Cost Reduction Strategies for Outbound Logistics Operations at an Automotive Lubricant Manufacturer in Selangor

Abstract

Effective management strategies are crucial for every company, especially in manufacturing. Nonetheless, most studies focus on cost reduction strategies in original equipment manufacturer (OEM) companies, leaving lubricant manufacturers behind. Growing customer numbers, uncertain orders, and demand to reduce total production costs are the main challenges. This chapter suggests cost reduction strategies for outbound logistics at a Selangor-based automotive lubricant manufacturer. Adopting lean manufacturing methods, non-value-added activities may be eliminated in the outbound logistics operation. This chapter will investigate the manufacturer's existing operation waste management practises. The unnecessary costs can be utilized for ongoing development where they will be discussed in this chapter for the elimination of non-value-added work and building logistics efficiency. The findings from this chapter will assist the company to reduce costs while maintaining product quality and customer satisfaction. It should also show the company's commitment in the preparation to adopt Industry 4.0.