Evaluation of Warehouse Outsourcing Process : Case Safeplast Oy
Kuitunen, (Sipriina) Jenna (2013)
Tampereen ammattikorkeakoulu
2013
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013121020691
https://urn.fi/URN:NBN:fi:amk-2013121020691
Tiivistelmä
This final thesis is partly based on a study conducted within practical training and summer job placements at Safeplast Oy. The thesis was created for Safeplast Oy that specializes in producing plastic spirals and textile products to protect all types of hoses and cables. The study comprises the process of establishing warehouse and in more detail evaluates the outsourcing process of a warehouse to be established in Central Europe. The focus of the thesis is to find out how the establishing of outsourced warehouse in Czech Republic would impact on freight costs, delivery times and what would be the effects in terms of expenses. In addition to show by case study what to take into account of when planning warehouse in general.
The research was done using mixed methods combining quantitative and qualitative research approaches. Theoretical basis for this research lies in background research on literature and articles in logistics and supply chain management in general and in more details of fundamentals of warehousing and outsourcing. Furthermore interviews within the company, correspondence with external parties, method of comparison and analysis were used.
Based on findings in the case study the volume of activity is not large enough yet that the outsourcing of warehousing would increase Safeplast Oy’s operational flexibility in terms of great improvement in fast respond to customer requirements. The delivery times would not become shorter significantly and the freight costs would remain the same to current market area. The outsourced warehouse would cause extra expenditure that would lead to price increase without significant improvement in the customer service level.
Due to Safeplast Oy being fast growing firm the outsourcing and redesign of their supply chain will become timely. This final thesis offers a guideline to plan the process to ensure all important elements are considered, the objectives are clear and the process is adequately resourced to avoid disappointment in expected reduction in costs, business benefits and customer service levels that is expected to be achieved by outsourcing.
Based on the Safeplast Oy’s will and confidentiality agreement, parts of the final thesis are excluded from the published version on the commissioner’s request.
The research was done using mixed methods combining quantitative and qualitative research approaches. Theoretical basis for this research lies in background research on literature and articles in logistics and supply chain management in general and in more details of fundamentals of warehousing and outsourcing. Furthermore interviews within the company, correspondence with external parties, method of comparison and analysis were used.
Based on findings in the case study the volume of activity is not large enough yet that the outsourcing of warehousing would increase Safeplast Oy’s operational flexibility in terms of great improvement in fast respond to customer requirements. The delivery times would not become shorter significantly and the freight costs would remain the same to current market area. The outsourced warehouse would cause extra expenditure that would lead to price increase without significant improvement in the customer service level.
Due to Safeplast Oy being fast growing firm the outsourcing and redesign of their supply chain will become timely. This final thesis offers a guideline to plan the process to ensure all important elements are considered, the objectives are clear and the process is adequately resourced to avoid disappointment in expected reduction in costs, business benefits and customer service levels that is expected to be achieved by outsourcing.
Based on the Safeplast Oy’s will and confidentiality agreement, parts of the final thesis are excluded from the published version on the commissioner’s request.