM.40 and Correct - leaders of the Best Practice project

3.4. Choice of project partners

3.5. Best Practice nature

3.6. Procedure of a new supplier inclusion

3.7. Role of the Best Practice for realisation of the IKEA

business strategy

3.8. Best Practice effects

3.8.1. Economic benefits

3.8.2. Environmental and social benefits

3.9. Best Practice transferability

4. Summary

 

CHAPTER 4. The influence of product development on warehousing and transport efficiency. Best Practice Case of BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

Barbara Ocicka

1. General information about the company and its sector

1.1. Bosch und Siemens Hausgerate GmbH on the global market

1.2. Business strategy of BSH

1.3. Strategic analysis of the company's business sector

1.4. Household appliances in Poland - industry profile

1.5. BSH activities in Poland

2. Global supply chain management

2.1. BSH supply chain concept

2.2. Purchasing

2.3. Warehousing and transport

2.4. Production and assembly

2.5. Distribution

3. Best Practice presentation

3.1. General information about the clothes dryers' factory in Lodz

3.1.1. Purchasing

3.1.2. Production and assembly

3.1.3. Warehousing and internal transport

3.1.4. Distribution

3.2. The influence of product development on warehousing

and transport efficiency

3.2.1. Warehousing efficiency

3.2.2. Transport efficiency

3.2.3. Effects of the Best Practice implementation

3.2.4. Best Practice transferability

4. Summary

 

CHAPTER 5. Pooling impact on efficiency of logistics processes. Best business practice of FM Logistic

Katarzyna Gapska

1. Company profile

1.1. FM at a glance

1.2. Services offered

2. The company's potential

2.1. Quality and company values

2.2. Customer satisfaction

3. Best Practice presentation

3.1. Scope and significance of Best Practice

3.2. Best Practice implementation

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

5. Best Practice transferability assessment

6. Possibilities of continuous improvement of Best Practice

7. Summary

 

CHAPTER 6. Multidemensional Benefits of a Logistics Network Transformation. Case Study of DB Schenker in Poland

Rafał Tarasewicz

1. Profile of the company

1.1. DB Schenker at a glance

1.2. Competitive position in Poland

1.3. Services offered

1.4. Values and relationships

2. Company's potential

2.1. Quality and long-term development

2.2. Customer satisfaction

2.3. Employee care

3. Presentation of the Best Practice

3.1. The Best Practice characteristics

3.2. Implementation of the Best Practice

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

4.2.1. Environmental criteria

4.2.2. Social responsibility

5. Transferability of the implemented solution

6. Possibility to continuously improve the Best Practice

7. Summary

 

APPENDIX A. Investment attractiveness - why Poland?

Krzysztof Rutkowski

1. Investment attractiveness of Poland

2. Main factors influencing investment attractiveness of Poland

2.1. Territory, location, and population

2.2. Strong economy

2.3. Large domestic market

2.4. EU membership

2.5. Foreign trade

2.6. Labour skills and costs

3. CEE and Poland as low-cost sourcing and manufacturing countries

 

APPENDIX B. Developments in logistics, transportation and warehouse markets in CEE countries. The anatomy of Poland

Krzysztof Rutkowski

1. Where do CEE countries come from? Where are they going?

1.1. The old system. Where do we come from?

2. The new system. Where are we going?

3. Transport system in Poland

3.1. General remarks

3.2. Road transport

3.3. Poland's rail network

3.4. River and sea transport

3.5. Air transport

4. Warehouse market

 

References

 

 

Opis

Wydanie: I
Rok wydania: 2009
Wydawnictwo: Oficyna Wydawnicza
Oprawa: twarda
Format: B5
Liczba stron: 232

Wstęp

As educators involved in the teaching of logistics and supply chain management, particularly in the context of global business developments, we feel it increasingly hard to convey to students how many things have changed in logistics and supply chain management, and also how many challenges remain.The forces of globalisation, technology and competition continue to redefine markets making it harder than ever for managers to rely on traditional concepts,approaches, techniques, methods or processes. In fact, the consensus of many is that those traditional concepts, approaches, techniques, methods or processes are not only obsolete but dangerous. In the current global economy of the 21st century, where companies more than ever are being forced to optimise their operations as a matter of survival, the term "best practice" gains more relevance and more interest from key management personnel every year.

