Lean Kaizen enabled the logistics company to convert a high-cost, firefighting operation into a more predictable, efficient and customer-focused business.
Context and Challenges
A large road transport and logistics company operating multi-tonne trucks, regional hubs and customer door deliveries was facing rising costs and service pressure due to high transportation and repair & maintenance costs driven by breakdowns, uneven maintenance practices and poor route/load planning, low fleet utilisation, frequent stock-outs on critical spares and delays in order processing impacting delivery performance.
Management was keen to implement Lean Kaizen to design and implement a structured improvement programme across fleet, warehouse and order processes, with clear, measurable benefits in cost and service.
Our Approach
- Kaizen Assessment: We conducted a comprehensive Kaizen assessment across fleet operations, maintenance, warehousing and administration and analysed data on productivity, breakdowns, inventory, lead times.
- Identified improvement opportunities: Through Kaizen assessment, we identified and prioritised high-impact improvement areas: fleet utilisation, breakdown reduction, repair & maintenance (R&M) cost reduction, spares management and delivery turnaround.
- Implementation roadmap & training: We designed a multi-phase improvement roadmap starting followed by 5-day Rapid Improvement Kaizen Workshops along with training to project teams in Lean and Kaizen basics, problem solving, TPM concepts and Daily Work Management.
- Implementation and Standardisation: We conducted focused Kaizen workshops on fleet utilisation, R&M cost reduction, spares and warehouse operations and implemented standard work procedures, visual management, checklists and simple KPIs at fleet, workshop and warehouse level.
Key Strategies Implemented
- Fleet Utilisation & TPM on Vehicles: Implemented TPM including time-based and condition-based maintenance, structured pre-trip/post-trip inspections and root cause analysis on repeated failures. Optimised trip and load planning to maximise capacity utilisation.
- On-Time, In-Full, Error-Free Delivery: Mapped end-to-end order-to-delivery process and eliminated non value adding activities such as excess movement, searching, waiting for documentation and errors in documentation. Reduced internal and external turnaround times at warehouses and customer sites using concept of Mizusumashi, line balancing and flow based layout
- Repair & Maintenance Cost Reduction: Analysed high-cost spares and identified root causes for premature failures. Standardised repair procedures, job cards and quality checks and reduce truck repair and service turnaround time through better job scheduling, bay management and parts availability.
- Spares Inventory & Stores Management: Implemented structured spares inventory management and eliminated spares stock-outs on critical items while reducing overall spares inventory value. Introduced 5S and visual management in stores.
Results Achieved
- 20–30% reduction in transportation, repair & maintenance costs
- 30–50% faster delivery turnaround time
- 15–25% increase in fleet utilisation
- 40–60% reduction in order-processing time and errors
- Improved customer service levels – more reliable on-time, in-full, error-free deliveries
The structured Kaizen approach including assessment, focused Kaizen workshops, TPM, visual management and daily reviews, was able to create sustainable gains in cost, utilisation and service, in all hubs, routes and business units in Transport & Logistics.