Improvement of the Logistics Operations of an Integrated Waste Management Company – Application to a Real Case in Portugal

Abstract

One of the strategies of companies today is, instead of directing their investments on expanding the business, focus more on cost rationalization and business transformation, in order to improve performance and reduce operating costs. In this sense, logistics represents a key function in improving the operations related to the transportation and storage of materials, always focusing on reducing costs and providing a superior level of service. In this work, we analyze the functioning of the Portuguese waste management company "Ambitrena - Valorization and Management of Waste, S.A.", with the objective of understanding the operation methods in relation to the logistic service provided. The service is represented by the decentralization of its parks and lack of effective communication between areas, often resulting in inefficient services, and therefore we intend to analyze a possible optimization of the management of logistics operations. A study will be carried out (data collection was performed through unstructured interviews, non-participative direct observation in the company's parks, and through consultation and analysis of various written documents) on what could be the new structural configuration (centralized configuration) of the company's logistics service. Finally, we present a proposal for centralization of logistics operations in order to reduce the cost of cargo transportation, improve the logistics performance of the company, and its customer service. The centralization of logistics management can positively reduce logistical costs by concentrating information and decision-making in the Lisbon park, will allow for better coordination and planning, and transversally to reduce inactive vehicle time.

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Author Information
José Miguel Soares, ISEG - Lisbon School of Economics & Management,Portugal
Fernanda Mendes, GOVCOPP - University of Aveiro, Portugal

• Category: Economics and Management

Posted by James Alexander Gordon

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