Lfa procurement, logistics and supply chain solutions 2013

Logistics Field Audit™

Procurement, logistics and supply chain
solutions
Logistics Field Audit™ (LFA)
Company profile

November, 2013

Content

1
2

Our approach

3

LFA solutions for operational effectiveness

4

2

About LFA

List of accomplished projects in Russia and the CIS

Confidential
Do not use without LFA Rus permission

About LFA
LFA (Logistics Field Audit™) was the first consulting company in the territory of the former USSR that
specialized in procurement, logistics and supply chain management
Logistics Field Audit™ was the first consulting company (among both international and local companies) in
the territory of the former USSR that specialized in procurement, logistics and supply chain management.
For more than 17 years we provide companies within different industries in Russia, CIS and the Baltic States
with unique supply chain solutions based on International and Russian Best Practices.
All LFA experts are former successful logistics and supply chain
practitioners and managers. LFA strives to deliver its customers
implementable solutions fit for Russian and the CIS market. We offer
World Best Practices and know how to adapt them in local legislation
and business environment. LFA experts have carried out more than
1000 projects for 300 clients in 14 countries. In Russia and the CIS LFA
has successfully delivered over 100 solutions for 50 companies in
various industries.
Supplement to own employees LFA engages the best independent consulting experts and firms with wide
industry experience to its projects. Members of the consulting team are discussed and approved with the
client for each project.

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Confidential

Our team
Andrey Khlous

Irina Cordier

LFA Executive Partner

LFA Business
development Director

Andrey Khlous experience includes more than 17 years of practice in
the field of logistics and supply chain management. Andrey
graduated with honors from Moscow State University and has a PhD
degree. In 1989-1990 he had a traineeship at Stanford University
(Mathematical methods in the social sciences, artificial intelligence).

Andrey Khlous has publications in logistics and supply chain
magazines; he has participated as a speaker and organizer in various
logistics and real estate conferences.
Mr. Khlous is the head of the SCOR Committee in the National
Supply Chain Council, a Jury member of the Commercial Real Estate
Award (Industry Committee) and a lecturer at the Moscow School of
Business.
Andrey Khlous is an expert in SCM in various industries (retail, food
and consumer goods, oil and gas, metallurgy, etc.).

Irina Cordier has over 14 years of experience in logistics and supply
chain management. Irina has graduated from Moscow State
University and holds a PhD in Civil Law.
As LFA’s Business development Director in the CIS region Irina has
led numerous projects in logistics audit, optimization of warehouse
logistics, logistics engineering of warehouses and logistics and
industrial parks, supply chain management.

Irina Cordier took part as a speaker and moderator in many
conferences on logistics and industrial real estate.
Irina managed projects for major International and Russian
companies such as Nestle, Unilever, SUN Interbrew, Lebedyansky,
Moroz-Product (Belarus), VS Energy (Ukraine), MTI (Ukraine),
Forester (Kyrgyz Republic), RTL-Rublevsky (Belarus) and others

List of Andrey’s clients include major international and Russian
companies such as Pepsi, Nestle, Unilever, Procter & Gamble, Avon,
Lebedyansky, United Confectioners, El Dorado, Mvideo, Monetka,
Gazprom, Gazprom Neft, Bashkirenergo, Integra, Russian Post,
Russian Railways, etc.
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Confidential

Our team
Sarunas Shaltis
Partner

Olga Khruscheva
Partner

Olga Khruscheva has 17 years of experience, including 12 years with
AVON. Olga has a degree of State University of Management in IT
Management.
She holds APICS CSCP qualification certificate and is Russia's sole
certified APICS trainer.
As a Project Manager Olga carried out projects within various
industries for sales and operations planning, inventory control and
logistics optimization.
In addition to consulting practice Olga Khrushcheva devotes a lot of
her time to teaching at the Center of International Logistics in
Higher School of Economics, conducts training and seminars on her
own APICS programs.
Apart from working in AVON Olga’s experience includes managing
positions in Danone, IBS and UNITECH

5

Sarunas Shaltis is a procurement expert with 18 years of practical
experience on managing positions in international companies
Sarunas has graduated from Vilnius University with a degree in
International Law, is a Member of Chartered Institute of Purchasing
and Supply (MCIPS), holds BBA degree of Vilnius International
Business School.
As a head of Procurement Consulting Department at KPMG Sarunas
supervised projects of reengineering procurement systems in
companies within various industries: energy, banking,
telecommunications, etc.
Industries: manufacturing and automotive, banking, energy, mining,
IT and communications, construction, real estate, utilities, logistics,
metallurgy.
Supply categories: consulting, transportation, human resources,
legal services, mail and courier service, office software,
telecommunications, business travel, IT, management of fixed assets
(capital investments and infrastructure management), sales and
marketing.
Sarunas Shaltis has an outstanding list of completed projects of reengineering procurement systems for international companies such
as Alcoa, DHL and INTEL.

Confidential

Our team
Tagir Bektimirov

Yevgeniya Polyakova

Partner

Logistics expert

Tagir Bektimirov has 19 years of experience in Logistics and Supply
Chain Management, mostly in international companies.
Tagir graduated with honors from Moscow State University with a
degree in Economics.
In addition to practical experience in logistics and SCM Tagir has
excellent management skills, knowledge of international trade,
ability to work in stressful situations.
Tagir’s experience in production area includes alcohol, tobacco,
health care goods and transportation.
Tagir Bektimirov headed logistics and supply chain management
departments in the following companies: Philip Morris, BritishAmerican Tobacco, Benckiser AG, Seagram, Sanna group, Transgroup
Logistics, ICS, Denview ltd

6

Yevgeniya Polyakova has over 15 years of experience in the field of
logistics. She has worked as Regional Director for the Eastern region
in LLC Russian Logistic Service, as Director of Logistics department in
"ASB Rating" and "TS Regent Art" she managed launch of storage
facilities and the introduction of advanced WMS.
Among the most important projects - organization of importation of
industrial equipment for Pepsi, organization of delivery of Nestle and
Unilever products in regional distribution networks in Russia.
Yevgeniya is the author of seminars on warehouse logistics, foreign
trade, and effective time management.

As an LFA expert Yevgeniya managed consulting projects in
warehouse optimization (stationery company Pragmatik), logistics
audit of distribution network (AVON) and others.

Confidential

Our team
Ekaterina Naumova
Expert on food supply chains

Rostislav Ryabko
Supply Chain & Logistics Consultant

Ekaterina’s competencies include development and management of
projects in catering (public and corporate).

Rostislav is a Consultant for Supply Chain and Logistics optimization
projects.

Education: graduated with honors from the State University of
Management in 2008.

Education: M.Sc. Supply Chain Management in Higher School of
Economics 2012; B.A. International Economic Relations in Moscow
State University of International Relations

Skills: marketing, strategic planning and supply chain management,
design and development of catering facilities, financial modeling.
Catherine’s experience includes concept development of catering
systems on transportation, catering legislation and standard
development, agricultural supply chain management.

