Reducing Inbound Logistics Costs- A Case Study in the Chinese Automobile Industry

Feng, Mengying (2006) Reducing Inbound Logistics Costs- A Case Study in the Chinese Automobile Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Globalization has made company competition more intense. Supply chain management has developed to enable companies to compete effectively. Logistics supports competitiveness of the supply chain as a whole by meeting customer demand both timely and at a competitive cost and inbound logistics cost management is considered to be a priority in reducing costs.

As the Chinese automobile industry is China���������������¢��������������������������������s pillar industry, and China is believed to be a high logistics cost country, the researcher attempts to find out ways to reduce the inbound logistics costs in this industry. A case study is applied to address what aspects reflect the high logistics costs in the Chinese automotive company. The reasons which cause them are analyzed in detail and more importantly, implications on how to reduce the logistics costs are offered one by one.

Inventory control is focused on, as it is the most effective way to reduce costs. Such recommendations as VMI, reducing uncertainty of demand, increasing shipping frequency, improving communications with suppliers, reducing safety stock, etc. are made to reduce inventory. Reduction of local parts transportation costs is considered. 3PL management is addressed to reduce warehousing cost and line stoppage cost, and optimizing material flow and improvement in company management skills are considered to reduce the material handling costs.

Item Type: Dissertation (University of Nottingham only)
Keywords: VMI, high inventory, line stoppage, JIT, Lean thinking
Depositing User: EP, Services
Date Deposited: 15 Nov 2006
Last Modified: 21 Mar 2022 16:03

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