RATIONALIZING TRANSPORTATIONS SERVICE: A CASE STUDY ON
THE STANDARDIZATION OF LOGISTICS SERVICE PROVIDERS
Clayton
de Oliveira Pires
Federal Institute of São Paulo – Suzano Campus, Brazil
E-mail: Clayton.pires@ifsp.edu.br
Leonardo
Botossi Ciomini
Universidade Federal de Itajubá, Brazil
E-mail: leonardociomini@gmail.com
Leonardo
Gaifato Leite
Senac
, Brazil
E-mail: leonardo.gaifato@gmail.com
Submission: 31/03/2016
Accept: 31/03/2016
ABSTRACT
Due to high
competitiveness on supply chains, small economies tend to become very important
to overall costs reduction and represent marketing gains. The aim of this study
is to analyze if the rationalization in low value deliveries, lower than R$
2,000.00, will be able to generate a considerable cut of costs. To perform this
exploratory study, company historic was analyzed and surveys were performed
with several suppliers. The studies showed it is possible to reduce freight
average impact in relation to the sold value at 44.03%. This result points to
the advantages in coordinating more rationally the process of hiring
transportation providers.
Keywords:
Logistics, Transportation, Costs.
1. INTRODUCTION
Outsourcing and
logistics are questions that have always been at the core of management.
Nicolau Maquiavel in his classic "The Prince" wrote a chapter about
outsourcing, in which he discussed the use of mercenary soldiers for power
conquest. At the same time the “Great Navigations” that had been stimulated to
find more advantageous routes both economically and by time and distance
issues, redraw the world map. Optimization of logistical resources is an issue
that will compose the management core.
Good
logistics management represents an important competitive advantage for any
company in current globalized economic environment, where competition for
market no longer happens among companies but among global supply chains. Due to
the size these chains can achieve, the efficient use of internal and external
services is a major competitive advantage.
Company
X operates in the personal and collective protective equipment segment (PPE and
CPE, respectively) with headquarters in São Paulo and Campo Limpo Paulista,
serving the internal market and distributing its products along the national
territory. Its distribution strategy is to deliver in Greater São Paulo with
its own fleet and in other regions doing partnerships with outsourced fleets.
This strategy generates a huge demand for service providers, but these
companies have a great heterogeneity in several respects with, for instance,
fleets, uniforms, cost, level of service, punctuality, reliability.
The
process of contracting services does not follow any pre-established policy.
Whenever the need to hire a delivery arises, the company makes a quotation
process among registered providers, these providers add up to 38 currently.
Besides taking time of the department due to buying by the use of physical,
financial and human resources, this process leads to the loss of bargaining
power justified by the non-adoption of a strategy to hire a large volume of
deliveries, however hiring delivery service within the current system allows to
take the best current freight price. This scenario points to a key question:
will there be a reduction in transportation costs with a rationalization of
freight hiring process?
The
number of customers served by the company is approximately 700, with very
different order values and it is part of the company policy to divide them into
higher and lower than R$ 2,000.00. This work will be limited to study the
deliveries of invoices lower than R$ 2,000.00, because delivery represents a
high percentage of costs in such cases.
The
aim of this study is to analyze how relevant the financial importance is in
rationalizing the management of the delivery service hiring process in a PPE
and CPE company and which benefits can be achieved when those aspects are
practiced.
To
conduct the case study a direct survey conducted in the company deliveries
process will compose the database, involving sprayed deliveries between the
months of April and September 2014. These data will be compared with hiring
services quotes in order to perform a large number of prefixed deliveries,
which will confirm or deny the efficacy of the new transportation management
policy here proposed.
To
this end, the present study will have a division into eight sections, where the
first is this introduction presenting the topic, the research problem, its
justification, general and specific objectives, and methodology. The second
section discusses the theoretical framework considering logistics concepts and
the primary and secondary activities. The third part will address the concept
of transportation performing a comparative analysis in respect to the modal
ones. Logistics costs and costing systems will be presented in the fourth
chapter. The fifth section deal with the methodology used in the case study.
The sixth section is the case study itself. The seventh one will present the
conclusions and the final section contains the bibliography that supported the
study.
2. THEORETICAL FRAMEWORK
Logistics
plays an important role in organizations in the industrial, commercial and
service. Studies in the area began in the military field, even though its use
dates back to the beginning of civilization.
Ballou
(2014) points that business logistics does not mean the same thing for
everyone, even for specialists. So far, the field does not have a single title
to identify it, as did marketing and production sectors. Also according to the
author, a sample of the embers from the National Council of Physical
Distribution Management in America identified that the area is represented by
names such as transportation, distribution, physical distribution, supply and
distribution, materials management and operations.
Santos,
Botinha and Leal (2013) expand this concept stating that, considering the
logistics process, besides covering from the initial stage, starting from raw
materials to product delivery to the consumer, it is possible to extend the
studies beyond that point and analyze the inverse flow of traditional chain,
ie, the product going from the final consumer to its re-use, thereby avoiding
improper disposal in the environment. Thus, the authors extend the definition
of business logistics adding the idea of reverse logistics.
According
to Ferri, Chaves and Ribeiro (2015) logistics is very wide and there is a
multitude of processes from prospecting the raw material in nature to the final
consumer. With a strong trend of product to return to the production system
after ending its consumption, there are plenty of improvements and economic and
productivity gains. These activities are grouped in many ways, however, for
this work, primary and secondary activities division pattern will be adopted,
as work Oliveira and Leite (2010).
