1 Introduction 1.1 Background and Significance In the present day, logistics cost is considered to be an important factor showing potential and competency level in both organizational and national stage. Several of entrepreneurs face a high production cost problem which is a result from higher prices of oil and raw materials. In the meantime, exporters also encountered with the problem of Thai Baht currency appreciating trend. Therefore, entrepreneurs have to adapt and adjust themselves to survive in the highly competitive world, by means of increasing production efficiency and reducing production cost. Logistics has played important role in the business competition and is one of important factors in the production cost increase. World Bank has made a survey on logistics performance (Logistics Performance Index: LPI) to measure the efficiency of logistics system of each country  as shown in Figure 1. Figure 1 Comparison of Logistics Performance Index (LPI) of Some Asian Countries From the table, the result showed that in 2012 Thailand was ranked 38th with score 3.18 out of total score 5.00 while neighbor countries in Southeast Asia such as Singapore ranked 1st (with score 4.13), Malaysia ranked 29th (with score 3.49), the Philippines ranked 52nd (with score 3.02), Vietnam ranked 53rd (with score 3.00). In this survey, other big nations in Asia such as China ranked 26nd (with score 3.52), Japan ranked 8th (with score 3.93), South Korea ranked 21st (with score 3.70), and India ranked 46th (with score 3.08). Besides, Thailand’s logistics cost is relatively high compared to other countries. In 2012, Thailand’s logistics cost to GDP was expected to reduce to 14.3% due to the massive flood in the 4th quarter 2011, while most of... ... middle of paper ... ...: Analysis of XYZ Company current situation. This section covers introduction of XYZ Company, analysis of logistics cost management of XYZ Company and the existing problems. Chapter 4: Application of ABC method. This part analyses the logistics activities of XYZ companies, cost drivers, costs and expenses related to each activity, distribution of expenses into activities and calculation of cost per unit of each activity Chapter 5: Logistics cost management solutions and suggestions. This section will summarize findings from the previous chapter and suggestions to the problems. In order to complete those five chapters mentioned above, the researcher will explain the steps in conducting research as well as collecting data in order to analyse existing problems of the organization as shown in Figure 2 below: Figure 2 Steps in Conducting Research
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In manufacturing perspective, where the manufacturer "adds value" by taking a raw material of little use to the end user (for example, woods) and converting it into something that people are willing to pay money for such as paper. Firms or Companies can use inputs of time, knowledge, equipment, technology and systems to create services of real value to the
Some manufacturing companies, commercial enterprises began to use modern logistics management concepts, methods and techniques, the implementation of logistics process reengineering and outsourcing. Traditional transportation, warehousing, freight forwarding companies implement functional integration and extension services to accelerate the transition to a modern logistics enterprise. A batch of new logistics enter...
Since the beginning of human civilization there has been movement of goods from one place to another. When it comes to modern logistics most professionals thinks it as the most exciting and competitive area of any business. People in this area work 24 hours a day, 7 days week and 52 weeks a year in order to satisfy the demands and needs of the consumers of goods and services.
Working on this report was a pleasure to me, as well as gaining some real life lessons and knowing with better skill how logistics companies work in Lebanon. I, however, also did my best to complete the training program in the best way I know how. I am thankful for having the opportunity to submit my report to you.
With different prices and services across the facilities, management is trying to identify opportunities to standardize costs and services across the business units. The goal of this case study is to update Deere and Company’s logistics by recommending solutions to cut logistics cost by 69 million over 3 years
Based on my research, one of the challenges faced by logistic company is capacity forecast. Capacity forecast is a general’s capacity theory that we should know it about warehousing. Warehousing it is very important in this industry where they play an important role to store the goods before its loading and unloading once it arrive at the destination point. The requirement for this phase is its transportation. As an example, the used of mode, carrier and protection class. Furthermore, capacity forecast has its own benefits in logistic. Which is, this solution ensure the logistic, manufacturing and supply chain to work together to the same plan (Byrne, 2011). The logistic industry had faced is, widespread their promotion and to work efficiently on land.
Logistics management is part of all levels of planning and execution -- strategic, operational and tactical. It is an integrating function, which coordinates all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The optimization of the use of resources is a common objective in all logistics
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Outsourcing is the final option for logistics management. When this happens, transportation firms concentrate on logistics, and the company can concentrate on it’s production. There are many cost savings using this type of program, however that lack of control can negatively effect many companies.
Logistics has been defined as that type of business planning that focuses its operations in material management, flow of information and capital and efficient service delivery in an organization. Some of the important components involved in the process of logistics include complex information, control systems, and effective communication channels that will make the whole process simple and efficient. A warehouse is also an important part of the logistics system as it plays several roles that are important to both the traders and the target market. Thus, this paper will define a warehouse, its roles in the logistics system, the different types of warehouses and why businesses may prefer one warehouse to the other. Finally, the
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost.