Transportation strategy in international supply chains – the case of Russia

The purpose of the study is to provide knowledge on the transportation strategies employed in international lean oriented supply chains involving developing economies. In this research work we are interested about the situation in Russia. Five enterprises examined represent mostly international Finnish metal industry companies, having significant global presence and operations. According to the literature review, the functionality of transportation systems can in effect limit supply chain management principles available. International supply chains may be particularly vulnerable. In practice international supply chains in Russia need to compromise both in terms of leanness and agility. Currently, road transport seems to be a better choice to serve the requirements of customers in terms of frequency and speed as railways are considered reliable but slow. On railways, there seems to be room for enhancing efficiency by changing communication procedures. On road, custom procedures reduce efficiency, however, special permits needed for oversized loads increase transportation cost and reduce flexibility. In some products (e.g., after sales, spare parts) country level dedicated warehouses are needed to serve customer demands.