Catherine has experience of interaction and negotiation with public
authorities at the federal and regional level, local and international
catering companies, operators of food companies, manufacturers of
the finished food.
Catherine is a member of the Working Group of the State Duma on
implementation of state policy in the field of public catering system.

Skills: Supply Chain and Logistics , Supply Chain Modelling &
Network Design, SCOR, Inventory Analysis
Experience:
2013: JSC Apatit – Production Logistics Audit, Network Design
2013: JSC UKPF – Supply Chain Strategy development, Inventory
Analysis, SCOR-modelling

2012: JSC PhosAgro - Production Logistics Audit
2012: AgroIndustrial Park “Stavropolye” – Logistics Concept
Development

2011: Ministry of Transport and Communication of Kazakhstan –
National Logistics Network Development strategy

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Confidential

Why choose us?
LFA is among few consulting companies in Russia that specializes in Logistics and SCM and is the most
experienced one
LFA Competencies


Advantages

Practical knowledge of Logistics and SCM,
team of professional consulters.



Our team comprises of experienced supply chain and logistics
managers. Using our knowledge we can integrate SCM with
company’s financial system


Fast and efficient approach
We have access to internationally acknowledged best practices
and can provide our own innovative solutions. Each day we
improve logistics and supply chains of various companies and
we are ready to share this experience.



Continuous efficiency improvement

Our relationships with the client last after the project is
finished. We can regularly monitor costs and benefits of the
client’s supply chain and continuously improve it even after the
project is done


Fast and efficient
implementation



Russian and International
Best Practices



Understanding of
industry specifics

Realistic planning
and project
management



Rapid solution
implementation



Knowledge of regulatory
requirements



Awareness of common
errors



IT support for complex
business processes

Independence from IT-companies

We help to make objective managerial decisions in logistics and
supply chain management as we don’t sell or produce any
software or hardware

8

Visible and measurable
results of completed
projects

Risk management
Our team has extensive experience in risk management in
logistics and supply chain management



Results

Confidential

Low risks
Use of best
practices
Expertise
development
within our company

Content

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2

Our approach

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About LFA


Confidential

Our approach

Supply chain management is a new concept of business management and is the result of the changes that
have occurred in various managerial and technological disciplines over the past few decades



Supply
Chain
Management
encompasses the planning and
management of all activities involved
in
sourcing
and
procurement,
conversion,
and
all
logistics
management activities. Importantly, it
also includes coordination and
collaboration with channel partners,
which can be suppliers, intermediaries,
third party service providers, and
customers. In essence, supply chain
management integrates supply and
demand management within and
across companies.
Logistics management is that part of
supply chain management that plans,
implements, and controls the efficient,
effective forward and reverses flow
and storage of goods, services and
related information between the point
of origin and the point of consumption
in order to meet customers'
requirements.

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Defi nition by
Counci l of Supply Chain
Ma na gement Professionals

Cost reduction (50-85%)
and cash flow (≥ 20%)
Profit



Finance,
cash flow


Management,

Administration

businessprocesses

Company



Operations,
material flow

Supply chain management system returns the
business the “tangibility” of the material flow
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Sales & Marketing
Distribution logistics

Inventory
of finished goods
Production
Inventory
of raw materials

Procurement logistics

Procurement

Operating costs



Looking at business from a “material
flow” point of view

Operating revenues

Supply chain management (SCM)
and Logistics

Holistic approach
Building of business’ efficient operational model involves the “top down” construction of a supply chain,
starting with the definition of supply chain management strategies
Designing and reorganization of efficient supply chains should be made “top down” as strategic-level
decisions determine the key performance indicators (KPI) of efficient supply chain and its key business
processes. At the operational level (which defines the operational limitations of the system) the supply chain
should be built “bottom up”. These approaches are implemented continuously until the equilibrium between
strategic and operational needs is reached.


Strategic
level







Tactical
level










Operational
level







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Defining Supply Chain Management strategy
Strategic design of supply chain topology (spatial location of production facilities, distribution centers and
retail outlets)
Distribution of company goods between production sites
Distribution planning (by region, by sales channel and product line matrix)
Production planning, requirements and limitation definition
Procurement and shipment planning, search and contracting of suppliers
Inventory policies and inventory optimization
Matching supply plan with the tactical restocking plan
Defining transportation strategy
Operational planning: creating schedules for production, restocking, shipment and resource planning
Time, tariff, service level quotas
Operational management of purchase orders
Operational management of orders for supply of raw materials in production
Operational management of orders for shipment (on every level of networks topology)
Operational management of orders for transportation and warehouse logistics services

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LFA Solution Matrix




FMCG










Audit of Purchasing and
supply systems
Purchasing strategies
Outsourcing procurement
and joint supply centers
Operational model of supply
system
Digital procurement / auction
systems
Category management
Supplier Relationship
Management
Purchase-to-pay process
optimization
Procurement efficiency
management















Audit of Supply Chain
Management system
Supply Chain Management
Strategies
Supply Chain strategic
planning
Operational model of Supply
Chain Management
Product Lifecycle
management
Operational planning
Inventory management
Asset management and
repairs

Supply Chain Operations Reference (SCOR®) model

Simulation Modeling
SCM IT – Automated SCM Systems
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Confidential












Optimization of logistics costs
throughout the supply chain
Simulation of logistics
networks
Production optimization
(Simulation, Lean, Six Sigma)
Optimization of warehouse
and transportation logistics
Outsourcing of logistics
Design of industrial, logistics
and agro-industrial parks and
clusters

Specialist training
and certification

Logistics and
Infrastructure

Professional
training





Public sector,
transportation
and agriculture

Supply Chain
Management

Procurement

Corporate
seminars

Logistics and Supply chain solutions

Staff
certification

Mining and
engineering

Industry-specific
solutions

LFA Solutions are grouped by main Supply chain problems and industries. LFA also provides training and
certification programs for specialists

SCOR® model
LFA solutions are based on significantly enriched SCOR®-model (Supply Chain Operations Reference
Model)
SCOR-model provides a structured set of standard patterns of business organization, designed for specific
industries, based on implementation experience in various companies around the world and include
proven procedures and methods of control.
The largest companies in the world within various industries use the SCOR-model to build a corporate
supply chain management system.
Strategic
level

Strategy, model and management system of supply chain

Alignment of supply chain management strategies with business strategies

Product Lifecycle Management

Management regulations , structure and parameters of the Product Guide

Tactical
level

PLAN

Matching needs and constraints throughout the supply chain

SOURCE

Choosing and contracting
suppliers, procurement
management

MAKE

Processing, assembling,
repacking

DELIVER

Management of orders
for delivery

RETURN

Management of supply
chain return flows

Operational
level

Infrastructure and Logistics
Management of transportation, warehouse, production and logistics assets

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Confidential

Simulation
In large and complex projects simulation helps to analyze various development scenarios and make
better decisions prior to implementation


Simulation includes mapping of a real problem in simulated environment,
analysis and optimization of a model, finding and adapting solution in a real
world



Simulation is used when experiments with real objects/systems are impossible
or too expensive: in finance (exchange activity), production (production process)
and logistics (transportation and warehouse networks).



