CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM

Độc lập – Tự do – Hạnh phúc

Nguyễn Tất Thành University

NNT Institute International Education

FINAL REPORT OF THE INTRODUCTION PROGRAM

TO LOGISTICS AND SUPPLY CHAIN MANAGEMENT
FOR STUDENTS IN 2023
Subject name:

IMPROVING TRANSPORTATION AND WAREHOUSING

OPERATIONS FOR KIWI MILK COMPANY

Instructor: Nguyễn Vạng Phúc Nguyên

Project leader: Lê Phúc Quỳnh

Project group: Team 4

List of member
Name Student ID Evaluation of participation
1 Lê Phúc Quỳnh 2200002418 100%
2 Liêu Hoàng Hồng Anh 2200004778 100%
3 Phạm Như Ý 2200001211 100%
4 Trần Minh Kim Phụng 2200010209 100%
5 Thang Quốc Kiệt 2200006540 100%

TP. Hồ Chí Minh, ngày 03 tháng 09 năm 2023

 CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập – Tự do – Hạnh phúc

Nguyễn Tất Thành University

NNT Institute International Education

FINAL REPORT OF THE INTRODUCTION PROGRAM

TO LOGISTICS AND SUPPLY CHAIN MANAGEMENT
FOR STUDENTS IN 2023
Subject name:

IMPROVING TRANSPORTATION AND WAREHOUSING

OPERATIONS FOR KIWI MILK COMPANY

Instructor: Nguyễn Vạng Phúc Nguyên

Project leader: Lê Phúc Quỳnh

Project group: Team 4

List of member
Name Student ID Evaluation of participation
1 Lê Phúc Quỳnh 2200002418 100%
2 Liêu Hoàng Hồng Anh 2200004778 100%
3 Phạm Như Ý 2200001211 100%
4 Trần Minh Kim Phụng 2200010209 100%
5 Thang Quốc Kiệt 2200006540 100%

TP. Hồ Chí Minh, ngày 03 tháng 09 năm 2023

1
 TABLE OF CONTENTS

SLIDE COVER PAGE.........................................................................................................................1

TABLE OF CONTENTS.....................................................................................................................2

CHAPTER 1. 27INTRODUCTION.....................................................................................................3
1.1. Case study....................................................................................................................................3
1.2. Background.................................................................................................................................3
1.3. Goals............................................................................................................................................3
1.4. Objectives ...................................................................................................................................3
1.5. Report Structure and Methodology ............................................................................................3

CHAPTER 2. THEORETICAL OVERVIEW.....................................................................................5

2.1. Warehousing................................................................................................................................5
2.2. Transportation.............................................................................................................................6

CHAPTER 3. ANALYZE THE CURRENT SITUATION.................................................................8

CHAPTER 4. SOLUTIONS IMPLEMENTED.................................................................................14

4.1. Transportation.......................................................................................................................... 14
4.2. Warehousing & storage.............................................................................................................17

CHAPTER 5. RESULT......................................................................................................................23
5.1. Reduced Transportation Costs...................................................................................................23
5.2. Optimized Truckloads...............................................................................................................23
5.3. Increased Warehousing Efficiency............................................................................................23
5.4. Inventory Accuracy...................................................................................................................23

CHAPTER 6. CONCLUSION...........................................................................................................24

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 Chapter 1: Introduction
1.1 Case study: Improving Transportation and Warehousing Operations for Kiwi Milk
Company.
1.2 Background: Having the correct amount of inventory can feel overwhelming.
Working too much can actually cost you, and working too little can cost you both
money and patrons. At the same time, the company also faces difficulties in
transporting milk to sales units nationwide. These lead us to the concept of the
inventory management model and transportation. They are very important to any
company with inventory.
1.3 Goals:
Research purposes:
1. Increase transportation capacity
2. Lower the cost of transportation
3. Increase customer satisfaction
4. Workflow Optimization
5. Ensure safety and comply with the law
Research questions:
1. What advanced techniques or technologies can be applied to improve efficiency
and optimize transportation and warehousing systems?
2. How can transportation and storage be optimized to save costs and enhance the
company's competitiveness?
3. What issues are affecting the performance and efficiency of transportation and
warehousing systems?
4. What solutions has the company applied to improve this system? How was the
result?
5. What is the role of management and organization in ensuring the smooth operation
of this system?
1.4 Objectives:
1. Optimizing the transportation process:
2. Enhance storage and warehouse management capabilities
3. Increased flexibility and quick response
4. Minimizing waste and shipping costs
5. Quality assurance and goods safety
1.5 Report Structure and Methodology
1. Opening:
- Introduction to the dairy company and the rationale for research on transportation
and warehousing.
- Purpose and scope of the study.
2. Overview of shipping and warehousing of dairy companies:
- Describe the company's transportation process, from product packaging to delivery
to customers.

