Intercompany shipment consolidation process in a third-party warehouse
Rotonen, Nikke (2017)
Rotonen, Nikke
2017
Tietojohtaminen
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2017-12-07
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201711202188
https://urn.fi/URN:NBN:fi:tty-201711202188
Tiivistelmä
Shipment consolidation is often utilized for gaining transportation cost reductions by economies of scale. This study examines the intercompany shipment consolidation process in a third-party warehouse from the viewpoint of the case company’s main distribution center (MDC), which is responsible for spare parts distribution. The case company is a manufacturer of industrial machinery and the requirement for shipment consolidation arose from a special capital equipment sales, in which a specific spare parts package is offered along with the capital equipment. Due to the scarcity of such special orders, the intercompany shipment consolidation process has not been defined at MDC. The main objective of this study was to define the intercompany shipment consolidation process, recognize its bottlenecks and problems and provide improvement ideas to it.
The theoretical part of the study concentrates on supply chain and supply chain management, while discussing topics such as logistics and supply chain integration. Also, more specific subjects regarding this study were covered, as the basics of shipment consolidation, third-party logistics and spare part logistics were introduced, as these subjects are relevant in the case process. The information systems used in supply chain management were briefly presented too.
The empirical part of the study is done by conducting a case study of a special project order that requires intercompany shipment consolidation. Several parties around the world are included in the process. Different parties were interviewed to form an understanding of the process. The process was defined utilizing a flowchart and written coverage. The definition and the interviews were used to identify the different bottlenecks and issues in the process. The problems of the process and their root causes were also assessed. A large part of the issues, such as communication problems were traceable to the rigid information systems that do not directly support such special needs of the case.
The development ideas to the process were divided into short-term and long-term ideas. The short-term ideas, such as consolidation order instructions, a streamlined process and different IT-tools, were emphasized, as they could be implemented in a fast schedule from none to little costs. It was noted, that for most benefit practically all presented short-term ideas should be implemented. The long-term ideas provide more of an aspirational state and visions for future. Most notable long-term ideas relate to virtual ERP-plants, consolidation at forwarder premises and material extension to MDC or centralized warehousing. However, most long-term ideas require quite radical changes from the company.
The theoretical part of the study concentrates on supply chain and supply chain management, while discussing topics such as logistics and supply chain integration. Also, more specific subjects regarding this study were covered, as the basics of shipment consolidation, third-party logistics and spare part logistics were introduced, as these subjects are relevant in the case process. The information systems used in supply chain management were briefly presented too.
The empirical part of the study is done by conducting a case study of a special project order that requires intercompany shipment consolidation. Several parties around the world are included in the process. Different parties were interviewed to form an understanding of the process. The process was defined utilizing a flowchart and written coverage. The definition and the interviews were used to identify the different bottlenecks and issues in the process. The problems of the process and their root causes were also assessed. A large part of the issues, such as communication problems were traceable to the rigid information systems that do not directly support such special needs of the case.
The development ideas to the process were divided into short-term and long-term ideas. The short-term ideas, such as consolidation order instructions, a streamlined process and different IT-tools, were emphasized, as they could be implemented in a fast schedule from none to little costs. It was noted, that for most benefit practically all presented short-term ideas should be implemented. The long-term ideas provide more of an aspirational state and visions for future. Most notable long-term ideas relate to virtual ERP-plants, consolidation at forwarder premises and material extension to MDC or centralized warehousing. However, most long-term ideas require quite radical changes from the company.