Henkel Inbound Logistics Optimization Study

Inbound Logistics is a complex and undervalued field of study. The primary focus of logistics has predominantly been that of a company’s outbound operations, i.e. getting the finished goods to the end customer. However, as the paper goes onto outline, this idea is changing and there has been a renewed focus on taking a holistic managerial overview which incorporates inbound activities. Many companies have attained substantial operational and financial benefits from adopting this approach, the reasoning behind this project.This paper aims to provide strategic recommendations, and methods for their implementation, to improve the management of Henkel’s inbound logistics operations. To do this the paper focuses on inbound strategies and implementation methods for a single product line at a current manufacturing site. The reduced scope of this papers project was necessary to make it feasible. After introducing Henkel and outlining the projects details within the introduction of the paper, Chapter1, the author goes onto discuss the literature and theory around the subject area in Chapter2.Chapter3looks at the methods the author employed to complete the paper. These methods relied heavily on the internal network at Henkel, and information sourced from the internet due to the nature and the limitations of the project respectively. In Chapter4, the report’s findings are presented. Firstly Henkel’s inbound process map, which gives the reader perspective when considering the influence of any strategic recommendations. This is followed by the operational road map which provides the foundation on which the reports analysis is based.The papers final Chapter, draws conclusions from the project and its primary recommendation is a holistic approach to the management of Henkel’s inbound operations which mainly involves; the synchronization and consolidation of inbound shipments from overseas suppliers, the placement of a regional hub for China mainland suppliers and the implementation of vendor managed inventory for suppliers within the shanghai district.