Abstract:

This paper demonstrates how to alternatively use the results of Value Stream Mapping method for process optimization. In the described case study number of problems related to logistics concept of the company was identified by VSM method. Project for construction of the new logistic center inside the company area was created based on VSM analysis results. Practical realization of this project was however rejected due to the fact that the very existence of this analysis and subsequent projects were enough to drastically reduce the price of third-party logistics and warehousing services. With the information obtained during the VSM analysis project preparation was possible to negotiate new prices with the external logistic and warehousing services provider which ultimately results in an extension of the payback period of the project, so the project implementation became ineffective. Goal of the project (reducing the cost of logistic concept of the company) was achieved through the very existence of the analysis without the need to implement the project.