Philippine E-Journals

A Feasibility of Outsourcing Warehouse and Kitting and Services in Automotive Companies at District 2, Laguna

Felicia Rezanne Rocamora | Charvin Camaclang | Jasmin Cervantes

 

Abstract:

Aware of the needs of the client companies, the business proponents proposed a business of warehouse and kitting services with flexible schedules, offering both storage and delivery that will prevent lost or misplaced parts. The project’s long-range objective is to be known in the market and to serve more manufacturing industries by providing an optimal thirdparty logistics. Market Feasibility. The survey with the target market of the business revealed a demand in the next succeeding years, hence, the project will surely get its reasonable profit. Through the center of gravity technique, the proponents computed the most ideal area where to reach the possible clients. Technical Feasibility. The proponents researched the most recent literatures from journals related to the proposed project. The process of the operation, arrangement of the facility, location, materials, transportation, and the technology needed for a long term will sustain the business. Financial Feasibility. The proposed project would cost Php 3,325,267.77 on the first year of the operation which includes the acquisition of property and equipment, operation cost, administrative expenses and contingency of 10%. The financing will come from the partners’ equal capital contributions; the project will have a payback period of 2.55 years and rate of return of investment by 37% during the first year of operation. Socio Economic Feasibility. The project will provide a contribution to the government through payment of taxes. Also, the workers to be employed in the business will lessen the unemployment rate in the country.