• Title/Summary/Keyword: Total Logistics Cost

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Activation of Korean Certification System of Total Logistics Provider for the Strength of Logistics Service Industry (물류서비스산업 경쟁력 강화를 위한 종합물류업자 인증제도의 활성화 방안)

  • Choe, Seok-Beom
    • Journal of Korea Port Economic Association
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    • v.21 no.4
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    • pp.209-237
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    • 2005
  • To gain a national competitive advantage in Northeast Asia, Northeast Asia logistics hub strategy was undertaken by Korean Government. Korean Government had published Northeast Asian Logistics Hub Roadmap including the upbringing of total logistics providers to solve the high logistics cost which weakens the competitive advantage of Korean companies. To solve the high logistics cost, the Government had revised the Korean Physical Distribution Promotion Law for the introduction of certification system of the total logistics provider and enacted the Rules on the Certification of Total Logistics Provider and is going to introduce the certification system of total logistics provider. In this certification system, third party logistics related point is very high, the success in this certification system depends on the strategic alliances of the small and medium size logistics companies. The purpose of this paper is to study certification system of the total logistics provider and contribute to gain the competitive advantage of total logistics provider as global logistics provider.

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A study on the logistics cost reduction in textile industries by introducing Pad Pool System (PPS(PAD POOL SYSTEM) 도입에 의한 섬유업계 물류비 절감에 관한 연구)

  • Kwon An Sik;Park In Sul
    • Journal of the Korea Safety Management & Science
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    • v.7 no.2
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    • pp.95-106
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    • 2005
  • Many Korean companies are challenged to reduce logistics cost and meet environmental-friendly logistics. The textile companies in harsh competition are requested to make improvement on their logistics environment to cut down the total cost. However, they have reached the limit on improving the manufacturing process. We believe that the logistics department is the most improvable part at present. Improving logistics will be highly effective to cut down the total cost. In this study, we present Pad Pool System(PPS) as the solution to save their logistics cost. PPS, which means the shared use of Styrofoam pads, will enable the textile companies to cut down their cost and strengthen enterprise competitiveness. Also, PPS will be helpful reducing environmental disruption because the system reuses retrieved Styrofoam pads many times.

The Economic Effects of Logistics Standardization (물류표준화의 경제적 효과 분석)

  • Lee Soon-Cheul;Hong Sungwook;Moon Dae-Seop
    • Proceedings of the KSR Conference
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    • 2004.10a
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    • pp.1665-1670
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    • 2004
  • In this study, we investigate how logistics standardization affects on the cost of the firm. For this study, we survey the firms' logistics standardization. The analysis of the effects of logistics standardization in the firm level finds that the firm may reduce its cost by 11.8$\%$ with its logistics standardization and decrease the logistics cost in the total Korean firm level by 5 trillion Won. This study also finds that the logistics standardization can reduce the total fright costs by 25 trillion Won.

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A study on the introduction effect of supply chain strategies using the analysis of enterprise logistics (기업 물류비용의 실증적 분석을 통한 공급사슬 전략의 도입 효과분석)

  • Lee, Jeong;Jeong, Seok-Jae;Kim, Gyeong-Seop
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2007.11a
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    • pp.482-487
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    • 2007
  • As the importance of logistics is increasing, Enterprises design the supply chain(SC) network to minimize the total costs considering inventory holding cost, transportation cost and apply the efficient strategies of supply chain based on SC network Calculating the logistics costs without reflecting the logistics components like the packaging cost, transportation related cost, storage cost, loading & unloading cost, and distribution costs, the companies should have many limitation to calculate the logistics cost of real enterprise and install the SC network reducing them. Therefore, this research is aimed at establishing SC strategies which can be an efficient alternative for a decision making on supply chain, based on existing reference and current logistics networks of 'L' company in Korea and analyzing interaction effects between strategies and influence on logistics cost by these strategies. As the method of analysis, we analyze the interaction effects between strategies as well as install the optimal SC network reflecting concrete logistics components from the viewpoint of total logistics costs. we expect that analysis method of this paper would be applied various industries and used the efficient tools for the decision mating by planing and execution of the logistics budget from enterprises.

