Supporting of manufacturer’s demand plans as an element of logistics coordination in the distribution network

Abstract

The paper deals with the concept of centralized demand forecasting and logistical coordination in distribution networks. The aim of the paper is to relate the results provided by the forecasting tools to the basic aspects of logistical coordination. The case of 29 distribution networks in which a logistics operator (3PL) operates and provides contract logistics services to a manufacturing company is analysed. The paper partially confirms the hypothesis of better testability of forecasts based on machine learning algorithms and artificial neural networks for demand planning by the logistics operator to the manufacturer in the framework of logistics coordination in the distribution network. These algorithms perform better for networks with high specificity of flows and food networks. Traditional algorithms, on the other hand, have their better share in creating forecasts for more standard distribution networks. Additionally, the second hypothesis regarding the positive influence of modern technological solutions (such as the use of cloud technologies, EDI and flow tracking standards) was confirmed. Additionally, a number of factors that did not have a direct impact on forecasting errors were detailed.

Supply and demand prediction by 3PL for assortment planning

“…They are indispensable in information management and information flow in the supply chain, confirmed by studies by Carrus and Pinna (2011) and Pinna et al (2010). Although the idea of fully utilizing 3PLs as coordinators is rarely discussed (e.g., in the works of Kmiecik (2022aKmiecik ( , 2022bKmiecik ( , 2023 or Kramarz and Kmiecik (2022)), it is essential to fully exploit their potential in line with management and business concepts.…”

Enhancing Smart Cities through Third-Party Logistics: Predicting Delivery Intensity

“…The ets() algorithm refers to a family of exponential smoothing models that are flexible in modelling different time patterns, including trends and seasonality [78,79]. Despite the fact that the exponential smoothing of time series is one of the traditional methods, it is further used for forecasting in business contexts due to the fact that the created forecasts can further produce adequate results [80,81]. The exponential smoothing model automatically adjusts the level, trend and seasonality in the time series data.…”

“…The algorithms cited were implemented within the created workflow for the prediction tool (Figure 3). can further produce adequate results [80,81]. The exponential smoothing model automatically adjusts the level, trend and seasonality in the time series data.…”

Digital Twin as a Tool for Supporting Logistics Coordination in Distribution Networks

“…Source: [20] The crucial elements of logistics coordination could be inventory management and transportation planning n the whole distribution network acting by 3PL [21] and LSP in logistics coordination is able to support manufacturers' demand plans [22]. A properly constructed information exchange system and the willingness to exchange information between different enterprises is the basis of an efficiently functioning enterprise network.…”