A Study on the Efficiency of B2C Process for Shoemaking Logistics using Line of Balance Methodology

Abstract

According to the Korea Integrated Logistics Association, domestic parcel delivery volume reached 3.63 billion units last year, and 3.37 billion units in 2020, an increase of 7.6% from the previous year. The importance of online (B2C) logistics is also increasing as the online market grows so fast that it exceeds that of offline stores every year. In particular, the shoemaking industry is trying to achieve efficient logistics business through Third Party Logistics (3PL) rather than own logistics. However, unlike general industrial products, it is not easy to achieve optimization of logistics operation personnel through automated facilities or systems. This is because, due to the nature of the shoe industry, there are areas of work that require handwriting for product management and accurate shipment according to complex part numbers, and there are limitations in system development costs and huge infrastructure investment. In particular, as the number of companies operating the online shoe business increases, the demand for 3PL fulfillment service is also increasing. In addition, in the shoe industry, where individual shipments per item are high, the storage function is an important factor due to the packaging accuracy of skilled workers who require expertise and the nature of products that must be depleted by the third year of manufacture. Therefore, this study tried to study the online logistics process efficiency by applying the ‘Line Balance methodology’ to vitalize the online channel in the domestic shoe market. In other words, by examining the A-B-C work process of the shoe distribution center, the ‘line balance methodology’ is applied to determine whether the balance of work time required for each process is balanced and operated efficiently, and what is the improvement plan. Time was applied in a balanced way to study ways to increase work productivity. In particular, this study is meaningful in that it compares and studies that the required time for each process is applied in a balanced way through line balancing of the logistics center for the activation of online channels in the shoe industry, focusing on the case of Company A, thereby increasing work productivity. have. In addition, although papers related to the existing online channel mainly discuss ways to improve the overall logistics service quality, this study focuses on the case of Company A and studies the method of increasing work productivity of the online channel through the ‘line balance methodology’. There is significance and differentiation in what has been done.