ABSTRACT

This chapter clarifies what the authors mean by lean logistics and provides a detailed example based on Toyota's logistics network in North America and a logistics partner, Transfreight. A lean learning enterprise focuses on eliminating waste in the total value stream through a process of continuous learning. The chapter builds a model to help explain how firms can overcome the weaknesses by implementing the approaches as pan of a broader value stream focus. It focuses on how firms can overcome the limitations of logistics' traditional approaches, yet achieve the short lead times demanded by the market. Technology is important in any logistics system. The Ford inbound parts delivery network before Ford's approach to just-in-time, was operated by a group of sub-contractors, all of which where considered tier one suppliers to Ford. Most of the sub-contracted firms focused on trucking and other modes of transportation, while the remaining few maintained the five pooling centers, or cross-dock warehouses.