Logistics strategic planning for a production of on-site wastewater treatment system based on the balanced scorecard approach

Abstract

To generate proper logistics strategy and action plan for on-site waste water treatment system in order to effectively improve internal work process, cost efficiency, business growth, and customer satisfaction using the Balanced Scorecard Approach. As the first step, a meeting is conducted with the company board of directors to verify corporate vision, mission, objective, and strategy. This process clarifies the base from which the thesis will be conducted. The author will then analyze the internal and external environment of the company. As for the logistics related external and internal environment of the company, the analysis is done by 4 directors of the company board. Using the SWOT analysis, the logistics related internal environment is used to find the strength and weakness of the company; the logistics related external environment is used to find the opportunity and threat of the company. The SWOT analysis will enable the findings of the outbound logistics critical success factors. In order to analyze the priority for each critical success factor, the study were conducted to compare customer's requirements for logistics and the capability of the company using order winning and order qualifying criteria as a tool. The critical success factor is deployed to create the logistics strategy map. Meeting with the company owner is then organized to generate outbound logistics strategy from the objectives in the strategy map. As a result, the strategy is translated into strategic planning and Key Performance Indicators. The strategy strategic planning and KPI are integrated into the concerned department by using matrix diagram. A proper action plans are generated according to the strategy strategic planning and KPI in order to gain benefits and compete with the competitors in the market. The last step is the verification of company's owners.