Keywords: inbound logistics, vehicle utilisation, textile machinery manufacturing, service providers, transport overheads
Study and suggestions on inbound logistics for vehicle utilisation: a case study
A service provider for a global textile machinery manufacturing organisation has been managing the inbound logistics operations for the subcontracted items. The payment terms is fixed with service provider such that a fixed amount is paid to it based on the vehicles utilised per day. Such kind of an agreement calls for better utilisation of vehicles in terms of running time. This paper presents some of the observations and areas of improvement for better utilisation of vehicles so that the transportation overheads for the subcontracted items are reduced.