Simulation allows to make better decisions on complex projects prior to their
implementation, which can significantly reduce the risks and identify key
problem areas.

Optimization
Scenario
analysis
Experiment

Levels and objects of simulation
Macro-level
Strategic level
Meso-level,
Tactical level

Supply chains, logistics terminal network,
energy, pipeline and telecommunication
networks, health network, catering systems

Micro-level,
Operational level

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Market and competition, health economics,
value chains, international transport corridors

Production, warehouses, city roundabouts,
pedestrian traffic, computer systems

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Automated management systems
LFA approach allows to implement Decision Support Systems (DSS) “top down” forming requirements for
transactional systems
ERP and other transactional systems are essential to control company's operations, but their functionality is insufficient for
the tasks of tactical and strategic management that require the use of analytical approaches and techniques.
LFA IT-solutions include design and application of analytical systems (simulation) for all levels of planning and decision
making - strategic, tactical and operational.

DSS
Strategic planning

Tactic
Planning &
Optimization

Operational

Traceability

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Strategic
simulation
CPFR, planning
and forecasting
on site,
Inventory
management
Management
systems (WMS,
TMS)

Operational planning
& management

Transactional

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Decision Support
Systems

The basis of this pyramid are the ERP
and other systems of operational
management. As we move from the
base of the pyramid to its apex
(analytical applications) the output
information gradually transforms from
detailed operational data to aggregate
data that is easy enough to make
economically sound management
decisions.

Strategic

IT-systems

Data
collection &
storage

All together transactional and analytical
systems form a so-called analytical
pyramid.

IT-system integration

Analytical systems

Decision level

Transactional systems
ERP, ERP-II, MRP

Content

1
2

Our approach

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4

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About LFA


Confidential

LFA Quick Scan
Rapid diagnosis of supply chain management
LFA Quick Scan rapid diagnosis technology reveals the sources of excess costs and develops a plan to improve operational
efficiency by improving the integration and close cooperation within the supply chain. LFA Quick Scan results are presented in
terms and forms familiar to CFOs and Senior Executives.

Data collection and analysis, Interview
Study and Analysis design










Analysis of business and SCM strategies
Analysis of organizational and functional structures
of SC and logistics departments
Commodity analysis based on logistics classifier
Analysis of material flow management
business processes
Inventory management system analysis
Operational logistics analysis
Analysis of SCM process automation
Analysis of Performance Management

Benchmarking and peer review
Productivity and efficiency evaluation
 SCM Processes & KPI
Plan
Source
Make
Deliver
Analysis
 Logistics Processes & KPI
Assessment
Warehouse
Production
Recommendations
Transportation
International trade

Recommendations for improving the SCM system and operational logistics are represented as a task matrix where
they are distributed by decision levels (strategic, tactical and operational) and control objects (organizational,
financial, technological, infrastructural)

SCM Improvement Plan
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Development of Target Supply Chain Operating Model
LFA methodology allows to transfer strategic tasks into a realistic target operating model
The operating model (operational architecture) defines a system of interaction within basic elements of the corporate
architecture that is focused both on improving the operational efficiency and achieving strategic targets.
The target operating model is a vision of the operational architecture that allows to compare the operational capabilities
with the strategic objectives and provides a comprehensive review of the main company activities, the supply network
topology, the organizational and functional structures, key business processes, IT and controlling systems of the company.

Target operating model
defines the “material”
(production and
distribution) part
of the business

SCM
strategy

Efficient Operating model is a
key to proper Financial model

Operating model content
LFA methodology
1

Operational model

8

SCM Processes

KPI system,
matrix of the
main risks &
controls

SCM IT-system
architecture
Tools & technologies
Make

Deliver

Return

Logistics
system

Plan / Control / Implement

18

Organizational
structure

SCM
Operating
model

Product line
management
requirements
matrix

7

Plan

Business plan

2

3

SCM functions

Source

SCM strategy
Supply
network
topology

Implementation plan
Confidential

6

Inventory
management
model

SC processes
model

5

4

Strategic Supply Chain Simulation
The LFA methodology for the target operating model includes an optimized model of supply chain
topology








Strategic supply chain modeling using LFA approach involves design of a simulation model. Structure of the simulated system is appropriately
displayed and its functioning processes are simulated in the completed model.
LFA uses a “top down” approach for building simulation models, starting from the most abstract level (macro-level) and gradually descending
to more detailed levels. Macro-level simulation abstracts from specific discrete units (products, vehicles, etc.), quantitative data is used to
simulate processes in the supply chain nodes.
The model has fixed parameters (such as the supply chain topology, operations and processes at the network nodes, traffic routes, etc.) and
variables (incoming / outgoing material flows, resources, operational efficiency and operational costs, etc .) that allow to analyze the data,
taking into account changes in these parameters. Analysis of simulated data can substantiate the operational plan, forecast the financial
results of the project (the balance sheet, income statement, statement of cash flows) and help conduct scenario analysis.
Based on LFA Quick scan data (or on the basis of agreed assumptions to create a new supply chain) AS-IS model is developed. After AS-IS
model is successfully tested we develop an alternative TO-BE model (with altered fixed parameters) . The new model is used to conduct
experiments to determine the optimal values of control parameters.

Strategic level

Tactical level

Topology of main functions
and processes, supply
chains, key process metrics
Discrete units are modeled
quantitatively

The level of discrete
purchase / shipping orders,
sales units (or logistics
packages), transport units,
human resources

Example: Supply chain
topology

Examples:
Simulation of inventory levels
in supply chain. Logistics
network model

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Operational level
The level of physical
interaction between the
simulated objects

Examples:
The production process,
warehouse, pedestrian
traffic, computer network
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Sales & Operations Planning
Common Sales & Operations Planning (S&OP) methodology allows to overcome gaps between strategic
and financial plans and operating results
Sales and Operations Planning is a mid-term integrated business management process through which executive team
continually achieves focus, alignment and synchronization among all functions of the organization.

Transportation
planning

Inventory
Planning

Sales & Operation
Planning

Preliminary Sales &
Operations Plan
Delivery

Demand

Dema nd
pl a n

Knowl edge

Demand planning
Product launch
and withdrawal

Sales
planning

Promotion
management

Forecasting

Client interaction

Production
planning

Stra tegic
ta rgets

Dema nd plan
Amendments

Materials
planning

Ca pa city
pl a nning

Procurement & Production
Planning

Procurement
pl a nning

Supplier interaction

Strategic planning

Budget
Amendments

Budget

Financial planning
Procurement & Production Planning






20

Demand planning

Integration of controlling, mid- and long-term planning
Integration of various planning areas (demand, distribution, production and
sales)
Reorganization aimed at creating an integrated process -oriented
management approach in the company









Demand planning based on statistical forecast models
Demand planning integrity: forecasting, product launch and withdrawal, sales
planning by distribution channels and key customers, special event planning
Continuous analysis of the forecast accuracy based on KPIs
Real-time optimization (tuning) of forecast model

