Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia
The global market is constantly changing, which implies that successful companies incessantly need to respond to new conditions of how they operate. One strong trend changing the structure of the market is globalization, making the business arena wider with intensified investments and trade across b...
| Autor principal: | |
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| Formato: | H2 |
| Lenguaje: | Inglés sueco |
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SLU/Dept. of Forest Products
2017
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| Materias: |
| _version_ | 1855571694165426176 |
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| author | Jönsson, Fredrik |
| author_browse | Jönsson, Fredrik |
| author_facet | Jönsson, Fredrik |
| author_sort | Jönsson, Fredrik |
| collection | Epsilon Archive for Student Projects |
| description | The global market is constantly changing, which implies that successful companies incessantly need to respond to new conditions of how they operate. One strong trend changing the structure of the market is globalization, making the business arena wider with intensified investments and trade across borders. Increasing the flexibility in international supply chains should be done by broadening the supply chain perspective. Supply chain management (SCM) are therefore an important concept, focusing on creating competitiveness by integrating supply chains (SC) and manage downstream and upstream relations. Resulting in competition through supply chains rather than individual companies.
Many companies in the forest and wood industry are focusing on company internal activities and therefore lack a broad supply chain perspective. This leads to in-efficient supply chains and limited contributions to the SC flexibility, leaving unused scope of competitive advantage and exposure on an international market. Also, the forest market is constantly changing with new industry investments and shutdowns. This leaves some forest industry companies with uncertain supply since they might lack their own forest possessions and are dependent on bi-products from other forest industries.
This study was conducted with the aim to identify processes, cost-drivers and estimate costs affecting the design of international supply chains of raw material in the forest industry sector. The approach was empirically driven with a flexible design since the method emerged during the time of the study.
The results of this study give a detailed presentation about the processes related to one specific international supply chain. International supply chains assume an understanding of related processes and costs, which could be facilitated by mapping the SC design. This thesis therefore started by mapping the SC and identify processes and cost drivers, followed by a detailed presentation about them and an estimation of related costs. A cost-based model was created to evaluate different SC alternatives and identify individual costs contribution to total SC performance. This gave an indication of the most cost-efficient SC design by including a broad SC perspective.
Implementation of SCM is currently focused on markets with pull characteristics and low customization. However, the findings of this project indicate SCM also being an efficient competitive strategy in forest companies – though the sector is characterized by low customization and market push. Efficient and un-biased sharing of information also was found to be an important aspect in international supply chains which could be managed by technological systems. |
| format | H2 |
| id | RepoSLU10458 |
| institution | Swedish University of Agricultural Sciences |
| language | Inglés swe |
| publishDate | 2017 |
| publishDateSort | 2017 |
| publisher | SLU/Dept. of Forest Products |
| publisherStr | SLU/Dept. of Forest Products |
| record_format | eprints |
| spelling | RepoSLU104582017-08-17T11:34:24Z Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia Kostnadsbaserad modell för internationell logistik : fallstudie för IKEA Industrys värdekedja i Ryssland Jönsson, Fredrik Forest companies IKEA Industry International logistics International supply chains Logistics costs Mapping Russia forest sector Sourcing Supply chain management Supply chain performance IKEA Industri Internationell logistik Internationella värdekedjor Kartläggning Logistikkostnader Optimering av värdekedjor Rysk skogssektor Skogsföretag Värdekedjans prestation The global market is constantly changing, which implies that successful companies incessantly need to respond to new conditions of how they operate. One strong trend changing the structure of the market is globalization, making the business arena wider with intensified investments and trade across borders. Increasing the flexibility in international supply chains should be done by broadening the supply chain perspective. Supply chain management (SCM) are therefore an important concept, focusing on creating competitiveness by integrating supply chains (SC) and manage downstream and upstream relations. Resulting in competition through supply chains rather than individual companies. Many companies in the forest and wood industry are focusing on company internal activities and therefore lack a broad supply chain perspective. This leads to in-efficient supply chains and limited contributions to the SC flexibility, leaving unused scope of competitive advantage and exposure on an international market. Also, the forest market is constantly changing with new industry investments and shutdowns. This leaves some forest industry companies with uncertain supply since they might lack their own forest possessions and are dependent on bi-products from other forest industries. This study was conducted with