Cost Reduction and Efficiency improvement in Transportation Case Study of Tuna Company

Abstract

The purpose of this study was to create the guideline of shipment cost deduction as the result of order time limitations and customer goods receiving, which affect the shipment cost of the company From this study, the researcher presents the guideline of efficiency operational process management by utilizing benefit from shipping car. Furthermore, reducing the wastage of the car in the factory. Afterwards, re-routing the shipment by using Google map with VRP SOLVER for daily arrange the shipping route, which is MILK RUN system .The result from this solving system showed that shipment cost of the company 51,457.64 baht per month lower amounts to 25%, overtime pay 1,600 baht per month lower amounts to 32%, wages 4,966 baht per month lower is equal to 25%, external service provider fees 79,158,50 baht per month lower amounts to 55.88%. Moreover, shipping car management is more efficient, which is, first shipping car, utilization before reform is 62.5% and after reform is 91.25%. Then, second shipping car, utilization before reform is 37.5% and after reform 91.25%. Besides, there is no opportunity cost from order-cancel customer or customer orders with other producers.