Value added logistical support service: logistiikan palveluiden tarjoajat Suomessa. osa 4

Tämä osatutkimus on VALSSI- tutkimusprojektin (Value Added Logistical Support Service) neljäs osavaihe. VALSSI- tutkimuksen tarkoituksena on ollut selvittää logistiikkapalveluiden vaatimuksia business-to-business (B2B) ympäristössä ja määrittää logistiikkapalveluiden palvelukonsepti, jossa perinteiset logistiikkapalvelut on laajennettu tuotannollisilla ja lisäarvoa tuottavilla palveluilla. Tutkimuksen tarkoituksena on ollut tuottaa ulkoistamista helpottavaa materiaalia erityisesti varastoinnin ja kuljetusten osalta. Edellisistä osavaiheista on saatavilla tutkimusraportit yliopiston Internet-sivuilta(www.lut.fi/tutkimus/valore). Tämän tutkimuksen tarkoituksena oli kartoittaa Suomessa toimivien logistiikkapalveluyritysten palvelutarjonta. Tutkimus on keskittynyt palveluntarjoajiin, jotka tarjoavat erikoistunutta logistiikkaa (mm. tuotannollisia palveluita, hankintoja ja pakkauspalveluita) asiakkailleen. Tutkimukseen osallistuneet yritykset olivat suomalaisia ja kansainvälisiä sekä kuljetuspalveluita tarjoavia että logistiikkapalveluyrityksiä sekä alihankkijoina/tukkureina toimivia palveluntarjoajia. Huomionarvoista onkin, että moni yrityksistä käytti markkinoilta saatavia kuljetuspalveluita eikä toiminut itse kuljetusoperaattorina. Logistiikkapalveluyrityksissä huomattiin eroavaisuuksia asiakaspalvelun laajuudessa, ICT strategioissa, hankintojen ja kotiinkutsujen organisoinnissa, tuotannollisissa palveluissa sekä paluulogistiikassa. Varsinaiset varastointipalvelut ovat homogeenisia ja varastointiin liittyvät pakkaamispalvelut ovat pääasiassasamankaltaisia. Markkinoilla toimivien tukkukauppiaiden logistiikkaprosessit eroavat perinteisistä palveluntarjoajista. Tukkurit hoitavat laajasti mm. asiakaspalvelua, teknistä tukea sekä erikoistuneita tuotannollisia palveluita. Nykypäivänä asiakkaat asettavat enemmän vaatimuksia logistiikkapalveluyrityksen prosesseille ja prosessien johtamiselle. Tulevaisuudessa Suomessa ja maailmalla toimivat logistiikkapalveluyritykset tulevat toimimaan yhteistyöverkoissa Itä- Euroopan maat ovat entistä suuremmassa roolissa uusia jakelukanavia ja palveluita mietittäessä. Jo nyt on huomattavissa, että asiakkaat vaativat logistiikan palvelutarjoajia tarjoamaan entistä monipuolisempia ja tuotteistetumpia palveluita.

Finding the Fit Between Engineering Design and Cost Information

This paper analyzes the possibilities of integrating cost information and engineering design. Special emphasis is put on finding the potential of using the activity-based costing (ABC) method. Today, the problem of cost estimation in engineering design is that there are two separate extremes of knowledge. On the one extreme, the engineers model the technical parametres behindcosts in great detail but do not get appropriate cost information to their elegant models. On the other extreme, the accounting professionals are stuck with traditional cost accounting methods driven by the procedures and cycles of financial accounting. Therefore, in many cases, the cost information needs of various decision making groups, for example design engineers, are not served satisfactorily. This paper studies if the activity-based costing (ABC) method could offer a compromise between the two extremes. Recognizing activities and activity chains as well as activity and cost drivers could be specially beneficial for design engineers. Also, recognizing the accurate and reliable product costs of existing products helps when doing variant design. However, ABC is not at its best if the cost system becomes too complicated. This is why a comprehensive ABC-cost information system with detailed cost information for the use of design engineers should be examined critically. ABC is at its best when considering such issues as which activities drive costs, the cost of product complexity, allocating indirect costs on the products, the relationships between processes and costs, and the cost of excess capacity.

