Supply Chain

International Freight Management

Current Logistics Processes

To achieve savings, TCC will order in large bulk to be delivered to the warehouse. When shipping in bulk, economics of scale can be achieve when ordering and shipping because it can ship in full container load. The warehouse will act as a distribution centre. Higher efficiency is achieved because they do not have to make separate shipments. Milk run is used in their current logistics process which involves the delivering of different products from different suppliers to the various outlets. One truck would be utilized to to conduct deliveries in a round trip We will be looking at the different areas on how TCC has improved their logistics processes.

Transportation of goods

Previously, there is no warehouse to consolidate the goods. With the changed system, milk run is used. The goods will be consolidated at the warehouse before delivering out to the outlets. TCC will first order the goods required from the suppliers. The suppliers of the various products will then deliver the goods to TCC’s warehouse. The warehouse personnel will then sort out the goods and arrange them in the respective location which is dedicated to each product based on category such as perishable food, ingredients for cooking and dry goods. The orders will arrive from the outlets into the computer system. The orders will be picked and pack by the warehouse personnel and transported to the respective outlet on the selected days.

As compared to direct shipment, milk run is able to fully utilize the trucks reducing transportation costs and can efficiently control inventory. As an outlet may only need a small amount of a few products they can be delivered with just one full delivery without having a few orders to be sent with large amounts. Operations cost can also be reduced as lesser mistakes will be made.

Distribution to outlets

TCC outlets are able placed their orders through the main/central system in which the warehouse...