Cost Optimization for Line Haul Transportation of 3pl Players

So now the issue left that if the company cannot avoid small shipments then how to minimize the cost associated to the shipment of such small shipments. As of now the company is using a freight forwarder which consolidates small shipments to fill 20-feet or 40-feet containers.

In addition, I would design a strategic transportation plan that coordinates inbound and outbound shipments to reduce transportation costs and improve service levels. The warehouse will be designed

Options for delivering product to customers can be done “In House” or provided by a 3rd party service provider. Currently Target enlists the services of Ryder trucking for the scheduling and dispatching of trucks from the Distributions Centers to the stores. Swift Trucking and Ruan Transportation provide the drivers and trucks that transport the trailers from the Distribution Centers to the stores. For the Fulfillment Centers, Target uses FedEx, UPS and the United States Postal Service. The problem posed in this paper is to determine the best way to get the product from the min fulfillment center to the customer in the most efficient way. Using the Linear Programing Model we can show costs for the distribution of customer packages from the various shipping options.

Integrated operations are controlled through collaborative planning, forecasting and replenishment through the use of effective is done through pathways such as resource optimization. This is a function of mathematical programming to determine how to most effectively meet the demands of the consumers while optimizing the resources and resource utilization. The results are multiple supply chains forecasted in to future time periods which then helps in determining which products should be produced, when they should be produced, and also helps in determining the most effective way in storing the materials across the supply chain.

According our estimation from day 640 to 730, we had the mean 14.098 drums. Hence, we set the capacity number to 15 and let the production non-stop by adjusting higher order number and 200 quantity per truck. Let’s summary our work as the following: Our process: figure out whether we should build factory and warehouse in specific region. estimate the demand of four region and Fargo region, change capacity, adjust order point, quantity, and priority order, check and adjust parameters from time to time

Technology has a significant role to play in this model. Dahmakan’s in-house development team has built a routing algorithm in order to find the most efficient routes for its drivers. This takes things like past trips into account in order to decide which driver should take which delivery round. A forecasting tool – another in-house creation – uses machine learning to help the company predict demand on particular days. This allows it become more efficient and keep average food waste below a target of 5

The Fast Moving Consumer Goods industry ( FMCG ) is one of the most top industries served by the third party logistics. The FMCG firms utilize the services that are provided by 3PL. The impact of Third Party Logistics on FMCG firms are on customer satisfaction, logistics system performance, the impact of 3PL also reduce the capital investment in facilities, reduction in investment in information technology, reduction in man power cost. The third party logistics also impact on the improvement of specific logistics function parameters, and improvement in inventory turnover rates. The 3PL has a positive and negative impact on FMCG

Introduction ……………………………………………………..………. 3 Survey overview …………………………………………….…………. 3 Overall use of 3PL services …………………………….…........... 4 Key drivers in outsourcing logistics to a 3PL …….……........ 5 Overall

It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics

Blanchard (2006) defined third party logistics as, “A single entity that coordinates all the logistics requirements for a given company/agency.” Today’s world business environment has become so competitive that companies in order to be successful in the market must deal with different resources for satisfying their customer need. In the past decade or so the competitive global market has made a big influence in the growing for external business. Third party logistics providers are more and more employing external companies for inventory management, transportation, warehousing, and other value added activities for customer services. Third party logistics ultimate goal is to provide a competitive advantage to the organization for which they are serving. According to Cardinal Logistics (2012), “Third-Party Logistics is an effective way to reduce operational costs, and allow a company to focus on their core competencies.

A Research Project Report submitted in partial fulfilment of the requirements for the Degree of BSc (Hons) Logistics, School of Applied Sciences, The University of Huddersfield, 2011.

There was a need of new logistics processes to successfully manage this growing industry. In early days purchased materials were usually delivered via postal, freight network or parcel. Nowadays in the era of E-commerce the ways of operating logistics functions have been changed with introduction of Mega e-fulfilment centres, parcel hubs centres and parcel delivery centres. In first two centres the orders are sorted by post codes so that they can be dispatched to the correct delivery centres for final delivery at customer’s home. Primary advantage of E-commerce logistics system is real time tracking of materials as organizations can track current status of transit goods such as quantity, location and variety. This helps to improve the efficiency and also helps to operate logistics operations with low cost. Below graph shows the growth of online sales against In-store sales. In the era of online retail industry, logistics and supply chain management are key factors to

Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.

The variability of logistics performance is quite relevant. ALP has not been able to guarantee a reliable service to its customers in the last years. There seems to be a lack of organization when providing the service to the customers, in the sense of establishing priorities and

In the Indian scenario, with relatively less importance given to efficient logistics, the market leaders in beverage industry like Coca Cola, PepsiCo and Parlé Agro have their own well established strong logistics network. The other small scale industries producing both carbonated and non-carbonated soft drinks in glass/ PET bottles or in Tetra Pak cartons have a comparatively well established third-party logistics system. They have the help of local providers in providing vehicles for small transfers which help them in overcoming problems such as demands for bribes by retailers, security and other logistics