Tai Lieu Chat Luong Lean Transportation Management Lean Transportation Management Using Logistics as a Strategic Differentiator Mohamed Achahchah A PRODUCTIVITY PRESS BOOK First published 2019 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2019 Mohamed Achahchah The right of Mohamed Achahchah to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Achahchah, Mohamed, author Title: Lean transportation management : using logistics as a strategic differentiator / Mohamed Achahchah Description: Boca Raton : Taylor & Francis, 2019 | Includes bibliographical references and index Identifiers: LCCN 2018026354 (print) | LCCN 2018028631 (ebook) | ISBN 9780429490101 (e-Book) | ISBN 9781138592278 (hardback : alk paper) Subjects: LCSH: Business logistics Management | Shipment of goods Management Classification: LCC HD38.5 (ebook) | LCC HD38.5 A295 2019 (print) | DDC 658.7/882 dc23 LC record available at https://lccn.loc.gov/2018026354 ISBN: 978-1-138-59227-8 (hbk) ISBN: 978-0-429-49010-1 (ebk) Typeset in Minion Pro by Taylor & Francis Books To my wife Nasima, my son Ilyas and my daughters Amal and Maysa, who all have been my best supporters in this Lean journey Contents List of Figures xiii List of Tables xv Introduction xvii About the Author xxi Chapter Lean 1.1 1.2 1.3 1.4 1.5 1.6 1.7 The Voices 1.1.1 Voice of the Customer .2 1.1.2 Voice of the Employee 1.1.3 Voice of the Process 1.1.4 Voice of the Business Lean Thinking Lean Principles Lean Culture Lean Leadership Lean Tools 11 1.6.1 Breakthrough Improvement 12 1.6.2 Continuous Improvement 14 1.6.3 Kaizen 17 1.6.4 Value Stream Mapping .21 1.6.5 Daily Management 25 1.6.6 Problem Solving 28 1.6.7 Standard Work 32 1.6.8 5S 36 1.6.9 Overview .38 Lean Maturity 38 Chapter Transportation 41 2.1 2.2 2.3 2.4 Location and Flow Types 44 Outbound Process 47 Inbound Process .50 Shipment Preparation 50 vii viii • Contents 2.5 2.6 2.7 2.8 2.9 Transportation Modalities 54 2.5.1 Parcel and Express 56 2.5.2 Airfreight 61 2.5.3 Road Transportation 72 2.5.4 Sea Freight 77 2.5.5 Train 83 2.5.6 Intermodal 84 2.5.7 Overview .85 Costs and Transit-Times 86 Incoterms® Rules 88 Trade Compliance 91 2.8.1 Documentation 92 2.8.2 Customs Clearance 95 2.8.3 Supply Chain Security 97 2.8.4 Dangerous Goods 99 2.8.5 Embargoed and Sanctioned Countries 101 2.8.6 Local Authorities .102 Total Cost of Ownership 102 2.9.1 Cost and Budgetary Control 104 2.9.2 Freight Payment and Auditing 109 2.9.3 Spend Analysis 111 Chapter Transportation Management 113 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Commodity Strategy 113 3.1.1 Build the Team and the Project Charter 115 3.1.2 Conduct Market Intelligence Research on Suppliers 115 3.1.3 Strategy Development .117 3.1.4 Contract Negotiation 120 3.1.5 Supplier Relationship Management 120 Carrier Selection Process .121 Carrier Review Process 136 Complaint and Claim Handling 146 Network Optimization .148 Benchmarking .150 Outsourcing 151 Sustainability 155 Quality Management System 156 Contents • ix 3.10 3.11 3.12 Transportation Management System .159 3.10.1 Master Data Management 161 3.10.2 Complete Transportation Order .162 3.10.3 Document Verification .162 3.10.4 Order and Capacity Planning 162 3.10.5 Order Consolidation 162 3.10.6 Carrier Selection 163 3.10.7 Non-Standard Order Management 163 3.10.8 Supply Chain Visibility .163 3.10.9 Proactive Shipment Monitoring 165 3.10.10 Customer Service .166 3.10.11 FPA 167 3.10.12 Tendering 168 3.10.13 Process Standardization 168 3.10.14 Reporting 168 3.10.15 Performance Reviews 169 3.10.16 Sustainability 169 3.10.17 Managed Transportation Services 169 3.10.18 EDI and Interfacing 169 3.10.19 TMS and MTS Providers 171 Transportation Management Maturity 171 3.11.1 Category Strategy Development 172 3.11.2 Supplier Evaluation and Selection 173 3.11.3 Supplier Quality Management .173 3.11.4 Supplier Management and Development 174 3.11.5 Worldwide Sourcing 175 3.11.6 Human Resources .175 3.11.7 Organizational Design 176 3.11.8 Information Technology 176 3.11.9 Measurement 176 3.11.10 Transportation Strategy 176 Market Trends .179 3.12.1 Fewer Trade Barriers but More Regulations 180 3.12.2 Increasing Political Instability 180 3.12.3 Increasing Supply Chain Complexity .180 3.12.4 Global Sourcing 183 3.12.5 Omni-Channel Business Models 183 256 • Abbreviations NBD NDA NFO NVOCC NYSE PD PDCA PESTEL PI PI P&L PO POA POD POU PP PSS PUDO QBR QMS RACI RC RDC RFI RFP RFQ ROI RTS SaaS SGI SLA SMART SMI SMOI SO SOI SOP S&OP SOW next business day non-disclosure agreement next flight out non-vessel operating common carrier New York Shipping Exchange port-to-door plan check act political economic