Automobile Industry’s Third Party Logistics Cost Analysis And Control Practice Under Milkrun Model

As global economic integration of the sustainable development ofthe increasingly fierce market competition, the automobile manufacturingindustry will face waves after waves of economic shock. More and morecompanies realize that not only the purchasing cost but also the operationcost should be reduce to meeting the challenging low price strategy. Asthe most important part of the whole supply chain, logistics cost becamethe emphasis of cost reduction. How to build up a appropriate logisticsmodel to help reduce the production cost is very important.The thesis stars from the of the automobile industry’s logistics andanalysis the priority of the-third-party logistics model to know the valueadding points; second, after cost comparison of the traditional logisticsmodel and milk-run model summarize the condition of successimplementation the milk-run; finally base on the cost analysis find thecost reduction on transportation and inventory sides and build up the costmodel. Together with L company’s data, define the key factors of the cost under this model which can contribute to the practice for the corporationslogistics model shift and trends.