RECONFIGURING TRANSPORTATION FROM SHENZHEN TO BANGKOK

Abstract

In this case study, the focus Bangkok company imports electrical products from China via a Singapore hub and then distributes them to end customers in Thailand.  The company wants to reduce the heavy transportation cost and order lead time of this shipping route.  Quantitative methodology was used to process data.  A route optimization procedure identified the potential savings, while short interviews with supply chain managers were used to understand attitudes.  The findings indicate that dispensing with the Singapore hub would halve the lead time to seven days and reduce costs by 61%.  This proposed route also has the potential for a faster and less expensive supply chain to improve customer satisfaction.  There are some potential disadvantages, such as the possible need to re-establish the consolidation hub if the current strategy of supplier clusters is abandoned.