Six sigma approach for the reduction of transportation costs of a pipe manufacturing company

Abstract

Logistics is among the most important three businesses that will be improved in 21st century together with information technology and micro biology. Logistics is efficiently planning, implementing and controlling materials in the supply chain, services and information flow. In the future, competition of companies won't be about products which they produce or about countries where these products are consumed, but it will be about the supply chains they use. Competition of companies will be raised by improving logistics processes. To reduce transportation that do not add value to the products and to deliver the products to customers in a short time will lead to reduce logistics' costs and in addition they will raise customers' satisfaction. Therefore, companies should optimize their logistics processes. This paper deals with the reduction of transportation costs of a pipe manufacturing company. For this purpose, the six sigma approach is utilized and its results are analyzed. © 2011 IEEE.