ABSTRACT
A major challenge facing international companies is how to simultaneously improve customer service and lower costs. Successful projects begin with initiatives from European top management, whose commitment is absolutely necessary in this primarily top-down process. The project team involved in the initial stages of the project should consist of employees from various national sales organisations and European headquarters and should be supported by external experts. Effective information technology and effective management of European data is essential. Direct and indirect operational costs associated with the transport, warehousing and sales order processing logistical functions were compiled in a common budget format and expressed as a percentage of totat sales turnover. Longer-term opportunities to make Flint Ink’s European logistics more cost effective were also investigated. The team modelled possible savings and the implications of using lower-cost demountable bag-in-box containers for domestic customer delivery and import loads instead of metal containers and one-way drums.
