Logistics Cost Modeling in Strategic Benchmarking Project : cases: CEL Consulting & Cement Group A
Nguyen Cong Minh, Vu (2010)
Lahden ammattikorkeakoulu
2010
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2010120317098
https://urn.fi/URN:NBN:fi:amk-2010120317098
Tiivistelmä
This thesis deals with logistics cost modeling for a benchmarking project as consulting service from CEL Consulting for Cement Group A. The project aims at providing flows and cost comparison of bagged cement of all cement players to relevant markets in Indonesia. The results of the project yielded strategic elements for Cement Group A in planning their penetration strategy with new investments.
Due to the specific needs, Cement Group A requested a flexible costing approach taking into account market factors reflecting Indonesian logistics conditions. Such requirement, however, needs a tailor-made approach for cost modeling. Consequently, the cost model conducted for that objective became an essential key element of the project, besides other general activities and studies. The thesis emphasizes the conducting process of the cost model and discusses relevant issues.
The method used in this thesis is inductive reasoning within a holistic case study. Field survey as a primary technique combines qualitative and quantitative data collection and analysis procedures. It is worth noticing that a contextual framework is designed as modeling approach facilitating the cost modeling building process.
The central feature of this thesis is the architecture of the cost model represented by the excel-based model with road, sea and rail modules, which includes different costing processes, components and key drivers. The thesis is arranged similarly to modeling steps: starting with pre-configuration to determine that transport and warehousing are key activities for costing in this benchmarking project; then moving to the configuration phase where the model’s modules are filled up with relevant costing; and finally ending up with main outputs as model applications. Transport and warehousing are taken for costing as they represent the major costs of total logistics cost concept. Mapping the flows and calculating relevant cost using activity-based method is the basic costing procedure.
CEL has practically implemented the model to deliver results for the project. Full upgrading to software has been drawn as recommendations for improvement.
Due to the specific needs, Cement Group A requested a flexible costing approach taking into account market factors reflecting Indonesian logistics conditions. Such requirement, however, needs a tailor-made approach for cost modeling. Consequently, the cost model conducted for that objective became an essential key element of the project, besides other general activities and studies. The thesis emphasizes the conducting process of the cost model and discusses relevant issues.
The method used in this thesis is inductive reasoning within a holistic case study. Field survey as a primary technique combines qualitative and quantitative data collection and analysis procedures. It is worth noticing that a contextual framework is designed as modeling approach facilitating the cost modeling building process.
The central feature of this thesis is the architecture of the cost model represented by the excel-based model with road, sea and rail modules, which includes different costing processes, components and key drivers. The thesis is arranged similarly to modeling steps: starting with pre-configuration to determine that transport and warehousing are key activities for costing in this benchmarking project; then moving to the configuration phase where the model’s modules are filled up with relevant costing; and finally ending up with main outputs as model applications. Transport and warehousing are taken for costing as they represent the major costs of total logistics cost concept. Mapping the flows and calculating relevant cost using activity-based method is the basic costing procedure.
CEL has practically implemented the model to deliver results for the project. Full upgrading to software has been drawn as recommendations for improvement.