Improving distribution efficiency to increase agility: An application to a Mexican company

The Lean Manufacturing approach for waste elimination can be applied in all sorts of operations. In this project is applied for the improvement of a supply chain and to achieve high levels of chain efficiency. The identification of warehousing and transportation waste at the chain level is aggregate being difficult its identification within both processes. This work provides an application of the concept of distribution operational efficiency to a Mexican package delivery company that has the need to improve its on-time delivery service. The Operational Effectiveness Index used in TPM is adapted and used as the main performance measure for warehousing and transport operations. Availability, performance and quality wastes are identified using Value Stream Mapping. Results of the application are provided.