Philippine E-Journals

FAL Services: Improving Productivity and Efficiency through Maximizing Facilities using Third Party Logistics

Jan Nicole Argente | Christine May Fortus | Precious Mae Lacsamana

 

Abstract:

This project aimed to provide automotive companies warehousing and delivering services to help eliminate unnecessary costs. The project’s long-range objectives are to improve the productivity and efficiency of the client company through facilities optimization by using third party logistics, and to determine the techniques, ways and methods on how to optimize the process. Proximity to the Market. With the target market consisting of the remote areas in the Biñan, Sta. Rosa, and Cabuyao, the researchers used the center of gravity technique to locate the plant site of the business. Availability of the Resources. All the necessary human resources can be hired from the nearby community while the utilities of water and electricity needed in the business are also available. Guarantee to the Market. FAL Services will be using printed, online, and personal advertising to introduce the business. Posters will be distributed in the commercial public areas like markets, malls, and terminals. History. The client company was using third party logistics for tracking and delivering its goods. The service provider ordered trucks from Nippon Express Philippines Corporation to distribute the products. The researchers determined the possible improvements that can be applied in Schlemmer Philippines Inc. Project Timetable and Status. The business will be established in a year after the visualization and designing the procedure of the services. Five customers will be served in a year. To overcome the difficulties during the first year of operation, the researchers proposed strategies to sustain the business. Name of the industry. Schlemmer Philippines Inc. will have a partnership with FAL Services, a third party logistics company, to maintain the efficiency of the company’s production. Market Feasibility. The cost of the proposed business is Php 12,774,235.00 per year for warehouse lease and delivery. Delivery has the following service types: crating, kitting, packaging, shipping and delivery, documentation, importation, inventory management and local sourcing. Increase in market share is expected every year and the project can also fill the unsatisfied demand. Technical Feasibility. The details of the service, the characteristics and the location of the business, the availability of the tools and equipment to be used and all the inputs required for the project were all analyzed. Financial Feasibility. The business will need Php 11,407,521.00 for the property, plant and equipment, pre-operating cost and administrative and distribution expense and to provide all the resources needed in the business. For the preparation and development of the business, the start-up capital will be shouldered by the contribution of each owner of the business. It also requires a 10% contingency fund. Socio-Economic Feasibility. The business may help in terms of income, taxes, employment, supply and demand for materials and other contributions that can help society during the implementation of the service. Management Feasibility. The researchers who are the business owners will be the general manager, operation head, purchasing supervisor, and operation supervisor. Four warehouse staff, two maintenance staff and security guards, and four delivery staff will be hired.