Digitization of logistics management as a prerequisite for cost reduction

On the first day of the 11th Gaidar Forum at the Presidential Academy, expert discussion “Supply chain management in the digitization of local and global markets” took place. Participants considered digitization of supply chain management and automation of logistics as business development priorities.

To open the discussion, Vladimir Salamatov, Chairman of EAEU Business Committee, Director General of the Research Center “International Trade and Integration”, spoke about the meeting subject and drew attention of the audience to Industry 4.0 technologies.

Yrysbek Tashbaev, Director General, “Council of Supply Chain Professionals” Association, specified forecasts and events of 2020 logistics market in Russia. He told about current and expected key changes in the logistic services market, among which he emphasized the share economy, market whitening, product labelling and electronic document management.

Anton Grechko, Vice President Sales and Marketing, Cluster Russia + CIS, Kuehne + Nagel, emphasized that digitization is the primary source of cost recovery. “We estimate that, in four years, the amount of transactions to pass through electronic platforms shall grow from 10% to 40%,” the speaker said. The cargo management electronic platform makes it possible to analyze in real time whether the line withstands the claimed transit time.

Ilya Yeletskikh, Director for Logistics, Coca-Cola HBC in Russia, continued the discussion, by presenting his part of report “Market Transformation and Logistics Management Digitization”. He clarified that organized marketing channel represented by network companies has the prevailing size. Mr. Yeletskikh also added that the immediate consumption channel and e-commerce have high growth potential.

Marsel Shabanov, Head of Business Intelligence & Project Management Department in Eastern Europe at the same company Coca-Cola, spoke about digitization in supply chain management. The speaker pointed out as a drawback of traditional supply chain the fact that it cannot quickly react to the changing market conditions. By contrast, digital ecosystem of supply chain has some advantages: transparency, response time, cost reduction of the entire system. “Big data, robotics and modelling of business processes are the most important areas in supply chains for 3–5 years,” Marsel Shabanov added.

Aleksey Sorokin, President of the Foundation for Support of International Economic and Humanitarian Programs "Strategy", drew special attention of the audience to smart cities and large chains and also told participants about RANEPA education programs together with the University of London.

Leonid Shlyapnikov, CEO, Russian Warehouse and Distribution Service Agency LLC, analyzed the role of transport and logistics hub (TLH) and wholesale distribution centers (WDC) as basic digital trade platforms and transport logistics corridors in global added-value chains. The speaker determined infrastructure levels and TLH/WDC establishment project stages.

Alexander Tysyachnikov, Head of International Transport Operations Department, MGIMO (University), the Ministry of Foreign Affairs of Russia, considered the issue of digitization in transport. He began with the fact that participant of the sector have no clear understanding of digitization, having exemplified it by NVOCC, Maersk Line, etc. Among digitization advantages, he emphasized reduction of labor costs, acceleration of business processes and simplification of processing, transfer and storage of documents. Then he paid attention to the drawbacks: cybersecurity, social aspect and disagreements between countries in different aspects of trade. “The most promising areas of digitization in transport at the turn of 5–10 years will be large-scale implementation of the electronic data interchange (EDI) system and gradual refusal of using hard-copy document workflow.”

Vadim Klementyev, Director General, GC Trading Technologies LLC, concluded the discussion. He presented trading on e-commerce platforms as an element of the buyer-and-seller-centered global supply chain.

Elina Manusheva

 

The 11th Gaidar Forum “Russia and the World: Challenges of the New Decade” is being held at the Presidential Academy on January 15 and 16, 2020. The forum is focused on the goals of national and global development and the search for practical answers to the most pressing challenges of our time. The forum is attended by ministers of the Government of the Russian Federation, members of the Federal Assembly, governors of the Russian regions, prominent international experts, and representatives of foreign states.

The organizers of the 11th Gaidar Forum are the Russian Presidential Academy of National Economy and Public Administration, the Gaidar Institute for Economic Policy, and the Association of Innovative Regions of Russia.

The title partners of the Gaidar Forum are Gazprom PJSC and Gazprombank JSC. The strategic partners are Coca-Cola, Mastercard, Russian Railways, Pharmstandard group of companies, Johnson & Johnson, Sanofi, Novartis group of companies, MSD, AKIG group of companies, EF Education First. Partners are Prosveshchenie group of companies, EY, Huawei, RVC JSC, Russian Agricultural Bank JSC.

The title information partners of the Gaidar Forum are the Russia-24 TV channel, TASS, RBC, Business FM. The strategic information partners are Kommersant Publishing House, Interfax, Rossiyskaya Gazeta, Invest Foresight magazine, Federal Press Agency. The main information partners are Anews.com, Gazeta.Ru, Lenta.Ru, News.ru, Profile. International partners are RT, ThomsonReuters, Sputnik, EFE, Cision, Pan Pacific Agency. Information partners are Snob media project, AEI PRIME, RNS, Expert magazine, Parlamentskaya Gazeta, Polit.ru, Ekho Moskvy radio station, PRO Business TV channel, FINAM.RU information and analytical agency, Davydov.Index, Strategiya magazine, Ekonomika i Zhizn newspaper, Econs portal, Gosudarstvennaya Sluzhba magazine, TV BRICS.