Ballou
(2014) defines primary activities as the key activities of the logistics
process, the most important ones in this business environment and, in addition,
those participating with the highest logistics costs rates. They are
transportation, inventory maintenance and order processing.
Silveira
(2013) states secondary or support activities aims to support the primary
activities, in order to meet completely the aim of reducing distances between
demand and production, for the perfect customer satisfaction. This correlation
between primary and secondary activities aiming at a good level of service is
exemplified in Figure 01.
Miranda
et. al. (2014) consider that although transportation, inventory maintenance and
order processing are the main items contributing to the availability and
physical condition of goods and services, there is a number of other activities
that support these primary activities. They are Storage, Material Handling,
Protective Packaging, Obtainment, Products Program, information Maintenance
(BALLOU, 2014).
.
Figure 01:
Relationship between primary and support activities with the level of service
desired
Source: Ballou (2014)
Braga
and Castillo (2013) allege that in the last two decades of increasingly
systematic way, logistics has been discussed and disseminated in Brazil, just
as happens in other countries, especially the United States and Europe since
late 1980s. It is clear the association between logistics and globalization,
and so it is clear its adoption by large business organizations concerned with
better functional integration of productive chains. Logistics is establishing
itself as a real sector of the economy, industry associations and logistics
services quality certification institutions gain strength while the activity is
consolidated and diversified.
According
to Nogueira (2012), transportation is the main component of the logistics
system, because all products involve transportation from place to place, until
they are in its customers’ hands. Transportation activity allows several
traffic routes combinations, each of them with particular performance
characteristics. The choices of transport have a strong impact on the
responsibility and supply chain efficiency. Transportation plays a major role
in the quality of logistics services, as it affects directly on delivery time,
reliability and product safety.
Modal
logistics are the transportation means used to ensure the flow of materials.
According to Vitorino (2013, p. 13), each kind of transportation offers a
different combination of speed, cost, availability and capacity. Salgado (2013,
p.82) states that the modals used to make a delivery can be: a) road - the
charge is carried by road in trucks, etc; b) rail - the charge is carried by
rail in boxcars, platforms, etc.; c) Waterway - the charge is carried in ships
across the seas, oceans, rivers, lakes or ponds; d) air - the charge is
transported in airplanes through the airspace; e) pipeline - always in the form
of dry bulk, liquid or gaseous - the charge is transported through pipelines.
According
to Souza and Markoski (2012) our country suffers from the format that was
thought many years ago, through incentives for car companies which participated
in the exploration of a single transportation means, coincidentally the second
most expensive, the road transportation. Brazil follows a cast format, which
works channeled in an area prone balancing with the new logistics operations
promoted by logistics operators that constantly seek the integration of
different means of transportation, aiming at a more efficient transportation
management with lower costs.
In
a country with continental dimensions like Brazil, the market's main target is
to generate the lowest possible cost to maintaining the sustainability of
productive activities (MINADEO, 2012).
Vasconcelos
and Marins (2008) argue that with intensified competition and the increasing
scope of global markets, organizations have realized the failure to improve
only internal performance, and with it ,the need for the entire chain in which
they are inserted become competitive and integrated. To this end, the links
involved should explore all of their abilities in the pursuit of superior
performance, because competition no longer occurs among companies, but among
chains (SOUZA; LEMOS; ZORZO, 2014).
With
the logistics participating in different parts of commodity production chain,
it presents significant costs that, if well managed, positively alter the level
of competitiveness of enterprises. So, we need to assess these added costs
seeking the real importance of their participation in the constitution of
logistics costs, so that it is possible to make a decision (PINK; OLIVEIRA,
2010).
Thus
it is easy to see that management costs are one of the factors capable of
providing competitiveness directly to the organization, either through the
production of goods and/or provision of services with costs lower than those
which competitors can manage (PIANA; ERDMANN, 2011).
For
Christopher (2007), the source of competitive advantage of a company happens
first by the ability to differ themselves from the others and, subsequently, to
operate with lower costs. Also in this line Lopes et. al. (2013) refutes that
it is not only controlling costs, these should be quantified so they can be
properly managed.
Souza
and Pires (2014) very the verification problems about logistics management
costs by summing them up in: knowledge lack about real costs, listing of a high
aggregation degree costs, and use of assessment systems based on overall costs.
For
Lunkes and Canny (2012), the understanding of cost concepts are essential for
any company that aims to take a correct decision regarding business
opportunities. Also in this context, Kaminski (2004) corroborates exemplifying
that management of logistics costs is useful for assisting the correct
resources allocation, stock control, decisions on outsourcing, costs and level
of service, bottlenecks elimination, system performance evaluation and
improvement of processes.
3. METHODOLOGY
This
work has its methodology based on two different stages. The first one consists
in the literature review, in order to base all content here discussed, and thus
provide, clearly, an understanding on factors related to logistics processes of
the studied company that, for ethical reasons, from now on it will be referred
to as company X.
The
second part is the case study. Gil (1995) cited by Ventura (2007) infers that
the case study does not accept a hard route for its delimitation because each
situation has its uniqueness, but it is possible to set four distinct phases
that normally structures this kind of study: a) case delimitation; b) data
collection; c) data selection, analysis and interpretation and d) report
writing.
Ventura
(2007) explains these stages as follows. The first stage is to define the
object of study, from the areas to be studied effectively to the selection of
data necessary for the understanding. The second phase is data collection itself,
made by quantitative and qualitative methods defined in the previous step. Such
methods may include observation, analysis of documents, interviews,
questionnaires, data collection, etc. The third step is the understanding, i.e.,
represents data selection, analysis and interpretation. Finally, the fourth
stage is where the study ends up with the development of partial and/or final
reports.
