In today's world the challenge of logistics becomes more and more important for all
companies, which consequently contributes to the need of an integrated system of in-house
logistics. Goods must flow easily between stations and departments in order to achieve the
best utilization of transportation as well as maintaining a good distribution structure to handle
these processes in an efficient and effective way to enhance business performance and
competitiveness. This report aims to provide research on how to strategically organize, plan
and structure the flow of internal logistics within an organization. The research in this study
originates from 3 main methods, a theoretical review, a case study and a benchmark. The
main idea of the thesis was to contribute with scientific knowledge of improvements that can
be achieved within internal logistics targeting companies operating within the service sector.
In order to understand the scope of the problem the current state at the case Tropical Islands
was analysed and served to identify areas where possible improvements could be achieved.
Further on, in combination with the theory and empirical findings the main conclusions of the
thesis was the need to strategically organize the flow of internal logistics to improve
efficiency and enhance competitiveness. It was made evident that planning is essential in
order to successfully implement the milk runs. Other tools could be utilized to further
eliminate drawbacks that might occur.
Internal logistic, logistic processes, milk run, value stream mapping, route optimization