Best practices have been the subject of much discussion in recent years, and a growing body of knowledge has emerged that purports to define best practices and quantify their value to an organisation. They have been described by many names including "the best way", "better practices", "expert practices", or "current thinking". For more than the past decade, businesses around the world have been developing, identifying, implementing, and adapting best practices as one means of achieving the excellence of efficiency and superior customer service that would set them apart from their competitors. The term "best practices" does not refer to whether these ways are best ornot. Th e phrase "best practices" is only the name we use to define them. The important thing is that they serve an educational purpose. Using proven patterns as a base saves us from encountering problems that others have alreadye xperienced. It pays to work wisely by leveraging on and building upon existing information or proven patterns to fit our need.The aim of this publication is to familiarise our WSE students with the basics of the best practice theory as well as Polish business, logistics and supply chain environment. We also hope that both Polish and foreign practitioners can learn much from the insightful conclusions arrived at in this book.

The focus of this up-to-date book, written from an international perspective in an easy-to-read format, is on best practices with special emphasis on those developed and implemented by companies in Poland. It tries to summarise the current state of the art with respect to best practices for logistics and supply chain management. The underpinning of the theoretical as well as case analyses contained in this book is based on research work being undertaken by the Logistics Department at Warsaw School of Economics over recent years. While the information this book contains was to the best of our knowledge correct at the time of writing, the rapid pace of change in Poland means that the described practices are unlikely to remain static. We would therefore urge readers to treat this publication as a general overview and to seek specific advice before any implementation decisions are taken.

The book is divided into easy-to-use sections, with particular emphasis being given to implementation of best practices in leading companies acting within the Polish marketplace. It presents a good mix of theoretical overview of best practice phenomenon and real world case studies based on first hand Polish experience.

The book is comprised of six chapters and two appendices. The opening Chapter of the book seeks to establish a framework for understanding, searching, identifying, implementing, and adopting best practices in logistics and supply chain management. The aim of this Chapter is to provide an introduction to the best practices concept and a context for the remainder of the volume. Initially, the breadth of definitions and the essence of the phenomenon of best practices in business are described. Subsequently, the best practices are discussed in the light of concepts of corporate social responsibility, sustainable development, and the Triple Bottom Line theory. The Chapter would not be complete without a short review of selected best practices in logistics and supply chain management in light of selected research on an international scale.

Chapter 2 explains the need for understanding the problems facing companies when they transfer practices in today's intensely volatile and dynamic world. It considers, how business best practices applied in one supply chain can be transferred from one organisation or country or region to another. The work presented in this Chapter is based on the analysis of cases collected by BestLog project partners across Europe.

The first chapters provide a context for the detailed case studies that follow. The following chapters present practical logistics and supply chain management stories through the eyes of WSE researchers. In this book we have gathered together some real life case studies that we have designed and developed with our business partners in the Department of Logistics and then structured and refined in the framework of two research projects, namely within the BestLog project (case studies described in Chapters 3, 4, and 5) and within the statutory research project of the Collegium of Business Administration at WSE (the case presented in the Chapter 6). Th e informative real-world case studies from a wide range of industries in Poland illustrate the points discussed and give practical examples to show the applicability of the best practice concept.

Our aim was to cover the latest examples of leading edge companies and practices. In the Authors' view, the content of the cases described perfectly reflects the spirit of the smart opinion of D. Blanchard on best practices' essence: "Best practices" don't just happen by throwing a lot of money at your supply chain problems. ... It takes money, but it also takes time, talent, energy, focus, commitment from senior management, and a lot of guts to pull off a supply chain transformation. Those are the qualities that the best-run companies in the world share, and it's why they're on top.

The best practice project of IKEA and its two suppliers - COM.40 and Correct concentrates on the reconfiguration of the IKEA supply chain structure and processes, and this is described in Chapter 3. The project idea reflects the elements of the IKEA low-prices strategy, such as close cooperation with suppliers, consolidation and shipments of large volumes on long distances, efficient transport and distribution systems. Two Polish suppliers play the role of consolidation points in the IKEA supply chain and prepare shipments of its own goods and products originating from 26 smaller suppliers. The implementation of the best practice results in the higher competitive advantages of all engaged business partners.

