Optimization Model for Materials Expedition: An Aplication in a Retail Chain Store

Abstract

In several companies, transportation costs are most part logistics costs. In this context, the appropriate distribution planning figures as a strategic activity in the generation of competitiveness. Previous studies that analyzed the transportation problem do not consider the role of the expedition in their models. This research investigated a transportation problem considering the expedition of goods. A midsize retailer located in the ABC region of Sao Paulo was used to conduct a case study. In addition to documentary data, interviews were conducted with professionals involved in the expedition operation. The results indicated that the company could optimize their expedition by considering the changes proposed in this study. We conclude that the expedition is an important activity in the analysis of a transport model.

Logistics as a competitive advantage in retail organizations

“…The model allowed to suggest enlarging the use of vehicles, the demand absorbed by each store and identified important points, such as the fact that the pallets demand and DC expedition capacity are aligned, having no fleet sizing problems nor installations. The model designed by Cruz et al (2015) made it possible to obtain information on how to allocate charges for expedition before operationalizing activities, allowing to plan the operation more efficiently based on data collected in the company. It was possible to increase the number of pallets sent to stores, when compared with the historical decisions made by the company.…”

“…• Application of KPI's aligned to the Strategic Objectives of the Organization -According to Cruz et al (2015), in order to obtain results that actually contribute to an improvement in a company's expedition planning, it is necessary that the data collected fairly represent the company's reality. This finding is of great importance in the meaning that the quality of the information that feeds the KPI's will be proportional to the quality of decision making based on them, and can significantly affect the competitiveness of the organization, positively or negatively.…”