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Inventory management
Inventory management radar provides high visibility of inventory levels and allows to determine priority
areas for improvement
1

Example of Inventory management radar





Revision of the SCM strategy taking into account the demand
variability in order to avoid deficit and secure low stock levels



Analysis and refinement of order placement process in terms
of the optimal order frequency, the time of delivery after
order placement, economic order quantity (EOQ)



Revision of the supplier base, the linkage of suppliers



The demand-oriented model of sales (from warehouse to
customer)



Analysis of the warehouse organization



Control of assortment with a focus on key customers and the
profitability of sales in the sales region



Accurate assortment policy



Forecasting
Accuracy

Inventory, September 2009

Identification and analysis of areas that are significant sources
of forecast deviations to improve the accuracy of forecasting

Choice between Make-to-Stock or Make-to-Order strategies



Establishing a minimum lot size in order to avoid the
unclaimed balances

5000

1

Excess stock
4000

2

Order
Placement
Process

2
5
Low turnover

3000

3

Distribution
and
warehouse

High turnover
2000

4

3

1000

4
0

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Assortment of
goods

200

5

Deficit stock

400
600
Monthl y demand

800

1.000

Product
strategy

Confidential

Improving Procurement
LFA approach involves the analysis and improvement of the procurement system as an essential part of
the value chain management
Planning, Inventory
management












Procurement functions

Positioning of procurement
planning and inventory
management as an integral
part of an integrated
operational planning system

Developing procurement and
inventory management
models range
The calculation of regulatory
and insurance stocks

Forming procurement plans
(strategic, tactical,
operational)

Requirements
Management

Procurement
Commercial
function

Logistics

Procurement
Execution

Conformity
Management



Warehouse logistics




Requirements
Management


Expenditure analysis
(meeting budget)







Aggregating and optimizing
needs

Managing technical
specifications

Stock disposal (the decision
on the movement, sale of
illiquid assets, disposal, etc.)







Developing principles of
management accounting of
material flow

Execution






Validity check of the needs



Commercial function



Development of
procurement strategies for
categories of goods and
services



Contracting



Forming, authorizing and
placing of purchase orders

Control of the use of
appropriate procurement
procedures



Control of receipt



Expenditure control



Authorization of payments



Handling complaints

Preparation and
participation in tenders

Market analysis and
sourcing
Approval and authorization
of contract terms





Transportation logistics





















Supplier Relationship Management (SRM)



Contract Management



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Managing procurement regulations

Managing reporting system (metric processes, KPIs)
Confidential

Planning of optimal routes and
transport resources
Managing contracts with transport
and forwarding companies
transportation Order Management
Tracking execution of
transportation
Authorization of payment for
transport and freight forwarding
services
Handling complaints

Logistics support for foreign
trade operations



Conformity Management

Planning and optimization of
warehouse resources
Managing owned or rented
warehouses
Managing machinery and
equipment
Managing staff
Managing operations
Managing Contract escrow with
warehouse operators
Authorization of payment for
custody services

Organization of customs clearance
on the basis of plans for foreign
trade
Managing relations with customs
authorities and customs agents
Certification and relationship
management of certification
bodies (for imports)
Authorization of customs duties
and fees of customs agents

Asset management
The cost of asset ownership can be reduced by finding balance between the costs of maintenance and
repair and investment in the renewal of assets
Asset cost of ownership optimization over its lifecycle

Determining the optimal cost of asset ownership over
its lifecycle
The accumulated
life cycle costs

Timely investment in
assets
State of asset and its
maintenance


Availability and price of spare
parts and consumables




The framework and
contractual conditions
Optimization of inventory
matrix
The quality of materials
Optimization of the
inventory cycle






The optimum ratio of
maintenance costs and
investment

Asset age
Asset Maintenance
Asset quality
Proper design
Proper use of the asset (the
period of industrial load)

2010-2011

2012-2015





Efficiency

Cost of
materials

23

Cost of asset over
its lifecycle

Investments
in asset

Investment in
assets

Confirmation of
assets









KPI registration of
production equipment

Capital Expenditure
(CAPEX)
 Project Expenditure


Costs

2021-2022

Confidential



Repair and
maintenance



Modernization of
assets



Preventive
maintenance



Repair and
maintenance





OEE
Meantime-to-Repair
Meantime-between-Failure





Direct costs
Cost of materials
Cost of services

Time

Start of
operations



Optimization
of assets

2016-2020




Power consumption
Modernization
Expenditure

Lean production
LFA methodology assumes convergence of Lean, Six Sigma and SCOR
Convergence of Lean, Six Sigma and SCOR

Synergetic approach involves the use of SCOR-model to develop a business
plan initiatives to improve supply chain management in accordance with
corporate goals and strategies and then implement Lean and Six Sigma for
priority projects. Application of SCOR-model before the introduction of Lean
and Six Sigma provides additional benefits:
 Improvement of the entire supply chain rather than a separate
organization or unit
 In-depth analysis of the entire supply chain
 Selection of priority projects to achieve strategic business objectives.

24

Map of the value stream

Reduction of costs and inventory by identifying and eliminating losses
across the value chain
Synchronization of all production processes from raw materials to
finished goods
Synchronization of processes with customers and suppliers
Searching the right balance of equipment performance
Optimization of targets and monitoring systems
Optimization of shifts and staff management

Confidential

Optimization of warehouse logistics
The performance of a warehouse is defined as the best ratio of three KPIs: operations rate, efficient use
of space, cost efficiency
Evaluation
Positioning of warehouse logistics
in the management system of
commodity flows




Positioning of warehousing in the
company's organizational structure
Distribution of logistics functionality,
warehouse logistics collaboration with
relevant business units

Diagnostics
Analysis of the WMS and
warehouse business processes









Analysis of the WMS
Study area of the warehouse
Study functional areas of the
warehouse
Study warehouse equipment and
machinery
Study of warehouse processes



Receipt
placement



internal transportation



Selection and packaging



shipment



Returns




Analysis of documents warehouse
Analysis of the IT system



Analysis of inventories



Topology of supply chain,
topology of warehouse






Topology of supply chains and
positioning of warehouse
Functions of warehouse in the supply
chain
Warehouse location, warehouse
scheme

Design

Implementation
control

Implementation

The development of technological
warehouse model

Consulting support of
transformation

Technological zoning
 Topology of technological zones
 Decisions on the type and design of zones /
storage sites and handling goods
 Choice of warehouse material handling
equipment
 Selecting a location for loading and
unloading zone
 Selecting warehouse security system





Training and seminars for staff
members
Participation in WMS implementation
/ improvement team

Evaluation of results and
continuous improvement



Assessing the implementation
Training and seminars for staff
members

Business processes, documents, KPI
 Develop and agree on the structure of
references
 A diagram and detailed description of
business processes
 Description of warehouse documents
 The formal scheme of business processes
 Metrics of business processes (KPI)
WMS requirements
 Requirements to functionality of automated
WMS
 Recommended WMS options
 Development of Terms of Reference for IT of
equipment

Analysis of data sample timing

Analysis of the logistic
parameters of the nomenclature
matrix








25

Structure of the nomenclature matrix
Analysis of nomenclature categories
Analysis of the completeness of
logistic parameters



Standards
Process metrics (KPI)
Warehousing costs

Performance
 Calculation of the operating regulations of
the warehouse (performance standards)
 Calculation of staffing requirements.
Calculation of the shifts. Recommended
staffing table. Duty regulations for
warehouse employees
 The system of warehouse employee
motivation

Plan of optimization of
warehouse logistics

Confidential



All LFA experts are former successful logistics and supply chain
practitioners and managers.



