Logistics Shipping Cost Optimization For Company "S"

Following the continuous acceleration of the globalizing economy, the demand for international logistics as of the society grows day by day, the international logistics transportation costs soared. Regarding as import and export trade limited company, the increase of logistic cost may make it less competitive, under great pressure. So, how to control the international logistic transportation costs has the significant meaning. Ocean transportation is the main way of transportation in international trade, huge loading capacity, lower cost and sorts of routing is the major advantages of ocean transportation. Most of the import and export trade company all over the world are now using ship transport as the major way. However, it will impact the budget of import and export cost due to the periodic fluctuations of ocean freight. S Company is a Japan based global producer of consumer-electronics, in the response of the fast growing market, the company imperatively requires to improve its supply chain capability to manage the logistics cost. In an all, the company is striving to avoid unreasonable transportation mode, additional transportation cost which cause whole logistics cost surge. Besides, how to control the vendor management is another target for logistics cost optimization.The dissertation delivers a brand-new angle to measure the international ocean transport for S Company through lots of analysis on the KPI data and then to surface some critical issues like un-standardized routing, unreliable shipping forecasting. In the meantime, the data analysis also displays a problem in vendor management.Based on the analysis on history KPI data and consider actual business and long term development to provide the individual solutions for improvements. In a summary, by establishing tender system, evaluate vendor’s performances, select the vendor who can provide attractive and fixed rate as a long term partner to avoid unstable market rate. By using reasonable routing and mode to reduce the transportation cost. By setting up prediction model to foresee the coming production plan and shipping demand, confirm the space in advance to avoid buying additional space for the cost control.The studies in the dissertation are playing a key role to deduce the shipping cost by a company. As a fact, reducing the transportation cost has a significant meaning to promote company’s competitive power.