For
this author, the main advantages and applications of case study are for
exploratory research because its flexibility is recommended in the preliminary
stages of research, especially in complex subjects, which helps in building
hypotheses or reformulation of the problem. This flexibility also favors the
study to reach deeper aspects of the problem.
This
study will confront a company X database, concerning the period from April to
September 2014, where the process of hiring transportation service was held
individually with the best cost for hiring a large number of deliveries. This
confrontation will determine which fleet management policy is more efficient
from a financial point of view. To this end, the theoretical study on the
subject discusses the relevant aspects in the management process. Employees
responsible for the delivery management were interviewed in order to generate
data about the company and processes
4. CASE STUDY
The
Industry and Commerce X, which operates in the personal and collective
protective equipment segment (PPE and CPE, respectively) has its headquarter in
the East Zone of São Paulo, with 2500m² and plant unit in Santa Catarina, with
about 400 employees and three Distribution Centers serving the whole national
territory.
It
was founded in 1966 with the uniforms and professional clothing factory. In the
1990s, it started to produce PPEs, and later, protective equipment for work on
energized and confined network spaces, always investing in the latest
technology and having a team of highly skilled professionals, this way becoming
a reference in the segment and gaining renowned customers nationwide. Company X
has achieved a range of about 10,000 items that meet the most stringent current
regulations, such as NR10, NR18 and NR33 and is recognized in the market due to
its safety and reliability.
4.2.1. Stock And Services Level
It
is of common sense that when the topic is stock control, with respect to the
optimal amounts to be maintained, there is controversy because the decision
must take into account the financial aspect and the physical space that each
company has available for stocking products when it occurs in its own
facilities, such as the company X.
On
the one hand, to maintain high stock levels beyond the necessary brings the
need for a cash amount stored too, without immediate turnover and without the
advantages of applying the value in a financially profitable option, for
example.
On
the other hand, not keeping stocks may - in addition to possibly cause
bottlenecks in production - generate slowness in sales process and in revenues,
and delays in meeting the customer needs.
According
to Ballou (2014) the storage of goods predicting its future use requires
investment by the organization. Ideally, the perfect synchronization between
supply and demand, in order to make the maintenance of unnecessary stock.
Considering
the above aspects, the ideal is to have a middle ground, ie, a minimal stock
preparation that meets the needs of a specific period, without keeping
impressive amounts stocked, what ends up becoming "idle" for a
certain period in which that raw material and/or product will not be needed.
To
calculate the point of functional minimum stock, computerized tools appropriate
to planning, involving sales, PCP, production and turnovers are necessary. It
is also very important the optimization process of stocks, analysis of the
items consumption history, and midpoint of sales, given that the current
situation of most industries is uncertain. The company makes use of DataSul
production and logistics management system.
Company
X prioritizes the quick service to the main clients, agility from the customer
order, until the time this gets his purchase. For this to occur, the company
hires carriers practically for every order without fractionate the charge or
dilute it.
Currently,
for not having so many delays in orders deliveries, company X also maintains a
stock level considered high based on the purchase history of each customer,
which can meet most of the requests immediately. Based on the report and on ABC
curve analysis, customers that generate higher profitability have priority,
with almost immediate delivery.
Other
customers are engaged in the production list and when the company do not serve
them immediately, they can do it within an average of 15 days, time required for
the invoice of the items are missing or not enough in stock to make the orders.
Special items with low sales history are in the store only for simple orders,
and the customer is aware that these products will have a longer delivery time,
so storage space is increased to keep only the most consumed items.
Figure
2 illustrates a comparison of delivery deadlines in relation to total
deliveries in the trimester August to October 2014, and points out that even
conducting strategic analysis and counting on a team of 12 trained
professionals in the planning department, it is not possible yet to get a
minimum safety stock so that there are no blockages in the production and,
consequently, delays in delivery deadlines.
Figure 2: Delivery deadlines
4.2.2. Transportation
In
the logistics chain transportation essentially important, since logistics is a
process that includes criterions planning so that products/services are
available where and when needed, satisfying its users (customers).
The
management of third-party-contracted transportation function is different from
the movement performed by own fleet. For contracted services, negotiation of
freight, documentation, audit and consolidation of freight are relevant issues.
For the own transportation, dispatch, charge balancing and routing are other
issues that must be managed. Often the traffic manager must deal with a mix of
own transportation and third party ones. (BALLOU, 2014).
Logistics
process involves all stages, from procurement of materials to final product
delivery, production, storage, distribution and transportation. The ideal thing
is that this process occurs naturally, without interruptions or bottlenecks. In
the case of company X, the random way to work with third-party deliveries,
causes some wear on service levels and, especially, in drafting freight routes,
which impacts directly on the supply chain development.
Serving
the internal market and distributing its products throughout the national
territory, Industry and Trade X has a small own fleet of eight vehicles that
are used for emergency services in the company's work routine, not only for
supplies, but also for emergency raw materials removal, products in service
(reverse logistics) alike ones, in neighboring towns.
The
company's policy is to divide delivery costs in upper and lower than R$
2,000.00, however there are no rules for hiring freight, always performing
quotes delivery by delivery. This method ends up raising the cost since it does
not have the advantage of scale contract, which naturally, conforming to market
rules, would decrease cost. Company X performs quotations among the 38
companies registered, the lowest price takes the service, and it is common
practice the correlation one invoice/one delivery.
The
company practices the CIF delivery model, which is an acronym for Cost,
Insurance and Freight. In this type of freight, the supplier is responsible for
all costs and risks to goods delivery, including insurance and freight. This
responsibility ends when the goods arrive at the destination point designated
by the buyer.
