Performance Evaluation In Internal Logistics With Data Envelopment Analysis

Nowadays the demand for products and services is growing rapidly,which puts an enormous pressure on every activity existing in the company and especially on the logistics performance It is increases the vital role that logistics play in determining a competitiveness of every company on the market.This study focuses on internal logistics systems that include all logistical operations and processes within the physical limits of an exact company.Internal logistics is crucial for the overall function of every company.However,despite its importance,this part of logistics is not traditionally considered and is not developing strategically.Since internal logistics activities are often characterized by a high degree of manual labor and,therefore,greatly affects the cost of operations,there are great opportunities for improvements in this area.One of the possible ways to improve the internal logistics system is automation.In many areas,automation is a well-known means of increasing productivity and reducing costs,which increases competitiveness.However,automation is usually not used within the framework of internal logistics activities,and in this area of new applications there is not enough knowledge and research.Therefore,the main purpose of this study is to contribute to a better understanding of how automation can be used to create competitive internal logistics systems.A comprehensive study based on Data Envelopment Analysis(DEA)was conducted.Within the framework of DEA two ways of measuring effectiveness were developed.The first one refers to the economical indexes such as profit,cost of sales,currents assets and etc.as a basis for the analysis.The second one is more technological and based on the SCOR metrics(Supply Chain Operation Reference).Further,one of the main overall conclusions from this research is the need for a logistics strategy that includes goals and plans for the operation and development of an internal logistics system.As a result of the research,a structure and procedure for the development of an internal logistics strategy and a framework for conducting an improvement process in internal logistics using automation were developed.