Philippine E-Journals

A Feasibility Study of a Cost-Effective Freight Brokerage Outsourcing Business

Frances Dianne Arbilo | Geoice Anne Nevalga | Pamela Librada

 

Abstract:

This feasibility study aimed to provide a service business solution by establishing a freight brokerage service that is cost efficient and offers lower prices than the competitors. The demand for this business is growing over time and the automotive manufacturing companies in Calamba are currently in need of freight broker partners. The proponents considered the variables and available resources to be able to provide a low-priced service designed with the use of operations research tools for optimality. Having a freight brokerage service will enhance the process of shipment of the customer and companies and maximize its resources in terms of money, time, and manpower. Through the Freight It Right brokers, the potential delay of shipments can be eliminated, no cost of delays, less workload for the company’s employee and smooth flow of transaction could be achieved between the shipper and carrier. Using the decision theory methodology in proposing a cost-effective model for the customers, the study showed that the project could provide a minimum cost. Hence, the researchers concluded that this study is feasible.