Deliveries
of invoices lower than R$ 2,000.00, despite being laborious due to the large
volume and lesser profit offered due to financial figures, have strategic
importance in maintaining customer portfolio. Considering these circumstances,
it is up to company X seek a better way to manage this service.
The
number of customers served by the company in the period from April to September
2014 was 698. This case study will focus on the 10 main customers which
represent only 1.43% of all companies served, having a semester revenue of R$
15,523,165.24 from the total R$ 40,422,899.20. The number of deliveries of this
group is 1,615 from the total 4,241, of these, 624 deliveries are values lower
than R$ 2,000.00 from a total the 1710 services in these conditions. The
Delivery Total Cost (CTE) is R$ 756,278.37, however, the 10 main customers
group accounts for R$ 316,000.32 of this expenditure, as pointed Table 01: Data
from April to September 2014.
Table 01: Data from April to September
2014
CLIENTS |
TOTAL VALUE OF
INVOICES |
AMOUNT OF INVOICES LOWER THAN < R$ 2000,00 |
TOTAL AMOUNT OF
INVOINCES |
TOTAL
COSTS OF DELIVERIES |
Client
A – Petroleum |
R$ 7.557.173,09 |
142 |
432 |
R$ 124.352,87 |
Cliente
B – Metallurgy |
R$ 1.610.724,87 |
32 |
156 |
R$ 18.543,92 |
Client
C – Telecommunication |
R$ 1.568.373,77 |
11 |
77 |
R$ 33.466,39 |
Client
D – Technology |
R$ 832.749,12 |
17 |
140 |
R$ 47.135,16 |
Ciente
E - Electric Power |
R$ 811.962,31 |
7 |
41 |
R$ 8.144,29 |
Client F - IPE´s e CPE´s |
R$ 793.858,24 |
21 |
59 |
R$ 9.250,44 |
Client
G – Food Industry |
R$ 790.868,98 |
113 |
233 |
R$ 28.557,57 |
Client
H – Gas |
R$ 547.116,99 |
51 |
128 |
R$ 17.481,35 |
Client
I – Beverage Industry |
R$ 535.323,36 |
221 |
324 |
R$ 23.246,74 |
Client
J - Electric Power |
R$ 475.014,51 |
9 |
25 |
R$ 5.821,59 |
Top
10 clients |
R$ 15.523.165,24 |
624 |
1.615 |
R$ 316.000,32 |
OTHERS
688 CLIENTS |
R$ 24.899.733,96 |
1.086 |
2.626 |
R$ 440.278,05 |
TOTAL |
R$ 40.422.899,20 |
1.710 |
4.241 |
R$ 756.278,37 |
The 10 main customers
represent 38.40% of total sales, with the average percentage 2.04% of freight
cost in relation to the invoiced against an average percentage of 1.77% of the
remaining 688. In relation to the Delivery Total Costal (CTE), the main companies
represent 41.78% of total expenditure, a fact that illustrates how improvements
on this small group servings processes can represent great savings in
transportation. Invoices lower than R$ 2,000.00 are approximately 38.64%, as
shown in Table 02: Analysis of data from April to September 2014.
Table 02: Analysis of data from April to
September 2014.
CLIENTS |
% COMPARED TO TOTAL
INVOICED |
% OF FREIGHT IN RELATION TO TOTAL INVOICED |
% FREIGHT IN RELATION TO THE VALUE OF THE TOTAL COST OF DELIVERY |
% OF INVOICES LOWER THAN R$ 2000 |
Client
A – Petroleum |
18,70% |
1,65% |
16,44% |
32,87% |
Cliente
B – Metallurgy |
3,98% |
1,15% |
2,45% |
20,51% |
Client
C – Telecommunication |
3,88% |
2,13% |
4,43% |
14,29% |
Client
D – Technology |
2,06% |
5,66% |
6,23% |
12,14% |
Ciente
E - Electric Power |
2,01% |
1,00% |
1,08% |
17,07% |
Client F - IPE´s e CPE´s |
1,96% |
1,17% |
1,22% |
35,59% |
Client
G – Food Industry |
1,96% |
3,61% |
3,78% |
48,50% |
Client
H – Gas |
1,35% |
3,20% |
2,31% |
39,84% |
Client
I – Beverage Industry |
1,32% |
4,34% |
3,07% |
68,21% |
Client
J - Electric Power |
1,18% |
1,23% |
0,77% |
36,00% |
Top
10 clients |
38,40% |
2,04% |
41,78% |
38,64% |
OTHERS
688 CLIENTS |
61,60% |
1,77% |
58,22% |
41,36% |
TOTAL |
100% |
1,87% |
100% |
Source:
Direct survey (2015)
The company serves
throughout the country, however, the 10 companies object of this study do not
order deliveries only in the states of Tocantins, Acre and Rondônia, all
located in the northern region. As the cost of freight is correlated, in
addition to weight and volume, distanced, there will not be the need to deliver
low values in these states. This represents a simplification in the process.
Most major customers need servings in many states, as shown in Table 03:
Locations served from April to September 2014.
