Inland transportation cost reduction of automotive service part company

Abstract

Regarding company’s current situation, the case studied company has been encountered with a large amount of inland transportation cost for both inbound and outbound logistics increasing year by year. This research aims to reduce inland transportation cost for both inbound and outbound logistics operation at process of transporting empty imported container after loading cargos to shipping line and process of transporting empty container from shipping line for exporting purpose by using concept of “container round use system”. To conduct container round use system which required many organisations both internal and external to involve, change project management, risk management and resistance of change management are applied. For change management, there are two areas of study which are; first, current situation for both inbound and outbound logistics process and cost. Second, to study in Project management frame work for change management. Project management frame work for change management chapter includes team formation, project Initiative, project planning, resource management and project registration. For risk management, there are steps including risk identification, Measure risk, Potential Risk matrix, Risk management, Examine solution, Implement solution & Monitor solution. All the process in this chapter aims to capture potential risk and how to management in order to eliminate all the risk that could occur and harm to process and operators which could interrupt the objective of the project. Lastly is cost evaluation, this chapter illustrate how inland transportation cost for inbound and outbound operation are decreased comparing between current process and container round use process. In summary, the total inland cost for inbound and outbound could be reduced by at least 6.7 percent or 4,722,300 BAHT per year and maximum is 12.24 percent or 8,583,300 BAHT per year (if inbound container could be used 100 percent).