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- Analyze warehouse management processes, including receiving, storing and
distributing products.
3. Data analysis:
- Describe the data that has been collected, such as information on shipping
processes, shipping routes, inventory, costs, and customer feedback.
- Perform metrics analysis and analytical tools to check the effectiveness of current
shipping and warehousing processes.
4. Evaluation of effectiveness:
- Assess the problems and weaknesses of current shipping and warehousing
processes
- Identify issues such as high costs, slow delivery times, lack of process optimization,
and inefficient inventory management.
5. Proposing solutions to improve:
- Propose solutions to improve transportation and warehouse management processes.
- Comment on improving shipping processes, using technology and automation,
increasing staffing and training, and improving inventory management.
6. Implementation of solutions and evaluation:
- Describe the process of implementing the proposed solutions.
- Evaluate results and calculate efficiency metrics, e.g. reduce shipping costs,
increase on-time delivery rates and improve inventory management.
7. Conclusion:
- Summarize the main points and results of the dairy company transportation and
warehousing study.
- Give new findings or recommendations to the dairy company.
The implementation structure of a dairy company usually includes the following
steps:
1. Data collection: Collect shipping and warehousing related data, including
information on shipping processes, shipping routes, inventory, costs, and customer
feedback.
2. Analysis and evaluation: Perform data analysis to identify problems, weaknesses
and opportunities for improvement. Evaluate the effectiveness of current processes
and their advantages and limitations.
3. Proposing solutions: Based on the results of analysis and evaluation, propose
solutions to improve the transportation process and warehouse management.
4. Solution implementation: Implement proposed improvements, including
improving transportation processes, applying technology and automating
transportation and warehousing, and improving staffing and processes training.
5. Performance evaluation: Evaluate results and calculate performance indicators
after implementing solutions, to determine if objectives have been achieved and to
identify other potential problems.Through the above steps, dairy companies can
improve transportation and warehouse management processes, increase efficiency
and best meet customer needs.
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 Chapter 2: Theoretical Overview
2.1 Warehousing
Warehousing is a key component of your retail supply chain. While it's not the most
exciting topic, warehousing and inventory storage have an impact on everything from
procuring raw materials and properly managing inventory to getting orders delivered to
consumers on time.
Though storage fundamentals have not changed much throughout the years, warehousing
solutions have grown significantly.
With new technology, urbanization, and the ever-expanding world of online shopping,
storage has never been a more hotly debated issue — so much so that there is a lack of
warehouse space and on-demand warehousing is on the rise.
Logistics warehousing is at the heart of any company that sells tangible commodities.
Warehouse management, warehousing services, operations, and warehouse management
systems are only a few of the most significant aspects of warehousing logistics.
● Warehouse management
Warehouse management is the day-to-day strategic management of warehouse
operations in order to promote, enhance, and assure operational excellence.
Managing a warehouse entails monitoring all aspects of the operation, including
personnel, training, inventory, equipment, safety and security, connections with
shipping carriers, warehouse slotting, and other moving parts.
● Warehouse operations
Warehousing operations are the procedures that take place in a warehouse that
revolve on the transport of items and the tracking of inventory.
Warehousing principles include operations such as collecting inventory, then storing
each SKU in a distinct dedicated storage area (e.g., on a shelf, bin, or on a pallet),
and shipping merchandise to its next destination.

Efficient storage operations aid in the preservation of:

○ Costs are minimal

○ Inventory is received and dispatched on time
○ Staff is productive
○ Sufficient amounts of merchandise are on hand
○ Space is below capacity
○ Storage is optimized and aisles are clear
○ Customers are satisfied

● Warehouse management systems

A warehouse management system (WMS) is a type of software that offers the
capabilities required to manage warehouse operations and inventory movement in
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 order to save time and minimize manual procedures. Warehouse management
systems assist in the optimization of inventory and tracking, warehouse operations,
workload distribution, and transportation.

Raw materials, semi-finished items, tools, spare parts, and finished goods that are kept in
storage are all examples of stocked goods. The nature of the business, the types of
inventory, and the details of the planning and managing of the inventory will all influence
these factors, which is also unique. The product must go through a processing procedure for
the company- to transform the input as raw materials into the output product, hence the
inventory comprises practically all product categories. starting with raw materials, moving
through the manufacturing line's semi-finished goods, and ending with the finished item
before it is delivered to the consumer. Businesses may manage the optimal amount of orders
to keep inventory costs under control by using deterministic inventory management models,
including Economic Order Quantity (EOQ) models when filling the warehouse (and away
from the eCommerce component that is the scariest).
For the control of the stock of raw resources. The organization uses an EOQ ordering
mechanism. However, owing to the variations in each kind of material's properties, the
packaging strategy used by the manufacturer and supplier, the order cycle, the delay
between placing an order and receiving it, etc. The EOQ model cannot completely match
this ideal order quantity; additional information must come from the staff's collective
production planning department knowledge.

When there is a scarcity of raw materials during the production process or when the firm is
running promotional campaigns, the order quantity may also be influenced by the export
manager's requirements.
Since there has been a sharp rise in demand for the company. On one side, the corporation
will boost its purchases and production of raw product from homes, while on the other, it
will make significant investments in places where production operates at an industrial scale
to supply this demand.

