Methodology of Internal Logistics in World Class Manufacturing

World-class manufacturing is a relatively recent concept, and internal logistics is even more so. Nevertheless, many businesses lack the internal logistics technique that would allow them to pursue world-class manufacturing. World-class manufacturing necessitates a deft approach and paradigm comprised of seven critical phases to be followed in the firm's internal logistics.

This step entails benchmarking the key challenge in the company's internal logistics. Internal logistics is not a direct component of the supply chain. but it offers service to employees and customers thereby making it an integral part of the company. First, the internal logistics team has to pinpoint the exact failure in the methods being employed to transport non-production materials.

The existing internal logistics methodology may not, in all actuality, be erratic but simply outdated y the fast-paced changes occurring in the market. Such weakness in the world-class manufacturing firm can lead to its collapse in the supply chain management. Therefore, it is crucial for the firm to get ahead of its logistics problem by identifying the weakness at an early stage. Once the problem is identified, the next step of choosing item movement can be undertaken.

2. Pursuit of Item Movement

The next step in the methodology involves the pursuit of item movement. Internal logistics is tasked with the movement of items that are not part of the supply chain management. Therefore, these items have to be moved in an effective, cost-cutting manner to achieve better results. The movement of items must be done most effectively to enable the firm cut expenses and increase profitability.

Of equal importance is the quick movement of items from one part of the firm to another that acts as a complement to the supply chain management (Adelman, 2007). Given that items moved by internal logistics are not in the supply chain, the firm can still suffer losses if this process is not done right. Employee performance and customer satisfaction are dependent on the efficient delivery of items which is, in turn, the role of internal logistics in the firm.

3. Selection of the Investigation method

The next step in the methodology of internal logistics is choosing the investigation method. The internal logistics management team has to carry out investigations on the current logistical practices and whether they meet the firm’s standards and requirements. However, this investigation must be carried out as the normal daily firm operations are going on.

The supply chain does not wait for any man or process. Thereby, it is imperative that the investigation into the firm’s internal logistics operations be smooth, efficient and uninterrupted. The firm has to choose how it will engage the stakeholders of internal logistics; mainly the firm employees. Direct methods of information collection like interviews might not be ideal owing to the size and activity of the workforce. Questionnaires might be more appropriate to help find out the thoughts of the stakeholders. The investigation method chosen must mirror the firm’s commitment to efficiency and effectiveness.

4. Setting the Objectives

Objectives are a trivial part of any operation being pursued by the firm. Internal logistics in a world-class manufacturing company is no different when it comes to the setting of objectives (Sheffi, 2012). The firm has to set up a list of goals to be achieved insofar as internal logistics is concerned. What will the firm do to achieve maximum efficiency in operations? How much should be spent on internal logistics to meet financial thresholds? What is the firm’s plan with regards to internal logistics improvement? These are some of the questions the objectives to be set must answer to ascertain the plan of improvement of internal logistics in the firm.

5. Improvement of Idea Generation

Next step in the 7-step process of the methodology is the improvement of idea generation. The market is ever-changing, and any firm that fails to adjust to these changes gets left behind. The success of the supply chain management rests on the ability of the logistics team to generate new productive ideas frequently.

The firm should strive to always compete against itself, fighting to raise its previous standards every single day. Idea generation is at the heart of the methodology of the firm’s internal logistics. Newer, faster and more efficient techniques have to be analyzed and implemented now and then to keep up with the market changes (Clinton, 1997). Ideas suggested must be well investigated and tested with item movement to determine their viability before choosing the right improvement idea.

6. Selection of the Improvement Idea

Improvement is a key concept to the success of the supply chain management. Internal logistics depends on the degree of improvement of ideas to succeed. After several ideas have been brainstormed by the internal logistics manager concerning the employee and customer needs, one idea has to be picked for implementation. The winning idea is then forwarded to top management as a proposal to turn it into the new methodology of internal logistics in the firm.

This process must not be time-consuming as the firm may lag behind in the supply chain management (Sivadasan, 2010). If the winning idea is accepted by the company top brass, then it becomes the new framework for internal logistics to be followed. The selection of the improvement idea is determined by the effectiveness of the idea in improving the service of the firm to its employees, suppliers, and customers.

7. Standardization and Horizontal Expansion

The final step in the methodology of internal logistics in world-class manufacturing entails standardization and lateral expansion. Standardization is the establishment of a definite structure of modus operandi of internal logistics methodology. Standardization involves the implementation of the best idea regarding effective internal logistics in the firm. This idea is drafted into company laws and procedure once it has been vetted by top management of the firm. In essence, standardization is having a definite process that should be followed when it comes to internal logistics.

Having a standardized internal logistics sets up the firm to enjoy longevity and acts as a benchmark for future improvements. Lateral expansion involves the opening of new services under the same branch of the company. Increased number of services will enable the firm to expand its employee and customer base with the assurance of an extensive internal logistics operation to back up its growing supply chain management.

References

Adelman, D. (2007). Price-Directed Control of a Closed Logistics Queueing Network . Operations Research, 1022-1038.

Clinton, S. E. (1997). Enhancing Logistics to Improve the Competitiveness of Manufacturing Organizations: A Triad Perspective. Transportation Journal, 18-28.

S Sivadasan, J. S. (2010). Operational complexity and supplier-customer integration: case study insights and complexity rebound . The Journal of the Operational Research Society, 1709-1718.

Sheffi, Y. (2012). Logistics Clusters: Delivering Value and Driving Growth. Cambridge: MIT Press.