the aim to identify processes, cost-drivers and estimate costs affecting the design of international supply chains of raw material in the forest industry sector. The approach was empirically driven with a flexible design since the method emerged during the time of the study. The results of this study give a detailed presentation about the processes related to one specific international supply chain. International supply chains assume an understanding of related processes and costs, which could be facilitated by mapping the SC design. This thesis therefore started by mapping the SC and identify processes and cost drivers, followed by a detailed presentation about them and an estimation of related costs. A cost-based model was created to evaluate different SC alternatives and identify individual costs contribution to total SC performance. This gave an indication of the most cost-efficient SC design by including a broad SC perspective. Implementation of SCM is currently focused on markets with pull characteristics and low customization. However, the findings of this project indicate SCM also being an efficient competitive strategy in forest companies – though the sector is characterized by low customization and market push. Efficient and un-biased sharing of information also was found to be an important aspect in international supply chains which could be managed by technological systems. Den globala marknaden förändras ständigt vilket förutsätter att framgångsrika företag arbetar kontinuerligt med att svara på nya omständigheter. En stark trend på den globala marknaden är globalisering som resulterar i en expansion av marknaden och intensifierade investeringar och handel över landsgränser. En ökad flexibilitet krävs för att svara på dessa förändringar och detta kan uppnås genom att bredda perspektivet på internationella värdekedjor. Supply chain management utgör därmed ett viktigt koncept som fokuserar på att öka konkurrenskraften genom att integrera och skapa - samt hantera relationer upp och nedströms i värdekedjan. Detta resulterar i konkurrens mellan värdekedjor snarare än konkurrens mellan individuella företag. Supply chain management (SCM) är dock inte fullt implementerat inom skogssektorn där företag fokuserar på sina interna aktiviteter snarare än hela värdekedjans prestation. Detta leder till ineffektiva värdekedjor och begränsad flexibilitet, vilket i sin tur leder till outnyttjade möjligheter till konkurrenskraft och ökad utsatthet för en internationell marknad. Skogssektorn utstår dessutom ständiga förändringar genom nya investeringar eller nedläggningar av industrier. Vilket innebär en ökad risk och osäkerhet för skogsindustrier som använder biprodukter från andra industrier och saknar egna skogsinnehav. Syftet med denna studie var att identifiera processer, kostnadsdrivare och skatta kostnader som påverkar designen av en internationell värdekedja för att leverera råvara inom sektorn för skogsindustrin. Detta innebar en empiriskt driven ansats med en flexibel design eftersom metoden för studien vuxit fram under tidens gång. Resultatet från denna studie ger en detaljerad presentation om processer relaterade till en specifik internationell värdekedja. Internationella värdekedjor förutsätter en förståelse för relaterade processer och kostnader, vilket underlättas genom en kartläggning av värdekedjans design. Denna studie startade därför med att kartlägga värdekedjan och identifiera processer och kostnadsdrivare, följt av en skattning av relaterade kostnader. En kostnadsbaserad modell skapades för att utvärdera alternativ och identifiera individuella kostnaders påverkan av den totala prestationen av värdekedjan. Detta indikerade den mest kostnadseffektiva designen av värdekedjan genom att inkludera ett brett perspektiv av värdekedjan. Implementering av SCM är fokuserad på marknader med hög kundanpassning och en pull strategi. Resultatet från denna studie tyder dock på att SCM utgör en effektiv konkurrensstrategi även i skogssektorn – som traditionellt karaktäriseras av låg kundanpassning och en push strategi. Detta koncept borde därmed implementeras ytterligare i skogssektorn. Slutligen indikerar resultatet också på att informationsflödet i internationella värdekedjor utgör en viktig aspekt. Detta flöde bör därmed hanteras genom effektiv dialog av opåverkad och transparent information, vilket kan underlättas genom tekniska system för kommunikation. SLU/Dept. of Forest Products 2017 H2 eng swe https://stud.epsilon.slu.se/10458/ |
| spellingShingle | Forest companies IKEA Industry International logistics International supply chains Logistics costs Mapping Russia forest sector Sourcing Supply chain management Supply chain performance IKEA Industri Internationell logistik Internationella värdekedjor Kartläggning Logistikkostnader Optimering av värdekedjor Rysk skogssektor Skogsföretag Värdekedjans prestation Jönsson, Fredrik Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title | Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title_full | Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title_fullStr | Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title_full_unstemmed | Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title_short | Cost-based model for international logistics : case-study with IKEA Industry’s supply chain in Russia |
| title_sort | cost-based model for international logistics : case-study with ikea industry’s supply chain in russia |
| topic | Forest companies IKEA Industry International logistics International supply chains Logistics costs Mapping Russia forest sector Sourcing Supply chain management Supply chain performance IKEA Industri Internationell logistik Internationella värdekedjor Kartläggning Logistikkostnader Optimering av värdekedjor Rysk skogssektor Skogsföretag Värdekedjans prestation |