Wireless Applications Evaluation and Development Process: Case -Paper Industry Logistics

Sähköisen liiketoiminnan ja mobiliteetin konvergenssi yhdessä teknologisen innovaation kiihtyvän vauhdin kanssa ovat saaneet aikaan kiinnostusta langattomia liiketoimintaratkaisuja kohtaan. Tämän diplomityön tavoitteena oli tutkia sähköisen liiketoiminnan langattomien sovellusten arviointi- ja kehitysprosessia. Työ keskittyy tarkastelemaan paperiteollisuuden toimitusketjun langatonta seurantaa. Tutkimuksessa esitetään langattoman sähköisen liiketoiminnan määritelmä, kuvaillaan langattomuuden eri sovellusalueita ja sovellusten arviointi- ja kehitysprosessin strategisia sekä teknologisia ulottuvuuksia. Työ luo viitekehyksen, jonka avulla tarkastella langattomien teknologioiden merkitystä logistiikassa. Tutkimuksen merkittävin tulos on prosessimalli sovellusten arvioimiseksi ja kehittämiseksi. Mallilla kehitetty langaton sovellus osoittautui tarkastelussa hyödylliseksi toimitusketjun hallinnassa.

Electronic Data Interchange in Logistics Processes

Tämän diplomityön tarkoituksena oli tehdä selvitys EDI:in liittyvistä vaikutuksista, tarpeista ja eduista sekä valmistella Oracle Applications- toiminnanohjausjärjestelmän EDI Gateway- modulin ottamista tuotantokäyttöön. Tietoa tarvekartoitukseen saatiin keskustelujen avulla. Uusia kaupallisista lähtökohdista johdettuja, yritysten väliseen kaupankäyntiin ja internet-teknologian hyödyntämiseen kehitettyjä aloitteita käsiteltiin EDI-näkökulmasta tulevaisuutta varten. Ajankohtaisinta tietoa tätä diplomityötä varten löydettiin myös internetistä. Tämän jälkeen oli mahdollista toteuttaa sopivan laaja mutta rajattu EDI pilottiprojekti EDI-konseptin luomista varten. EDI:n vaikutuksiin ostossa keskityttiin tässä diplomityössä enemmän ja EDI:ä päätettiin soveltaa aluksi ostotilauksissa. EDI:n hyötyjä on vaikea mitata numeerisesti. Suurta määrää rahaa tai tuoteyksiköitä on käsiteltävä EDI-partnerin kanssa riittävän usein. EDI:n käyttöönottovaiheessa pääongelmat ovat sovelluksiin liittyviä tietotekniikkaongelmia. Selvityksistä ja EDI-projektista saatu tieto on mahdollista hyödyntää jatkokehityksessä. Lisätoimenpiteitä tarvitaan kokonaan toimivan järjestelmän luomiseksi.

The Role of Logistics as a Competitiveness Factor when Entering New Markets

Tämän diplomityön tarkoituksena on löytää halvin tapa kohdeyrityksen tuotteiden saamiseksi määritellyille kohdemarkkinoille. Logistiset kustannukset ovat erityisen tärkeässä asemassa esimerkkitoimialalla, ja käytettävissä olevien logististen ratkaisujen kirjo tekee tehtävästä erityisen haastavan. Yrityksen ja teollisuudenalan erityispiirteiden esittelyn jälkeen valitaan sopiva tapa päästä markkinoille, minkä lisäksi pohditaan erilaisia kilpailustrategioita yrityksen aikaisempien kokemusten ja teoreettisen käsittelyn pohjalta. Tämä pohdinta on erilaisten analyysimenetelmien esittelyn lisäksi työn empiirisen osan taustalla. Logistiikkaympäristön ymmärtäminen ja sen tarjoamien mahdollisuuksien tunnistaminen ovat tärkeimmällä sijalla koko tutkimuksen ajan. Työssä tarkastellaan myös vientilogistiikan ja kohdemarkkinoiden erityispiirteitä, joita sovelletaan harkitsemisenarvoisiin kuljetustapoihin. Mahdollisten logististen ratkaisujen kustannusrakenteen ja kilpailukyvyn selvittämiseksi päätöksenteon tueksi luodaan yksilölliset vuokaaviot yrityksen omien kokemusten ja eri logistiikkapalvelujen tarjoajien lausuntojen perusteella. Näin voidaan edelleen tunnistaa mielekkäimmät logistiset ketjut ja arvioida niiden kustannustehokkuutta sekä suorien logististen että laatukustannusten suhteen. Lisäksi esimerkkien avulla tarkastellaan mahdollisuuksia benchmarkkaukseen. Työn lopuksi suositellaan johtopäätösten pohjalta tulevia toimenpiteitä, jotta myös jatkossa saataisiin aikaan vastaavaa pohdintaa ja toimintaa.