Table 03: Locations served between April
and September 2014
CLIENTS |
STATES ASSISTED |
REGIONS ASSISTED |
Client
A – Petroleum |
15 |
4 |
Client
B – Metallurgy |
4 |
2 |
Client
C – Telecommunication |
15 |
3 |
Client
D – Technology |
1 |
1 |
Client
E - Electric Power |
2 |
1 |
Client F - IPE´s e CPE´s |
6 |
4 |
Client
G – Food Industry |
10 |
4 |
Client
H – Gas |
10 |
3 |
Client
I – Beverage Industry |
19 |
5 |
Client
J - Electric Power |
1 |
1 |
Top
10 clients |
24 |
5 |
OTHERS
688 CLIENTS |
27 |
5 |
TOTAL
|
|
|
Table 04: Descriptive
from April to September 2014 presents data concerning to invoices lower than R$
2,000.00. The amount of invoices in these conditions is 1,710, which represents
a percentage of 40.32% of the total, but represents only 3.46% of the revenue
with R$ 1,400,564.80. Delivery Total Cost is R$ 756,278.37 and the CTE of
invoices lower than R$ 2,000.00 is R$ 138,360.30 generating a representation of
18.29% of these expenses.
The
CTE percentage of invoices lower than R$ 2,000.00 is very high, especially when
compared to its financial representatives. The Average Delivery Total Cost for
invoices lower than R$ 2,000.00 during the studied period was R$ 80.91, this
value will be the reference to propose the impasse solution of the costs
reduction in the next sessions of this course completion work.
Table 04: Descriptive from April to
September 2014
DESCRITIVO
DE ABRIL À SETEMBRO |
TOTAL |
Amount
of invoices |
4241 |
Total
Value of Invoices |
R$
40.422.899,20 |
Total
Cost of Delivery |
R$ 756.278,37 |
Amount of Invoices Lower than R$ 2000,00 |
1710 |
Total value of Invoices Lower than R$ 2000,00 |
R$ 1.400.564,80 |
Total Cost of Delivery for Invoices Lower than R$
2000,00 |
R$ 138.360,30 |
Invoices
Lower than R$ 2000,00 (%) |
40,32% |
Representativeness of invoices lower than R$
2,000.00 in the billing |
3,46% |
Representativeness of the total cost of
delivery with lower invoices than R$ 2,000.00 |
18,29% |
Total cost of delivery with lower
invoices than R$ 2,000.00 |
R$ 80,91 |
Average value of the lower Invoices to R
$ 2,000.00 |
R$ 819,04 |
Source:
Direct survey (2015)
5. ACTION PROPOSAL FOR DELIVERIES COST REDUCTION OF
INVOICES LOWER THAN R$ 2,000.00
Based
on the absence of a more effective policy for hiring transportation, the
rationalization process will generate significant cost savings and,
consequently, increase the company's profit.
During
the studied period, there were 38 suppliers in the register of service
providers who participated in the prices every time there was delivery,
generating 4,241 total quotations, 1710 quotations of invoices lower than R$
2,000.00, of these, 624 represented the 10 largest customers group.
The
project should start as a pilot to meet the 10 largest customers. The proposal
to improve the costs is negotiating with carriers making deals with freight
values for a considerable amount of deliveries, gaining in scale economy.
In
order to project the demand to provide the basis for the negotiation of a new
transportation management model, it will be used the reference value for the
contract to delivery service providing to 500 freight in six months. Although
the demand was 624deliveries during the period used as reference, it is safer
to use a lower basis and if it exceeds the goal, the amounts to be paid will be
already calculated.
The
aim is to deal with just one carrier to perform the service of the 10 largest
customers, so it is possible to keep a closer relationship with this supplier,
it will facilitate charges traceability and the expectation of improving the
relationship with end customers.
Assuming
that the values of deliveries will be traded only once every six months,
besides savings generated by rationalization, there will be a considerable
decrease in the acquisition cost of that service.
The
10 largest customers have delivery addresses in 24 states, in all regions,
totaling 417 addresses, 94 in capital and 323 in the inner cities as shown in
Table 05. The Southeast and South have the highest shares, 58.27% and 23.50%
respectively totaling 81.77% of delivery addresses.
Due
to the high-added value of protective equipment, a small volume of items
generates a high invoice, for instance, a pair of safety gloves para-aramid
costs R$ 56.80, with an average weight of 480 grams, is sold in 50cm X 50cm X
boxes 50com, with 35 units, with the final value of R$ 1,988.00 and weighing
16.8 kg.
To
simulate this, average loads will have as average invoice value R$ 1,000.00 and
average weight of 20 kg. It is noteworthy that in sales history there are
several invoices lower than R$ 50.00 and the average value of invoices lower
than R$ 2,000.00 is R$ 819.04, which makes these parameters very assertive for
the following projections .
After
requesting quotations with some companies, the purpose contained in Table 05
was obtained for carrying out deliveries in all states needed to meet the 10
largest customers. The table shows the freight costs having as reference a 20kg
load that costs R$ 1,000.00.
Although
there is a limitation not to be available the exact location of the destination
of all deliveries lower than R2,000.00, it is possible to infer that because of
81.77% of deliveries addresses are concentrated in the southeastern and
southern regions, these ratios should be maintained in carrying out cost
projections.