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A Study on the Introduction Effect of Supply Chain Strategies Using the Analysis of Enterprise Logistics (기업 물류비용의 실증적 분석을 통한 공급사슬 전략의 도입 효과분석)

  • Lee, Jeong;Jeong, Suk-Jae;Kim, Kyung-Sup
    • Korean Management Science Review
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    • v.25 no.2
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    • pp.89-109
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    • 2008
  • As the importance of logistics is increasing, Enterprises try to design the supply chain(SC) network to minimize the total costs considering inventory holding cost, transportation cost and apply the efficient strategies of supply chain based on SC network. Despite of this efforts, Calculating the logistics costs without reflecting the real components of logistics like the packaging cost, transportation related cost, storage cost, loading & unloading cost, and distribution costs, the companies has many limitation to calculate the logistics cost of real enterprise. For overcoming such problem, this paper is aimed at establishing SC strategies which can be an efficient alternative for a decision making on supply chain, based on existing reference and current logistics networks of 'L' company in Korea. Also, we analyze the interaction effects between strategies as well as install the optimal SC network reflecting concrete logistics components from the viewpoint of total logistics costs using the simulation and statistic methods. we expect that analysis results of this paper would be applied various industries and be utilized to the efficient tools for the decision making by planing and execution of the logistics budget from enterprises.

Logistics Information System's Implementation Strategy of Global Company for Effective Logistics Cost Management : Focus on Case Study of 'A' Electronic Company (물류비의 효율적 관리를 위한 글로벌 기업의 물류정보시스템 구축 전략 : 'A'전자 구축사례를 중심으로)

  • Lee, Jong-Hwa;Goh, Hyun-Woo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.31 no.1
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    • pp.132-141
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    • 2008
  • This research was conducted in order to present the strategies of implementing the logistics information system for effective logistics cost management with the case study of a leading global company. The strategy for effective logistics information system can be derived from the 3 different viewpoints, Firstly the effective global logistics management can be insured by means of the efforts of the reinforced total organization. Secondly from the process-oriented perspective, we should recognize the logistics process as the core factor of the competitive strategy and innovate the logistics process itself for the logistics cost reduction. Finally, the logistics cost will be effectively managed through establishing its logistics information strategy which maximizes the utilization of the information technologies. The case study of 'A' electronics company shows that its logistics management system provides the company with various visibilities about its logistics cost and the direct and indirect benefits over billions of wons per year as well. Therefore we can conclude that the research model provided in this research is validated. This study presents the concrete implementation strategies of the logistics information system and verifies the validity of the strategies by means of the case study of a leading company.

Consideration on the Cost of Reusable and Expendable Shipping Container Systems: A Review

  • Kim, Jongkyoung;Twede, Diana;Closs, David
    • KOREAN JOURNAL OF PACKAGING SCIENCE & TECHNOLOGY
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    • v.22 no.3
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    • pp.107-117
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    • 2016
  • In order to reduce packaging and logistics costs for any business, it is important to identify opportunities for improvement throughout an entire logistics system including measurement of the performance and cost of packaging. Although the importance of packaging in a supply chain has been recognized by many scholars and experts, the total cost and value of packaging have not been successfully estimated. This paper reviews the recent researches and articles that tried to quantify the value of packaging focusing on the business decision between reusable and expendable shipping container systems. Three key factors such as cost, ownership, and standardization are identified and discussed in terms of impact on supply chain costs and performances. It is important to understand that the decision of a package system can change a logistics activities and even entire logistical system. Hence, the total cost and value of transport packaging should be calculated with understanding of interactions with logistical activities throughout supply chain. Identifying the opportunities and constraints of packaging changes on total logistics cost and activities must be carefully examined before implementation of a packaging system.

