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Nichakorn Jongsawadipatana
Oran Kittithreerapronchai


Because of intense competition, many manufactures have outsourced transportation to leverage capitals and focus on their core activities. Nevertheless, this may lead to an undesirable outcome, similar to a case study steel manufacturer. As one of the largest recycle steel mills in Thailand, the case study manufacturer specializes in elongated rebar steels for domestic construction. It provides a free delivery within the areas of its factories and the greater Bangkok using transportation providers. The analysis of the historical data shows that the manufacturer can save 12.97 % of its transportation expense by selecting suitable transportation providers and monitoring the shipping volume per truck. The expense comparison and the further investigation by a project team reveal improvised planning, lack of preparation, and unclear guideline as possible causes of high transportation expense. As a result, this research applies Supply Chain Operations Reference (SCOR) Model and proposes transportation capacity revision, provider selection, and default transportation provider of each route. After the implementation, the manufacturer can reduce transportation rate to 17.97 Baths/ton or 3.54 million Baths/month and reduce 0.29 day of truck-booking lead time.


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