Supply chain analysis: A case study of logistical routes to and from Ostrobothnia

Abstract

In the globalizing world, supply chain efficiency is becoming more and more important for manufacturing companies. As cost-effectiveness has been optimized, at the same time environmental aspects are starting to appear just as significant. These matters are already enforced by, for example, policies and taxes that encourage companies to cut their emissions.

This thesis focuses on global manufacturing companies operating in the Ostrobothnia region, Finland. It is written as a part of a Nordic research project E12 Atlantica BA3NET. The aim is to map their current logistical chains and some potential ones. Then the routes are evaluated from four perspectives: cost, distance, delivery time and carbon emissions. Also, the reasons behind companies’ decisions will be discussed. Before the empirical study, the theoretical framework relevant to the thesis is presented.

The research type was chosen to be qualitative. Data was collected by interviewing the key personnel of outbound logistics from both two case companies and the mapping, as well as the analysis, was done based on these interviews. Some assumptions and simplifications were made to complete the analysis. Constant values used in these calculations were taken from previous studies in this field.

As a result, the companies use very conventional routing for their outbound logistics. They are driven by cost and delivery time aspects and seem very risk-averse, though this is understandable considering the expensive nature of their products. When it comes to inbound logistics, however, the companies are much more open to trying new routing options. In addition, sustainable supply chain management does not seem to be in such a vital role in decision-making processes, but according to the interviews, sustainability still is part of the consideration.