INTERNAL LOGISTICS AS A PART OF SUPPLY CHAIN
By
Author
Presented To
Department of Transport and Logistics
ABSTRACT
Internal logistics is one of the most important sections within enterprises,
especially in the large manufacturing companies. It manages, arranges, plans and
delivers the finished products. It is an indispensable part of the supply chain, as
well as reflects the result of implementation company strategy.
This study focuses on finding the possible ways to improve the operation process
of Nokia-China internal logistics by looking into Nokia-China’s internal logistics
in Dongguan Branch- Supply Logistics Department.
NOKIA is already a strong, international and successful company. It has its own
set modes in organization and management. In the study, the case department is
presented as example of internal logistics process for others. However, every
department has to constantly improve itself, and create maximum benefits.
This thesis states relevant theories of logistics, supply chain and performance
measurement. The analysis of the internal environment of Nokia-China and
SWOT method are to formulate the current situation of Nokia-China. And this
thesis makes a deep study of every logistics activity within the case company’s
internal logistics as well.
Lastly the result brings forward possible suggestions to improve Nokia-China’s
internal logistics performance, which is based on the responsiveness of internal
information exchange, implementation of company strategy and enhancement the
professional skills of employees.
Key words: Logistics, internal logistics, supply chain, logistics process,
performance measurement, Nokia-China, Dongguan Branch
TABLE OF CONTENTS
1 INTRODUCTION 1
1.1 Objective 1
1.2 Research Methods 1
1.3 Limitation 3
1.4 Structure of thesis 3
2 LOGSITICS AND SUPPLY CHAIN 6
2.1 Logistics 6
2.1.1Logistics concept 6
2.1.2 Logistics management 8
2.1.3 Logistics Integration 10
2.1.4 Logistics organizations 12
2.1.5 Logistics information systems 13
2.1.6 Logistics lead to competitive advantage 15
2.2 SUPPLY CHAIN 16
2.2.1 Supply chain management concept 17
2.3 Internal supply chain 18
2.3.1 Internal supply chain concept 18
2.3.2 Internal supply chain management 19
2.4 Supply chain integration 20
2.4.1 Internal supply chain integration 21
3 PERFORMANCE MEASURMENT 23
3.1 Performance measurement principle & bound 23
3.1.1 Performance measurement principle 23
3.1.2 Performance measurement bound 24
3.2 KPI of performance measurement 25
3.2.1 Lummus performance measurement KPI 25
3.2.2 Roger model 25
3.2.3 SCOR model 26
3.3 Performance measurement implementation 28
4 CASE STUDY: NOKIA-CHINA 30
4.1 NOKIA-China Background 30
4.2 Company Resources 31
4.3Internal management 33
4.4 SWOT analysis 34
4.5 Company Strategy 35
5 NOKIA-CHINA INTERNAL LOGISITICS: SUPPLY LOGISTICS IN
NTL-DG
5.1 About supply logistics 38
5.2 Supply logistics process 40
5.2.1 Order Fulfilment 41
5.2.2 Trade compliance 45
5.2.3 Logistics service provider 47
5.3 Overview of whole Supply Logistics Process 51
5.4 Supply Logistics Process features 55
6 ISSUE ANALYSE 56
6.1 The responsiveness of internal information exchange 56
6.2 Implementation of company strategy 58
6.3 Enhancement the professional skills of employees 59
SUMMARY 61
LIST OF REFERENCES 63
APPENDIX 67
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