THE ANALYSIS AND APPROACH OF TRANSPORTATION COST REDUCTION

Abstract

The purposes of this research are to analyze and formulate the strategy to reduce the cost of transportation for the company of the case study. The scope of the study and statistical data analysis of 3 months will be specific only in Bangkok and metropolitan areas. The method of this study consists of 3 approaches: 1) to analyze the feasibility of the cost if the company uses its own fleet for transportation, 2)to analyze the feasibility of the cost if the company uses transport company service, and 3) to analyze the feasibility of the cost if the company implements the mixed strategy between using its own fleet and the transport company service. These 3 approaches use milk-run routing calculation and compare the results. The findings demonstrate that the combination between using own fleets and outsourcing is the appropriate approach to reduce the transportation costs about 19.06 percent.