2.2 Transportation
Using a mode of transportation to move people and things from one location to another is
considered to be a kind of transportation. Transportation is a unique physical production
business with the following key traits in the economy as a whole, the logistics sector
specifically, and supply chain management:
● Instead of being an economic process on the object of labor, the production process
in transportation has a geographical influence on the object of transport.
● Transport products are intangible since they don't have a set shape or size, don't exist
separately from the manufacturing process, and are instead created and used up
throughout that process. When the transport process is finished, the result of the
transport is likewise consumed right away (thus it may be thought of as a calculating
notion like tons, kilometers, passengers,...)
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 ● The product cannot be stored in the transport system. While other physical
production industries can produce certain products for storage to meet an unforeseen
increase in demand, in the transportation production sector, one can only plan on
storing the carrying capacity of transportation vehicles, such as storing more wagons,
locomotives, cars, etc.
Since transportation expenses make up an ever-increasing share of the overall logistics costs
that we frequently observe, transportation plays a particularly crucial role in logistics
operations and will continue to do so. As a result, the success of the business and the
organization's ability to compete in the market will be directly impacted by transportation.
Hostels are worried about the prices of both their own transportation as well as those of their
rivals due to the significance of this issue. In any organization, this is a necessary activity.
Transporting supplies and delivering goods are constant requirements. As transportation
costs vary by industry, so do their percentages. Transport expenditures, however, are a
necessary outlay regardless of how high or cheap they are. even without taking into account
the question of cost. However, transportation continues to play a crucial role: If supplies are
not delivered to the correct location and at the appropriate time, production will be
disrupted, unable to continue continuously and smoothly, and this will have major
repercussions.
Transportation has a significant impact on how an organization operates, so managers are
constantly interested in thinking about and selecting the conditions for transporting
materials and goods, modes of transport, people, etc., and transportation routes... to make
the best decisions, helping to increase the operational efficiency of the organization.
Continuing development of the Enterprise Resource Planning (ERP) System to help boost
the efficiency of the fleet and delivery drivers while fulfilling on-time delivery
commitments at wholesalers, supermarkets, and so on. To guarantee that the product reaches
the consumer in the best possible condition. The Company's transportation supply has been
upgraded and applied to manage the journeys of the Logistics Enterprise and other
transportation units by route division software, saving 1.5 hours of transportation time. daily
transfer to each Enterprise, and closely monitored by outsourced units. Furthermore, the
Company may encode and use traceability directly on the Company's ERP system for
materials acquired by numerous worldwide manufacturers to assure quality transparency.
Due to its significant effect, the logistics department must collaborate closely with the
transportation department to develop a rational and scientific transportation plan and
execute transport contracts that are free of disadvantages. In deciding on the best carrier and
the route for transportation, the logistics department will also be engaged. Additionally, the
logistics division is responsible for encouraging and monitoring the movement of
commodities; creating complaint records for lost or damaged items;...
To put it simply, rivalry exists across all sectors and professions in terms of integration. It is
no different in the transportation sector, where carriers from all over the world fight
aggressively for customers' business with high-quality services and competitive freight
prices. In these situations, the logistics department is a key player in the operation of the
company. a freight's whole journey.
7
 Chapter 3: Analyze The Current Situation
Transportation: limited understanding of transportation processes, inefficient routes
and lack of support services. Managing and coordinating transportation,
warehousing, and storage operations effectively within a logistics network is the
issue at hand. This includes the transfer of commodities from suppliers to
manufacturers, storage facilities, distribution hubs, and finally to buyers.

The following are the main difficulties in shipping, warehousing, and storage:

Designing a transportation network that is efficient, economical, and lowers costs is

known as "optimizing transportation networks." To do this, it is necessary to choose
routes, decide which forms of transportation—such as trucks, trains, ships, or
airplanes—are best, and create efficient delivery timetables.
Warehousing & storage: Disorganized design makes picking time slower,
inventory differences and the safety requirements are too strict.Planning for
warehouse capacity ensures that there is enough space to accommodate demand
while minimizing the cost of having too much inventory. This calls for precise
demand forecasts, choosing suitable warehouse sites, and maximizing storage area
use. It also entails creating effective layouts, putting in place suitable inventory
management procedures, and incorporating real-time tracking technologies.

To balance supply and demand, appropriate inventory management techniques must

be established. This entails lowering holding costs, shortening order cycle times, and
optimizing stock levels to prevent stockouts and overstock situations. Additionally, it
entails putting in place inventory management technologies that offer visibility
throughout the entire supply chain
.Reverse logistics: The management of goods returns and disposal, including reverse
transportation, warehousing, and storage. This calls for effective process
management of product recalls, repairs, and recycling. For reducing waste,
maximizing asset recovery, and assuring environmental sustainability, proper reverse
logistics management is essential.

Keeping commodities secure while they are being transported, warehoused, and
stored is known as safety and security. Included in this is safeguarding against theft,
harm, and deterioration. To reduce risks and ensure customer satisfaction, effective
security measures, monitoring systems, and regulatory compliance are crucial.
A multifaceted strategy incorporating supply chain coordination, cutting-edge
technological solutions (such warehouse management systems and transportation

8
management systems), data analytics for demand forecasting, and continuous process
improvement is needed to address these issues.

The goal is to create strategies, processes, and technologies that efficiently optimize
shipping, warehousing, and storage activities in order to boost productivity, cut costs,
increase customer service, and improve supply chain performance.

