Applying Lean Strategy by Establishing Logistics Service Providers to Material Supply and Product Delivery in a Fabric Supply Chain

Abstract

This paper is to present the application of lean by establishing logistics service providers, and then consider its impact on the material supply and the product delivery in term of time and costs. Besides, the case study of a fabric manufacturer in Thailand is employed to illustrate the possible effect of lean by using logistics service providers to the material supply and the product delivery, and its expected outcome in terms of transport costs and time, is presented. Moreover, the multiple approaching methods coupled with the advanced statistical method (Cluster Analysis) are manipulated as the analytic tools. The findings have revealed the leanness techniques in the practical term including the location cluster and the transport route design coupled with purchasing the one way transport service, and lean by establishing logistics service providers subsequently takes place instead of the former logistics sections of fabric firm. Following this, transport costs and time have been significantly reduced, and customers’ satisfaction has been extensively increased. Exceptionally, application of lean by establishing logistics service providers improves performance in time, cost and satisfaction.