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Potential for enhanced transport logistics at Whirlpool Sweden AB
Linköping University, Department of Science and Technology. Linköping University, The Institute of Technology.
2008 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Whirlpool’s transport costs on inbound materials from Europe and Asia have increased significantly in recent years. Some causes of this problem are increased oil prices and the fact that Whirlpool has gained a number of suppliers sited in China. As transportation costs are added on to every produced oven, it is imperative that these costs are reduced so that Whirlpool can retain its role as the leader in the market of microwave ovens. The purpose of this assignment is to analyze possible solutions to reduce the transport cost. The following solutions are suggested:

• Ascertaining the optimal amount of safety stock for each article in order to reduce the number of air transports (which are costly).

• The costs associated with keeping stock in the warehouse are identified so that the entire logistics cost can be evaluated. This information is vital when writing new contracts.

• Information related to logistics such as means of transport and delivery condition should be included in the contract and kept in the system. The information should also be available to logistical personnel, which helps to take fast actions.

• Articles which are dispatched by suppliers sited in Northern and Western Europe and weigh more than approximately 100 kg should be collected by the existing carrier, Ewals. With that, the load capacity is maximized and the articles are transported economically.

• Articles dispatched from Hong Kong at the same point as another supplier which dispatches FCL (Full Container Load) should be loaded into the same container if at all possible. Consequently the articles are transported free of charge and Whirlpool could see significant savings.

Abstract [sv]

Whirlpools transportkostnad för inkommande material från Europa och Asien har ökat kraftigt de senaste åren. Orsaker som kan framhållas för detta är ökat oljepris samtidigt som Whirlpool har ökat antalet leverantörer i Kina. Eftersom transportkostnaden adderas på varje producerad ugn, så blir det viktigt att minska transportkostnaden för att Whirlpool ska kunna bibehålla sin position på marknaden för mikrovågsugnar. Syftet med denna rapport är att analysera möjliga lösningar till att reducera denna transport kostnad. Följande lösningar är rekommenderade:

• Att identifiera det optimala antalet säkerhetslager för varje artikel till att minska antalet transporter med flyg (som är kostsamt).

• Att identifiera kostnaden som skapas av att lagerhålla artiklar för att utvärdera den logistiska kostnaden. Informationen är vital när man skriver nya avtal.

• Information relaterad till logistik, till exempel transportsätt och leveransvillkor ska vara inkluderade i avtal och sparas i systemet. Informationen ska vara tillgänglig till personal involverad i logistiken vilket underlättar att fatta snabba beslut.

• Artiklar vilka skickas från leverantörer som befinner sig i de norra och västra delarna av Europa och väger mer än 100 kg bör hämtas av existerade transportör, Ewals. Därmed är lastkapaciteten maximerad och artiklarna transporteras kostnadseffektivt.

• Artiklar skickade från Hongkong vid samma tidpunkt som en annan leverantör skickar en FCL (Full Container Load) bör samlastas i samma container vid möjlighet. Konsekvensen blir att artiklarna transporteras utan extra kostnad vilket leder till att Whirlpool gör en markant besparing.

Place, publisher, year, edition, pages
2008. , 37 p.
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-95403ISRN: LiU-ITN-TEK-G--08/051--SEOAI: diva2:635443
Subject / course
Logistics Management
Available from: 2013-07-04 Created: 2013-07-03 Last updated: 2013-07-04Bibliographically approved

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