The Development of an Order Delivery Strategy for a Multinational Firm

The purpose of this study was to develop a new order fulfillment strategy for LG Electronics Nordic AB. This order fulfillment strategy is called order delivery strategy (ODS) which aims to strike an appropriate balance between order batching and logistics customer service. Whether or not a balance can be achieved on both dimensions at the same time is questionable. However, the author has balanced these dimensions with the help of his own form of analysis which provided specific delivery days for LG’s existing customers. With this main objective in focus, another aim was to investigate what consequences ODS implementation can have on the company’s supply chain performance. To conduct this study the author examined two forms of data. The first research data consisted of interviews with employees at LG. The second data was collected from LG in the form of order data. The author analyzed both forms of data which helped facilitate the concept behind ODS. The results implicated that an ODS implementation improves order picking, order management and logistics customer service at LG. More specifically, the company’s current order fulfillment strategy was analyzed where ODS provided less frequent deliveries to their existing customers. In addition, the findings suggest that LG should focus on medium class customers in Sweden as this does result into the most transportation cost savings and less frequent deliveries. The principal conclusion is that the company should keep their current order fulfillment strategy. However, they should complement this strategy by implementing ODS since it does improve supply chain performance leading to more prosperous results. It is also recommended that LG should follow up their current order fulfillment strategy and ODS every six months.Validerat; 20110720 (anonymous