Inbound Transportation Cost Savings When Node Added to Distribution Network Identified Through Post Hoc Bid Analysis
Open Access
Author:
Whitman, Joseph
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Dr. Robert Alexander Novack, Thesis Supervisor John C Spychalski, Thesis Honors Advisor
Keywords:
Inbound Transportation Supply Chain Network Design Value Chain Inbound Transportation
Abstract:
Supply chains are not static beings. Companies change every year and their requirements change with them. As companies look to expand their network to enter a new geographical market, they have placed a great focus on how the additional node will impact transportation costs. A variety of frameworks and tactics exist to identify outbound cost savings potential, but neglect the impact on inbound freight. This thesis will seek to fill that void by demonstrating a methodology on how to understand inbound freight impact and a post hoc cost analysis from the shipment data of a mid-sized grocer. Through the utilization of the methodology presented in this thesis, the mid-sized grocer mentioned above was able to see significant cost savings. The methodology presented is also transferable to other companies and industries. The thesis concludes with recommendation for future research including better supplier information database, incorporation of accessorial charges, and implementation of backhauls to achieve greater economic returns.