Close cooperation with experts from other countries provides
selection of optimal solutions

Improving transportation
Rising transportation costs that is associated with increased price of fuel and inefficient routing on busy
highways requires the use of modern technology
Tasks of improving the transportation system

LFA Solutions

Strategic planning of transportation and logistics
networks
Development of a network of automated sorting centers of FSUE
Russian Post in view of intermodal transportation;
Development of a network of terminals and logistics centers for Russian
Railways;
Development of a network of grain elevators in Ukraine in view of
reducing transport costs







Development of simulation models of transportation
and logistics network to substantiate effectiveness of
investments based on key performance indicators of the
transport system



Micro simulation of transport systems for optimizing
movement of vehicles and pedestrians, the
optimization of traffic light control



Development and implementation of intelligent
transportation systems (including satellite navigation
and routing)



Establishment / improvement of the transport company
/ department
Analysis and development of transportation logistics
outsourcing strategy

Optimization of routing

Reduction of transportation costs through the development of
optimized routes, including intermodal transportation
Development of optimized routes for passenger transports, taking into
account different types of public transport.


Development of optimization or simulation models of
transportation networks that allow to find streamlined
solution for the topology of transport and logistics
network

Optimization of urban transport system
Lack of road network capacity and its inconsistency with modern
requirements;
Low level of traffic management (poor traffic light regulation, parking
on narrow streets, etc.);
The low level of maintenance of urban roads (low quality cleaning of
roads from snow and ice, discordant schedule of road construction
works and late arrival of traffic police on the scene of an accident)









Improving the efficiency of the transport company
Outsourcing the transport logistics

26

Confidential

Logistics outsourcing 3PL/4PL providers
In case of successful overcoming of a number of bottlenecks a substantial cost reduction can be achieved
through outsourcing a number of logistics functions
3PL/4PL providers can be a source of
substantial economic effect*…

Inability to
determine the
correct
outsource
frame

12.3%


Reduction of fixed logistics asset

23.4%


Reduction of inventory costs
8.6%



Reduction of order lifecycle
9.8 da ys



10.2 da ys

Increase in level of service

The source of potential savings





A cl ear
s tra tegy for
conducting
operations
on the basis
of
outs ourcing
A cl ear
understandi
ng of the
rea son
outs ourcing
i s used

Incorrect
assessment of
current costs





Conduct a
deta iled
a nalysis of 
current
expenditures
A cl ear
understandi
ng of wha t 
ha ppens
(wha t
expenses
wi l l
di sappear)
when using 
outs ourcing

Poor vendor
choice

Devel opmen
t of cl ear
cri teri a for
s upplier
s election
The
exa mination
of the
s elected
vendor
Identificatio
n of ri s ks
a nd work
pl a n to
control them

Poor
outsourcing
contract



As s ess
ca pa city
l evel and
fi nancial
cons traints

Poor quality
of control of
outsourcing







86.0%


92.7%

Increase of order fulfillment accuracy
90.4%

95.3%

Potential loss

*Source: 2009 Fourteenth Annual 3PL Study», September 2009

27

Confidential

A s trong
process of
i dentifying 
a nd
moni toring
s a vi ngs
(benefits)
An effective
process to 
i dentify a nd
res olve

probl ems
Impl ement a
ba lanced
s corecard to
eva l uate the
effectiveness

Ineffective
change of
service
provider

Agreement
on fa vorable
terms for
fi nishing
contra ctual
rel a tions
Choos ing
fa vora ble
terms
Des igning
effective
vendor
cha nge
processes

Approximately 60% of
savings can be lost

Mio. €

Reduction of logistics costs

Real Savings



… if bottlenecks are successfully avoided

Agroindustrial park
LFA approach in Agroindustry involves concentration of production facilities in a special zone to provide
complex logistics services
Agroindustrial park (AIP) is an area zoned and planned for
the purpose of development of agricultural industries. AIP
provides facilities for the full-cycle production from raw
material to finished goods minimizing logistics costs and
maximizing the efficiency of small and middle sized farms in
the region. AIP is an operative mechanism of governmental
regulation in the region as it provides stable demand and
distribution of agricultural goods.

State AIP Network

AIP is a key regional distributor of agricultural goods and
the only alternative to retail at the moment

Full-cycle production at AIP

Regional AIP Network

28

Confidential

Collective catering
LFA approach in collective catering involves creation of food value chains
Building a system requires an integrated approach

Producti on

Production model
Distribution model

Economic planning

Agroindustrial park
Agri cul tural
Producer

Ca teri ng
compa nies

Bus iness

Federal and
regi onal
i ns titutions

Consumption model

Cons umption

Di s tribution

Agroindustrial park –
key element in the integrated approach

Logi stics

Agri cul tural
ra w
ma terials

Food
processing

Industrial
food
production

Proces ses

Ca teri ng
compa nies

Functi ons

Cons umers

Collective catering is a complex system that includes
procurement and supply of agricultural products for
regional production, the full cycle of processing,
centralized production of semifinished food products and
ready meals, their storage, transportation, and
distribution (serving) to the end consumer – employees
and visitors of social institutions and private companies
(social and corporate catering)

Economic model

Fi nancial planning

Financial model

Cooperation with
s ta te i nstitutions

Cooperation model

Logi stics
Tra ns port

Food
processing
pl a nts

As s ociate
production

Industrial
food
producer

Logi stics

Sta te:

29

Гос.соц.
Publ ic social
iинституты
ns titutions

Regulatory s upport

Each step of forming the system requires a thorough analysis and
conduction of the necessary adjustments
Conditions for
system
development

Logi stics

•Sta te order
•Sta te
wa rra nty

•s ubsidies
•fa ci lities

Regulatory model

►

►
►

System design

legal aspects
Organizational aspects
financial and economic aspects

Confidential

►

►
►

System launch
technological aspects
engineering aspects
sanitary aspects

Logistics design of warehouses, industrial-logistics parks and
logistics clusters
Сonceptual
definition

Basic planning
solution

Logistics model

Conceptual determination of
industrial and logistics park is
based on analysis of the regional
logistic and assessment of
development area::




