Improved performance in retail distribution process through a Lean Manufacturing approach: A case study

Abstract

Purpose: This research aims to implement Lean Manufacturing (LM) techniques and tools (T&T) in a retail distribution center located in Mariano Roque Alonso, Paraguay, targeting waste reduction and efficiency improvements in fresh and frozen product (FFP) handling to reduce long lead times.

Design/methodology/approach: This study was conducted in two phases. First, a literature review revealed the key gaps to be addressed, the most commonly faced problems, and the LM tools applicable to solving these issues. Second, a case study was conducted in which LM T&T were applied to reduce the long lead time and propose solutions to address difficulties in the FFP process. Five problem-detection tools (flowchart, brainstorming, Ishikawa diagram, Pareto, and value stream mapping) and three improvement tools (kaizen, 5S, and Plan-Do-Check-Act) were applied to streamline FFP process from order generation to store reception.

Findings: The analysis revealed significant inefficiencies: four were workforce-related, ten related to work methods, six environmental, and three product-related. Addressing these issues could substantially reduce operational bottlenecks and improve process throughput.

Practical implications: The application of LM techniques significantly minimized waste, enhancing time management and human resource utilization, which led to a 96% improvement in FFP processing efficiency. These changes are expected to shorten lead times, bolster competitive advantage, and increase customer satisfaction.

Originality/value: This study underscores the versatility of LM techniques, adapting them from manufacturing to retail distribution. The innovative combination of kaizen with 5S and PDCA offers a robust framework for ongoing improvements, promising for broader adoption in the retail sector.