Cost Savings on Container Import Process

Abstract

The object of the process was to develop containerisation and importation process to meet today’s requirements by providing the best mix of cost and services. The hypothesis was that by implementing a new container process, cost savings as well as efficiency improvement could be gained. The purpose of the project was also to see the actual benefits from using an E-type bonded warehouse when importing and exporting goods. The assumption was that there cannot be significant savings made by implementing a bonded warehouse. Problems which occurred were the difficulty of gaining information as well as reluctance from the warehouse management. The methods used in this thesis were mainly qualitative however quantitative methods were used to gain calculative information and to prove the hypothesis either wrong or right.

The research of E-type bonded warehouse proved the hypothesis right. The savings gained from implementing bonded warehouse model to Grace Foods were based on interest savings which were £22 000. The cash flow benefits from the duty holiday proved to be one off savings which freed the cash flow at the given moment but had to be paid at later stage. Instead with the more efficient use of labour in container process immediate savings of £30 000 can be achieved and at a later stage an extra £20 000 savings obtained. This was achieved by implementing efficient process of unloading containers which minimised costs and time used.