Diagnose: Managing a company's transportation and warehousing is an important

area of ensuring that supply chain and freight management are functioning
efficiently. Here are some diagnostics that can be applied to corporate logistics and
warehouse management:

● Evaluate the inventory management process and identify problems such as

unbalanced inventory, losses or deficiencies. This includes reviewing proper
ordering, inventory management, system management and solutions.
● Rule conversion prediction: Identify current tool operations to find ways to
improve efficiency and optimize delivery times. This includes evaluation
issues such as optional unit conversions, display conversions, and information
conversion management.
● Warehousing and Loading Management System Expectations: Assess the
effectiveness of the company's trucking and warehouse operations
management systems, including technologies, processes, and software
systems. This helps identify the improvements and upgrades needed to
improve manageability and tracking.
● Diagnose inventory management effectiveness: Assess current inventory
management processes and identify issues such as inventory imbalances, loss,
or scarcity. This includes reviewing ordering methods, inventory management,
system administration and finding the right solution.
● Shipping Process Diagnosis: Identify your company's current shipping process
to find opportunities to improve efficiency and optimize delivery times. This
includes evaluating issues such as carrier selection, shipping routing, and
shipping information management.
● Transportation and warehousing management system diagnosis: evaluate the
effectiveness of the company's transportation and warehousing management
system, including technology, process and software system. This helps
identify improvements and upgrades needed to improve manageability and
tracking.
● Technology diagnostics and automation: Assess how the company uses
technology and automation in transportation and warehousing management.
Look at new technologies and automation opportunities to increase efficiency
and reduce uptime.

9
● This diagnosis can be made using research methods, data analysis, employee
surveys, and customer interviews. The diagnostic results will provide
important information to suggest solutions and improvements to enhance the
performance and efficiency of transportation and warehousing management
within the company.
● Analyze the structure of the transportation network, taking into account the
forms of transportation employed, travel routes, and delivery timetables.
Identify bottlenecks, delays, or inefficiencies in the transportation process by
analyzing historical data. Analyze the vehicle usage rates, transit times, and
delivery performance.
● Cost Analysis: Perform a thorough analysis of the expenses associated with
transportation, taking into account everything from fuel prices to labor costs to
insurance and any additional taxes or tariffs. To find areas where costs could
be cut, compare these costs to industry benchmarks. Evaluate the efficiency of
various routes and types of transportation.
● Operational Efficiency: Measure key performance indicators (KPIs) like
shipping accuracy, order cycle times, and lead times to assess the operational
efficiency of transportation operations. Determine any operational stumbling
blocks or inefficiencies that affect the efficiency of delivery and customer
happiness. Take into account elements like route optimization, load
consolidation, and efficient tech tool use.
● Assessing the storage capacity of a warehouse involves looking at its layout,
storage capacity, and utilization rates. Analyze whether there is excess or
inadequate space and whether the current capacity fulfills the demand.
Examine stockout incidences and inventory turnover rates to see whether
modifications are required. To improve warehouse operations, review safety
procedures, material handling tools, and staffing levels.
● Analyze inventory management procedures, including the precision of
demand forecasting, stock levels, and order fulfillment indicators. Consider
carrying costs, obsolescence concerns, and inventory turnover rates. In order
to manage stock rotation, replenishment, and demand variability, assess the
effectiveness of the inventory control system.
● Analyze the efficiency of the current warehouse management systems
(WMS), transportation management systems (TMS), and other technology
solutions. Examine whether these technologies integrate easily and provide
reliable information for making decisions. Think about areas that could be
improved, like real-time tracking, algorithms for route optimization, and
supply chain visibility.
● Safety and Security Assessment: Examine safety procedures, legal
compliance, and security precautions used in shipping and warehousing
activities. Examine the number of incidents, the accident rate, and the worker

