The Improved Global Supply Chain Material Management Process Framework for One-Stop Logistic Services

Abstract

This research focuses on the material procurement process improvement of a manufacturer under one-stop logistic services and proposes a to-be process offering a vendor-managed inventory (VMI) and information integration services provided by one-stop logistic services providers (1SLP) for shortening the procurement and manufacturing lead time, and enhancing the information flow accuracy and transparency. The 1SLP is an integrator that assembles the resources, capabilities, and technologies of supply chain networks to design and implement comprehensive logistic solutions. The research develops the 1SLP process framework by dividing the service scope into four service models. We use a case example to demonstrate the improved process. The case company is a leading manufacturer in producing projectors for the global market. The current material procurement process causes long lead times, delays the manufacturing process, and does not integrate all information in the supply chain. In the to-be model, a 1SLP incorporated model 2 services and provides a VMI warehouse as a value-added service and integrated information platform to ensure the buyer\'s inventory level and implements appropriate logistics optimization for efficient delivery. The AnyLogic Simulation Software is used to model the current and the to-be business processes. The comparison between the as-is and the to-be models demonstrates that the improved material procurement process increases the current process\'s efficiency under the one-stop services without impeding product availability to the target market.