Cost comparison between the current outsourced transportation system and the implementation of an internal transportation system in a chemical industry in northwestern Paraná

Luciane Hermes de Alencar and Edson Pereira da Mota

Revista IPecege, 2015, vol. 1, issue 3/4

Abstract: With high competitiveness, margins are increasingly narrow and customer expectations are higher. Companies seek to reduce costs to overcome these challenges, and logistics serves as a key element in this process. Therefore, this work aims to analyze the feasibility of implementing an internal transport company compared to the current outsourced system. The goal is to increase profit margins without increasing the final price for the customer, thus becoming more competitive. The work was carried out through a cost analysis of the current outsourced option and the costs of having an internal transport company. Finally, a comparison between these costs was made using the budgetary comparison method. The results show that the project is financially viable, as it generates a return. However, when this return is divided by the kilogram of product transported, it becomes evident that it is a value that adds little to the company, as it is less than one cent. This value makes the project unacceptable, as replacing 100% of the outsourced transport company carries risks such as shortages and delays, and it would only be viable to assume these risks if the added value were at least 10 times greater.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Date: 2015
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