Basic planning solution allows
you to select the optimal layout
of industrial and warehouse
facilities, operational areas,
office, engineering and other
buildings and structures within
a nalysis of supply a nd demand for the complex, determine the
ma nufacturing and logistics
s ervi ces, existing market prices for optimal traffic scheme in the
territory, and review the
termi nal l ogistics servi ces, the
dyna mics of changes in prices a nd required power utilities:
ma rket forecast
Consultant develops basic
planning solutions, including:
eva l uation of the construction
zone of logistics park: the existing
bui ldings and facilities, tra nsport
i nfrastructure, utilities,
muni cipalities and labor,
cons truction restrictions





i ma ge of the ta rget clients, the
rol e of industrial and logistics park
i n the supply chain (commodity
fl ow s ystems) of the l ead clients
ca tegories of goods, the levels of
pa ckaging and related
requi rements for operations,
s tora ge ca pacity, operating
pa ra meters a nd of receiving and
s hi pments, additional services for
ca rgo handling

30



Financial model

Optional

Simulation model of inbound and
Key financial indicators can
outbound traffic flows
justified the recommended
concept of territory development
topol ogy of the technological
 the mos t accurate method to
a reas: size, nominal constructions, and form of the operational
ca l culate the tra ffic load on the
business
pl a cement of i nternal

Logistics model of industrial and
logistics complex includes::




l oca tion a nd size of industrial a nd
wa rehouse buildings / terminals
(exi sting and new) a nd operating
a reas (container platform, crossdocki ng site - depending on the
a greed logistics park functionality)



l oca tion of office, housekeeping
a nd engineering areas



s cheme of tra ffic flows on the
terri tory: the a reas of entry / exit,
l oa ding / unloading, parking and
ma neuvering of motor tra nsport





technological areas and rooms,
the a rra ngement of technological
equipment (racks, etc.),
topol ogical scheme of the i nternal
tra ffi c of equipment and
pers onnel
technological solutions:
requi rements to the composition
a nd vol ume of l ogistics
operations, the general scheme of
ma terial flow, transportation a nd
technological scheme of
processing of goods; calculation of
s ta ffing requirements



the es timated va lue of investment
funds



revenue a nd expense i tems a t the
renta l schemes and organization
of operational business, the
ca l culation of key i ndicators

Requirement for construction and
engi neering sys tems: the
cons truction recommendations
for new terminals a nd renovation
of exi sting, requirements for
engi neering sys tems needed for
the operation of the terminal /
operational a reas

Axonometric design of a l ogistics
center (3D-views) for approved
cus tomer basic planning decisions

Confidential



terri tory of the logistics park, and
the i mpact of tra ffic load on the
pa rk a djacent tra nsport routes,
i nterchanges and transport hubs
effective for s ites l ocated near
densely populated a reas, a reas
a djacent to transport routes with
exi s ting i ntensive loading, as well
a s for i ndustrial and logistics park
wi th prospective i ntermodal
functi ons..

Preliminary design is developed
on the basis of the basic logistic
model, and includes blueprints
made in CAD, and engineering
calculations:






The overall space-planning
deci sions of industrial a nd l ogistics
pa rk: Geological preparatory basis
for a ma ster plan, plans for the
hei ghts, types of facades, s ections
A s a mple calculation of loads a nd
engi neering requirements for
connecting to utility networks.
Determination of requirements to
fi re a larm s ystems and fire fi ghting

Content

1
2

Our approach

3


4

31

About LFA


Confidential

Selective list of LFA accomplished projects
Improving logistics and supply chain management
Manufacture of food products and consumer goods
Company

Period

Brief description of the project

Mars (MasterFood)

1994-1996

Organization of freezer shelves service department across Russia and CIS
Market research of cold logistics chains in Russia, Ukraine, Kazakhstan

Pepsi International Bottlers

1996-1998

Nestle Food

1997-2002

Unilever CIS

1998 - 2000

Consultations on the organization of distribution and strategic planning distribution network.
Design of freight traffic in plants in Yekaterinburg, Samara.
Consultations on the organization of distribution warehouses of finished goods in Volgograd, Nizhny
Novgorod, Sochi
Consultations on the import of production equipment
Strategic planning of the distribution network.
Consultations on organization of logistics system distribution of ice cream.
Consultations on organization of distribution center in Samara, the operator "SBS"
Consultations on organization of traffic on the territory of the confectionery factory "Russia", the
freight forwarder "SBS Logistics"
Strategic planning of distribution network.
Consultations on organization of logistics distribution system of ice cream
Consultations on organization of distribution warehouses of finished goods in Moscow ( Narofominsk),
Volgograd, Kazan, Rostov, Novosibirsk, the operator "STU Logistics»
Development of logistics functions outsourcing scheme to 4PL providers. Conducting open tenders for
logistics services. Design of freight traffic in the Moscow Margarine Plant (MMP), the operator of inplant logistics "SBS"
Organization of the shuttle system at MMP-warehouse
Development of regional distribution strategy (SBS Logistics Freight Forwarder)

Sviatoy Istochnik (Святой
источник)

SladKo

32

1999

2001-2002

Logistics audit of the supply chain of finished products. Strategic planning of distribution network
Development and implementation of 4PL scheme
Design of freight traffic in plants in Yekaterinburg, Kazan
Consultations on the organization of distribution warehouses in Moscow, Kazan, 4PL operator
"Distribution Center"
Confidential

Company
ICN Pharmaceuticals

Lebedyansky

Period
2002

2003-2006

Design of urban delivery system (freight forwarder SBS Logistics). Tender for delivery services.

Logistics audit and consultations on organization of in-plant warehouses of raw materials (software,
documentation)
Logistics audit in-plant logistics, creating a simulation model of in-plant logistics requirements for
storage facilities for finished products and raw materials (In-plant storage).
Logistics audit and consultations on organization of a warehouse and freight traffic in the territory
Logistics audit of city delivery system

Regent

2004

Procter & Gamble

2004

Mir detstva

2004

Bystrov

2004

Logistics audit of in-plant logistics, logistics design of in-plant warehouse

Shatura-Mebel
(Retail)

2004

Design of urban delivery system. Tender for transportation services.

Farvater
Kazakhstan

2004

Logistics audit of commodity flows management, logistics audit of the central warehouse, urban
delivery system

Holding Vim
Moscow

2005

Logistics audit and development of supply chain management, warehouse logistics modernization.
Tender for transport services.

33

Consultations on organization of a warehouse in the Tula region, field studies and preparation of an
analytical review of the warehouse real estate in Tula region
Consultations on organization of contract manufacturing in Russia
Logistics audit and design of distribution center, preparation and support of outsourcing the
warehousing functions.

Confidential

Company

Period


Simbirsk Agricultural Groupp
(Tomsk)
USN Computers

2005

Logistics audit of group of companies (meat processing). Development of a system of commodity
registration (prior to project)

2005

Logistics audit, market analysis of warehouse real estate, evaluation of the alleged plot to create a
warehouse complex. Logistics planning.

Mir knigi
(catalog trade)

2005

Logistics audit and recommendations for logistics design concept of production and warehouse
complex of postal and catalog sales.

