TRANSPORTATION COSTS REDUCATION A CASE STUDY OF OIL FILTER MANUFACTURER

Abstract

At present, each company needs to come up with different strategies to give their company a competitive advantage, which factors in transportation that is one of the factors that play an important role in today's business. This is due to the fact that in many the company is obliged to deliver the goods from the manufacturer to the customer. It is considered to be a response to customer requirement. A case study company is a manufacturer and distributor of oil filter products for many types of vehicles. Therefore, the company's customer groups are diverse and spread across all provinces throughout the country. The cost of transportation of the company is high. The company transport the goods to the freight forwarder to deliver the goods to customers. Transportation planning relies on the skill of the staff in routing arrangement. From collecting data for 3 months in 2021, September - November, it was found that the shipping route arrangement was not as efficient as it should be. The total transportation distance of 3 months was 3,045.12 kilometers and the total variable transportation cost was 21,072.23 baht. Researcher aimed to reduction transportation cost in case study we apply and economical algorithm and using VRP spreadsheet solver software to arranging suitable routing. At the result, researcher can reduce the transport distance over 1,647.51 kilometers for 3 months, which is 54.10%, and the total cost of transportation for 3 months is reduced by 11,400.77 baht, or 54.80%.