IMPACT OF TAMER’S TRANSPORTATION MEANS ON LOGISTICS COSTS: A COMPARATIVE STUDY WITHIN THE PHARMACEUTICAL INDUSTRY IN THE KINGDOM OF SAUDI ARABIA

Abstract

The study aimed to compare previous and current transportation means with respect to logistical costs at Tamer Group which was leading distribution company within the pharmaceutical industry in Kingdom Saudi Arabia with respect to overall impact on logistics costs. The study had used qualitative and quantitative approaches used secondary data. The interviews were conducted to extract the comparisons which were reasons of the change. Numerical data and excel sheets that represented the price lists for both years were retrieved to construct the formula to compare overall costs embedded. There were factors contributed in need for changes in road transportation means in year 2014 and 2015 which lead to remarkable reduction in logistics costs correlated with increases in performance by 68.33%. External and internal factors for changes in transportation means such as nature of the products availability, constant updates in SFDA and customs’ regulation, truck types, KPI adjustment, merge of product delivery and truck contractors