Chapter 4 follows on by providing a valuable insight into an unique business practice implemented in the BSH factory of clothes dryers and its logistics centre located in Lodz, Poland. The company has designed the product in the way, which enables to increase warehousing and transport efficiency. Changes regarding size, weight and packaging of the manufactured appliances were made. The practice reflects the impact that decisions taken in the first stage of the value chain have on the effectiveness of final products' flows on the next stages. Moreover, the implementation of proper initiatives in many areas at the same time determinates the operational excellence of the company.

Chapter 5 describes the best practice of FM Logistic which has an impact on the efficiency of logistics processes. The mentioned practice is pooling, commonly recognised as sharing of transportation, warehousing and distribution facilities. FM Logistic has introduced this solution for customers from the fast moving consumer goods sector, as this was where there was the greatest potential for processes improvement. Th e most important achievements were the optimisation of warehousing capacity and the utilisation of transport facilities. Not only was the delivery frequency higher, but also product availability was secured for consumers searching for fresh goods on distributors' shelves.

Chapter 6 focuses on the transformation and continuous improvement of the transportation network at DB Schenker in Poland. The best practice is oriented towards the achievement of company strategic goals and helps the company to maintain its competitive position within the marketplace. It also played a major role in the improvement of the company's operational ability thanks to process optimisation. Th e described practice not only had an influence on business aspects and the company's dynamic growth but also on environmental and social matters. The benefits of its implementation are multidimensional and are of big importance for today's market.

The book also contains two appendices, supplementary material addressed first of all to our WSE' foreign students. Appendix A looks beyond the issue of best practices and discusses the main factors influencing the investment attractiveness of Poland. It is noted that such factors as Poland's strategic geographical location in Europe, large domestic market, the access to big foreign trade areas, strong economy, labour skills and costs or EU membership, had a major impact on sourcing, production and distribution decisions of foreign firms, especially when choosing a potential project localisation.

Appendix B provides insights into the context of developments of logistics, transportation, and warehouse markets in Poland. It describes thesedevelopments in Poland and CEE, and provides a brief review of the current state of the art. It highlights the changes in the transport system and warehouse market in Poland and discusses their profound impact on companies' logistics and supply chain requirements.

 

Spis treści

About Department of Logistics at WSE

 

About the Authors

 

Preface

Krzysztof Rutkowski

 

Acknowledgments

Krzysztof Rutkowski

 

CHAPTER 1. The best practices in business - between the hammer of economic demands and the anvil of corporate social responsibility

Krzysztof Rutkowski

1. The essence of the phenomenon of best practices in business

2. Stakeholders and their influence on the perception of the best

practices

3. The social responsibility of business and the best practices

4. The best practices in light of the theory of sustainable development and the Triple Bottom Line concept

5. The best practices in logistics and supply chain management in light of selected research of an international scale

5.1. Prologis

5.2 MIT Supply Chain 2020

5.3. AMR

5.4. BestLog Project

6. The best practices - The Holy Grail of contemporary business?

 

CHAPTER 2. Transferring Best Practices - one solution fi ts all?

Richard Cuthbertson, Wojciech Piotrowicz

1. Introduction

2. Methodology

2.1. Transferability limitations (STEEP)

2.1.1. Social

2.1.2. Technological

2.1.3. Economic

2.1.4. Environmental

2.1.5. Political

2.2. Process and product differences

3. Summary

 

CHAPTER 3. Reconfiguration of supply chain structure to increase the role of railway transport. Best Practice Case of IKEA and COM.40/Correct