Study on the Model Construction and Route Re-arrange for Logistics Cost Reduction - Case Study of P company - (물류원가절감을 위한 모델구축과 경로 재설치에 관한 연구 - p사의 사례연구를 중심으로 -)

  • Lee, Jeong-Eun;Park, Sang-Bong
    • Management & Information Systems Review
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    • v.33 no.4
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    • pp.39-48
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    • 2014
  • In order that a company may reduce expense, according to companies' income statement, the largest amount of money is set to total sales amount, and the next is the sales cost. The method of reducing the sales cost is the common and it is important to take down a unit price at the time of purchase, or to reduce inventory cost. In this research, the cost reduction model for logistics cost reduction is built using the real data of P company, and in order to verify the validity of a model, logistics cost is calculated through a simulation. A real logistics cost is compared with the logistics cost through logistics route rearrange of the proposal model. It will become an opportunity which analyzes the logistics expense of P company through this research, and can be solved in search of the problem of logistics system.

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An Empirical Study on Clothing Distribution Center to Improve Storage Efficiency : Especially on Hanger Rack Storage According to Distance between Columns (의류 물류센터 보관효율 향상을 위한 실증적 연구 : 행거 랙 보관과 건물기둥 간격을 중심으로)

  • Nam, Hee Dae
    • Journal of the Korea Safety Management & Science
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    • v.21 no.4
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    • pp.75-80
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    • 2019
  • Sales of the Korean clothing industry grew to 16.9 percent on-year in 2010, but the growth rate dropped to 3 percent from 2011 to 2016 and the overall market began to slump to 1.1.6 percent in 2017. The competitiveness of clothing companies is also a major sector in logistics capability, and the average logistics cost of domestic clothing companies is 8.3 percent of sales in 2011, higher than the average 8 percent of domestic industries, and 36.4 percent of the total storage cost in 2011, higher than the 28.8 percent share of the total storage cost of domestic companies. As domestic production conditions such as wage hikes and labor disputes worsened in the 1990s, production facilities were rapidly moved overseas, which led many clothing companies to have no production facilities or a minimal production base in Korea and focus on marketing and design capabilities. The total storage capacity and storage efficiency of the logistics center became very important as the products were changed to the form of mass warehousing and small-volume forwarding. Research shows that building column spacing, a model of this research, can affect the amount of hanger rack storage empirically, so for sustainable growth of clothing companies, it is necessary to improve competitiveness in the logistics market by reducing costs and improving efficiency to overcome difficulties in corporate management. Because logistics costs are 8.3 percent and operating profit to sales ratio is 2 percent, it is expected that operating profit will increase by 41.5 percent if logistics costs are reduced by 10 percent. If 10% of storage cost is saved based on storage cost, operating profit is expected to increase by 15% To strengthen the competitiveness of the clothing industry, a reduction in logistics costs is essential. Therefore, the purpose of this study is to provide hints that logistics experts can have empirically small amounts in reducing storage costs through column spacing adjustment of logistics centers that have not been dealt with statistically until now, and to contribute to the continued growth of clothing companies and the development of the domestic logistics industry.

Optimal Containership Size by Way of Total Shipping Cost Analysis (컨테이너선의 총 운항비용 분석을 통한 노선별 최적선형 도출)

  • Kim Tae-Won;Han Yu-Nam;Nam Ki-Chan;Kwak Kyu-Seok
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2004.11a
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    • pp.245-251
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    • 2004
  • Determination the optimal containership size is the most important factor for competitiveness if shipping companies. Accordingly, the objective if this research is determining the optimal containership size by service routes. Total shipping cost is calculated at the ground if capital cost, vessel operation costs, voyage costs, port charge and miscellaneous cost for 'Europe-Far East', 'Far East-North America' and 'Europe-Far East-North America' Services. Finally, the optimal containership size was utilized through total shipping cost, slot quantity if containership and average throughput by containership.

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