According to Schönsleben “The link between process management and logistics management is evident” (2007). In order to be able to agree to Mr. Schönsleben, the thesis on hand focuses on processes and flows involved in integral logistics. In this context, touching supply chain management is indispensable. The author also wants to sensibilise the reader for recognizing the omnipresence of processes and accompanying flows in daily operations and their increasing significance for business success.
Questions answered during the following elaborations concern the development from logistics to integrated means, the existence of different process types and how to design the same. Additionally, process implementation and the position of a chief process officer are discussed. The paper also tries to point out reasons for the status quo of process handling within companies.
Demonstrating the current relevance of the given topic, the results are mainly based on literature originating from the previous 15 years plus contemporary sources available via Internet. A study conducted by PricewaterhouseCoopers dealing with business processes also influenced the findings.
Complexity of business models and widely-branched supply chains long for a sophisticated organisational effort. Nearly every part of an integral logistics chain is related to a process and IT-support is inalienable for handling them. Physical and information flows are of equal importance. Companies do acknowledge the benefits of process management but yet the majority stays behind possibilities. Necessary investments still represent obstacles but advantages of well-working processes outweigh related concerns increasingly.
Thus, further clarification is necessary among the management level to enhance sustainable awareness about process implementation for staying competitive.
Table of Contents
1 Classification of Revised Means of Logistics – between SCM and Process Management
2 Interrelation of Integral Logistics, Processes and Flows
2.1 Development of Integral Logistics
2.1.1 Historical Evolvement of Logistics
2.1.2 From Logistics to Integral Logistics
2.1.3 Distinct Process Types
2.1.4 The Role of Flows
2.2 Transformation from Functional to Process-Orientation
3 Processes in Integral Logistics
3.1 Process Design and Related Objectives
3.1.1 Requirements and Attributes of Processes
3.1.2 Design Approach
3.2 Process Objectives
3.3 Holistic Approach to Integral logistic processes
3.3.1 Advanced Performance with Aid of Software
3.3.2 Improvements Based on Process Performance Indicators (PPI)
3.3.3 Introducing a Chief Process Officer
3.3.4 Processes as a Competitive Advantage
3.4 Descriptive Example
4 Limitations of Applicability in Daily Operations
Research Objective and Key Topics
This thesis investigates the significance of processes and flows within integral logistics, exploring their role in modern supply chain management and business competitiveness. It aims to clarify the evolution of logistics, the necessity of process-oriented organizational structures, and the challenges companies face in implementing effective, IT-supported process management.
- The evolution of logistics toward integrated, process-oriented frameworks.
- Differentiation between core, support, and management process types.
- The interrelation of physical, information, and control flows in supply chains.
- Strategies for effective process design and the impact of IT and software solutions.
- Organizational challenges and the role of a Chief Process Officer in driving competitive advantage.
Excerpt from the Book
3.1.1 Requirements and Attributes of Processes
The first step in designing processes is to acknowledge the significance of their existence; finding a way to make them “visible” is the second step as main features of a process are to be transparent and comprehensible for each and every employee. Even if a worker is not directly involved in a process, he or she should nevertheless be able to understand linked procedures, as exactly those interfaces have been identified to cause the most interruptions within manufacturing operations. Being explicitly formulated and communicated in the right manner by the right person is another proposition of processes for a rewarding implementation. (cf. Schönsleben 2007, pp. 36–38) Cross-functionality, referring to inter-departmental information dissemination and mutually-agreed objectives, are more important than ever when designing processes (cf. Sadler 2007 p.26 and p.32).
Summary of Chapters
1 Classification of Revised Means of Logistics – between SCM and Process Management: Defines the scope of logistics within the context of supply chain management and introduces the unionist approach for the thesis.
2 Interrelation of Integral Logistics, Processes and Flows: Examines the historical context, the shift to integrated logistics, and the critical importance of different process types and information/physical flows.
3 Processes in Integral Logistics: Focuses on the practical design of processes, the role of IT and performance indicators, and the potential for creating competitive advantages through a holistic approach.
4 Limitations of Applicability in Daily Operations: Discusses the current obstacles to widespread process implementation and why many companies still struggle to move beyond a medium stage of development.
Keywords
Integral Logistics, Process Management, Supply Chain Management, Flow Orientation, Process Design, IT-support, Enterprise Resource Planning, Chief Process Officer, Process Performance Indicators, Competitive Advantage, Value Chain, Business Processes, Customer Satisfaction, Operational Efficiency.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on the integration of processes and flows within integral logistics, emphasizing their critical importance for operational success and business strategy.
What are the primary themes discussed?
Central themes include the evolution of logistics, the distinction between core and support processes, the role of information and physical flows, and the strategic implementation of process management systems.
What is the main objective of the research?
The research aims to explain how the shift from functional to process-oriented management enables companies to achieve higher efficiency and better competitive positioning.
Which methodology is applied?
The paper utilizes a literature-based analytical approach, incorporating insights from management theory and specific industry studies, such as the report by PricewaterhouseCoopers.
What does the main part of the document cover?
The main part covers the conceptualization of integral logistics, detailed design approaches for business processes, the enabling role of software (like ERP), and the organizational requirements for successful adoption.
Which keywords define the work?
Key terms include Integral Logistics, Process Management, SCM, Value Chain, and Process Performance Indicators.
Why is the "Chief Process Officer" role considered relevant?
The role is considered essential for bridging the gap between various departments and management, ensuring consistent process monitoring and strategic alignment.
How does IT influence logistical processes?
IT solutions, particularly ERP systems, are identified as fundamental tools that provide the necessary transparency, data handling, and monitoring capabilities to optimize complex supply chains.
What are the main limitations identified in the study?
The study highlights financial and time-related investment obstacles, as well as cultural resistance and the difficulty of standardizing all business steps, as key limitations in daily operations.
How is the "bullwhip effect" addressed?
The text suggests that focusing on the control flow—which governs the progress of data and goods during the order process—is vital for mitigating the bullwhip effect.
- Quote paper
- Lisa-Marie Langfeld (Author), 2014, Denotation of Process- and Flow Orientation for Integral Logistics, Munich, GRIN Verlag, https://www.grin.com/document/535909