Barbara Ocicka

1. General description of company and sector

1.1. History

1.2. IKEA on the global arena

1.3. The Polish furniture sector

1.4. IKEA in Poland

1.5. Products

1.6. Porter's 5 forces analysis

1.7. Business strategy of IKEA

1.8. SWOT analysis

2. Supply chain management

2.1. Supply chain structure

2.2. Transport

2.3. Sourcing

2.4. Distribution

2.5. Logistics customer service

2.6. Need forecasting

2.7. Outsourcing and evaluation of logistics processes

3. Reconfiguration of the supply chain structure - Best Practice

presentation

3.1. Challenge to IKEA - supply chain restructuring

3.2. Project implementation

3.3. COM.40 and Correct - leaders of the Best Practice project

3.4. Choice of project partners

3.5. Best Practice nature

3.6. Procedure of a new supplier inclusion

3.7. Role of the Best Practice for realisation of the IKEA

business strategy

3.8. Best Practice effects

3.8.1. Economic benefits

3.8.2. Environmental and social benefits

3.9. Best Practice transferability

4. Summary

 

CHAPTER 4. The influence of product development on warehousing and transport efficiency. Best Practice Case of BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

Barbara Ocicka

1. General information about the company and its sector

1.1. Bosch und Siemens Hausgerate GmbH on the global market

1.2. Business strategy of BSH

1.3. Strategic analysis of the company's business sector

1.4. Household appliances in Poland - industry profile

1.5. BSH activities in Poland

2. Global supply chain management

2.1. BSH supply chain concept

2.2. Purchasing

2.3. Warehousing and transport

2.4. Production and assembly

2.5. Distribution

3. Best Practice presentation

3.1. General information about the clothes dryers' factory in Lodz

3.1.1. Purchasing

3.1.2. Production and assembly

3.1.3. Warehousing and internal transport

3.1.4. Distribution

3.2. The influence of product development on warehousing

and transport efficiency

3.2.1. Warehousing efficiency

3.2.2. Transport efficiency

3.2.3. Effects of the Best Practice implementation

3.2.4. Best Practice transferability

4. Summary

 

CHAPTER 5. Pooling impact on efficiency of logistics processes. Best business practice of FM Logistic

Katarzyna Gapska

1. Company profile

1.1. FM at a glance

1.2. Services offered

2. The company's potential

2.1. Quality and company values

2.2. Customer satisfaction

3. Best Practice presentation

3.1. Scope and significance of Best Practice

3.2. Best Practice implementation

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

5. Best Practice transferability assessment

6. Possibilities of continuous improvement of Best Practice

7. Summary

 

CHAPTER 6. Multidemensional Benefits of a Logistics Network Transformation. Case Study of DB Schenker in Poland

Rafał Tarasewicz

1. Profile of the company

1.1. DB Schenker at a glance

1.2. Competitive position in Poland

1.3. Services offered

1.4. Values and relationships

2. Company's potential

2.1. Quality and long-term development

2.2. Customer satisfaction

2.3. Employee care

3. Presentation of the Best Practice

3.1. The Best Practice characteristics

3.2. Implementation of the Best Practice

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

4.2.1. Environmental criteria

4.2.2. Social responsibility

5. Transferability of the implemented solution

6. Possibility to continuously improve the Best Practice

7. Summary

 

APPENDIX A. Investment attractiveness - why Poland?

Krzysztof Rutkowski

1. Investment attractiveness of Poland

2. Main factors influencing investment attractiveness of Poland

2.1. Territory, location, and population

2.2. Strong economy

2.3. Large domestic market

2.4. EU membership

2.5. Foreign trade

2.6. Labour skills and costs

3. CEE and Poland as low-cost sourcing and manufacturing countries

 

APPENDIX B. Developments in logistics, transportation and warehouse markets in CEE countries. The anatomy of Poland

Krzysztof Rutkowski

1. Where do CEE countries come from? Where are they going?

1.1. The old system. Where do we come from?

2. The new system. Where are we going?

3. Transport system in Poland

3.1. General remarks

3.2. Road transport

3.3. Poland's rail network

3.4. River and sea transport

3.5. Air transport

4. Warehouse market

 

References

 

 

Opinie

Twoja ocena:
Wydanie: I
Rok wydania: 2009
Wydawnictwo: Oficyna Wydawnicza
Oprawa: twarda
Format: B5
Liczba stron: 232

As educators involved in the teaching of logistics and supply chain management, particularly in the context of global business developments, we feel it increasingly hard to convey to students how many things have changed in logistics and supply chain management, and also how many challenges remain.The forces of globalisation, technology and competition continue to redefine markets making it harder than ever for managers to rely on traditional concepts,approaches, techniques, methods or processes. In fact, the consensus of many is that those traditional concepts, approaches, techniques, methods or processes are not only obsolete but dangerous. In the current global economy of the 21st century, where companies more than ever are being forced to optimise their operations as a matter of survival, the term "best practice" gains more relevance and more interest from key management personnel every year.