Value added logistical support service: logistics cost structure and performance in the new concept. Part 3

The aim of this study is to present an Activity-Based Costing spreadsheet tool for analyzing the logistics costs. The tool can be used both by customer-companies and logistics service providers. The study discusses the influence of different activity models on costs. Additionally this paper discusses about the logistical performance across the total supply chain This study is carried out using ananalytical research approach and literature material has been used for supplementing the concerned research approach. Cost structure analysis was based on the theory of activity-based management. This study was outlined to spare part logistics in machine-shop industry. The outlines of logistics services and logisticalperformance discussed in this report are based on the new logistics business concept (LMS-concept), which has been presented earlier in the Valssi-project. Oneof the aims of this study is to increase awareness of different activity modelson logistics costs. The report paints an overall picture about the business environment and requirements for the new logistics concept.

Value added logistics in supply and demand chains. Smile. Part 1. eBusiness between global company and itslocal sme supplier network

VALOSADE (Value Added Logistics in Supply and Demand Chains) is the research project of Anita Lukka's VALORE (Value Added Logistics Research) research team inLappeenranta University of Technology. VALOSADE is included in ELO (Ebusiness logistics) technology program of Tekes (Finnish Technology Agency). SMILE (SME-sector, Internet applications and Logistical Efficiency) is one of four subprojects of VALOSADE. SMILE research focuses on case network that is composed of small and medium sized mechanical maintenance service providers and global wood processing customers. Basic principle of SMILE study is communication and ebusiness insupply and demand network. This first phase of research concentrates on creating backgrounds for SMILE study and for ebusiness solutions of maintenance case network. The focus is on general trends of ebusiness in supply chains and networksof different industries; total ebusiness system architecture of company networks; ebusiness strategy of company network; information value chain; different factors, which influence on ebusiness solution of company network; and the correlation between ebusiness and competitive advantage. Literature, interviews and benchmarking were used as research methods in this qualitative case study. Networks and end-to-end supply chains are the organizational structures, which can add value for end customer. Information is one of the key factors in these decentralized structures. Because of decentralization of business, information is produced and used in different companies and in different information systems. Information refinement services are needed to manage information flows in company networksbetween different systems. Furthermore, some new solutions like network information systems are utilised in optimising network performance and in standardizingnetwork common processes. Some cases have however indicated, that utilization of ebusiness in decentralized business model is not always a necessity, but value-add of ICT must be defined case-specifically. In the theory part of report, different ebusiness and architecture models are introduced. These models are compared to empirical case data in research results. The biggest difference between theory and empirical data is that models are mainly developed for large-scale companies - not for SMEs. This is due to that implemented network ebusiness solutions are mainly large company centered. Genuine SME network centred ebusiness models are quite rare, and the study in that area has been few in number. Business relationships between customer and their SME suppliers are nowadays concentrated more on collaborative tactical and strategic initiatives besides transaction based operational initiatives. However, ebusiness systems are further mainly based on exchange of operational transactional data. Collaborative ebusiness solutions are in planning or pilot phase in most case companies. Furthermore, many ebusiness solutions are nowadays between two participants, but network and end-to-end supply chain transparency and information systems are quite rare. Transaction volumes, data formats, the types of exchanged information, information criticality,type and duration of business relationship, internal information systems of partners, processes and operation models (e.g. different ordering models) differ among network companies, and furthermore companies are at different stages on networking and ebusiness readiness. Because of former factors, different customer-supplier combinations in network must utilise totally different ebusiness architectures, technologies, systems and standards.

