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The varied elements of supply chain that are integrally related with and are also facilitated by world class logistics as well as transportation facilities include warehousing, processes of ordering and customer service, inventory control and administrative costs. According to Gilmore (2002), organizations have become very circumspective in their approaches with regard to handling the logistic process while outsourcing products and services in the global circuit in order to earn considerable profits.
They have also started to be quite cautious so that any undue cost is not incurred within the logistics and transportation process. In this context, it can also be stated that effective distribution of goods through channelizing has assisted organizations in gaining competitive advantage and managing distribution functions efficiently (Zeng & Rossetti, 2003). Importance of Process Improvement in Achieving Transportation Excellence Process improvement is an effective measure adopted by organizations for attaining efficient customer services at minimum costs.
It is a strategy which is substantially used by various organizations for transportation and logistics process of goods through Transport Management Solutions. Organizations with the application of process management equipments and techniques can vigorously manage the transportation of products in their desired destinations. It also assists in decreasing costs and providing greater flexibility in the process of distribution of products at the centers from the manufacturers in the national and international markets.
The process improvement strategy consists of certain tools such as value- stream mapping and 5S. The tools of value-stream mapping is designed for mapping an end to end process, with an objective of abolishing all the non-value added actions as well as ensuring a removal of waste materials. The incorporation of process improvement techniques and tools in transportation system would enable organizations to control and initiate a competitive advantage by supplying quality products at a much reduced costs to distribution centers.
These centers can then sell those products to the customers conveniently which will in turn enable to fulfill their demands on time. Contextually, the manufacturers are benefitted with the standardization with regard to process improvement methods through which different activities of supply chain process can be effectively handled. The various improvement tools and techniques such as value-stream mapping, Androns and 5S help in effective planning and collaborative forecasting. Kaizen, another process improvement technique, helps in eliminating the amount of waste or excess in the inventory as well as to supply the required products to the extensive marketplace in a stipulated time period to satisfy customers by a large extent.
This results in ascertaining greater productivity and sales in organizations for earning profitability. Just- In –Time process also entails the removal of waste materials from inventories along with supplying them to their desired destinations from various operational sites. The process also imposes certain challenges in distributing products to warehouses with
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