Daily Logistics Planning With Multiple 3PLs: A Case Study in a Chemical Company

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G. Ozsakalli
D. Ozdemir
S. Ozcan
B. Sarioglu
A. Dincer

Abstract

The importance of efficient logistics management for chemical industry considered to be one of the important issues inprocess industries. Motivated from a chemical factory operating in Turkey, cost efficient daily logistics planning usingmultiple third party logistics providers (3PL) with different contracting schemes are analyzed. In order to reduceplanning time and maximize the physical vehicle capacity utilization, problem of the company is formulated as a mixedinteger mathematical model, and a two-phase solution approach is proposed. Using the real life daily shipmentrequirement data the proposed model and the solution methodology is tested. Furthermore, impact of variouscompany practices and types of different transportation pricing schemes are analyzed to better design 3PL contracts.The initial results are very promising where optimum solution for large scaled problem can be obtained in seconds andthe daily shipment planning can be updated dynamically whenever it is necessary. The analysis indicates that costsavings through holistic planning is robust to contracting schemes and specific clauses are not always needed toguarantee certain service quality. We believe that the efficiency achieved through the integration of such techniquescan become highly attractive for further applications in the industry.

 

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How to Cite
Ozsakalli, G., Ozdemir, D., Ozcan, S., Sarioglu, B., & Dincer, A. (2014). Daily Logistics Planning With Multiple 3PLs: A Case Study in a Chemical Company. Journal of Applied Research and Technology, 12(5). https://doi.org/10.1016/S1665-6423(14)70605-4