Best practices have been the subject of much discussion in recent years, and a growing body of knowledge has emerged that purports to define best practices and quantify their value to an organisation. They have been described by many names including "the best way", "better practices", "expert practices", or "current thinking". For more than the past decade, businesses around the world have been developing, identifying, implementing, and adapting best practices as one means of achieving the excellence of efficiency and superior customer service that would set them apart from their competitors. The term "best practices" does not refer to whether these ways are best ornot. Th e phrase "best practices" is only the name we use to define them. The important thing is that they serve an educational purpose. Using proven patterns as a base saves us from encountering problems that others have alreadye xperienced. It pays to work wisely by leveraging on and building upon existing information or proven patterns to fit our need.The aim of this publication is to familiarise our WSE students with the basics of the best practice theory as well as Polish business, logistics and supply chain environment. We also hope that both Polish and foreign practitioners can learn much from the insightful conclusions arrived at in this book.

The focus of this up-to-date book, written from an international perspective in an easy-to-read format, is on best practices with special emphasis on those developed and implemented by companies in Poland. It tries to summarise the current state of the art with respect to best practices for logistics and supply chain management. The underpinning of the theoretical as well as case analyses contained in this book is based on research work being undertaken by the Logistics Department at Warsaw School of Economics over recent years. While the information this book contains was to the best of our knowledge correct at the time of writing, the rapid pace of change in Poland means that the described practices are unlikely to remain static. We would therefore urge readers to treat this publication as a general overview and to seek specific advice before any implementation decisions are taken.

The book is divided into easy-to-use sections, with particular emphasis being given to implementation of best practices in leading companies acting within the Polish marketplace. It presents a good mix of theoretical overview of best practice phenomenon and real world case studies based on first hand Polish experience.

The book is comprised of six chapters and two appendices. The opening Chapter of the book seeks to establish a framework for understanding, searching, identifying, implementing, and adopting best practices in logistics and supply chain management. The aim of this Chapter is to provide an introduction to the best practices concept and a context for the remainder of the volume. Initially, the breadth of definitions and the essence of the phenomenon of best practices in business are described. Subsequently, the best practices are discussed in the light of concepts of corporate social responsibility, sustainable development, and the Triple Bottom Line theory. The Chapter would not be complete without a short review of selected best practices in logistics and supply chain management in light of selected research on an international scale.

Chapter 2 explains the need for understanding the problems facing companies when they transfer practices in today's intensely volatile and dynamic world. It considers, how business best practices applied in one supply chain can be transferred from one organisation or country or region to another. The work presented in this Chapter is based on the analysis of cases collected by BestLog project partners across Europe.

The first chapters provide a context for the detailed case studies that follow. The following chapters present practical logistics and supply chain management stories through the eyes of WSE researchers. In this book we have gathered together some real life case studies that we have designed and developed with our business partners in the Department of Logistics and then structured and refined in the framework of two research projects, namely within the BestLog project (case studies described in Chapters 3, 4, and 5) and within the statutory research project of the Collegium of Business Administration at WSE (the case presented in the Chapter 6). Th e informative real-world case studies from a wide range of industries in Poland illustrate the points discussed and give practical examples to show the applicability of the best practice concept.

Our aim was to cover the latest examples of leading edge companies and practices. In the Authors' view, the content of the cases described perfectly reflects the spirit of the smart opinion of D. Blanchard on best practices' essence: "Best practices" don't just happen by throwing a lot of money at your supply chain problems. ... It takes money, but it also takes time, talent, energy, focus, commitment from senior management, and a lot of guts to pull off a supply chain transformation. Those are the qualities that the best-run companies in the world share, and it's why they're on top.

