Optimization Of Transportation Solutions For CCBM Holding Importing Cars From China To Senegal

As per a recently published report on China’s Automobile Industry China Automobile Industry-2014, China has accounted for nearly20%of Global Automobile sales. In the coming years this share is going to grow further and it was expected to reach25%by the end of2014.According to statistics and analysis of China Association of Automobile Manufacturers (CAAM), the amount of China’s auto production was2,085,200units in March, increase54.76%compared with last month, and increase10.88%compared with the same period of last year. Among main automobile categories, production of passenger cars was1,657,000units, higher than the previous49.95%and up13.82%year on year; the output of commercial vehicle was428,200units, higher than the previous76.68percent, and increase0.81%compared with the same period of last year; From January to March this year, China automobile production reached5,397,100units, increase12.81%compared with the same period of last year; Production of passenger cars was4,383,200units, increase16.23percent year on year; the output of commercial vehicle was1,013,900units, increased0.08%compared with the same period of last year. Growing economy and various stimulus packages offered by the Chinese government are the major driving force behind the growth of the automobile industry in China. Automobile sales in China are expected to increase at a healthy rate of over12%in the coming years.The Passenger car is a major segment in the automobile industry in China. It accounts for over75%of the total automobile market. In the coming years passenger car sales are expected to grow further and it is expected to cross the17Million unit mark in the coming four years. Even though the quality of Chinese cars is rapidly increasing but Chinese automobile industries face a lot of Challenges such as:lack of safety features, establishing an information feedback system with end-users in order to improve service or call back poor produced cars, modernizing outdated sales systems, increasing the competitiveness of domestic auto parts, accessories and aftermarket kits, clamping down on counterfeit products, etc.With the gradually labor union pressure, salary increase, inflation rises, more environment regulations and control, increasing level of competition in the sector of automobile and more WTO regulations, Chinese cars are not no longer cheap, low quality and less safety features.The Purpose of this thesis was to find out the best ways that CCBM holding, a Senegalese based company can purchase automobiles from China to Senegal. The logistics system, inventory system, payment systems et al were all analyzed. The research analyzed the automobile industry in china, and Auto trade pattern with Senegal and further developed an optimal route ex-works for shipment of automobiles from ex-works through to port of loading in China to the final destination port in Dakar, Senegal.A linear programming method was used to develop a model which concluded that diversification of purchasing portfolio is the best way for CCBM holding to optimize their purchase of cars from China. They need to buy a brand of car from more than just one manufacturing site, what’s more, the inland transportation.CCBM holding should also use the Vendor Management Inventory Process in order to reduce risks and cost. They could also use the Radio Frequency Identification to make the inventory process more automated.