Optimizing cost management in the Transportation process

Case study ABC Logistics Company

Abstract

This study aims to apply PDCA theory and ECRS principles, backhaul concept and Tao Kae Noi project to improve the transportation process of ABC Logistics Co., Ltd. in order to optimize cost management. It was found that in the transportation process there were Process of loading goods in the warehouse It takes a long time to load the product, the weight is overloaded or the product has to be added to it. Unable to control the loading time of goods into the truck, the effect is delayed delivery to the destination customer. As a result, the cost of transportation increases. causing inefficient transportation After improving the process, it was found that Able to reduce the process of transportation within the warehouse from the original 8 steps to only 6 steps, reducing the time by 47 minutes or 54.02%. Loading products to transport trucks increased from 6 cars per day to 12 per day. cars and also using the concept of backhaul transportation to fix the cost of transportation reduced Total amount of 489,600 baht / 2 months, reducing the problem of hiring an external transport company by 137 trips / 2 months and using the Tao Kae Noi concept to increase the company's truck value. By giving drivers the opportunity to be part of the mutual benefit with the company. By comparing the current monthly compensation the driver receives and the project expected The average net income when participating in the program is 18,250 baht more than the current net income, showing that the increase in income can be an incentive for drivers. And on the other hand, the Tao Kae Noi project can also enable the company to reduce costs associated with trucking, such as employee salaries, maintenance costs and fuel costs that fluctuate according to the economy. The total value is 12,711,000 baht per year.