Methods for Increasing the Supply Chain Effectiveness

For any modern company logistics has a dual nature. On one hand, it is declared as a cost center, and on the other hand, an efficiently built logistics network can allow a company to reduce all costs connected to the moving of goods. Current trends: free-of-charge delivery, growing amount of distribution centers and robotization of logistics are the evidence of the logistics efficiency issue is becoming one of the core issues in the strategy of any serious enterprise. Thus, the goal of this work is to analyze both theoretical and practically implemented approaches of building effective logistics networks. In this paper the methodological foundations of improving the efficiency of logistics, examples of organizing logistics networks of the largest companies in their sectors (fast moving consumer goods, metallurgy, fast food) will be considered. The advantages and disadvantages of various methods of designing logistics networks based on the information reviewed as well as on a calculation example will be highlighted. Moreover, the practice-oriented algorithm for constructing an effective supply chain will be presented basing on the reviewed methodology and business practices.