Table 05: Delivery addresses of the 10
largest customers
proportions between the delivery addresses |
|||||||
Region |
State |
Address for deliveries |
State's capital |
Countryside of state |
Address for deliveries |
State's capital |
Countryside of state |
central West |
GO |
11 |
1 |
10 |
2,64% |
0,24% |
2,40% |
central West |
MT |
8 |
1 |
7 |
1,92% |
0,24% |
1,68% |
central West |
MS |
7 |
2 |
5 |
1,68% |
0,48% |
1,20% |
central West |
DF |
2 |
2 |
0 |
0,48% |
0,48% |
0,00% |
subtotal central West |
|
28 |
6 |
22 |
6,71% |
1,44% |
5,28% |
northeast |
BA |
12 |
4 |
8 |
2,88% |
0,96% |
1,92% |
northeast |
RN |
6 |
3 |
3 |
1,44% |
0,72% |
0,72% |
northeast |
PE |
5 |
0 |
5 |
1,20% |
0,00% |
1,20% |
northeast |
CE |
4 |
3 |
1 |
0,96% |
0,72% |
0,24% |
northeast |
SE |
4 |
3 |
1 |
0,96% |
0,72% |
0,24% |
northeast |
MA |
3 |
3 |
0 |
0,72% |
0,72% |
0,00% |
northeast |
AL |
2 |
1 |
1 |
0,48% |
0,24% |
0,24% |
northeast |
PB |
2 |
1 |
1 |
0,48% |
0,24% |
0,24% |
northeast |
PI |
1 |
1 |
0 |
0,24% |
0,24% |
0,00% |
subtotal nordeste |
|
39 |
19 |
20 |
9,35% |
4,56% |
4,80% |
North |
AM |
4 |
3 |
1 |
0,96% |
0,72% |
0,24% |
North |
PA |
3 |
1 |
2 |
0,72% |
0,24% |
0,48% |
North |
AP |
1 |
1 |
0 |
0,24% |
0,24% |
0,00% |
North |
RR |
1 |
1 |
0 |
0,24% |
0,24% |
0,00% |
subtotal North |
|
9 |
6 |
3 |
2,16% |
1,44% |
0,72% |
Southeast |
SP |
190 |
43 |
147 |
45,56% |
10,31% |
35,25% |
Southeast |
MG |
22 |
3 |
19 |
5,28% |
0,72% |
4,56% |
Southeast |
RJ |
22 |
9 |
13 |
5,28% |
2,16% |
3,12% |
Southeast |
ES |
9 |
2 |
7 |
2,16% |
0,48% |
1,68% |
subtotal southeast |
|
243 |
57 |
186 |
58,27% |
13,67% |
44,60% |
South |
RS |
44 |
3 |
41 |
10,55% |
0,72% |
9,83% |
South |
SC |
30 |
0 |
30 |
7,19% |
0,00% |
7,19% |
South |
PR |
24 |
3 |
21 |
5,76% |
0,72% |
5,04% |
subtotal South |
|
98 |
6 |
92 |
23,50% |
1,44% |
22,06% |
total |
|
417 |
94 |
323 |
100,00% |
22,54% |
77,46% |
Table 06: Cost of hired freights
Destination |
Value per kg |
Ad valorem on value invoices (%) |
minimum weight 20kg |
SP - State's capital |
R$ 0,93 |
0,46 |
R$ 23,22 |
SP - Countryside |
R$ 0,75 |
0,20 |
R$ 16,95 |
AL - State's capital |
R$ 1,72 |
0,50 |
R$ 39,31 |
AL - Countryside |
R$ 1,89 |
0,50 |
R$ 42,74 |
AM - State's capital |
R$ 2,62 |
1,00 |
R$ 62,40 |
AM - Countryside |
R$ 4,19 |
1,00 |
R$ 93,84 |
AP - State's capital |
R$ 3,90 |
1,14 |
R$ 89,40 |
AP - Countryside |
R$ 5,26 |
3,14 |
R$ 136,70 |
BA - State's capital |
R$ 1,47 |
0,39 |
R$ 33,25 |
BA - Countryside |
R$ 1,61 |
0,39 |
R$ 36,18 |
CE - State's capital |
R$ 2,10 |
0,50 |
R$ 46,98 |
CE - Countryside |
R$ 3,36 |
0,50 |
R$ 72,17 |
DF - State's capital |
R$ 1,21 |
0,39 |
R$ 28,18 |
ES - State's capital |
R$ 0,94 |
0,30 |
R$ 21,77 |
ES - Countryside |
R$ 1,13 |
0,30 |
R$ 25,53 |
GO - State's capital |
R$ 1,19 |
0,39 |
R$ 27,63 |
GO - Countryside |
R$ 1,66 |
0,39 |
R$ 37,13 |
MA - State's capital |
R$ 1,94 |
0,50 |
R$ 43,77 |
MA - Countryside |
R$ 3,10 |
0,50 |
R$ 67,03 |
MG - State's capital |
R$ 0,85 |
0,30 |
R$ 20,04 |
MG - Countryside |
R$ 0,94 |
0,30 |
R$ 21,74 |
MS - State's capital |
R$ 1,23 |
0,39 |
R$ 28,56 |
MS - Countryside |
R$ 1,73 |
0,39 |
R$ 38,42 |
MT - State's capital |
R$ 1,38 |
0,39 |
R$ 31,53 |
MT - Countryside |
R$ 1,38 |
0,39 |
R$ 31,53 |
PA - State's capital |
R$ 2,28 |
0,91 |
R$ 54,76 |
PA - Countryside |
R$ 3,65 |
0,91 |
R$ 82,16 |
PB - State's capital |
R$ 1,88 |
0,50 |
R$ 42,53 |
PB - Countryside |
R$ 3,00 |
0,50 |
R$ 65,04 |
PE - State's capital |
R$ 1,88 |
0,50 |
R$ 42,53 |
PE - Countryside |
R$ 2,81 |
0,50 |
R$ 61,29 |
PI - State's capital |
R$ 1,94 |
0,50 |
R$ 43,77 |
PI - Countryside |
R$ 3,10 |
0,50 |
R$ 67,03 |
PR - State's capital |
R$ 0,82 |
0,30 |
R$ 19,50 |
PR - Countryside |
R$ 0,91 |
0,30 |
R$ 21,15 |
RJ - State's capital |
R$ 1,27 |
0,57 |
R$ 31,08 |
RJ - Countryside |
R$ 0,90 |
0,30 |
R$ 21,02 |
RN - State's capital |
R$ 1,94 |
0,50 |
R$ 43,77 |
RN - Countryside |
R$ 3,30 |
0,50 |
R$ 70,90 |
RR - State's capital |
R$ 2,82 |
1,00 |
R$ 66,44 |
RR - Countryside |
R$ 4,52 |
1,00 |
R$ 100,31 |
RS - State's capital |
R$ 0,95 |
0,30 |
R$ 21,93 |
RS - Countryside |
R$ 1,04 |
0,30 |
R$ 23,82 |
SC - State's capital |
R$ 0,86 |
0,30 |
R$ 20,27 |
SC - Countryside |
R$ 1,04 |
0,30 |
R$ 23,73 |
SE - State's capital |
R$ 1,59 |
0,50 |
R$ 36,84 |
SE - Countryside |
R$ 2,39 |
0,50 |
R$ 52,75 |
Average freight |
R$ 45,29. |
Having
as calculation reference the cost table of contracted freight it is possible to
calculate directly the average freight cost in R$ 45.29. Using the same table
it is practicable to calculate a standard deviation of R$ 25.63, which will
lead to an upper limit of R $ 70.91 and a lesser limit of R$ 19.66.
