ISER © 2013 157
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Stage I: Draw the TVSMStage II: Identify waste in macro contextStage III: Identify waste in micro context Stage IV: Define waste reduction strategyStage V: Implement waste reduction strategy
Figure 2. Description of improvement scheme
In this phase, the availability wastes considered are driver breaks, excess load/unload time and excess time taken by the operating team to carry out administrative activities with the customer. Performance wastes include speed and fill losses and excess distance required to fulfill customers demand. Quality wastes in transporting could refer to administrative errors, product defect generation and route customers not served on time and/or fully.
4. Implementation and Results
This section is devoted to describe the application of the previous scheme in the distribution of a bottled beverage of an important company located in the north of México. In particular, we will focus on the distribution from regional distribution centers (DC´s) to retailing points such as convenience store chains, independent retailers and supermarket chains. The company has several regional distribution centers, and, for convenience, the one located in Monterrey will be described.
This regional DC includes a fleet of about 90 trucks. The DC serves about 6200 customers that include selling points (convenience stores and the like) and consumption points such as bars, restaurants and the like. The distribution of beverage is made daily through 64 fixed routes. The main strategic concern of the company in México refers to cost reduction. In order to handle this situation, the firm established a company-wide strategy for reducing cost. Since routing cost became an important component of the total cost structure in recent years, mainly due to fuel increases above inflation rate, it was mandatory to set a goal for distribution cost reduction.
ISER © 2013 157http://iser.sisengr.orgStage I: Draw the TVSMStage II: Identify waste in macro contextStage III: Identify waste in micro context Stage IV: Define waste reduction strategyStage V: Implement waste reduction strategyFigure 2. Description of improvement schemeIn this phase, the availability wastes considered are driver breaks, excess load/unload time and excess time taken by the operating team to carry out administrative activities with the customer. Performance wastes include speed and fill losses and excess distance required to fulfill customers demand. Quality wastes in transporting could refer to administrative errors, product defect generation and route customers not served on time and/or fully.4. Implementation and ResultsThis section is devoted to describe the application of the previous scheme in the distribution of a bottled beverage of an important company located in the north of México. In particular, we will focus on the distribution from regional distribution centers (DC´s) to retailing points such as convenience store chains, independent retailers and supermarket chains. The company has several regional distribution centers, and, for convenience, the one located in Monterrey will be described.This regional DC includes a fleet of about 90 trucks. The DC serves about 6200 customers that include selling points (convenience stores and the like) and consumption points such as bars, restaurants and the like. The distribution of beverage is made daily through 64 fixed routes. The main strategic concern of the company in México refers to cost reduction. In order to handle this situation, the firm established a company-wide strategy for reducing cost. Since routing cost became an important component of the total cost structure in recent years, mainly due to fuel increases above inflation rate, it was mandatory to set a goal for distribution cost reduction.
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