Strategy Research On Firm Internal Logistics Improvement For GNC Company

Logistics strategy is an important support for company strategy, enterprise internallogistics is a critical part of business logistics. In term of increasing product capacity ofmarket competition, how to optimize internal logistics operation process and how tocombine information system and physical logistics efficiently, therefore improvingoperation efficiency and reducing running cost in competitive environment, are thecrucial factors nowadays. Especially, in the buyer’s market with fierce competition andget competition advantage by reducing price, cost down is one of the main approachesfor surviving and growth.In this thesis, at the first, it will be introduced that automotive market status andmain challenges, traditional Kanban operation model, possible opportunity for theKanban operation because of21century advanced IT technology and ERP application,point out the positive affect if combine Kanban model with ERP system, includingefficiency increase, quick response, less manual handling, low work in process, levelingin production line and warehouse etc. There will be also brief introductions of lastestresearch of internal logistics operation, including raw material consumption based on pullsystem, MRPⅡ, barcode technology, RFID intelligence Kanban. And then, all problemsof previous situation in GNC company will be presented, for example, slow requirementinformation flow, bigger raw material picking preparation area, higher on line stock, notperfect set of raw material picking and so on. Furthermore, reason analysis and rootcause will be showed. In the third part, some effective solution will be released,including raw material supermarket creation strategy and min-max inventory control andsupermarket management. At last, we will describe the optimized distribution modeldesign, calculation of Kanban number and abnormal case handling of daily operationwhen system break down. In addition, this thesis will demonstrate some concrete methods for the data collection, analysis and visualization of daily operation issues, aswell as continuous improvement in internal logistics area, this way has a realistic guidefor those want to take an revolutionary change in internal logistics area.