Value added logistics in supply and demand chain. Smile. Part 2. eBusiness in a service business. Case: A maintenance and operations network in forest industry

VVALOSADE is a research project of professor Anita Lukka's VALORE research team in the Lappeenranta University of Technology. The VALOSADE includes the ELO technology program of Tekes. SMILE is one of four subprojects of the VALOSADE. The SMILE study focuses on the case of the company network that is composed of small and micro-sized mechanical maintenance service providers and forest industry as large-scale customers. The basic principle of the SMILE study is the communication and ebusiness in supply and demand networks. The aim of the study is to develop ebusiness strategy, ebusiness model and e-processes among the SME local service providers, and onthe other hand, between the local service provider network and the forest industry customers in a maintenance and operations service business. A literature review, interviews and benchmarking are used as research methods in this qualitative case study. The first SMILE report, 'Ebusiness between Global Company and Its Local SME Supplier Network', concentrated on creating background for the SMILE study by studying general trends of ebusiness in supply chains and networks of different industries. This second phase of the study concentrates on case network background, such as business relationships, information systems and business objectives; core processes in maintenance and operations service network; development needs in communication among the network participants; and ICT solutions to respond needs in changing environment. In the theory part of the report, different ebusiness models and frameworks are introduced. Those models and frameworks are compared to empirical case data. From that analysis of the empirical data, therecommendations for the development of the network information system are derived. In process industry such as the forest industry, it is crucial to achieve a high level of operational efficiency and reliability, which sets up great requirements for maintenance and operations. Therefore, partnerships or strategic alliances are needed between the network participants. In partnerships and alliances, deep communication is important, and therefore the information systems in the network also are critical. Communication, coordination and collaboration will increase in the case network in the future, because network resources must be optimised to improve competitive capability of the forest industry customers and theefficiency of their service providers. At present, ebusiness systems are not usual in this maintenance network. A network information system among the forest industry customers and their local service providers actually is the only genuinenetwork information system in this total network. However, the utilisation of that system has been quite insignificant. The current system does not add value enough either to the customers or to the local service providers. At present, thenetwork information system is the infomediary that share static information forthe network partners. The network information system should be the transaction intermediary, which integrates internal processes of the network companies; the network information system, which provides common standardised processes for thelocal service providers; and the infomediary, which share static and dynamic information on right time, on right partner, on right costs, on right format and on right quality. This study provides recommendations how to develop this system in the future to add value to the network companies. Ebusiness scenarios, vision, objectives, strategies, application architecture, ebusiness model, core processes and development strategy must be considered when the network information system will be developed in the next development step. The core processes in the case network are demand/capacity management, customer/supplier relationship management, service delivery management, knowledge management and cash flow management. Most benefits from ebusiness solutions come from the electrifying of operational level processes, such as service delivery management and cash flow management.

