This paper examines the distribution systems of the Queensland division of CastroI Australia Pty Limited to determine whether the current system is operating effectively, and if not, make recommendations to improve the current system. The overall aim of the study is to reduce the value and quantity of stock holdings throughout the region without markedly impairing customer service levels.
A literature review of the current status of physical distribution has been undertaken, followed on an analysis of Castrol' s physical distribution system.
This analysis is undertaken on three aspects of the system:
-The physical location of the various depot and comparison of throughput of the depot to the stockholding to determine the effectiveness of the depot.
-The transportation network utilized to determine whether the number and quality of the various transport agencies are adequate.
-The stock record system is examined to determine and quantify any deficiencies.
The examination of these three aspects revealed many areas where the distribution system could be upgraded which ultimately could lower the value of the stock holdings held in the total distribution network.
The major recommendations resulting from the study were:
-Closure of several depots which cannot support stockholdings with appropriate sales.
-Reassessment of several depot's stockholdings to reflect throughput.
-Rationalisation of transportation agencies to reduce the number of carriers and provide a superior service at a lower overall cost.
-Computerisation of the depot stock records to achieve greater stock accuracy, provide rapid document processing and reduce "phantom" stock holdings.
-Suggest future actions to be undertaken to ensure the recommendations of this report are implemented and further improved upon.