The Lowering Distribution Expenses in Thirt Party Logistics (3PL) via Collaborative Consolidation Utilizing the Quality Control Circle Approach

Abstract

PT ABC is assessing its distribution costs in the jabodetabek region in light of rising expenses. Currently, PT ABC product line has been streamlined to one variation. To enhance the efficiency of distribution, a shift is occurring from a dedicated contract partnership with PT “A” to a consolidation collaboration with PT “B”, utilizing Thirt Party Logistics (3PL). The Thirt Party Logistics provider (3PL) charges fees based on each carton, in contrast to PT “A” which previously accounted for warehouse rental and transportation expenses. Employing the Quality Control Circle (QCC) approach, the most cost-effective distribution expenses have been calculated. Over the past four months, the average distribution cost for PT “A” utilizing Thirt Party Logistics (3PL) stands at IDR 50,000 (Fifty Thousand Rupiah) for each carton. In comparison, the transportation charges at PT “B” amount to IDR 26,500 (Twenty Six Thousand Five Hundred Rupiah) per carton. According to these figures, PT “B” provides fixed pricing, irrespective of shipment volume. The advantages of this consolidation approach include a set shipping timeline and a defined minimum order size.