The ramp-up of new products in the outbound logistics

Tässä diplomityössä on perehdytty kaaoksen ja oppivan organisaation mekaniikkaan ja olemukseen. Niitä on sovellettu uuden tuotteen saattamiseen logistiikan toimitusketjuun Nokia Oyj:n Networks toimialaryhmässä. Samalla on pyritty löytämään ratkaisuja toiminnan parantamiseksi. Kaaosjohtaminen tarjoaa prosessijohtamista täydentävän tavan mallintaa muutosta ja selittää sen aikaansaamia ilmiöitä. Näiden kahden viitekehyksen avulla on pyritty pureutumaan laajaan ja moniulotteiseen ongelmakenttään. Muotoaan hakevassa organisaatiossa kaaoksen elementit ovat voimakkaasti läsnä. Kaaoksen hallintaan liittyy saumattomasti itseorganisoituminen ja oppiminen. Oppinen ei ole organisaatiolle yhtä luontainen kyky kuin se on yksilölle. Se vaatii organisaation jäseniltä oman roolinsa tiedostamista ja tiedon jakamista. Organisaation tavoitteet saattavat yksilön näkökulmasta tuntua joskus epäkonkreettisilta ja samalla muutokset hallitsemattomilta. Markkinoiden ja teknologian muuttuminen on ollut erityisen nopeaa telekommunikaatioalalla. Näissä olosuhteissa on tärkeää pyrkiä oppivaan organisaatioon, joka tukee organisaation toimintaa läpi muutoksen.

State of Logistics and Operations Management in Finnish and Swedish Companies – Survey Research Findings

In this research we are examining what is the status of logistics and operations management in Finnish and Swedish companies. Empirical data is based on the web based questionnaire, which was completed in the end of 2007 and early 2008. Our examination consists of roughly 30 answers from largest manufacturing (highest representation in our sample), trade and logistics/distribution companies. Generally it could be argued that these companies operate in complex environment, where number of products, raw materials/components and suppliers is high. However, usually companies rely on small amount of suppliers per raw material/component (highest frequency is 2), and this was especially the case among Swedish companies, and among those companies, which favoured overseas sourcing. Sample consisted of companies which mostly are operating in an international environment, and are quite often multinationals. Our survey findings reveal that companies in general have taken logistics and information technology as part of their strategy process; utilization of performance measures as well as system implementations have followed the strategy decisions. In the transportation mode side we identify that road transports dominate all transport flow classes (inbound, internal and outbound), followed by sea and air. Surprisingly small amount of companies use railways, but in general we could argue that Swedish companies prefer this mode over Finnish counterparts. With respect of operations outsourcing, we found that more traditional areas of logistics outsourcing are driving factors in company's performance measurement priority. In contrary to previous research, our results indicate that the scope of outsourcing is not that wide in logistics/operations management area, and companies are not planning to outsource more in the near future. Some support is found for more international operations and increased outsourcing activity. From the increased time pressure of companies, we find evidence that local as well as overseas customers expect deliveries within days or weeks, but suppliers usually supply within weeks or months. So, basically this leads into considerable inventory holding. Interestingly local and overseas sourcing strategy does not have that great influence on lead time performance of these particular sourcing areas - local strategy is anyway considerably better in responding on market changes due to shorter supply lead times. In the end of our research work we have completed correlation analysis concerning items asked with Likert scale. Our analysis shows that seeing logistics more like a process rather than function, applying time based management, favouring partnerships and measuring logistics within different performance dimensions results on preferred features and performance found in logistics literature.

