Key Takeaways: Logistics Operations Management Process Planning for Manufacturing Enterprises

The logistics operations management process builds upon the logistics management framework and serves as the foundation for factory logistics planning and information system design.

Logistics operations management processes underpin the overarching logistics management framework and serve as the foundation for both factory‑level logistics planning and information systems design. The planning and design of a logistics operations management process system cannot be standardized across all enterprises; rather, it must be tailored to align with the specific logistics management logic, the organization’s maturity, its corporate culture, the desired level of managerial precision, and the strategic priorities of the enterprise. First, the level of granularity of the process framework must be clearly defined. When processes are overly numerous and excessively detailed, and management resources and technical capabilities fail to keep pace, the processes inevitably become mere formalities. “Saying one thing and doing another”; when processes are too few or too rudimentary to meet operational and managerial requirements, they will be frequently disrupted and ultimately reduced to mere formalities. Secondly, the lack of adoption of the technology leads to divergent approaches in process design. The management of certain state-owned enterprises tends to be conservative, emphasizing zero risk, and their processes… “If it cannot be proven to be useless,” it cannot be deleted, whereas private enterprises, with their more open management and emphasis on efficiency, must delete anything “that cannot be proven useful.” Third, during the process‑system planning phase, one must not pursue “Comprehensive and all-encompassing” full coverage, Instead, it is necessary to focus on the core value chain and key business pain points, distill the enterprise’s requirements for organizational capabilities, management logic, process competence, and information systems, and then define, clarify, and institutionalize these through processes.

From a process management perspective, processes must be manageable. Processes and products alike have their own life cycles and must go through an introduction phase. - Growth phase – Maturity phase – Decline phase: the focus of process management varies across these stages. For instance, during the introduction phase, when the process is still immature, greater emphasis should be placed on training, communication, and monitoring, with continuous review of the process’s rationality and feasibility. Based on actual conditions, the process should be refined and improved; at this stage, it is not advisable to lock it into an information system. As the process evolves from the introduction phase into the growth and maturity phases—when it becomes broadly viable, widely accepted, and aligned with organizational requirements—it can then be formalized within the system, seamlessly integrated into day-to-day operations. At this point, managing the process itself requires relatively fewer resources. When the process enters the decline phase, due to changes in managerial factors, operational models, or governance requirements, it may no longer suit the current operating environment. In such cases, the process should either be discontinued or redesigned and optimized to prevent an accumulation of ineffective processes that could disrupt normal operations. This approach is consistent with the “first standardize, then optimize, and finally solidify” philosophy of process management.

Process management evolves from inception to maturity, with each stage characterized by distinct manifestations. As shown in the figure. As shown in Figure 1, during the first stage, processes are primarily embedded in employees’ minds, with knowledge acquired through experience and informal mentorship. At this point, organizational performance hinges on individual capabilities, and processes are essentially unmanageable. In the second stage, processes are governed mainly by departmental policies, with unclear logical relationships among roles, functions, and departments, often leading to cross‑departmental process conflicts and severe silos. Emphasis is placed on optimizing local performance rather than overall organizational interests, resulting in pronounced “push‑pull” dynamics and a pervasive sense of dysfunction. By the third stage, cross‑departmental collaboration becomes central, and processes are formalized through cross‑functional and cross‑departmental flowcharts that articulate managerial logic. However, this stage lacks granular categorization and well‑defined coordination rules, leaving process management fragmented and prone to excessive complexity. In the fourth stage, processes are systematically classified and hierarchically structured, enabling fine‑grained management. Key milestones at each process node are clearly defined, inputs and outputs are explicitly mapped, interfaces between processes are well‑articulated, and processes are tightly aligned with specific business scenarios. Moreover, these processes can be codified via information systems or automated logistics platforms, embedding management and operational requirements directly into the workflow while ensuring they are readily observable and executable on the shop floor.

Figure 1 The Four Stages of Process Management (Tianrui Copyright)

As shown in the figure. As shown in Figure 2, the logistics operations management process system can be hierarchically structured and managed using a five-tier framework comprising chain, end, block, line, and point.

