SULOGTRA - Supply Chain Management, Logistics and Transport
Overview
Background & policy context:
Logistics in general and Supply Chain Management (SCM) in particular have become priority items in the discussion of industrial and transport development. The optimisation of Logistics and Supply Chain Management is of crucial importance for the sustainable development of the European economy. Since the current trends and developments in logistics and Supply Chain Management are expected to have a decisive impact on freight transport operations, the European Commission requested an in-depth analysis of their relationship and of opportunities for supply chain optimisation. So the SULOGTRA project became part of the EU Research Programme 'Competitive and Sustainable Growth', which is one of the four thematic programmes of the Fifth RTD Framework Programme (1998-2002) issued by the European Commission.
Objectives:
The main aim of the project was to analyse the relationship between supply chain trends and freight transport operations and to facilitate supply chain integration at European level. The following eight items are the project's research objectives, which are closely related to the main aims of the 'Competitive and Sustainable Growth' RTD Programme:
- Analyse and predict logistical and supply chain trends, by updating and extending earlier EU-funded research on these topics.
- Examine in depth the logistical decision-making process, particularly as it relates to the management of the freight transport process and to examine ways to move the transport decision upstream in the product cycle to the design phase.
- Assess the impact of logistical and supply chain trends on the European freight transport system and the market for third-party logistics services.
- Develop and apply metrics, mapping tools and benchmarking techniques which can be used to measure and compare the performance of European supply chains.
- Measure the potential for supply chain improvement, in both economic and environmental terms, relative to current best-practice and to theoretical norms defined by quantitative optimising techniques.
- Analyse the process of value creation in supply chains by node, link and activity and examine its external economic effects at differing geographical scales.
- Assess the implications of the research findings for policy-makers and offer policy advice and recommendations.
- Provide practical guidance to industry on logistical / supply chain trends, performance measurement and optimisation.
Methodology:
The research was divided into a total of nine work packages (WP). All but Work Package 7 address a specific research objective:
- WP 1- Analysis of trends in supply chain management and logistics: WP 1 reviewed logistics and supply chain trends, examined the factors and processes driving these trends and forecasted the future development of supply chains over the next 5 - 10 years.
- WP 2- Analysis of management decision-making processes: WP 2 examined the logistics / supply chain decision-making process, particularly as it affects the planning and management of freight transport.
- WP 3- Analysis of the impact on freight transport: WP 3 assessed the impact of the observed logistics and supply chain trends on the freight transport system.
- WP 4- Supply chain metrics, mapping tools and benchmarking: WP 4 had a strong methodological content and was concerned with the development of supply chain metrics, mapping tools and benchmarking procedures.
- WP 5- Supply chain optimisation and best-practice: Having devised methods of measuring supply chain performance, WP 5 examined the potential for improving the management of logistics and supply chains through the adoption of optimising techniques and best practice.
- WP 6- Analysis of value creation in supply chains: WP 6 investigated the process of value creation in supply chains and the relationship between logistical activities and economic development. This reviewed previous research on this topic and established a theoretical basis for WP 7.
- WP 7- Supply chain case studies: WP 7 surveyed 16 multi-country supply chains. This work package involved extensive primary data collection and analysed and consumed a substantial proportion of total project resources. These supply chain case studies mapped the value creation process by link and node, applied the performance metrics defined in WP 4 and assessed the potential for performance improvement against the best practice criteria established in WP 5.
- WP 8- Policy implication and advice: WP 8 prepared advice to policy-makers based on the results of the earlier work packages.
- WP 9- Industrial consultation and dissemination: WP 9 handled the dissemination of the research findings to private companies, trade associations and professional bodies. Research partners involved in this work package had responsibility for establishing the industrial user group
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