The connection between distortion risk measures and ordered weighted averaging operators

Distortion risk measures summarize the risk of a loss distribution by means of a single value. In fuzzy systems, the Ordered Weighted Averaging (OWA) and Weighted Ordered Weighted Averaging (WOWA) operators are used to aggregate a large number of fuzzy rules into a single value. We show that these concepts can be derived from the Choquet integral, and then the mathematical relationship between distortion risk measures and the OWA and WOWA operators for discrete and finite random variables is presented. This connection offers a new interpretation of distortion risk measures and, in particular, Value-at-Risk and Tail Value-at-Risk can be understood from an aggregation operator perspective. The theoretical results are illustrated in an example and the degree of orness concept is discussed.

Improving the Potentials of Logistics Processes: Identification and Solutions

The importance of logistics for companies is a well known and justified issue. Today, enterprises are developing their logistics processes in order to match their products and services to the requirements of the most important customers. Therefore there is a need for developing analysing tools for logistics and especially for analysing the significance of various customer service elements. The aim of this paper is to propose analytic tools for supporting strategic level logistics decision making by emphasizing service level elements on two levels: (1) to introduce and propose approaches to categorize the developing efforts of logistics and (2) to introduce and/or propose approaches for solving some customer service related strategic level logistics problems. This study consists of two parts. In the first part an overview of the work is presented, and the second part comprises eight research papers on the topic of the study. The overview includes an introduction, where strategic and tactical level logistics problems are discussed and the relation of logistics to marketing and customer service issues is presented. In the first part of the study the objectives, the structure, the research strategy and the contribution of the research are described, and the challenges for future research are discussed. In the second part the three first papers deal with the identification of objectives for logistics while the remaining five papaers concentrate on solving customer service related strategic level logistics problems.

The governmental organization's role in railway freight market's liberalization -building knowledge through Swedish and Polish operators' experiences

Globalization has increased transport aggregates’ demand. Whilst transport volumes increase, ecological values’im portance has sharpened: carbon footprint has become a measure known world widely. European Union together with other communities emphasizes friendliness to the environment: same trend has extended to transports. As a potential substitute for road transport is noted railway transport, which decreases the congestions and lowers the emission levels. Railway freight market was liberalized in the European Union 2007, which enabled new operators to enter the markets. This research had two main objectives. Firstly, it examined the main market entry strategies utilized and the barriers to entry confronted by the operators who entered the markets after the liberalization. Secondly, the aim was to find ways the governmental organization could enhance its service towards potential railway freight operators. Research is a qualitative case study, utilizing descriptive analytical research method with a normative shade. Empirical data was gathered by interviewing Swedish and Polish railway freight operators by using a semi-structured theme-interview. This research provided novel information by using first-hand data; topic has been researched previously by utilizing second-hand data and literature analyses. Based on this research, rolling stock acquisition, needed investments and bureaucracy generate the main barriers to entry. The research results show that the mostly utilized market entry strategies are start-up and vertical integration. The governmental organization could enhance the market entry process by organizing courses, paying extra attention on flexibility, internal know-how and educating the staff.