Level‑1 processes (process chains) are structured along the value chain and constitute the backbone of the process framework. It encompasses business modules such as product development, marketing, supply chain, after-sales support, finance, and human resources, each of which operates as an independent system and is cascaded downward in a hierarchical structure.

Level‑2 processes (phases) are operational sub‑processes at the business level, reflecting process differentiation based on business models and use cases. Logistics processes typically fall within the supply chain business module. For manufacturing enterprises, logistics processes constitute a core component of their overall supply chain operations. Segmented according to physical and information flows, these processes encompass logistics planning, logistics scheduling, procurement and inbound logistics, production and intra‑plant logistics, delivery and finished‑goods logistics, as well as reverse logistics.

Tier‑3 processes (blocks) are manifested as the business capabilities or activities required to achieve effective operations. For example, intra‑plant logistics management can be divided into two components: intra‑plant logistics planning and intra‑plant logistics execution. “Modules”: Procurement management can be divided into modules such as sourcing, supplier management, commercial negotiation, contract management, and procurement execution.

The four-level process (or workflow) is manifested as the workflows of each business module and node, with workflows decomposed according to business process nodes, business scenarios, organizational division of labor, and operational units. As shown in the figure, intra‑facility logistics operations can be divided into multiple workflows of varying granularity, encompassing—though not limited to—the processes listed. At this stage, it is essential to align the workflow structure with organizational management needs, corporate culture, and performance objectives, carefully determining the level of detail and the number of workflows to avoid oversimplification or excessive complexity.

The five-level process (point) applies to each workflow ( Further clarification and standardization of Level‑4 process nodes, emphasizing characteristics such as operability, manageability, standardization, and institutionalization. For example, the material sub‑packaging process and the sub‑packaging work instruction require specifying the activities, timelines, and responsible personnel. /organization, input/output, data/documents, tools, standards, etc., are clearly defined.

Figure 2 Five-Level Process Framework for Logistics Operations Management (Tianrui Copyright)

There are two approaches to streamlining process systems: one is a top-down approach, which begins by constructing a comprehensive view of the processes based on management logic, models, value orientation, and other key elements. Along the chain The hierarchical decomposition of segments, blocks, lines, and points has the advantage of providing a comprehensive overview of the process system, helping to prevent duplication, overlap, disconnection, or omissions, and ensuring both the efficiency of process mapping and the sharing of processes. Its drawbacks include the need for systematic planning, a holistic view of the value chain, and the potential for disruptive changes to existing processes. Another approach is bottom-up, starting with operational workflows: selecting, consolidating, and optimizing based on existing processes, proceeding step by step. - The direction of the line-block-segment-chain is aggregated layer by layer, Its advantage is that the process is built on existing, real-world workflows and practices, making it more readily implementable and subject to fewer changes. Its drawback, however, is a lack of a holistic perspective—unable to capture the big picture—making it difficult to establish a comprehensive process framework. This not only leaves gaps in the process but also risks importing and entrenching existing management‑related issues into the new system. In practice, mapping out a process framework is itself a process of transformation and optimization, requiring systematic rigor, cutting‑edge principles, and sound rationale, while also remaining feasible. To achieve this, it is often necessary to integrate top-down and bottom-up approaches, with iterative validation and refinement.

Figure 3 is a framework for factory logistics operations management processes, grounded in supply-chain operations. This framework encompasses second-, third-, and fourth-level process nodes, as well as fifth-level process names, and can serve as a foundational structure for logistics operations management in most manufacturing enterprises. The process framework typically includes both direct and supporting processes; for example, inbound logistics management is a direct process, while master production scheduling is a supporting process. These should be defined in accordance with the enterprise’s specific business logic and functional divisions.

Figure 3 Logistics Operations Management Process Framework (Tianrui Copyright)

It should be noted that, even in the context of logistics operations management process planning for smart factories, the processes and their frameworks themselves do not inherently possess intelligence. Process management is based on a logical framework, and the process systems that align with traditional factories, digital factories, and smart factories differ primarily in terms of process nodes, inputs and outputs, rules and standards, element definitions, and the entities responsible for executing the processes—whether human operators or automated systems.