OLANT (Chicсo)
(retail)

2005, 2006

United Confectionary
Manufacturers

2005

SUN Interbrew

2005

WUNSCHE Handelsgesellschaft
Internetional MBH

2005

MorozProduct
(Belarus)

20052006

R-Modul
(Yekaterinburg)

2006, 2007

Russian svet (Tver)

34

2006

Logistics audit, optimization of warehouse logistics
Development of online store logistic model, development of catalog trade system
Development of the distribution center concept and business processes, WMS tender.
Preparing for warehousing outsourcing, development of distribution center on the basis of
"Distribution Center“ warehouse complex
Audit of in-plant logistics
Creation of a simulation model of in-plant logistics, Basic logistic model of warehouse terminal,
development of TOR for the construction design
Logistics audit and development of an effective strategy for foreign trade (imports of food products)
Logistics audit of the supply chain, modernization of management of commodity flows (SCM)
Market research of cold warehouses in Belarus. Development of an optimal transportation strategy.
Logistics design of cold warehouse complex, 6 hectares.
Logistics audit of warehouse. Development of warehouse logistic model.
Development of process model of a distribution center, selection and implementation of WMS
Logistics audit, logistics warehouse design, tendering to choose WMS

Confidential

Company
LUIS+

GK “Shater”

Period
2006

2006 present

Logistics audit of warehouse, technological upgrade of the warehouse

Development of logistical support of Moscow City facilities

Amdex Group
(Moscow, Saint-Petersburg)

2007

Market research of frozen and chilled goods logistics

Simple Wine
Moscow

2007

Logistics audit of warehouse, development of the technological model of the distribution center
Consulting support of warehouse logistics modernization and implementation of WMS

Delrus
Yekaterinburg

2007

Logistics audit of Supply chain

Rosstyle,
Moscow

2007


MTI,
Ukraine

2008

Logistics audit and recommendations for the warehouse logistics modernization

LF Logistic

2008

Logistics audit and recommendations for the modernization warehouse logistics

Pragmatic Express

2008

Consulting support of warehouse logistics modernization and implementation of WMS

UMS 3PL
Ukraine

2008-2009

UTL

2008-2009

35

Consultations on implementation of WMS
Developing the concept of a logistics center for the logistics operator, further support for the project
to attract investors, negotiations with customers
Consulting services to assess the current state of business logistics operator and develop strategies to
optimize business
Confidential

Company

Period

AVON

2008-2010

Lebedyansky
(Progress)

2008-2011

CEDC
(GK Parliament)

2009

GK Globus

2009

Raimbek
Kazakhstan

2010

Abbott Laboratories
UKPF, Kazakhstan

2011-2012
2012 –
present

Logistics audit of the regional distribution system (selected RC and delivery)
Tender for transport services (transportation in Russia), the development of interoperability standards
with transport companies.
Tender for transport services (international), development of interoperability standards with transport
companies
Supporting the program complex of raw materials (RMD) warehouses management for the producer
of juices and baby food

Development and implementation of supply chain management system. Tender for transportation
services. Developing a SCOR-model of supply chain management
Development of a supply planning system and inventory management system using simulation
Logistics audit of a warehouse and distribution center concept development (vegetables, fruits)
Carrying out logistics audit of Food and Beverages Division: Production of juice and milk, Food
distribution, Distribution of alcoholic beverages
Consulting support at the tender for logistics provider
Supply Chain audit. Development of Supply chain strategy and operating model

Diadgeo
Russia

2013

Strategic design of supply chain network (development and verification of simulation model, scenario
analysis)

Klen

2013

Warehouse logistics audit. Development of anti-crisis program (Supply chain management and
operations)

36

Confidential

Retail
Company

Period

Eldorado

2000,2007

Logistics audit and recommendations on the modernization of warehousing technologies
Expert assessment of the warehouse project in Novosibirsk

Shatura-Mebel
(retail)

2004

Designing a system of urban delivery. The tender for transport services.

Arbat-Prestige

2005

Logistics audit of retail network
Forming of logistics department and recruitment

AMSTOR
(Donetsk, Ukraine)

2006

Logistics audit, logistics warehouse design, tendering WMS

Rosstyle,
Moscow

2007


MTI,
Ukraine

2008

Logistics audit and recommendations on the modernization of warehouse logistics

Forester (Retailer
«Narodny»), Kyrgyz

2007

Logistics audit of retail network, capacity calculation of Distribution center

LF Logistic
(L’Etoile)

2008

Logistics audit of warehouse and recommendations on the modernization of warehouse logistics

Monetka
Retailer

2009

Logistics audit of warehouse , SCM strategy

37

Confidential

Industry
Company

Period


JSC "NC "KTZ«
Ministry of Transport and
Communications of Kazakhstan
Sakhalin Energy Investment
Company

2011

Design of a master plan for the development of Kazakhstan transportation and logistics system (in the
framework of Strategy Partners project). Strategic plan for the development of logistic park network

2012

Procurement audit and recommendations for further improvement (in the framework of Bright Group
project)

JSC PhosAgro

2012

Logistics audit and design of a concept for further improvement of warehouse logistics at Cherepovets
(in the framework of Bright Group project)

JSC PhosAgro

2013

Logistics audit and design of a concept for further improvement of warehouse logistics at Apatity (in
the framework of Bright Group project)

38

Confidential

Logistics design of warehouses, industrial and logistics parks
Company

Period


Nestle Food

2001

Developing the concept of distribution center in Kinel , Samara region (operator SBS)

Dva kapitana

2004

Logistical design of logistics center in Moscow region, Eremino (20 thousand square meters)

TT Logistics
(Lithuania)

2004

Logistics a warehouse complex design of Lithuania, Vilnius (24,000 pallets)

Brasis

2005-2006

Logistics audit, logistic a warehouse complex design of (Novorossiysk)
Logistics a warehouse design of Moscow Region, a prominent (12,500 pallets)
Logistics a warehouse design of Moscow Region, a prominent (22,000 pallets)
Development of warehousing procedures and documentation. Implementation of SSA WMS 4000
(EXceed 4000). Starting the warehouse

Distribution center

2005

Trust-terminal
Lytkarino

2006

Logistics design of a warehouse complex Moscow Region, Lytkarino (30,000 sq.m.)

Midland Development

2006

Assessment of land plots for development of industrial and logistics areas (total area of about 1000 ha
plots)

PEAK
Kazakhstan

2006

Developing the concept of logistics center, Almaty (about 100 thousand square meters). Building a
simulation model of the motor and rail transport.

PromArchProekt

20062007

Development of technological model of a warehouse complex Moscow region (42 000 sq. m. storage
space)

Intrust NN
(Nizhny Novgorod)

2007

Development of the logistics concept of a warehouse complex 40 hectares (150,000 sqm storage
space)

39

Confidential

Company

Period


RosRegionProekt
Group K1

2007

Logistics a warehouse complex design of, Moscow region 21 hectares (about 100,000 sq. m. storage
space).

Taller Capital

2007

Logistics design of the complex of cold warehouses, the Leningrad Region 59 hectares (about 300,000
sq. m storage space).

