Study Of A Company Logistics Optimization

Logistics has taken an important role in company daily operation. High efficientlogistics is regarded as “Third profile Center”, which can reduce company’s cost andimprove competence.A Company do NPS survey annually and the most frequent negative feedback inrecent year is the complaint of logistics performance. At the same time, A company arefacing high inventory, large aging stock, low efficiency. An optimization team wasestablished to improve the logistics service.In this thesis, the4Q methodology (Measurement, analysis, Improvement, Sustain),which is similar with6Sigma is used to solve the lower logistics service provided tocustomer. In Measurement phase, A series logistics KPI will be established, which willreflect the performance of delivery, order fulfillment, inventory in overall logistics systemperformance. The measurement include the ERP(SAP) system second development thatcan easily help optimization team to acquire the raw data of daily operation and the resultof each KPI by the specific formula. In analysis phase, the data analysis will help us tofigure out the bottom neck of current logistics system and define the improvementopportunity in three key facets: the inventory management, the warehouse operationalmanagement and the rolling forecast process. In each of these processes, the root reason ofthe inefficient logistics will be determined. In improvement phase,3projects will kick-offto solve these issues. In sustain phase, the result will be shown from the improvementactivities, which can verify the effectiveness of the improvement.The paper is divided into seven chapters. Chapter1: Introduction of background,purpose, current status, benefits, methodology and outline this thesis. Chapter2: theintroduction of the related study in three opinions and the conception of inventorymanagement, rolling forecast management, warehouse operation. Chapter3: Theintroduction of A company logistics status and the method how to measure these. Chapter4, data analysis to find the direction of logistics optimization. Finally3processes havebeen defined as the bottom neck to be improved in future. Chapter4: Root reason analysis of the bottom neck and make the strategy of these improvements. Chapter5, the relatedsolutions are given to solve these logistics issues. Chapter6, the solution are implementedin daily operation. Chapter7is the conclusion of this thesis, including the improvedlogistics performance and the study’s shortage as well as the study direction in future.