Transforming the Internal Logistic Network

Master's Thesis from the year 2002 in the subject Business economics - Supply, Production, Logistics, grade: 1, Maastricht University, language: English, abstract: Companies with complementary production possibilities at several locations often encounter difficulties in the management of the logistic interdependencies that evolve between the different facilities. Different kind of relationships, varying strength of linkages between the facilities and heterogeneous IT-Structures lead to a non-transparent, company internal network that incorporates huge inefficiencies. Therefore, this thesis analyses the problem statement: "How can companies integrate their internal logistic network?" Theories, concepts and integration guidelines from supply chain management theory were applied to investigate this problem. These theories are best suited to analyse the integration of internal logistic networks, because the entities within such a network behave before the integration almost like independent companies in a logistic sense. In addition to that, network theories were applied to analyse the behaviour and asses the characteristics of the internal logistic network. To answer the problem statement a case study was conducted at a German pharmaceutical company that showed the characteristics described above. The company had initiated a project to integrate their internal logistic network. From this research it appears that the integration of the IT-Systems at the different facilities and locations within the network and the centralisation of logistic processes leads to increases internal logistic network integration. This suggests that although such projects are difficult, costly and complex, they seem worth undertaking.