The Research Of X Company's Logistics Cost Improvement

The process of globalization has brought a broad space for the development of multinational enterprises,but also poses challenges for their operations.In an increasingly competitive market environment,operational efficiency is the guarantee of the competitiveness of a company.Logistics Management,as an important part of Operations Management,has developed the characteristics of network,integration,informationization in the context of globalization.X Company as a well-known multinational company in the electronics industry,is facing the plight of market saturation,and the company intends to adopt a cost-reduction initiative to improve profitability.The purpose of this study is to provide an effective solution based on the analysis of the logistics system and shipping strategy of X Company,to help it to break through the bottleneck of development.In the first part of the paper,the logistics system of X Company is analyzed from a holistic point of view.The paper introduces the basic situation of the logistics system of the company,and introduces the global network and working process of the cross-region logistics of finished products.Based on the comparison between the air and sea shipment,the paper digs into the X Company's current strategy to explore opportunities for improvement.Then the study analyzes and improves the way of air pallet delivery.Through on site investigation,researcher finds the less-than-full-load pallet phenomenon and analyzes the underlying reasons,followed by calculating the historical data of two factories which finds that the unit transportation cost of less-than-full-load pallet is significantly higher than that of full pallet.Based on the actual situation of air shipment,the study proposes to shift from pallet to “pallet + package” for the transportation improvement program,and historical data is then analyzed in depth for validation.The results show that the proposal can effectively reduce the transportation cost and bring significant cost savings for the company.Then the improvement proposal is further improved based on the defined imbalance degree analysis.Also implementation suggestions are discussed.Besides the pallet improvement,the paper puts forward other improvement strategies and improvement methods.Suggestions include four aspects for overall improvement: information integration,cooperation optimization,product analysis,shipment method improvement.Then put forward corresponding 16 kinds of improvement approaches for the company's logistics system to enhance its operation efficiency and implement cost reduction projects.Finally the paper summarizes the research results and proposes directions for future research.