An analytic approach to distribution logistics strategic management

Logistics management is increasingly being recognised by many companies to be of critical concern. The logistics function includes directly or indirectly many of the new areas for achieving or maintaining competitive advantage that companies have been forced to develop due to increasing competitive pressures. The key to achieving a competitive advantage is to manage the logistics function strategically which involves determining the most cost effective method of providing the necessary customer service levels from the many combinations of operating procedures in the areas of transportation, warehousing, order processing and information systems, production, and inventory management. In this thesis, a comprehensive distribution logistics strategic management process is formed by integrating the periodic strategic planning process with a continuous strategic issues management process. Strategic planning is used for defining the basic objectives for a company and assuring co operation and synergy between the different functions of a company while strategic issues management is used on a continuous basis in order to deal with environmental and internal turbulence. The strategic planning subprocess consists of the following main phases: (1) situational analyses, (2) defining the vision and strategic goals for the logistics function, (3) determining objectives and strategies, (4) drawing up tactical action plans, and (5) evaluating the implementation of the plans and making the needed adjustments. The aim of the strategic issues management subprocess is to continuously scan the environment and the organisation for early identification of the issues having a significant impact on the logistics function using the following steps: (1) the identification of trends, (2) assessing the impact and urgency of the identified trends, (3) assigning priorities to the issues, and (4) planning responses to the, issues. The Analytic Hierarchy Process (AHP) is a systematic procedure for structuring any problem. AHP is based on the following three principles: decomposition, comparative judgements, and synthesis of priorities. AHP starts by decomposing a complex, multicriteria problem into a hierarchy where each level consists of a few manageable elements which are then decomposed into another set of elements. The second step is to use a measurement methodology to establish priorities among the elements within each level of the hierarchy. The third step in using AHP is to synthesise the priorities of the elements to establish the overall priorities for the decision alternatives. In this thesis, decision support systems are developed for different areas of distribution logistics strategic management by applying the Analytic Hierarchy Process. The areas covered are: (1) logistics strategic issues management, (2) planning of logistic structure, (3) warehouse site selection, (4) inventory forecasting, (5) defining logistic action and development plans, (6) choosing a distribution logistics strategy, (7) analysing and selecting transport service providers, (8) defining the logistic vision and strategic goals, (9) benchmarking logistic performance, and (10) logistic service management. The thesis demonstrates the potential of AHP as a systematic and analytic approach to distribution logistics strategic management.

Performance Measurement of the Logistics Process

The objective of the thesis was to create a performance measurement system for the logistics process of a company. In addition, one goal was to make suggestions for improvements based on description and analysis of the process and current measures. The logistics process was described in detail, and the objectives for it were derived from the company strategy and goals. Suggestions for performance measurement system and process improvement were made based on current state analysis. As a result of the thesis, three new performance measures were decided to take into use. In addition, several improvements were suggested to the ERP system to make process smoother. Some of the improvements have already been added to the system and the rest will be added in the near future.

Supply chain costs of a small board lot: sheet cutting and logistics

Succeeding in small board lot (0-20 tons) deliveries, is not always prosperous and failures as well as extra costs compared to standard costs arise. Failure deliveries from converting plants to customer locations tie a lot of unwanted and unexpected costs. Extra costs are handled as quality costs and more precise, internal failure costs. These costs revolve from unsuccessful truck payloads, redundant warehousing or unfavorable routing as examples. Quality costs are becoming more and more important factor in company’s financial decision making. Actual, realized truck payload correlates with the extra costs occurring, so filling the truck payload all get-out well is a key to lower the extra costs. Case company in this study is Corporation A, business segment Boards. Boards have outsourced half of their converting in order to gain better customer service via flexibility, lead time reductions and logistics efficiency improvements. Examination period of the study is first two quarters of year 2008 and deliveries examined are from converters to the customer locations. In Corporation A’s case, the total loss in failure deliveries is hundreds of thousands of Euros during the examination period. So, the logistics goal of getting the right product to the right place and right time for the least cost, does not completely realize.

