Internal transfer processes in a supply chain involves moving goods or materials within the same organization, encompassing inventory, raw materials, or finished products between different departments, warehouses, or production facilities. The objective is to enhance material flow and coordinate efficiently across the organization, leading to improved overall supply chain performance. Essential components of these processes include planning, order processing, inventory management, and logistics, all focused on optimizing the movement of goods within the company's network.

For the case company, Nouryon, the challenge lies in managing the internal transfer process, marked by inconsistent lead times. Currently, there is no standardized procedure in place, and ad-hoc measures taken so far have proven ineffective in the long term.

The project aims to implement a new standard process within the system and rectify the identified issues. Ultimately, this initiative is also centered around enhancing customer satisfaction, as the customer's contentment hinges on the seamless flow of the process. The purpose of this study is to examine ways to improve the internal transfer process within the organization. The research was carried out in partnership with Business Planning Managers and Executives at Nouryon across the entire organization on a global scale.

To achieve the goals of the study and answer the research questions, a comprehensive approach, including literature review, interviews, observations, and document collection, was undertaken. The internal transfer process from Stenungsund to the US was analyzed using the Six Sigma (DMAIC) methodology, identifying lead times as the primary bottleneck in the US. However, the Six Sigma concept was deemed inapplicable to Japan's internal transfer process, which did not face lead time issues. Instead, the analysis revealed bottlenecks in Japan, including excessive inventory, overproduction, and excessive material transportation. Addressing Japan involved applying the Lean Methodology, specifically focusing on the MUDA principle to reduce waste.

The project resulted in the identification of key improvement recommendations that can contribute to enhancing the internal transfer process. Recommendations for US is improving lead times, implementing dedicated time slots, extend CGM shipments' lead time and update master data to improve the internal transfer process and boost customer satisfaction. Recommendations for Japan is implementing Lean Methodology with the key principle JIT aiming for for increased efficiency and reduced waste (MUDA).