White Days Investment
Group К1/Raven Russia

2007

Logistics design of a warehouse complex Leningrad region of 37 ha

Budindustry
Ukraine

2007

Logistics design of warehouse complex in Desnyanskiy district of Kyiv 5.6 hectares

Budindustry
Ukraine

2007

Logistics design of warehouse complex in Svyatoshinsky area in Kiev 14 ha

VS Energy
Ukraine

2007

Development of the concept of industrial and logistics center, Volyn region 40 ha

Metalline
Yekaterinburg

2007

Logistics design of a warehouse complex 8 ha, Yekaterinburg

VS Energy
Ukraine

2007

Developing the concept of a warehouse complex 40 ha, Kyiv region

Baltic Investment
Company, Riga

2007

Analysis of the logistics market, concept of a warehouse complex, Dnepropetrovsk

RosTransTerminal,
Samara

2007

Expert assessment a warehouse complex project 18,000 sq.m.

40

Confidential

Company

Period


BZK
(Riga, Latvia)

2007

Logistics design of a warehouse complex 10,000 square meters, Riga

MorozProduct
(Belarus)

2007

Market research of cold warehouses in Belarus. Logistics design of cold a warehouse complex 6
hectares.

RostovKomBytOptTorg,
Rostov

2007

Logistics design of a warehouse complex 6000 sq.m. (re-development), Rostov

RosRegionProekt
Group К1/Quinn

2007

Consulting support of designing a warehouse complex of about 100 thousand sq. m

LEKT
(Minsk, Belarus)

2007

Developing the concept of a warehouse complex with the functions of bonded warehouse 7 ha

VS Energy
Ukraine

2007

Developing the concept of a warehouse complex 9 ha, Kyiv region

Happyland
Europark

2007

Development of technological model of multifunctional logistics center 25,000 sq m, Moscow region

Raven Group Russia,
Saint-Petersburg

2007

Redesigning of logistics center, St. Petersburg, 30 ha

Feliks,
Belarus

2007

Logistics design of a warehouse complex (distribution center) 5 ha

RTL Holding,
Belarus

2008

Design of a warehouse complex, Mogilev, 2.5 ha

41

Confidential

Company

Period


ForumInvest,
Ukraine

2008

Developing the concept of industrial and logistics zone "Aeropolis" 2500 hectares

Happy Horse
Belarus

2008

Logistics design of a warehouse complex in the area of 5,5 hectares

ChelHolod
(Chelyabinsk)

2008

Development of logistics concept of of cold warehouse

MAKS Studio

2009

Consulting support of designing a logistics park 300 thousand sq. m storage space (Astana, Kazakhstan)

Rosselhoz bank

2011

Developing the concept of Agro-industrial park "Stavropol"

GK Globus

42

2012, 2013

Logistics design of a warehouse for storage and handling of fresh fruits and vegetables

Confidential

Selective list of accomplished projects
Simulation modeling
Company

Period

LFA Projects involving Andreу Khlous

SUN Interbrew

2005

JSC Lebedyansky

2005-2006

PEAK Kazakhstan

2006

Creating a simulation model of in-plant logistics (the model of production, warehouses,
intraproduction movements of raw materials, packaging and finished products)
Creating a simulation model of in-plant logistics, determining requirements for storage facilities for
finished products and raw materials (Inplant storage).
Building a simulation models of the motor and rail traffic in the logistics complex 40 ha
Projects involving Andrey Malykhanov

General Electric

2007-2008

JSC «Mechel»

2008-2009

JSC «UZ-Daewoo Auto
Voronezh»

2010

Development of a simulation model of universal health care institutions.
Role in the project: model requirements analysis. Development and approval of technical specifications.
Developing system of indicators of medical equipment efficiency. Development of simulation models in the
AnyLogic modeling environment. Implementation of the model and support for users
Consulting support of conversion of furnace steel processing shop at the Chelyabinsk Metallurgical Plant.
Role in the project: Analysis of planned changes in the characteristics of equipment and processes of metal.
Preparation of the operating concept of shop. model Development and approval of technical specifications. The
implementation of a simulation model. Testing and implementation of the model. Design and analysis of process
scenarios at the steel plant. User support developed on the basis of support system’s model for operational and
strategic decisions
Development of decision support systems in the field of vehicles distribution
Role in the project: Analysis of business processes of vehicle distribution The formalization and analysis of system
requirements. Development of a simulation model, which includes sales forecasting, cost forecasting and pricing
optimization modules. Project management, recruitment and training of employees. Implementation, analysis of
system operation and user support

Projects involving Andrey Khlous and Andrey Malyhanov

Russian Post

2010 –
present

Diadgeo Russia

2013

Providing consulting services in creating a network of automated sorting centers of mail service.
Role in the project: Description and analysis of mail transportation and sorting. Development of an operating
model of a network of automated sorting centers (ASC). Development of a simulation model, analysis of
operating performance of ASC network, scenario analysis of ASC network. Development of recommendations for
the development of ASC networks
Simulation modelling of company’s distribution network in Russia

JSC PhosAgro

2013

Simulation modelling of industrial logistics network at Apatity mining site

43

Confidential

Andrey Khlous experience as Head of Supply Chain & Operations Consulting Practice in Ernst & Young
Company
DAIKIN

Period
2010








Network of liquor stores
"Red and White"
(Chelyabinsk)
Mareven Food Central LLC
(Brands: Rollton, BIGBON)
JSC Gazprom

JSC Integra

Developing the concept of entering the Russian market
Development of recommendations for possible schemes of functioning in the Russian Federation
Development of recommendations on patterns of interaction with distributors
Development of recommendations for optimizing the schemes delivery, including customs clearance
and tax law issues
Development of recommendations on standardizing and maintaining the required level of reserves
Development of recommendations on operational logistics

2010

Operational diagnosis of supply chain management and advice on moving to a new warehouse area. In
addition, logistics design of a new warehouse was done

2010

Operational diagnosis of supply chain management. Analysis and evaluation of the existing system of
supply chain management and development of recommendations

2010







2010-2011

Analysis of supply routes of the material and technical resources;
Analysis of value chain;
Analysis of inventory control system design;
Development of an optimal supply route;
Calculating costs of alternative supply routes of material and technical resources including the cost of
transportation, insurance, storage, loading and unloading, customs fees.

Developing the concept of improving the system of support logistics

JSC RZD (Russian Railways)

2011-present

Preparation of project concept, development of technical specifications, the launch of the project
Improved planning and inventory control

Russian Post

2011-present

Preparation of project concept, development of technical specifications, the launch of the project
Feasibility study of developing a network of automated sorting centers. Development of a simulation
model of ASC network

Metinvest (Ukraine)

2011-present

Preparation of project concept
Development of the target operating model of the holding (26 companies), including the target scheme of
business processes (SCOR third level of detail)

MVideo

2011- present

Developing the concept of the project.
Strategic planning of the logistics network (systems distribution centers), taking into account the logistical
parameters of commodity groups.

44

Confidential


LFA Rus, Ltd.
Representative office of
in Russia, Ukraine and
Kazakhstan
125284 Moscow,
Begovaya, 6,
Business Center
«Begovaya 6»
+7 (495) 760 6680
+7 (495) 760 2208
lfa@lfa.ru
www.lfa.ru

Lfa procurement, logistics and supply chain solutions 2013

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