10
 safety procedures. Determine any security measures that may be vulnerable to
theft, damage, or illegal access.
● Relevant problems and possibilities for improvement in transportation and
warehousing operations can be found by undertaking a systematic diagnosis.
This review forms the basis for creating plans and putting them into action to
increase productivity, cut costs, and raise customer satisfaction.
● Carriage:
● 20.75% of a truck's capacity is often wasted unnecessarily.
● Routes were predetermined and could not adapt to changing demands or road
conditions.
● Static routes do not take into account changes in customer demand, which can
result in either an under- or an over-utilization of transportation resources.
When vehicles are sent out with inadequate capacity to handle an increase in
demand, underutilization happens, which results in missed delivery chances
and potential customer displeasure. Overutilization occurs when trucks are
overloaded as a result of unanticipated demand spikes, risking product damage
or exceeding legal weight restrictions.
● Increased Transit Times and Delays: Transportation operations may
experience delays and lengthier transit times if route changes aren't made in
response to traffic conditions, road closures, or construction. This may cause
delivery windows to be missed and have a detrimental effect on customer
service standards. Inefficient routes might also result in pointless detours,
which raises fuel consumption and transportation expenses.
● Higher transportation costs: Inefficient routes can result in more fuel being
used, more wear and tear on the vehicles, and longer labor hours. It is possible
to plan routes optimally, lowering mileage, fuel consumption, and overall
transportation costs, by routinely updating them in response to shifting
demand patterns and road conditions.
● Lower Customer Satisfaction: Delays in deliveries or missed time frames can
have a detrimental effect on customer satisfaction. To support their own
operations or quickly meet their needs, customers depend on on-time and
dependable deliveries. Customer dissatisfaction and possibly business loss
might occur from failing to modify routes in response to changing
circumstances.
● Driver safety is at stake if road conditions, such as bad weather or dangerous
regions, are ignored. Routes that have not been modified in light of these
conditions run the risk of causing accidents, damage to cargo, or injuries to
drivers. A safe working environment for drivers and the integrity of
transported items are maintained by making sure that routes are modified to
reflect changing road conditions.
● These issues can be solved by putting in place a dynamic route planning
system that takes shifting demand patterns, traffic situations, and road
11
 conditions into account. These systems use cutting-edge algorithms to
optimize routes and dynamically adjust them to changing conditions,
increasing transportation efficiency while lowering costs, increasing customer
happiness, and improving driver safety.
Warehouse:
● The layout of the warehouse is not optimized for the speed of items, which
results in a longer time commitment.
● Amount of time spent retrieving the object.
● The lack of a modern Warehouse Management System (WMS) causes
inventory to be discrepancies and overstock.
● Without a warehouse management system (WMS), operations frequently rely
on manual processes, such as paper-based documentation and human data
entry. These manual procedures raise the possibility of inventory level
recording errors, which could result in disparities between recorded stock and
real stock. Such errors may cause inventory to be misplaced or lost, which
may cause overstocks or stockouts.
● Lack of Real-Time Inventory Visibility: Real-Time visibility into inventory
levels, locations, and movements is a feature of contemporary WMSs.
Without this method, warehouse staff could find it difficult to precisely
monitor and locate things. Because employees might not be aware of the
inventory already on hand, this lack of visibility might result in overstocking
and wasteful replenishment orders.
● Ineffective Replenishment Processes: The likelihood of overstocking is higher
in the absence of an automated system to monitor inventory levels and initiate
replenishment orders. Manual methods of inventory control, such as recurrent
physical counts or visual inspections, take more time and are less precise,
which frequently results in overordering to prevent stockouts.
● Limited Demand Forecasting: To provide precise demand insights, a WMS
generally connects with other systems like Enterprise Resource Planning
(ERP) or demand forecasting tools. Demand forecasting gets harder without
this integration. Due to the risk of stockouts, warehouses may order too much
goods, resulting in overstocks.
● Insufficient Space consumption: By offering effective put-away and picking
procedures, a contemporary WMS optimizes space consumption. Warehouse
layout planning and inventory placement choices would not be as ideal
without such a system. Because of the insufficient organization and storage
techniques, this may result in the inefficient use of the available space and
even overstocks.
● Inefficient Inventory Control: A WMS makes it possible to use advanced
inventory control capabilities like tracking lots and batches, FIFO
management, and automated stock rotation. By guaranteeing correct inventory
rotation and reducing obsolescence, these skills aid in the prevention of
12
 overstocks. Inventory control becomes more difficult without a WMS, raising
the possibility of overstocks.
● By automating procedures, enabling real-time data capture, giving accurate
inventory visibility, and enhancing demand forecasting accuracy,
implementing a contemporary WMS helps address these issues. In order to
improve efficiency and lower costs, this reduces inventory mismatches,
prevents overstocks, and streamlines warehouse operations.

13
 Chapter 4: Solutions Implemented
Research Methods
To enhance transportation and storage, the team employed qualitative research techniques.
We held a meeting to conduct ten interviews with consumers, retail distributors in Ho Chi
Minh City, logistics experts on staff, and other interested parties.

The use of route optimization software to enhance the capacity to optimize with different
routes, boost transport efficiency, and reduce costs is supported by 7 out of 10 individuals.

For storage and warehousing, all researchers agreed to employ the “First in first out” (FIFO)
approach for the milk production model of our business. When importing and exporting,
capital must be computed immediately on the shipment for the accountant to process
information, to guarantee that overdue products are not left in inventory, to enable factory
owners to manage time restrictions by discovering defective components or packing that
need to be fixed. Providing consumers with the best dairy products while minimizing
expensive product deterioration and lowering income is all at once.

4.1. Transportations

Use route optimization software

- Implementing route optimization software's essential component

Saving money and time is a major goal for a business when organizing a delivery. Here,
route optimization software aids in determining the shortest routes between places while
still adhering to the business's specifications. Additionally, the program aids in reducing fuel
expenditures or other transportation-related expenses, making fleet deliveries more effective
than before.
Additionally, the fleet may be directed from one point to another using coordinate data and
cargo, and the route optimization software can determine the quickest path in order to
maximize efficiency, conserve fuel, and reduce vehicle wear. These elements will reduce
shipping expenses, making the entire receiving and returning of items more effective than
before.

- Aspects of the best route optimization program

It is difficult to choose the best route optimization software since businesses have several
needs that the program must be able to meet. In this post, we'll talk about the elements that

14
go into creating the best delivery optimization program, one that can boost last-mile
delivery customer happiness.

- Web-based software and systems

All technological solutions, including software for route planning, should be created on a
web platform that allows for user-specific accounts. Data is kept safe and accessible from
anywhere by being stored on the cloud. Additionally, by utilizing the system online,
customers won't need to maintain, update, or install anything on their devices, increasing
operational flexibility.
- Ability to simultaneously optimize numerous routes
Your delivery fleet consists of several trucks carrying a wide variety of orders and delivery
locations. Fleet managers must organize their vehicle fleets, designing a workable path with
the shortest travel time and lowest cost.