Development of railway logistics’ information flows

Objective of this thesis was to develop the exchange of information and reduce the manual work done in the supply chain. In addition, the possibility to introduce electronic information exchange was studied between suppliers and Borealis. The aim was to create an accurate picture of Borealis’ current information flows and create from the basis of it short- and long-term improvement and development proposals. In this study the company's received and send information flows were mapped by interviewing persons who were responsible for the railroad imports and by examining documents that are used in the exchange of information. The data content of the information flows were prioritized and only the most important information contents were used for further development. Literature data was acquired concerning knowledge of electronic data interchange and information management to support the decisions and proposals. Long-term development proposals were compared with each other and the best one of them was recommended for further study. The final target of the proposal is to be able to receive electronic data and create an own database where to the information is stored and where from it is possible to follow up the rail tank cars and where from the needed reports can be retrieved.

Activation of supply relationships : a study of main providers in the Turku logistics cluster

Företag inom industri och handel väljer allt oftare att låta ett logistikföretag sköta stora delar av sina logistiska processer. Logistikföretagen i sin tur överlåter utförandet av enskilda tjänster, som t.ex. olika typer av transport, till olika samarbetspartners inom branschen. I avhandlingen studeras hur logistikföretag går till väga då de väljer vilka av deras samarbetspartners som ska engageras för att delta i utförandet av ett logistiktjänstepaket, en arbetsprocess som här kallas aktivering. Fokus ligger på aktiveringens innehåll och de faktorer som inverkar på hur den går till och vilka samarbetsparter som kommer att engageras. Arbetet bygger på nätverksansatsen för studier av företagsrelationer på industriella marknader. Aktiveringsprocessen uppfattas som en rätt ordinär, rutinmässig verksamhet i företaget, men den kan också förväntas inverka på hur företagets samarbetsnätverk utvecklas över tiden, genom att vissa relationer förstärks medan andra försvagas. I den empi riska undersökningen deltog 29 logistikföretag i Åboregionen som utgående från ett diskussionsunderlag fick berätta om hur de går till väga vid aktivering.

Information integration and its impacts on logistics performance - Using information technology and systems to facilitate information integration

Fast changing environment sets pressure on firms to share large amount of information with their customers and suppliers. The terms information integration and information sharing are essential for facilitating a smooth flow of information throughout the supply chain, and the terms are used interchangeably in research literature. By integrating and sharing information, firms want to improve their logistics performance. Firms share information with their suppliers and customers by using traditional communication methods (telephone, fax, Email, written and face-to-face contacts) and by using advanced or modern communication methods such as electronic data interchange (EDI), enterprise resource planning (ERP), web-based procurement systems, electronic trading systems and web portals. Adopting new ways of using IT is one important resource for staying competitive on the rapidly changing market (Saeed et al. 2005, 387), and an information system that provides people the information they need for performing their work, will support company performance (Boddy et al. 2005, 26). The purpose of this research has been to test and understand the relationship between information integration with key suppliers and/or customers and a firm’s logistics performance, especially when information technology (IT) and information systems (IS) are used for integrating information. Quantitative and qualitative research methods have been used to perform the research. Special attention has been paid to the scope, level and direction of information integration (Van Donk & van der Vaart 2005a). In addition, the four elements of integration (Jahre & Fabbe-Costes 2008) are closely tied to the frame of reference. The elements are integration of flows, integration of processes and activities, integration of information technologies and systems and integration of actors. The study found that information integration has a low positive relationship to operational performance and a medium positive relationship to strategic performance. The potential performance improvements found in this study vary from efficiency, delivery and quality improvements (operational) to profit, profitability or customer satisfaction improvements (strategic). The results indicate that although information integration has an impact on a firm’s logistics performance, all performance improvements have not been achieved. This study also found that the use of IT and IS have a mediocre positive relationship to information integration. Almost all case companies agreed on that the use of IT and IS could facilitate information integration and improve their logistics performance. The case companies felt that an implementation of a web portal or a data bank would benefit them - enhance their performance and increase information integration.