Analyzing administrative processes in a 3PL company

130 Pages·2012·1.8 MB·English

by  David Fritz

Analyzing administrative processes in a 3PL company
Mapping of administrative processes and identification of key time

drivers
Master of Science Thesis in the Master Program, Supply Chain Management

DAVÍÐ ÞÓR FRITZSON
KRÍA SÚSANNA DIETERSDÓTTIR

Department of Technology Management and Economics
Division of Logistics and Transportation
CHALMERS UNIVERSITY OF TECHNOLOGY
Gothenburg, Sweden, 2012
Report No. E2012:096

REPORT NO. E2012:096

Analyzing administrative processes in a 3PL company
Mapping of administrative processes and identification of key time drivers
Master thesis in the Master´s Program Supply Chain Management
DAVÍÐ ÞÓR FRITZSON & KRÍA SUSANNA DIETERSDOTTIR

Department of Technology Management and Economics
CHALMERS UNIVERSITY OF TECHNOLOGY
Gothenburg, Sweden 2012
Analyzing administrative processes in a 3PL company
Mapping of administrative processes and identification of key time drivers
DAVÍÐ. FRITZSON & KRÍA. DIETERSDÓTTIR
© DAVID. FRITZSON & KRIA. DIETERSDOTTIR, 2012.

Technical report no E2012:096
Department of Technology Management and Economics
Chalmers University of Technology
SE-412 96 Gothenburg
Sweden
Telephone: + 46 (0)31-772 1000

Chalmers Reproservice

Gothenburg, Sweden 2012
Abstract
As administrative services for 3PL companies can be very specialized and customer unique it
can be difficult to estimate and specify the amount of administration needed for a future
client. At Schenker Logistics Landvetter this has become one of the most problematic factors
when quoting possible clients i.e. to estimate the manning need in the Control Towers (CT),
where the majority of administration is performed. Therefore, the main purpose of this
thesis is to analyze what drives time in the CT and how much. In order to fulfill this, two
main sources of data were needed. Firstly, in order to increase the knowledge on what
activities are performed in the CT, all processes for the customers covered in thesis were
mapped and described in detail. This was made possible by observing the processes and
interviewing the staff responsible for each customer, identifying which processes were
executed and from there going through each step of the process in detail. Secondly, a time
study was performed by measuring the time duration per process and identifying different
time drivers from direct observation, interviews and time templates. These results were
then consolidated in to a generalized framework that was used to create an algorithm that is
supposed to calculate the basic CT manning need for a future client. This then leads to the
discussion part of the thesis where improvement recommendations were suggested both in
relation to pricing the CT function in a more precise and accurate way as well as general
improvements identified by the CT staff and authors.

Keywords: process mapping, administrative processes, time drivers, pricing administrative services

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Table of Contents
1 Introduction ..................................................................................................................................... 1
1.1 Background ................................................................................................................... 1
1.2 Problem discussion ........................................................................................................ 2
1.3 Purpose and research objectives .................................................................................... 3
1.4 Delimitations ................................................................................................................. 4
1.5 Thesis outline ................................................................................................................ 4
2 Literature review ............................................................................................................................. 5
2.1 Processes ...................................................................................................................... 5
2.1.1 What is a process? ........................................................................................................... 5
2.1.2 Process mapping .............................................................................................................. 5
2.1.3 How to perform process mapping ................................................................................... 6
2.1.4 Process mapping techniques and icons ........................................................................... 6
2.2 Time studies .................................................................................................................. 8
2.2.1 Time drivers ..................................................................................................................... 9
2.3 Cross training ................................................................................................................ 9
3 Method .......................................................................................................................................... 11
3.1 Research approach ...................................................................................................... 11
3.2 Data collection ............................................................................................................ 12
3.2.1 Interviews and observation ........................................................................................... 12
3.2.2 Time study ..................................................................................................................... 13
3.2.3 Literature review ........................................................................................................... 13
3.2.4 Other source of data ..................................................................................................... 14
3.3 Method assessment ..................................................................................................... 14
4 Empirical data ................................................................................................................................ 15
4.1 Schenker Logistics Sweden (SLOG Sweden) ................................................................... 15
4.1.1 Schenker Logistics Landvetter (SLL) ............................................................................... 15
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4.2 Main processes in the CT ............................................................................................. 16
4.2.1 Inbound ......................................................................................................................... 16
4.2.2 Outbound ...................................................................................................................... 16
4.2.3 Returns .......................................................................................................................... 16
4.2.4 Meetings ........................................................................................................................ 17
4.2.5 Invoicing ........................................................................................................................ 17
4.2.6 Support and problem solving ........................................................................................ 17
4.3 Process mapping and descriptions ................................................................................ 18
4.3.1 Customer A .................................................................................................................... 18
4.3.2 Customer B .................................................................................................................... 32
4.3.3 Customer C .................................................................................................................... 49
4.3.4 Customer D .................................................................................................................... 60
4.3.5 Administrative processes in the CT ............................................................................... 75
4.4 Time-study .................................................................................................................. 75
4.4.1 Customer A .................................................................................................................... 76
4.4.2 Customer B .................................................................................................................... 80
4.4.3 Customer C .................................................................................................................... 82
4.4.4 Customer D .................................................................................................................... 84
4.5 Pricing of CT services ................................................................................................... 86
4.5.1 Current pricing approach .............................................................................................. 86
4.5.2 Problem discussion ........................................................................................................ 87
4.5.3 Improvement suggestions ............................................................................................. 87
5 Analysis .......................................................................................................................................... 88
5.1 Most time consuming processes .................................................................................. 88
5.1.1 Customer A .................................................................................................................... 88
5.1.2 Customer B .................................................................................................................... 88
5.1.3 Customer C .................................................................................................................... 89
5.1.4 Customer D .................................................................................................................... 89
5.2 Possible time drivers .................................................................................................... 89
5.2.1 Customer A .................................................................................................................... 89
5.2.2 Customer B .................................................................................................................... 91
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5.2.3 Customer C .................................................................................................................... 93
5.2.4 Customer D .................................................................................................................... 94
5.3 The algorithm .............................................................................................................. 95
5.3.1 Volumes sheet ............................................................................................................... 97
5.3.2 The calculation sheet ..................................................................................................... 98
5.3.3 Front page ................................................................................................................... 103
5.3.4 Limitations of the algorithm ........................................................................................ 104
6 Discussion and recommendations .............................................................................................. 105
6.1 Pricing of the CT ......................................................................................................... 105
6.2 Getting customers routined ........................................................................................ 107
6.3 Staff cross-training ...................................................................................................... 110
6.4 Communication between CT and production ............................................................... 110
6.5 Improvements in the invoicing process ....................................................................... 110
6.6 Improvements in the return process ........................................................................... 111
7 Conclusions .................................................................................................................................. 112
7.1 Concluding remarks .................................................................................................... 112
7.2 Future studies ............................................................................................................ 113
8 References .................................................................................................................................. 114
Appendix A ............................................................................................................................ 115
Appendix B ............................................................................................................................ 116

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