Therefore, the key to enabling fleet managers and drivers to perform the most effective
route planning while simultaneously offering the flexibility to amend routes and routes is
the ability to present routes in the form of a map. If the need arises, take the intended path.

- The trajectory has to be immediately optimized.

To maintain smooth and quick operations, fleet coordinators and drivers must address order
difficulties immediately. Thus, the creation of a plan using route optimization software
should just take a few minutes, freeing up dispatchers' time for other crucial responsibilities.

- Capacity to organize reports and do data analysis

An effective system offers reports to evaluate the operational profitability of the company in
addition to offering and managing ideal routes in real time. Being able to combine and
evaluate in a brief length of time will significantly aid managers' job because of the vast
amount of data that is always changing.

- Increase effectiveness while reducing expenses

When logistics companies are looking for methods to save transportation expenses, route
optimization solutions are crucial. With the help of route optimization software, everything
will be resolved automatically, especially when they have to invest a lot of money in
managing a big number of cars.

In addition, human mistake results in a variety of expenses, including delivery delays that
create uncertainty for shipping businesses. In these situations, technology will assist you in
resolving all the challenging issues by streamlining delivery routes.

Overall, speedy delivery might be one of many advantages that clients can receive from the
best route planning software, increasing customer happiness. This establishes a foundation
to assist any firm increase sales and reduce expenses.
15
Reverse logistics

- Reverse Logistics Process Model

The reverse logistics line is created for a variety of purposes, including the recall of unsold
goods for upgrading, the recall of broken goods for repair, the recovery of used goods for
partial disassembly and reuse, and the recovery and reuse of packaging.

The reverse logistics procedure is completed in the following 4 stages:

"Assembling" is the first phase in the reverse logistics process and it entails the actions
needed to gather unsold goods, flawed goods, or packaging and convey them to the location
of recovery. The product will be "Inspected" at the point of recovery through processes
including product quality inspection, product selection, and product categorization. For the
majority of commercial goods, the phase 2 results serve as a crucial and essential foundation
for choosing the subsequent step.

When a product is recalled back, firms will have a variety of options for handling it in stage
3 ("Disposal"), including (1) direct reuse or resale; (2) product recovery (repair, renew, re-
manufacture, disassembly for spare components); and (3) waste treatment (incineration or
release into the environment).

The "Redistribution" of the recovered product is the last phase. This step is the logistics
process that involves stocking, selling, and sending the goods back to the market and
delivering it to the client.
- The role of reverse logistics
The forward logistics process is streamlined via reverse logistics: Unsatisfactory items
might show up at various points of the forward logistics process. At this point, reverse
logistics can assist send these products back to the market swiftly and most efficiently.

Reverse logistics helps firms compete better by giving them a competitive edge through a
robust recall strategy that ensures consumers are happy even when they get defective goods.

Reverse logistics enables firms to cut costs: Costs for shipping, storage, recovery, repair,
and other services associated with recovered items will rise when products need to be
recovered through the reverse logistics channel. Reverse logistics expenses are thought to
make up between 3% and 15% of an enterprise's overall expenses on average. However,
businesses will save a lot of money if the reverse logistics flow is carefully planned and put
into place. For example, recycling may reduce packaging costs and save money on raw
material expenses. Use packaging often, salvage residual value from abandoned goods, and
resale goods (even if the price isn't the same as for new goods) to boost sales...

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Reverse logistics contributes to environmental protection by recovering damaged goods,
recycling them, and treating them reasonably before destroying them so as not to harm the
environment.

- Why is Reverser Logistics important?

Recall logistics is developing into a crucial component of the present and future supply
chain strategy for reasons including cost, customer happiness, and income. Many businesses
have started to consider recall logistics and develop best practices in this area. Even today,
many businesses all over the world have their recall logistics procedures ISO certified.
Recovery logistics-focused third-party logistics service providers (3PLs) have predicted a
rise in demand for this service in the future.

- The following statistics will somewhat illustrate the significance of recovery

logistics:
Between 0.5 percent and 1 percent of the US GDP is spent on recovery logistics. In 2008,
the United States' gross domestic output was $14.29 trillion.

Online retail sales in the US were 147.6 billion dollars in 2008 and are projected to be 165.9
billion dollars in 2009. The 6.3% rate of online retail product recalls, on the other hand,
varied depending on the kind of product and the season.

When feasible, 43% of consumers prefer to return items they bought online to a specific
place; 37% of online shoppers and 54% of web users avoid doing so since it's challenging to
exchange or return items.

Recovering merchandise might cost two to three times as much as sending merchandise
abroad.

- Motives behind the emergence of logistics recalls

Recalling goods that have been sold and shipped but haven't generated the projected profits.
Products that can still be downloaded, utilized, and upgraded will be recalled in accordance
with the Reverse Logistics procedure.

Businesses will be able to harness intrinsic resources to continue producing goods by

reusing and improving things. Reverse Logistics can help organizations save money in
particular on investments in new materials.

Not only that, but reverse logistics also aids in addressing the issue of market inventory that
goes unused. Recovery and reuse will assist in reusing the available fuel, preventing
resource waste, investing money, reducing waste, etc.

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 4.2. Warehousing & storage

First in first out - FIFO

- What is FIFO?
First-in, first-out inventory management is what the FIFO approach is frequently referred to
as in Vietnam. As a result, the first items (lots) that enter the warehouse will also be the first
items to be released from it. The merchandise that is left over will be the most recent
imports.

