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Outbound logistics strategies for light weight hygiene products at Svenska Cellulosa Aktiebolaget (SCA) - With a focus on lead time, distribution cost and service level

Venkat Venkataraman Aneesh ; Mitica Pecheanu
Göteborg : Chalmers tekniska högskola, 2016. 31 s. Master thesis. E - Department of Technology Management and Economics, Chalmers University of Technology, Göteborg, Sweden; E2016:098, 2016.
[Examensarbete på avancerad nivå]

The purpose of this thesis is to map and evaluate the current logistics set up for consumer goods in SCA towards the Baltic countries and to provide solutions to reduce overall distribution costs while at least preserving the current service levels and lead times. Relevant quantitative data for year 2015 were retrieved from internal data sources while qualitative data were collected through interviews, tollgate meetings and plant visits. A total of 9 factories cater to the Baltic customers, with 85% of the costs being incurred by tissue. It was observed that there were several cases of less than truck loads while transporting baby and feminine products while the tissue transportation was inefficient with 25% of truck volume being unutilized. Several opportunities were identified through a SWOT analysis and further failure analysis of the weaknesses. These opportunities were grouped and assessed objectively using a framework. The Fisher matrix was used to divide the product categories into Nokia and non-Nokia goods. The former being goods shipped from Nokia, while the latter constituting shipments from plants in Germany, Holland, Sweden, Slovakia and Poland. Scenarios were created using the identified opportunities, with a total of 5 for Nokia case and 6 for non-Nokia. These were assessed based on financial and feasibility parameters to find the best logistics setup. The most suitable logistics setup for Nokia goods is to double stack the pallets with one extra layer of products in each pallet. The most suitable setup for non-Nokia goods is to have a MW in Lithuania where all the current LTL shipments will be consolidated, while the FTLs will be shipped directly to customers. Besides reduction in distribution costs, the solutions provide improved service level to customers and reduced lead time in the non-Nokia case.

Nyckelord: Full Truck Load, Less than truck Load, Top Loading, Consolidation, Fisher Matrix, Market Warehouse, Hygiene Products, FMCG, Outbound Logistics, Baltics, Pallets.

Publikationen registrerades 2016-10-04. Den ändrades senast 2016-10-17

CPL ID: 242918

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