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Transporter selection using AHP analysis & Central

warehouse Planning
Saqibullah Choudhary1, Rohit Kapoor2, Viraj Raut3

Student M.B.A. Operations Management


Business environment is getting complex day by day. Coping with the

complexity of todays business environment is not about predicting the
future or reducing risk. Its about building the capacity, in yourself, your
people, and the organization to adapt continuously and learn speedily, in
order to maximize the chances of seizing fleeting opportunities. Today,
companies are building strategies to achieve competitive advantage. Among
these, warehousing is still unlooked as a medium to gain advantage in this
competitive environment.
In FMCG industry, there is great outward of materials having variety in
dimension, weight, packaging designs etc. A small improvement in
warehousing/logistics operations increases the turnover, increasing the
profitability of company but the constraint lies in finding these improvements
and implementing it.
Transportation cost is one of the major components of the supply chain cost.
To reduce the supply chain cost of an organization it is important to focus on
this area. Using Analytical Hierarchy Process as a tool, we evaluate the
transporters on a number of criteria and provide a framework for future
selection of transporters, which further helped us in assigning fleets to the
transporters based on their ranking.

The paper depicts the route towards warehouse operations improvement by

suggesting various improvement strategies. There are about 450 different
SKUs in Finished Goods warehouse to be dispatched. Each part is completely
studied & brainstormed and finally improvements were filtered out. These
improvements ultimately provide cost savings for the company.
Central warehouse strategy is made for the company as the drawbacks of
different warehouses are causing various problems to the organization in
terms of lead time, cost and lose of orders. Tool used for planning for central
warehouse location is Load-distance analysis