Finished goods and trade equipment supply chain optimization

Abstract

Main objective of thesis work was to figure out possible cost-effective improvements for «Company A», which were able to reduce logistics costs in long term perspective. This objective was defined by supply director because of continuous reduction of annual sales and necessity to compensate losses in sales by internal costs optimization activities. This study concentrated on finding possible implementation through individual semi-structured interviews with peers, which also served for getting the perceptions of their level of applicability for the organization, estimated savings from implementation and time required for the implementation. Author analyzed current state of distribution scheme, defined areas for improvement, made a calculation to prove their cost-effectiveness and suggested the implementation plan for the organization. As the result, two improvements which might be potentially implemented, were checked for cost-effectiveness by application of excel model and suggested to supply director together with implementation plan.