Transportation performance improvement through lean thinking implementation

Abstract

Purpose The application of lean thinking in the transportation industry provides opportunities to streamline operations with a value-added orientation. Prior literature shows evidence of limited application of lean thinking in the transportation operations of the pharmaceutical industry. This study aims to close this research gap by investigating the application of lean thinking for improving pharmaceutical transportation performance. Design/methodology/approach This study conducted an action research approach at an Indonesian pharmaceutical distribution company. One cycle in one year was analyzed; empirical data were collected and analyzed through direct observations, interviews and the study of company data and documentation. Findings The application of lean thinking in waste elimination allowed the delivered project to achieve a remarkable 40% reduction in overall transportation costs, 75% reduction in total lead time, 200% improvement in truck productivity and 100% improvement in truckload capacity utilization. Practical implications This study can guide the pharmaceutical industry toward achieving excellence in transportation operations through lean thinking implementation. Originality/value There has been limited research on this topic, and this study is the first attempt to generate new and significant evidence of a real-life application of lean thinking within the field of pharmaceutical transportation.

Pursuing sustained competitive advantage through the use of process management

“…This study was performed using an action research approach in which the researchers worked closely with the case companies and were agents of change (Herr and Andersson, 2015). This type of study was suitable for working with the case companies and supporting them in their PM work (Argiyantari et al, 2021). To keep the anonymity of the companies, we refer to Company A and Company B in this paper.…”

Implications of value co-creation in agro-industrial services

“…According to Argiyantari et al (2021), lean practices are always aimed to minimize avoidable costs of a given process, so that the steps that add no value to the final product are constantly improved, hence providing customers with a product having the best value at the lowest cost of production, which boosts the production chain and enhances the results from value creation in this case study.…”