In today's world the challenge of logistics becomes more and more important for all

companies, which consequently contributes to the need of an integrated system of in-house

logistics. Goods must flow easily between stations and departments in order to achieve the

best utilization of transportation as well as maintaining a good distribution structure to handle

these processes in an efficient and effective way to enhance business performance and

competitiveness. This report aims to provide research on how to strategically organize, plan

and structure the flow of internal logistics within an organization. The research in this study

originates from 3 main methods, a theoretical review, a case study and a benchmark. The

main idea of the thesis was to contribute with scientific knowledge of improvements that can

be achieved within internal logistics targeting companies operating within the service sector.

In order to understand the scope of the problem the current state at the case Tropical Islands

was analysed and served to identify areas where possible improvements could be achieved.

Further on, in combination with the theory and empirical findings the main conclusions of the

thesis was the need to strategically organize the flow of internal logistics to improve

efficiency and enhance competitiveness. It was made evident that planning is essential in

order to successfully implement the milk runs. Other tools could be utilized to further

eliminate drawbacks that might occur.