Distribution cost optimization (Mode)

Abstract

The objective of this project is to analyse the current modes of transport available from warehouse to retail store and suggest improvements for the same. The warehouses taken for consideration are that of Taloja and J aipur. Taloja serves all stores in Maharashtra whereas Jaipur looks after the Rajasthan region. The study considers the cost and the lead time for the deliveries to ensure optimum solutions. The modes of transport currently in use are fixed rented trucks, Trip vehicles (hired for a single trip), shared trucks, and courier services. The project looks after the demand variation in the peak and non-peak seasons and find opportunities for reduction in transportation costs. The main idea is to effectively utilise the existing trucks instead of adding more of them, and measures to do that I ike introduction of morning trips have been included. The project also looks after outsourcing the entire transportation to courier companies and its possible impact. Efficiency improvement using delivery software and demand soothing have also been discussed.