Third Party Logistic – A Framework for Indian Railways  

Oleh:

Narayan, Prem

Jenis: Article from Proceeding
Dalam koleksi: Asian Network for Quality (ANQ) Congress 2011, Ho Chi Minh City, Vietnam, 27-30 September 2011, page 1-21.
Topik: Third Party Logistics; 3PL; Total Cost ofOwnership; TCO; Collection Centre; CC; Saving Matrix Method
Fulltext: IN4.Third Party logistics- Full Paper.pdf (302.26KB)

Isi artikel

In the context of Indian Railways, Materials Management is one of the areas where expenditure on materials is of the order of Rs 27500 crores and there is a possibility of cost cutting by employing demand pull based EOQ procurement system along with introduction of 3PL service provider, as there is no much scope to reduce wages bills and pension liability drastically. A mathematical model on optimization of total cost of ownership (TCO) consisting of annual ordering cost, annual materials cost, annual inventory holding cost and annual transportation cost along with introduction of 3 PL service provider has been developed to achieve cost saving. The analysis carried out based on proposed model has shown cost reduction of the order of Rs. 6.78 Crores over the current materials management system at Stores Depot, Matunga, Mumbai. Further cost saving can be achieved by implementing Routing and Sequencing of vehicles based on Saving Matrix Method. The proposed model apart from cost saving will result in to avoidance of stock out situations on one hand and better control of inventory on the other hand.

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