The best practice project of IKEA and its two suppliers - COM.40 and Correct concentrates on the reconfiguration of the IKEA supply chain structure and processes, and this is described in Chapter 3. The project idea reflects the elements of the IKEA low-prices strategy, such as close cooperation with suppliers, consolidation and shipments of large volumes on long distances, efficient transport and distribution systems. Two Polish suppliers play the role of consolidation points in the IKEA supply chain and prepare shipments of its own goods and products originating from 26 smaller suppliers. The implementation of the best practice results in the higher competitive advantages of all engaged business partners.

Chapter 4 follows on by providing a valuable insight into an unique business practice implemented in the BSH factory of clothes dryers and its logistics centre located in Lodz, Poland. The company has designed the product in the way, which enables to increase warehousing and transport efficiency. Changes regarding size, weight and packaging of the manufactured appliances were made. The practice reflects the impact that decisions taken in the first stage of the value chain have on the effectiveness of final products' flows on the next stages. Moreover, the implementation of proper initiatives in many areas at the same time determinates the operational excellence of the company.

Chapter 5 describes the best practice of FM Logistic which has an impact on the efficiency of logistics processes. The mentioned practice is pooling, commonly recognised as sharing of transportation, warehousing and distribution facilities. FM Logistic has introduced this solution for customers from the fast moving consumer goods sector, as this was where there was the greatest potential for processes improvement. Th e most important achievements were the optimisation of warehousing capacity and the utilisation of transport facilities. Not only was the delivery frequency higher, but also product availability was secured for consumers searching for fresh goods on distributors' shelves.

Chapter 6 focuses on the transformation and continuous improvement of the transportation network at DB Schenker in Poland. The best practice is oriented towards the achievement of company strategic goals and helps the company to maintain its competitive position within the marketplace. It also played a major role in the improvement of the company's operational ability thanks to process optimisation. Th e described practice not only had an influence on business aspects and the company's dynamic growth but also on environmental and social matters. The benefits of its implementation are multidimensional and are of big importance for today's market.

The book also contains two appendices, supplementary material addressed first of all to our WSE' foreign students. Appendix A looks beyond the issue of best practices and discusses the main factors influencing the investment attractiveness of Poland. It is noted that such factors as Poland's strategic geographical location in Europe, large domestic market, the access to big foreign trade areas, strong economy, labour skills and costs or EU membership, had a major impact on sourcing, production and distribution decisions of foreign firms, especially when choosing a potential project localisation.

Appendix B provides insights into the context of developments of logistics, transportation, and warehouse markets in Poland. It describes thesedevelopments in Poland and CEE, and provides a brief review of the current state of the art. It highlights the changes in the transport system and warehouse market in Poland and discusses their profound impact on companies' logistics and supply chain requirements.

 

About Department of Logistics at WSE

 

About the Authors

 

Preface

Krzysztof Rutkowski

 

Acknowledgments

Krzysztof Rutkowski

 

CHAPTER 1. The best practices in business - between the hammer of economic demands and the anvil of corporate social responsibility

Krzysztof Rutkowski

1. The essence of the phenomenon of best practices in business

2. Stakeholders and their influence on the perception of the best

practices

3. The social responsibility of business and the best practices

4. The best practices in light of the theory of sustainable development and the Triple Bottom Line concept

5. The best practices in logistics and supply chain management in light of selected research of an international scale

5.1. Prologis

5.2 MIT Supply Chain 2020

5.3. AMR

5.4. BestLog Project

6. The best practices - The Holy Grail of contemporary business?

 

CHAPTER 2. Transferring Best Practices - one solution fi ts all?

Richard Cuthbertson, Wojciech Piotrowicz

1. Introduction

2. Methodology

2.1. Transferability limitations (STEEP)

2.1.1. Social

2.1.2. Technological

2.1.3. Economic

2.1.4. Environmental

2.1.5. Political

2.2. Process and product differences

3. Summary

 

CHAPTER 3. Reconfiguration of supply chain structure to increase the role of railway transport. Best Practice Case of IKEA and COM.40/Correct

