Finished goods movement and freight management of a company
Pulli, Arsi (2021)
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021120824595
https://urn.fi/URN:NBN:fi:amk-2021120824595
Tiivistelmä
Customer delivery process is part of almost every company’s operation. Goods are dispatched and delivered to customers daily. Part of the delivery process is to determine who is responsible for freight management arrangements. These two subjects are something that most logistics professionals frequently deal with.
In this thesis the author will survey dispatch process and freight management centralization in detail. Main goal is to find places for improvements and to give recommendations for these improvements. This thesis is an assignment for a company and findings can be used to improve its processes. Case company has struggled with limited dispatch area space for years and it is essential to find solutions to this problem.
Theoretical framework is built on literature focusing on delivery process, freight management and logistics. Framework is divided into two sections. One focusing on delivery and dispatch process and one focusing on freight management.
The report included a research section in the form of data analysis. This consisted of analyzing company’s dispatch data and bringing up key indicators. The same data was used to support freight management improvements. Freight management section included a questionnaire directed to company’s internal sales offices to map out their current processes.
The results of the data analysis brought many aspects to consider when it comes to the dispatch process. Long dispatch lead time from pick release to shipment loading was main factor for a congested dispatch area. Loading times were unevenly distributed to weekdays which caused shipments to stay at the dispatch are longer than desired. Freight management analysis gave an indication that centralized freight booking improves dispatch lead time and that the workload to manage this would not be substantial.
Key recommendation is to continue monitoring the dispatch lead time and to have continuous monitoring when a shipment have a longer lead time. Also imperative is to utilize third-party warehouse provider more frequently for bigger shipments. Freight management centralization should be discussed in more detail internally and make decisions based on freight cost comparison that this report did not provide.
In this thesis the author will survey dispatch process and freight management centralization in detail. Main goal is to find places for improvements and to give recommendations for these improvements. This thesis is an assignment for a company and findings can be used to improve its processes. Case company has struggled with limited dispatch area space for years and it is essential to find solutions to this problem.
Theoretical framework is built on literature focusing on delivery process, freight management and logistics. Framework is divided into two sections. One focusing on delivery and dispatch process and one focusing on freight management.
The report included a research section in the form of data analysis. This consisted of analyzing company’s dispatch data and bringing up key indicators. The same data was used to support freight management improvements. Freight management section included a questionnaire directed to company’s internal sales offices to map out their current processes.
The results of the data analysis brought many aspects to consider when it comes to the dispatch process. Long dispatch lead time from pick release to shipment loading was main factor for a congested dispatch area. Loading times were unevenly distributed to weekdays which caused shipments to stay at the dispatch are longer than desired. Freight management analysis gave an indication that centralized freight booking improves dispatch lead time and that the workload to manage this would not be substantial.
Key recommendation is to continue monitoring the dispatch lead time and to have continuous monitoring when a shipment have a longer lead time. Also imperative is to utilize third-party warehouse provider more frequently for bigger shipments. Freight management centralization should be discussed in more detail internally and make decisions based on freight cost comparison that this report did not provide.