Tehdaslogistiikka : value added logistics of the supply and demand chain costfix

VALOSADE (Value Added Logistics in Supply and Demand Chains) on Lappeenrannan teknillisen yliopiston ja sielläprofessori Anita Lukan VALORE -tutkimusryhmän toteuttama tutkimusprojekti, jonka rahoittaja on ollut Tekes. Projekti on osa Tekesin ELO - Elektronisen liiketoiminnan logistiikka - teknologiaohjelmaa. Tutkimusta rahoittivat Tekesin lisäksi neljä yritystä, jotka toimivat myös tutkimustyön kohteina ja toimivat tarpeen mukaan yhteistyössä tutkijoiden kanssa. Yritysten toimialat ovat metsäteollisuus, laitevalmistaja, joka tarjoaa myös tuotteilleen jälkimarkkinapalveluja sekä kaksi logistiikkapalveluyritystä. Tämä työraportti liittyy VALOSADE - tutkimusprojektin osaprojektiin Costfix (Paper Mill Process - from Fixed Costs into Variable Costs). Costfix - projektin tavoitteena on tutkia ja löytää paperiteollisuudelle uusia toimintamalleja, jotka mahdollistavat kiinteiden kustannusten muuttamisen muuttuviksi. Merkittävä tutkimuksen osa-alue on myös tutkimuskohteiden liike-toiminnan nykytilan aiempaa tarkempi selvittäminen. Tämä työraportti käsittelee kunnossapidon materiaalilogistiikan osalta tehtaan sisällä tapahtuvaa toimintaa, josta tässä tutkimuksessa käytetään nimitystä tehdaslogistiikka. Nykytilaselvityksen perusteella nykyinen prosessiteollisuudessa ja myös pääsääntöisesti valmistavassa teollisuudessa yleisesti vallitseva teollisuusyrityksen käyttöinvestointia ylläpitävän palveluprosessin toimintarakenne, johtamistapa ja prosessin operatiivisten tehtävien toimenkuvat eivät tue ko. palvelukokonaisuuden tehokasta ja tuloksellista toteuttamista. Nykymuotoinen toimintamalli pikemminkin rajoittaa toimintaprosessin kokonaishallintaa ja sen tehostamiseksi investoitujen uusien teknisten ratkaisujen ja teknologian käyttöönottoa. Lisäksi yleisesti vallitseva toimintakulttuuri (mm. arvokäsitykset, uskomukset sekä toiminnan ja tavoitteiden taustalla olevat motiivit) sekä vaikeuttaa nykyisen ja tulevan kilpailutilanteen edellyttämien tehokkuus- ja tuottavuustavoitteiden toteutumista että hidastaa uudistusten onnistumista edellyttävän muutoksen etenemistä yrityksen sisällä. Tutkimuksen tulokset vahvistivat osaltaan sen, että tehdas- ja toimintokeskeinen johtaminen aiheuttavat palveluprosessin eri tehtäville asetettujen tavoitteiden ja perustehtäväkäsityksen välille ristiriitoja, joista seuraa sekä suoria että välillisiä vaikutuksia teollisuusyrityksen tuotantoprosessin toiminnan laatuun ja tuotantolaitteiden käyttövarmuuteen. Palvelukokonaisuuteen kuuluvien eri toimintaprosessien tehtävät on jaettu ristiriitaisesti toiminnoille siten, että erityisestikunnossapidon teknisten toimihenkilöitten hoidettavana on sekä ihmisen henkilökohtaisen kapasiteettirajan ylittävä että toisistaan liian suuri erilaisia osaamisia ja ymmärrystä edellyttävä tehtävämäärä. Nykytilan palvelutuotannossa esiintyvien ongelmien seuraukset ja perussyyt osoittavat, että merkittävästi pääomia sitovan valmistavan teollisuuden (mm. prosessiteollisuus) käyttö-omaisuutta ylläpitävän palveluprosessin hallinta on ulkoistettava tehdastasolta itsenäisesti hoidettavaksi liiketoimintakokonaisuudeksi, jonka operatiivinen johtaminen tapahtuu toimintaprosesseittain konsernin ylätasolta käsin. Johtamismallissa painottuu prosessijohtaminen ja oman vastuualueen toimintaprosessin asiantuntemus. Lisäksi ihmisen osaamiseen, ymmärrykseen ja toimintatapaan perustuva palvelu edellyttää johtamiselta henkilöjohtamistaitoa ja osaamisen johtamista. Liiketoiminnan uudenlainen keskittyminen, verkostoituminen ja globalisoituminen edellyttävät johdoltamyös erilaisten toimintaverkostojen ja sidosryhmien toiminnan ja tarpeen ymmärtämistä. Tutkimustulosten perusteella myös palveluprosesseissa toimivien toimihenkilöitten tehtäväkuvia on muutettava radikaalisti ja osa uusista toimenkuvista edellyttää lisäksi henkilöitten osaamistason aktiivista parantamista. Tässä raportissa esitetään toimintamalli, jossa kuvataan tutkimuksen pohjalta luotu palvelukokonaisuuden johtamismalli ja palveluprosessien eri tehtävätasot tehtävineen. Kuvattu johtamismalli on ollut jo yleisesti käytössä yksittäisillä palvelualoilla, mutta tässä esitetty malli on valmistavan yrityksen teknisiin tukipalveluihin muokattu sovellus.

The value of future opportunities: comparison of information technology firms and forest companies

There are several alternatives for valuing the future opportunities of firms. The traditional appraisal methods for single projects such as net present value, internalrate of return and payback rules have been criticized in recent years. It has been said that they do not take into account all growth opportunities of firms. At the company level, business valuation is traditionally based on financial and market information. Yield estimates, net worth values and market values of shares are commonly used. Naturally, all valuation methods have their own strengths and shortcomings. In the background of most estimation rules there is the idea that the future of the firms is quite clear and predictable. However, in recent times the business environment of most companies has changed to a more unpredictable direction and the effects of uncertainty have increased. There has been a growing interest in estimating the risks and values of future possibilities. The aim of the current paper is to describe the difference between the value of futureopportunities in information technology firms and forest companies, and also toanalyse the backgrounds for the observed gap.

