Research On Business Process Improvement In L Company Logistics Department

L Company is a medical technology company which mainly engages in R&D production and sales operations of high-end medical equipment. The logistics department of the company is now facing the following problems:high logistics costs, low utilization rate of warehouse space, bad work efficiency, poor utilization rate of logistics equipment in off-peak loading and unloading time while the equipment cannot meet demand in peak time. Additionally, poor communication among departments leads to unshared information which consequently results in inefficiency and the fact that completion of the programs cannot be guaranteed; What is worse, staff are not clear about their rights and responsibilities and no one claims responsibilities for damaged or low-quality goods. As for sluggish materials, they are being handled improperly and been seriously wasted. All the problems mentioned above greatly reduce the efficiency of logistics department of L Company, prevent customer satisfaction from increasing and keep logistics costs high.In this paper, the logistics business process improvement problems in L company will be studied. On the basis of the relevant literature, the existing business processes of the company and work flow chart are demonstrated. After that, the existing problems will be analyzed by using value chain analysis method. Then, problems in existing logistics department are brought up including over-complicated purchasing and warehousing process,liability issues for damaged and substandard goods, backlog in peak warehousing time, serious waste caused by mishandled sluggish materials and efficiency and cost problems caused by lack of communication etc. ECRSI Optimization approach is employed to cancel pre-warehousing in warehousing process, combine and simplify buffering and box-checking area and increase the number of supplier information databases. Pre-loading inspection area and u-shaped loading platform have been added to assist sales and delivery process. In addition to that, warning system is installed for handling sluggish materials and up-to-standard and R&D components are added to create new business process. Finally, Extendsim is used to evaluate and contrast simulated pre and post optimization logistics business processes. The improvement plan is made based on above analyses and simulation tests. It shows that the new plan simplifies workflow, improves work efficiency in logistics department and utilization rates in warehouse logistics machineries, guarantees product quality, strengthens communication among departments, reduces backlog in warehousing peak time and enhances customer satisfaction. The research results, to some extent, may help L Company to advance its comprehensive competitiveness.This paper consists of six chapters:the first chapter is the introduction; The second is business process related theories;The third is the analysis of business in logistics department in L company.The fourth chapter puts forward the impovement plan for logistics department in L company; The fifth chapter illustrates and evaluates simulated business process improvement of logistics department in L Company; Sixth chapter assesses the benefit of the simulated optimization business process and in the meanwhile tells more about and evaluates the business processes which cannot be simulated and compares them with those for which the simulation can be done to prove the effectiveness of the optimization plan.