The logistics of milk collection : an exploratory case study between New Zealand and Brazil : a thesis submitted in partial fulfilment of requirements for a degree of Master in Logistics and Supply Chain Management, Massey University, Palmerston North Campus, New Zealand

Abstract

Logistics has became one of the most important activities for all companies where has been treated as strategic function to gain competitive advantage over a companies' competitors. Agribusiness as any other business is also using logistics tools in their supply chain to reduce their chain cost and more important to improve their business efficiency as a whole. Transportation is one of the logistics activities that most influences price of product which in some cases can represent 25% of the final price. Milk collection for a dairy business plays an important part in the overall performance of the company. A poor milk collection system jeopardise the entire chain as it is the first stage of the manufacturing process. The main purpose of this work is to identify and describe the possible differences and similarities between a Brazilian and New Zealand Dairy Company regarding their logistics of milk collection. Even though the two companies are in the same business segment they are inserted in different environments/markets therefore need to deal with different issues regarding milk collection such as companies' structure, milk production's cycle, and routing and scheduling applications. However, both understand the importance of the logistics activities and apply tools in their chain to improve their efficiency. Due to its size and market share the New Zealand Company has a better collection system in place than the Brazilian Company. Both have implemented some changes in the last few years that brought some improvements for their milk collection.