Value added logistical support service Part 2. Outsourcing process of spare part logistics in metal industry

The aim of this research study was to find out guidelines for outsourcing of logistics processes. The study was outlined to spare parts and `business-to-business' (B2B) markets in metal industry. This study can be applied as a manual for outsourcing especially warehousing and transportation activities. The study also touches other important areas of spare part logistics like manufacturing, customer service, procurement, quality control, reverse and recycling logistics, logistics technologies and valueadded services. The method of study consisted of three areas. Firstly exchanging views with logistics experts in participating companies, and secondly compiling material based on author's practical experience in logistics business with several international and domestic logistics service providers and vendors. Thirdlythe study includes also references to literature material. Due to the fact thatthe outsourcing of logistics functions can be handled widely and from differentpoint of views, in this study it is concentrated mainly on giving general levelguidelines for defining logistics strategy, hints both for tendering process and implementation project, and not forgetting the aftercare of business partnership.

On the innovation capacity of technologyrelated knowledge-intensive business services. A case study of the technology and engineering consulting (TEC) sector in Singapore

Even though the research on innovation in services has expanded remarkably especially during the past two decades, there is still a need to increase understanding on the special characteristics of service innovation. In addition to studying innovation in service companies and industries, research has also recently focused more on services in innovation, as especially the significance of so-called knowledge intensive business services (KIBS) for the competitive edge of their clients, othercompanies, regions and even nations has been proved in several previous studies. This study focuses on studying technology-based KIBS firms, and technology andengineering consulting (TEC) sector in particular. These firms have multiple roles in innovation systems, and thus, there is also a need for in-depth studies that increase knowledge about the types and dimensions of service innovations as well as underlying mechanisms and procedures which make the innovations successful. The main aim of this study is to generate new knowledge in the fragmented research field of service innovation management by recognizing the different typesof innovations in TEC services and some of the enablers of and barriers to innovation capacity in the field, especially from the knowledge management perspective. The study also aims to shed light on some of the existing routines and new constructions needed for enhancing service innovation and knowledge processing activities in KIBS companies of the TEC sector. The main samples of data in this research include literature reviews and public data sources, and a qualitative research approach with exploratory case studies conducted with the help of the interviews at technology consulting companies in Singapore in 2006. These complement the qualitative interview data gathered previously in Finland during a larger research project in the years 2004-2005. The data is also supplemented by a survey conducted in Singapore. The respondents for the survey by Tan (2007) were technology consulting companies who operate in the Singapore region. The purpose ofthe quantitative part of the study was to validate and further examine specificaspects such as the influence of knowledge management activities on innovativeness and different types of service innovations, in which the technology consultancies are involved. Singapore is known as a South-east Asian knowledge hub and is thus a significant research area where several multinational knowledge-intensive service firms operate. Typically, the service innovations identified in the studied TEC firms were formed by several dimensions of innovations. In addition to technological aspects, innovations were, for instance, related to new client interfaces and service delivery processes. The main enablers of and barriers to innovation seem to be partly similar in Singaporean firms as compared to the earlier study of Finnish TEC firms. Empirical studies also brought forth the significance of various sources of knowledge and knowledge processing activities as themain driving forces of service innovation in technology-related KIBS firms. A framework was also developed to study the effect of knowledge processing capabilities as well as some moderators on the innovativeness of TEC firms. Especially efficient knowledge acquisition and environmental dynamism seem to influence the innovativeness of TEC firms positively. The results of the study also contributeto the present service innovation literature by focusing more on 'innovation within KIBs' rather than 'innovation through KIBS', which has been the typical viewpoint stressed in the previous literature. Additionally, the study provides several possibilities for further research.