Lean Transportation Management: Using Logistics as a Strategic Differentiator

293 Pages·2018·4.62 MB·English

by  Mohamed Achahchah

Lean Transportation
Management

Lean Transportation
Management

Using Logistics as a Strategic
Differentiator
Mohamed Achahchah
A PRODUCTIVITY PRESS BOOK
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 Mohamed Achahchah
The right of Mohamed Achahchah to be identified as author of this work has been asserted by him in
accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form
or by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Achahchah, Mohamed, author.
Title: Lean transportation management : using logistics as a strategic
differentiator / Mohamed Achahchah.
Description: Boca Raton : Taylor & Francis, 2019. | Includes bibliographical
references and index.
Identifiers: LCCN 2018026354 (print) | LCCN 2018028631 (ebook) | ISBN
9780429490101 (e-Book) | ISBN 9781138592278 (hardback : alk. paper)
Subjects: LCSH: Business logistics--Management. | Shipment of
goods--Management.
Classification: LCC HD38.5 (ebook) | LCC HD38.5 .A295 2019 (print) | DDC
658.7/882--dc23
LC record available at https://lccn.loc.gov/2018026354
ISBN: 978-1-138-59227-8 (hbk)
ISBN: 978-0-429-49010-1 (ebk)
Typeset in Minion Pro
by Taylor & Francis Books
To my wife Nasima, my son Ilyas and my daughters Amal and
Maysa, who all have been my best supporters in this Lean journey.
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 Mohamed Achahchah
The right of Mohamed Achahchah to be identified as author of this work has been asserted by him in
accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form
or by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Achahchah, Mohamed, author.
Title: Lean transportation management : using logistics as a strategic
differentiator / Mohamed Achahchah.
Description: Boca Raton : Taylor & Francis, 2019. | Includes bibliographical
references and index.
Identifiers: LCCN 2018026354 (print) | LCCN 2018028631 (ebook) | ISBN
9780429490101 (e-Book) | ISBN 9781138592278 (hardback : alk. paper)
Subjects: LCSH: Business logistics--Management. | Shipment of
goods--Management.
Classification: LCC HD38.5 (ebook) | LCC HD38.5 .A295 2019 (print) | DDC
658.7/882--dc23
LC record available at https://lccn.loc.gov/2018026354
ISBN: 978-1-138-59227-8 (hbk)
ISBN: 978-0-429-49010-1 (ebk)
Typeset in Minion Pro
by Taylor & Francis Books

Contents
List of Figures .....................................................................................xiii
List of Tables .........................................................................................xv
Introduction ........................................................................................xvii
About the Author .................................................................................xxi
Chapter 1 Lean .....................................................................................1
1.1 The Voices ..........................................................................2
1.1.1 Voice of the Customer .........................................2
1.1.2 Voice of the Employee .........................................4
1.1.3 Voice of the Process .............................................5
1.1.4 Voice of the Business ...........................................5
1.2 Lean Thinking ...................................................................5
1.3 Lean Principles ..................................................................8
1.4 Lean Culture ......................................................................8
1.5 Lean Leadership ................................................................9
1.6 Lean Tools ........................................................................11
1.6.1 Breakthrough Improvement ............................12
1.6.2 Continuous Improvement ................................14
1.6.3 Kaizen .................................................................17
1.6.4 Value Stream Mapping .....................................21
1.6.5 Daily Management ............................................25
1.6.6 Problem Solving ................................................28
1.6.7 Standard Work ...................................................32
1.6.8 5S ..........................................................................36
1.6.9 Overview .............................................................38
1.7 Lean Maturity .................................................................38
Chapter 2 Transportation .................................................................41
2.1 Location and Flow Types ..............................................44
2.2 Outbound Process ..........................................................47
2.3 Inbound Process .............................................................50
2.4 Shipment Preparation ....................................................50
vii
viii • Contents
2.5 Transportation Modalities ...........................................54
2.5.1 Parcel and Express ............................................56
2.5.2 Airfreight ............................................................61
2.5.3 Road Transportation .........................................72
2.5.4 Sea Freight ..........................................................77
2.5.5 Train ....................................................................83
2.5.6 Intermodal .........................................................84
2.5.7 Overview .............................................................85
2.6 Costs and Transit-Times ...............................................86
2.7 Incoterms® Rules ...........................................................88
2.8 Trade Compliance ..........................................................91
2.8.1 Documentation ..................................................92
2.8.2 Customs Clearance ............................................95
2.8.3 Supply Chain Security ......................................97
2.8.4 Dangerous Goods .............................................99
2.8.5 Embargoed and Sanctioned Countries ........101
2.8.6 Local Authorities .............................................102
2.9 Total Cost of Ownership ..............................................102
2.9.1 Cost and Budgetary Control ..........................104
2.9.2 Freight Payment and Auditing ......................109
2.9.3 Spend Analysis .................................................111
Chapter 3 Transportation Management .........................................113
3.1 Commodity Strategy ....................................................113
3.1.1 Build the Team and the Project Charter ......115
3.1.2 Conduct Market Intelligence Research
on Suppliers ......................................................115
3.1.3 Strategy Development .....................................117
3.1.4 Contract Negotiation .....................................120
3.1.5 Supplier Relationship Management .............120
3.2 Carrier Selection Process .............................................121
3.3 Carrier Review Process ................................................136
3.4 Complaint and Claim Handling ................................146
3.5 Network Optimization.................................................148
3.6 Benchmarking ...............................................................150
3.7 Outsourcing ...................................................................151
3.8 Sustainability .................................................................155
3.9 Quality Management System ......................................156
Contents • ix
3.10 Transportation Management System .......................159
3.10.1 Master Data Management ........................161
3.10.2 Complete Transportation Order .............162
3.10.3 Document Verification .............................162
3.10.4 Order and Capacity Planning ..................162
3.10.5 Order Consolidation .................................162
3.10.6 Carrier Selection ........................................163
3.10.7 Non-Standard Order Management .........163
3.10.8 Supply Chain Visibility .............................163
3.10.9 Proactive Shipment Monitoring ..............165
3.10.10 Customer Service .......................................166
3.10.11 FPA ..............................................................167
3.10.12 Tendering ....................................................168
3.10.13 Process Standardization ...........................168
3.10.14 Reporting ....................................................168
3.10.15 Performance Reviews ................................169
3.10.16 Sustainability ..............................................169
3.10.17 Managed Transportation Services ..........169
3.10.18 EDI and Interfacing...................................169
3.10.19 TMS and MTS Providers ..........................171
3.11 Transportation Management Maturity ...................171
3.11.1 Category Strategy Development ..............172
3.11.2 Supplier Evaluation and Selection ...........173
3.11.3 Supplier Quality Management .................173
3.11.4 Supplier Management and
Development ..............................................174
3.11.5 Worldwide Sourcing ..................................175
3.11.6 Human Resources .....................................175
3.11.7 Organizational Design ..............................176
3.11.8 Information Technology ...........................176
3.11.9 Measurement ..............................................176
3.11.10 Transportation Strategy ............................176
3.12 Market Trends .............................................................179
3.12.1 Fewer Trade Barriers but More
Regulations .................................................180
3.12.2 Increasing Political Instability .................180
3.12.3 Increasing Supply Chain Complexity .....180
3.12.4 Global Sourcing .........................................183
3.12.5 Omni-Channel Business Models ............183