LOGISTICS COST ANALYSIS FOR PRIVATE TRANSPORT ENTREPRENEURS A CASE STUDY OF ABC COMPANY LIMITTED

Abstract

The research aimed to 1) study and analyze the logistics cost of ABC Co.,Ltd, Sa Kaeo Province, 2) determine the method for reducing logistics costs of ABC Co.,Ltd. It is a qualitative research.  The data were collected data from documents and in-depth interviews (IDI). The population was 85 employees in the company and, and 13 of them were randomly selected to be a sample group. The data collected were analyzed based on the principles of calculating logistic cost of three input factors in four aspects of cost and forecasting to determine cost reduction methods.  The findings of the revealed that 1) there were four input cost factors including personnel costs, space cost, freight costs and cost of material and supplies. However, the freight cost was the highest. The total cost of the company was 4,965,603.88 baht per month. It was 20.42 percent for the fixed cost, and 79.58 percent for the variable costs. 2) To determine the methods of reducing logistics costs of ABC Co.,Ltd, the research proposed using transportation management system by installing a GPS Tracking box, which supported to track the driving behavior of the driver, including monitoring, clarifying, warning and advising to drivers. This will help the company to reduce fuel costs. Lastly, in terms of the forecasting to lower fuel costs, it was indicated that the rate of fuel consumption per the running distance of cargo trucks decreased by 9.15 percent.