After
rationalizing the freight acquisition, a decrease of 44% in the CTE can be
noted, as shown below:
Table 07: Average cost percentage variance
Average cost for deliveries with lower invoices than
R$ 2,000.00 from April to September 2014 |
Average cost for deliveries with lower invoices than
R$ 2,000.00, using this work proposal |
cost variation (%) |
R$ 80,81 |
R$ 45,29 |
-44% |
As shown in Table 08: CTE
financial variance of the 10 greatest clients, it is possible to observe the
drastic drop in CTE projected on the 10 greatest clients, from R$ 50,425.44 to
R $ 28,260.60, generating direct savings of R$ 22,164.84.
Table 08: CTE financial variance of the 10
greatest clients
Delivery of invoices with lower values than R $
2,000.00 |
Average cost of delivery with lower invoices than R$
2,000. (From
April to September 2014) |
Average cost of delivery with lower invoices than R
$ 2,000. (Using
this work proposal) |
Total cost of delivery with lower invoices than R$
2,000.00 for the top 10 largest clients. (From April to
September 2014) |
Total cost of delivery with lower invoices than R$
2,000.00 for the top 10 largest clients. (Using this work
proposal) |
Financial benefits |
624 |
R$ 80,81 |
R$ 45,29 |
R$50.425,44 |
R$ 28.260,60 |
R$22.164,84 |
When comparing total
deliveries with invoices lower than R$ 2,000.00 the differences are even more
robust: CTE falls from R$ 138,185.10 to R$ 77,444.91, generating savings of R$
60,740 19.
In
another comparative analysis with the saved value of R$ 60,740.19 it is
possible to make 1,341 deliveries based on the Delivery Average Total Cost of
R$ 45.29. This cost reduction, in addition to generating financial results, can
also generate level service offers improvement because of the new baseline of
more affordable costs.
Table 09: CTE financial variance of all
clients
Delivery of invoices with lower values than R $
2,000.00 |
Average cost for deliveries with lower invoices of
R$ 2,000.00. (From
April to September 2014) |
Average cost for deliveries with lower invoices of
R$ 2,000.00. (Using
this work proposal) |
Total cost of deliveries with lower invoices R $
2,000.00 (From April to September 2014) |
Total cost of deliveries with lower invoices R $
2,000.00 (Using this work proposal) |
Financial
benefits |
1710 |
R$
80,81 |
R$
45,29 |
R$ 138.185,10 |
R$ 77.444,91 |
R$
60.740,19 |
Another important
aspect is the freight weight on the final cost of the product. The average
value of invoices lower than R$ 2,000.00 is R$ 819.04 and the average delivery
cost is R$ 80.91, representing 9.88% of the total cost. In case of adopting the
new strategy and the average transport cost falls to R$ 45.29, this cost will
amount to only 5.53% of the average cost of invoices lower than R$ 2,000.00.
Representing a decrease of 44.03% of the overall transportation costs of this
category of deliveries.
6. FINAL REMARKS
Due
to the way company X performs delivery procedures, with no control or logistics
alignment, randomly hiring freight and, on many occasions, doing several
deliveries to the same customer or to the same region within a short period of
time, there is a high cost in this step of the logistics process.
This
problem can be mitigated with transports rationalization as proposed and
demonstrated earlier, since the implementation of this new working method that
includes hiring a predefined logistics partner will require it to optimize the
charges, an then to standardize services levels, bringing to cost-benefit
improvement and significant reduction on CTE for invoices lower than R$
2,000.00.
The
intention is to use this logistics strategy with all customers and for both
types of invoices (lower and higher than R$ 2,000.00), this way, with
awell-structured procedure and logistics partners adapted to the system, the
company may choose to working with closed or fractional loads, respecting the
details and peculiarities of each purchase order, being able to choose the most
advantageous way.
In
this stage of the work, it is possible to assume that the strategic alignment
between the company and the carriers will benefit other logistical steps beyond
transportation. Holding an optimized transportation system it is expected that
delays start to decrease, thereby decreasing the need for a safety stock policy
so conservative company X has.
Based
on the information and graphics presented in the study, it is concluded that
company X has great opportunities for change in its logistics management, which
can lead to improvements in its level of service and still generate significant
savings that could be reverted to other investments within the organization.
