A Study on Transportation Cost Validation & Optimal Vehicle Capacity Utilization for FTL Consignments at Hygienic Research Institute Pvt. Ltd.

Abstract

This study focuses on validating transportation costs and optimizing vehicle capacity utilization for full truck load (FTL) consignments at Hygienic Research Institute Pvt. Ltd. (HRIPL). The objective of the study was to evaluate existing primary and secondary freight rates, compare them with current market rates, and identify opportunities for cost reduction across plants, regional distribution centers (RDCs), and carrying and forwarding (C&F) locations. The methodology involved understanding the company’s supply chain and freight structure, collecting and validating data from internal records, warehouses, and industry sources, and conducting a comparative analysis of existing transporter rates. A capacity utilization model was developed to assess vehicle selection and reduce empty running costs. The findings indicate that the existing transporter MATA is cost-effective for 15 MT and 18 MT closed body trucks, Om Logistics is the most suitable for 7.5 MT open body trucks, and Rhenus performs best for 9 MT closed body trucks. The study highlights the importance of optimal vehicle selection and data-driven freight validation in improving logistics efficiency, reducing transportation costs, and strengthening overall supply chain performance at HRIPL.