| Logistic as"the third profit headspring"had been the new field as well as the most important area for the economy increase. Base on current situation, more and more enterprises had focused all their attention on optimize transportation, warehousing, distribution and other logistic area for cost saving and efficiency improvement.The treatise analyzed the logistic status for L Company, found the necessity to setup the Distribution Center (DC) in Asia-Pacific area (A&P). Shanghai should be the suitable location for DC according to Gravity method calculation and evaluation. Proposed handling process for DC after consolidated the shipping volume. Calculated the freight cost from manufactory to DC, the handling cost for inbound and outbound DC, the freight cost from DC to demand site. Also considered the safety stock adjustment due to lead time prolonged. Compared the new solution with current operation mode, found the cost saving and efficiency improvement from DC operation.If multinational company could extend their eyeshot cover all logistic process instead of internal logistic optimization, setup DC at suitable location according to company management status and development strategy. In this way, company could intergrade the shipping volume, optimize the transportation mode and routing and decrease the logistic cost, improve on time delivery to meet customer satisfaction. |
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