REFERENCES
BALLOU, R. H. (2014) Logistica
empresarial: transportes, administração de materiais e distribuição física.
São Paulo: Atlas.
BRAGA, V; CASTILLO, R.(2013) Tipologia
e topologia de nós logísticos no território brasileiro: uma análise dos
terminais ferroviários e das plataformas multimodais. Boletim Campineiro de
Geografia, v. 3, n. 2..
CHRISTOPHER, M. (2007) Logística
e Gerenciamento da Cadeia de Suprimentos: criando redes que agregam valor.
2ª ed. São Paulo: Thomson lerning.
FERRI, G. L.; CHAVES, G. L. D.; RIBEIRO, G. M. (2015) Análise e localização de centros de
armazenamento e triagem de resíduos sólidos urbanos para a rede de logística
reversa: um estudo de caso no município de São Mateus, ES. Production, v.
25, n. 1, p. 27-42, jan./mar.
KAMINSKI, L. A. (2004) Propostade
uma sistemática de avalição dos custos logísticos da distribuição física – o
caso de uma distribuidora de suprimentos industriais. Dissertação (Mestrado
em Engenharia de Produção). Universidade Federal do Rio Grande do Sul, Porto
Alegre.
LOPES, L. F. L; (2013). Uma
análise do ambiente mercadológico de uma empresa do setor mecânico sob
perspectivas de Porter. Revista de Administração da UFSM, v.6, n.1,
p.103-118, jan./mar.
LUNKES, R. J; SAGAZ, F. R. (2012) Back
to Back: Um enfoque na redução dos custos logísticos e tributários.
Sociedade, Contabilidae e Gestão. v. 7, n. 1, p.125-139.
MINADEO, R.(2012) . Inovações em
serviços: adoção do Just in Time pela rede varejista Zara. GEPROS. Gestão
da Produção, Operações e Sistemas, Ano 7, nº 1, jan-mar.
MIRANDA, R. F. Q., BEZERRA, M. R., GIGANTE, T. C., DUARTE, D. L.(2014) Impactos da utilização de sistema de
informação logístico no compartilhamento de informações na cadeia de suprimento
de sobressalentes da Marinha do Brasil. XVII Simpósio de Pesquisa
Operacional e Logística da Marinha, Blucher Marine Engineering Proceedings,
Volume 1.
OLIVEIRA, J. B.; LEITE, M. S. A.(2010) Modelo analítico de suporte à configuração e integração da cadeia de
suprimentos. Gestão da Produção, São
Carlos, v. 17, n. 3, p. 447-463.
OLIVEIRA, R. R.; (2013). Do cerrado mato-grossense para a Amazônia ocidental: os
desafios de reduzir os custos logísticos e manter o produto (açúcar)
competitivo. Revista Eletrônica de Tecnologia e Cultura, n. 13, p.
182-191, out.
PIANA, J. ERDMANN, R. H.(2011) Fatores
geradores de competitividade na manufatura: uma relação entre práticas e
resultados. Revista de Administração da UFSM, v.4, n.1, p.73-90, jan./abr.
ROSA, F; OLIVEIRA, L. A. (2010) A
importância da logística na formação de custos. Maringá Management: Revista
de Ciências Empresariais, v.7, n.1, p. 22-31, jan./jun.
SALGADO, T. T. (2013) Logística:
Práticas, técnicas e processo de melhorias. São Paulo: Editora Senac.
SANTOS, L. A. A.; BOTINHA, R. A.; LEAL, E. A. (2013) A contribuição da logística reversa de
pneumáticos para a sustentabilidade ambiental. RACE, Unoesc, v. 12, n. 2,
p. 339-370, jul./dez.
SILVA, M. E.; FIRMO, L. A.; SOUSA, I. G. (2014) Fluxo de materiais numa cadeia de suprimentos: o estudo do manuseio de
embalagens em Campina Grande – PB. INOVAE - Journal
of Engineering and Technology Innovation, São Paulo, v. 2, n. 2, p. 81-99,
mai./ago.
SILVEIRA, M. R. (2013) Infraestruturas
e logística de transportes no processo de integração econômica e territorial.
Mercator, Fortaleza, v. 12, número especial (2)., p. 41-53, set.
SOUZA, D. F.; MARKOSKI, A. (2012) A
competitividade logistica do Brasil: um estudo com base na infraestrutura
existente. Revista de Administração. FW, v. 10, n. 17.
SOUZA, F. B.; PIRES, S. R. I. (2014) Produzindo para disponibilidade: uma aplicação da Teoria das Restrições
em ambientes de produção para estoque. Gestão da Produção, São Carlos, v. 21, n. 1, p. 65-76.
SOUZA, M. A; LEMOS, L. B; ZORZO, L. S.(2014) Comércio tradicional versus comércio eletrônico: um estudo de caso sob
o olhar da gestão de custos. Sociedade, Contabilidade e Gestão. Rio de
Janeiro. v. 9. n. 2. mai./ago.
VASCONCELLOS, T. C.; MARINS, F. A. S.; JUNIOR, J. M.(2008) Implantação do método activity based
costing na logística interna de uma empresa química. Gestão da Produção,
São Carlos, v. 15, n. 2, p. 323-335, maio-ago. .
VENTURA, M. M. (2007) O Estudo de
Caso como Modalidade de Pesquisa. Revista SOCERJ. Pedagogia Médica, v. 20,
nº 5; setembro/outubro, p. 383-386.
VITORINO, C. M. (2012) Logística.
São Paulo: Pearson Prentice Hall.