Barbara Ocicka

1. General description of company and sector

1.1. History

1.2. IKEA on the global arena

1.3. The Polish furniture sector

1.4. IKEA in Poland

1.5. Products

1.6. Porter's 5 forces analysis

1.7. Business strategy of IKEA

1.8. SWOT analysis

2. Supply chain management

2.1. Supply chain structure

2.2. Transport

2.3. Sourcing

2.4. Distribution

2.5. Logistics customer service

2.6. Need forecasting

2.7. Outsourcing and evaluation of logistics processes

3. Reconfiguration of the supply chain structure - Best Practice

presentation

3.1. Challenge to IKEA - supply chain restructuring

3.2. Project implementation

3.3. COM.40 and Correct - leaders of the Best Practice project

3.4. Choice of project partners

3.5. Best Practice nature

3.6. Procedure of a new supplier inclusion

3.7. Role of the Best Practice for realisation of the IKEA

business strategy

3.8. Best Practice effects

3.8.1. Economic benefits

3.8.2. Environmental and social benefits

3.9. Best Practice transferability

4. Summary

 

CHAPTER 4. The influence of product development on warehousing and transport efficiency. Best Practice Case of BSH Sprzęt Gospodarstwa Domowego Sp. z o.o.

Barbara Ocicka

1. General information about the company and its sector

1.1. Bosch und Siemens Hausgerate GmbH on the global market

1.2. Business strategy of BSH

1.3. Strategic analysis of the company's business sector

1.4. Household appliances in Poland - industry profile

1.5. BSH activities in Poland

2. Global supply chain management

2.1. BSH supply chain concept

2.2. Purchasing

2.3. Warehousing and transport

2.4. Production and assembly

2.5. Distribution

3. Best Practice presentation

3.1. General information about the clothes dryers' factory in Lodz

3.1.1. Purchasing

3.1.2. Production and assembly

3.1.3. Warehousing and internal transport

3.1.4. Distribution

3.2. The influence of product development on warehousing

and transport efficiency

3.2.1. Warehousing efficiency

3.2.2. Transport efficiency

3.2.3. Effects of the Best Practice implementation

3.2.4. Best Practice transferability

4. Summary

 

CHAPTER 5. Pooling impact on efficiency of logistics processes. Best business practice of FM Logistic

Katarzyna Gapska

1. Company profile

1.1. FM at a glance

1.2. Services offered

2. The company's potential

2.1. Quality and company values

2.2. Customer satisfaction

3. Best Practice presentation

3.1. Scope and significance of Best Practice

3.2. Best Practice implementation

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

5. Best Practice transferability assessment

6. Possibilities of continuous improvement of Best Practice

7. Summary

 

CHAPTER 6. Multidemensional Benefits of a Logistics Network Transformation. Case Study of DB Schenker in Poland

Rafał Tarasewicz

1. Profile of the company

1.1. DB Schenker at a glance

1.2. Competitive position in Poland

1.3. Services offered

1.4. Values and relationships

2. Company's potential

2.1. Quality and long-term development

2.2. Customer satisfaction

2.3. Employee care

3. Presentation of the Best Practice

3.1. The Best Practice characteristics

3.2. Implementation of the Best Practice

4. The Best Practice evaluation according to adopted criteria

4.1. Business criteria: effectiveness and process development

4.2. Non-business criteria: ecology and social responsibility

4.2.1. Environmental criteria

4.2.2. Social responsibility

5. Transferability of the implemented solution

6. Possibility to continuously improve the Best Practice

7. Summary

 

APPENDIX A. Investment attractiveness - why Poland?

Krzysztof Rutkowski

1. Investment attractiveness of Poland

2. Main factors influencing investment attractiveness of Poland

2.1. Territory, location, and population

2.2. Strong economy

2.3. Large domestic market

2.4. EU membership

2.5. Foreign trade

2.6. Labour skills and costs

3. CEE and Poland as low-cost sourcing and manufacturing countries

 

APPENDIX B. Developments in logistics, transportation and warehouse markets in CEE countries. The anatomy of Poland

Krzysztof Rutkowski

1. Where do CEE countries come from? Where are they going?

1.1. The old system. Where do we come from?

2. The new system. Where are we going?

3. Transport system in Poland

3.1. General remarks

3.2. Road transport

3.3. Poland's rail network

3.4. River and sea transport

3.5. Air transport

4. Warehouse market

 

References

 

 

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