FIFO mining is not LIFO mining. Recent imports are given precedence when using LIFO.
The items in the remaining inventory are products that have been imported since the year's
beginning.

- When is the FIFO method of inventory management used?

Many warehouses utilise this technique to solve managerial problems. Only some goods are
chosen to be acceptable for FIFO, which is a management strategy that does not apply to
items. Particularly, the following components have to be chosen for the FIFO warehouse
management method:

These product categories are either readily destroyed or have a limited shelf life. a product
line with a limited lifespan of days or months.

This kind of management should be used for foods like milk and candy.

Additionally, products using current technology that are in high demand should be used.

Additionally, accessories like purses and shoes that are in style. This method of performance
management ought to be used as well.

- Benefits of FIFO warehouse management

This approach is now widely used in warehouses, particularly in the logistics industry.
Because this approach offers so many remarkable and alluring benefits, including:

● Help factory owners manage time constraints by looking for defective parts or
packaging that has to be fixed.

● Identifying, zoning, and performing corrective work on a damaged cargo also aids
warehouse operators in reducing expenses.

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 ● When the corporation removes improper, inferior items from the market, this strategy
promotes professionalism and guarantees the highest possible revenues for the
business.

● Before reaching consumers, the quality of the items is always maintained and
properly examined.

● Prevent inventory loss in the warehouse.

● When importing and exporting, figure out the capital of shipments right away so that
accountants have information to work with.

● Always be aware of the worth of the products still present in the warehouse and
present the most alluring handling options.

● Utilising the FIFO management strategy also enables companies to cut expenses in
the best possible way.

- FIFO's role in commodities management definition

In the context of commodities management, the FIFO approach is particularly pertinent. In

the area of logistics, using the FIFO approach for warehouse management:

● Eliminates the concern of time spent looking for defective parts or packing.

● Businesses can reduce waste production costs by properly zoning the damaged cargo.

● When non-conforming items are kept out of circulation, the company's earnings and
reputation are also safeguarded. The volume of items sold afterwards will directly
depend on the afflicted company's brand.

● Supplying consumers with the highest quality products possible while preventing
costly product damage and lowering sales.

3PL Outsourcing
- What is 3PL concept?
Third Party Logistics, or 3PL as it is known in Vietnamese, is the acronym for the term
"Third Party Logistics".

Simply put, companies will employ services provided by other parties to handle the storage
and delivery of their products. The service may be used by manufacturing, corporate, and
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commercial organisations to improve company operations. Businesses just need to
concentrate on manufacturing, commercial difficulties, or partner recruitment; service units
will handle the conveyance of commodities.

- Benefits of using the 3PL model

Expertise and experience
To the fullest extent possible in all regions in the context of the global market is challenging
for a corporation. Due to their knowledge of the logistics sector, 3PLs may be a valuable
resource for information on issues relating to shipping practises, international rules, etc.

Market expansion for businesses

● There is no requirement for local presence to be established because 3PLs can help
businesses access new markets.

Time and money savings

● 3PLs have a far larger network than your company's supply chain since they are
industry specialists. They will be able to provide a variety of alternatives and bargain
better pricing for clients inside the business. You may significantly reduce the cost of
investing in infrastructure by adopting 3PL.

Grow your business

● There is no need to worry about logistics, freeing up time and resources for firms to
concentrate on creating their core values.

Boost client satisfaction

● Customers will be pleased with a solid 3PL service provider's increased services,
ongoing communication, and prompt delivery.

More adaptability and extensibility

● Any volume or client desire may be met using 3PL. Companies that experience low
and high seasons must thus worry about fixed logistical expenses or wasted
resources.

- Information on the 3PL strategy used in logistics activities

Although the idea of 3PL is still relatively new to Vietnamese businesses. Prior to now, the
term "logistics" only applied to problems with fast delivery, warehousing, or the
transportation of goods. However, as society develops, logistics companies increasingly use
3PL services, incorporating different types of 3PL services into logistics activities as
follows:

● Shipping services: Mainly concerned with transporting your goods across national
borders or around the world.
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 ● Services for managing and storing goods are provided by warehouses.

● Distribute your inventory to customers using distribution services.

● A connecting service that links customers with the best service provider is called a
forwarding service.

● Provide information, management systems, data, and reports to better control

logistics operations while managing the transportation process from beginning to
end.

● Financial Services: Deals with financial matters like freight payments and audits,
accounting, cost management, and inventory control.

● Information Services: Offers market insights, cutting-edge technology, and

improvements in the logistics services sector.

- When utilising 3PL Fulfilment, the operating model

Manufacturers produce goods in large quantities as the first step.

Step 2: The wholesaler pays the manufacturer for the order and orders the product from the
manufacturer to supply to the retailers who work with them.

Step 3: The product is delivered by the manufacturer to the wholesaler's warehouse. They
can either assign their own shipping department or use a freight-specific unit.

Step 4: The goods are delivered by the shipping unit to the warehouse of the wholesaler.
The time it takes for the goods to arrive can range from a few days to several weeks or even
months if the wholesale warehouse address is overseas, depending on the delivery method
chosen and the location of the warehouse.

In the fifth step, wholesalers stock their warehouse or fulfilment facility with goods. For
retailers to be aware of the products that are available and in what quantities, they update the
inventory status on their website.

