Research On The Optimization Of The Distribution In Changchun Lujie Logistics Co., Ltd

The market of automobile logistics has been greatly growing in China. The competition of the world logistics magnate has already begun in this field. Automobile logistics is the integrity management of modern transportation, storage, carriage, packing, distribution and logistics information. It's the communication bridge of raw material, manufacturer, dealer, logistics company and end customers.Though the market of automobile logistics has been quite mature in China, the logistics companies at each range have been developed to different level, and able to distribute within and cross the region, such companies still have such problems as management bottleneck and complex procedure. So in order to reduce the logistics cost, speed up automobile logistics development and improve the logistics service efficiency, it's become more and more significant to study and integrate logistics and realize automobile logistics rationalization and integration in the whole supply chain.This thesis takes automobile logistics service enterprise Lujie company as the study case, bring ups the procedure optimize solution through the analysis on the current situation of logistics distribution service and also the idea for logistics distribution service system integrity.Lujie logistics co.Ltd is a professional logistics distribution service company and the main customers are manufactures of FAW groups. It owns the entire automobile logistics general contract for FAW-VW car, FAW-Red flag car and Jiefang truck. It's main business includes entire automobile logistics service, car parts logistics service, packing, distribution service, railway and marine transport service and logistics technology consultation service.But current mode of logistics distribution exists insufficiency in Ningbo region, they are, A) No conformity for the suppliers source that leads to high transport cost and inventory cost. B) supplier's transport service subcontract to the transport agency that causes multi-level transport structure and inaccurate transport route and time. It's hard to trace the in-transit goods. C) Many carriers with different ability and manage level in charge of transport which is not good for communication and leads to high management cost and emergency case handle cost. D) Logistics cost is high. Supplier are short of source cost control and optimize, especial for hidden cost, they intend to reduce the observed cost while hidden cost increased. The OEM is not able to control the logistics cost structure and price, which can't be the reference of the general management.So through improving the logistics operation by source integration , management and carriage optimize, we can achieve below goals, A) improve transport efficiency, integrating source by using large size long-distance truck, which can reduce transport cost and unified management can guarantee the transport time and quality. B)improve inventory efficiency, reducing in-transit stock and safety stock and improve delivery frequency. C)improve management efficiency, reduce carriers, build up effective communication platform, deal with emergency sufficiently and unify procedure and performance examination, standardize and open the cost structure.This thesis takes Ningbo region supply logistics as the actual study case, brings up the optimizing solution after data analysis and publicizes the experience, furthermore, improves the service ability of the whole Lujie logistics. The preliminary solution is collection goods transport mode. Set up tally center in Ningbo, carry goods from suppliers to the tally center and then carry the goods with returning empty car-delivery trucks or spare parts delivery trucks to Changchun. And then distribute the goods from Changchun. Here the direct cut-in point is collect goods delivery mode, its character is keeping the supplier's transport cost unchanged, meanwhile reduce in-transit and in-stock inventory value, supplier management cost and risk cost caused by supplier unsteady quality. To reduce the transport cost when basic business reaches a certain lever and operates stably.According the new distribution mode, the total cost data analysis result is, operation unit cost is 152.7 RMB per cu.m, which is 9% down compared with current supplier unit cost 166.4 RMB per cu.m. Moreover, the management cost that takes 5.8% of the total cost will be apportioned by the new business when current business volume increased and operation stable. The main reason of unit cost down is using the large size truck as long-distance transport tools.