Customers place product orders on the online retailer's website in step six. Order processing
starts as soon as the customer confirms the order and completes a successful payment.

Step 7: The online retailer pays for the goods and sends the order to the wholesaler.

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Step 8: The wholesaler completes the order by retrieving the product from the warehouse,
packing it, and then handing it off to the carrier for delivery to the customer while also
paying for the shipping. Be aware that the 3PL Fulfilment unit may be involved in this step.
The wholesaler or retailer may decide to contract with a third party to handle the order
processing if they so desire.

Step 9: The shipping unit delivers the goods to the customer. Depending on the location and
delivery method, this step could take a few days or a few weeks.

Customers receive the product in step 10. An email or other notification of the completion
of the order will be sent to the customer simultaneously with the shipping unit's
confirmation that the delivery has been made. If they are happy with the product, they can
decide to keep it or return it if there is a defect.

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 Chapter 5: Result
1. Reduced Transportation Costs:
As previously said, the main purpose of businesses when coordinating deliveries is to save
money and time. Using route optimization software helps discover the quickest route
between sites while keeping to corporate criteria, reducing fuel expenses and other related
costs. tied to transportation, making delivery to fleets more effective than previously,
boosting efficiency while decreasing expenses
Logistics organizations may undoubtedly benefit from route optimization software;
everything will be settled automatically, saving not only time but also money.
Reverse logistics also help firms save money. As we all know, reverse logistics expenses are
estimated to account for 3% to 15% of overall business costs. As a consequence, if the
reverse logistics flow is well designed and managed, firms will save a significant amount of
money.

2. Optimized Truckloads:
Using route optimization software not only saves money and time, but it also optimizes
truck loads that must be utilized when everything is established automatically by the
program. It can assist organizations in determining the exact load required for
transportation, hence obtaining vital business goals.

3. Increased Warehousing Efficiency:

Reverse logistics networks are built for a variety of reasons. Through reverse logistics,
processes are streamlined ahead. Reverse logistics can assist get these items back to market
as fast and effectively as feasible during this time. Companies benefit from reverse logistics.
Reverse logistics aids to environmental protection by rescuing broken items, recycling them,
and correctly treating them before destruction so that they do not affect the environment.
Then, increase storage efficiency.

4. Inventory Accuracy:
Many warehouses, as we have seen, employ FIFO approaches to handle management
challenges. Only a subset of commodities are chosen to adopt FIFO, which is a management
method that does not apply to things. This method is increasingly used in warehouses,
particularly in the logistics business. Because this strategy provides several exceptional and

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appealing advantages. Completely assist organizations in increasing inventory accuracy
during the production process.

Chapter 6: Conclusion
To evaluate the completion of the research task of a dairy company's
transportation and warehousing system, the following factors should be
considered:

1. Achieving research objectives: Consider the degree of completion of the research

objectives set out initially. If the goals are fully and accurately achieved, consider
this a good accomplishment.

2. Research design: Assess whether the research has been designed to meet the needs
to be addressed and to collect the necessary information. If the research method is
completed according to plan and meets the requirements, this will be an
advancement.

3. Data analysis and evaluation: Consider data analysis and processing methods. If
the data analysis work is done properly and yields the expected results, the study can
be considered well done.

4. Create solution: Check whether the solutions proposed from the research are
applicable and beneficial to the dairy company. If the solution brings benefits and
improves transportation and warehousing systems, the study can be considered well
done.

5. Recommendations for improvement: Reviewing the recommendations and

recommendations from the study that can help dairy companies improve
transportation efficiency and warehouse management. If the proposal meets the
requirements, the study can be considered well done.

Overall, if a study of a dairy company's transportation and warehousing system

achieves its objectives, takes the right steps to analyze the data, and generates useful
solutions and suggestions for improvements, it can considered to have successfully
completed the assigned task.

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 The transportation and warehousing management of the dairy company is an
important part of its business. The following are recommendations for effective
management of these activities:

1. Develop a plan and optimize the transportation route: First, the company needs to
determine the appropriate route and means of transportation to ensure convenient
delivery of goods and save time. Using routing management software will help
optimize the transportation process.

2. Invest in a modern warehouse management system: Ensure that the warehouse is

modernly equipped with smart management systems such as barcode scanning
systems, inventory tracking systems... This helps The company has an overview of
inventory and orders during transportation and helps manage goods effectively.

3. Apply quality control methods: Quality control from the manufacturing company
to the warehouse and transportation process is an important factor to ensure that milk
always reaches customers safely and with quality. quantity. Methods should be
applied such as checking incoming and outgoing goods, ensuring dairy products are
not damaged or broken.

4. Employee training and process development: Ensure employees are trained on

transportation and warehouse management processes, from how to arrange goods to
manage information on the system. Building specific and clear processes helps the
company operate coherently and minimize risks in the management process.

5. Using application technology: Applying application technology in transportation

and warehouse management helps increase accuracy and optimize the working
process. Using an online warehouse management system or transportation
management software will help track transportation information and lead to
warehouse management more effectively.

To summarize, transportation and warehouse management requires effective organization

and management. Applying the above recommendations will help dairy companies save
time and costs, while ensuring smooth and efficient transportation and warehouse
management processes.

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