social technological environmental legal packing instruction performance indicator profit and loss purchase order proof of attorney proof of delivery point of use port-to-port peak season surcharge pick-up and drop-off quarterly business review quality management system responsible accountable consulted informed repair centre regional distribution centre request for information request for proposal request for quotation return on investment return to sender system as a service strategic goods indicator service level agreement specific measurable achievable realistic time bound supplier managed inventory supplier managed and owned inventory sales order supplier owned inventory standard operating procedure sales and operations planning statement of work Abbreviations • 257 SSC SSCC SWA TAP TAT TCO TEU TMS TPM TPS TT TTI ULD UN USP VAS VOCC VMI VSM WACC WMS YMS security surcharge costs serial shipping container code shipping with Amazon ThrowAway pallet turn around time total cost of ownership twenty-foot equivalent unit transport management system total process management Toyota production system transit time target to improve unit load device United Nations unique selling point value added services vessel operating common carrier vendor managed inventory value stream map weighted average cost of capital warehouse management system yard management system Further Reading Byrne A 2017 The Lean Turnaround: How to Implement Lean, Create Value, and Grow Your People New York: McGraw-Hill Coyle J., Novack R., Gibson B et al 2015 Transportation: A Global Supply Chain Perspective Boston, MA: Cengage Learning Cudney E 2009 Using Hoshin Kanri to Improve the Value Stream New York: CRC Press Ford H 2003 Today and Tomorrow New York: CRC Press George M., Rowlands D., Kastle B 2004 What is Lean Six Sigma New York: McGraw- Hill Goldsby T., Iyengar D., Rao R 2014 The Definitive Guide to Transportation: Principles, Strategies, and Decisions for the Effective Flow of Goods and Services Upper Saddle River, NJ: Pearson Education Liker J 2004 The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer New York: McGraw-Hill Liker J., Convis G 2012 The Toyota Way to Lean Leadership New York: McGraw-Hill Monczka R., Handfield R., Giunipero L et al 2014 Purchasing and Supply Chain Management Boston, MA: Cengage Learning Myerson P 2012 Lean Supply Chain and Logistics Management New York: McGraw-Hill Niederstadt J 2015 The Lean Expert: Educating and Elevating Lean Practitioners Throughout Your Organization New York: CRC Press Ohno T 1988 Toyota Production System – Beyond Large-Scale Production Boca Raton, FL: Productivity Press Rother M., Aulinger G 2017 Toyota Kata Culture: Building Organizational Capability and Mindset Through Kata Coaching Chennai, India: McGraw-Hill Rother M., Shook J 2003 Learning to See: Value-Stream Mapping to Create Value and Eliminate Muda Cambridge, MA: Lean Enterprise Institute Shook J 2010 Managing to Learn: Using the A3 Management Processes to Solve Problems, Gain Agreement, Mentor, and Lead Cambridge, MA: Lean Enterprise Institute Womack J.P., Jones D.T 2003 Lean Thinking: Banish Waste and Create Wealth in Your Corporation New York: Simon & Schuster Womack J.P., Jones D.T., Roos D 1990 The Machine That Changed the World New York: Rawson Associates 259 Index Note: Page numbers in italics and bold refer to figures and tables, respectively Accord Dangereux Routier (ADR) goods 73 acquisition 184 action-oriented approach 25 adverse weather conditions, peak seasons, and holidays 214 airfreight 61–72; specific services 62 air way bill (AWB) 59 andon (signal) 1 annual operating plan (AOP) process 104 arrival notice 95 artificial intelligence (AI) 237 assign global process owners 233 ATR (Association Turkey) 94 automate and digitalize more 239–240 automated external defibrillator (AED) 36 automated guided vehicle (AGV) 226 back-and-forth system 12 belly deliveries 61 benchmarking 150–151 Big Data/open data 185 bitcoin 188 black belts 10 BL/BOL/AWB/CMR 93 block chain technology 188 Blue Dart 61 breakthrough improvement 12–14 built-in waste 227 bunker adjustment factor (BAF) 81 business, voice of 5 business-to-business (B-t-B) volumes 195 business-to-consumer (B-t-C) shipments 195 capacity protection plan 192–193 carbon footprint 250–251 cargo-passenger combination capacities 65 cargo plane capacities 63 carriage (port-to-port) 77 carrier: assessment questionnaire 123–124; haulage 77; implementation plan 133–134; process 121–135; quality agreement 248–249; quotes comparison 127; review process 136–146; selection 48, 163 carrier management 232; cycle 114 carrier’s certificate 95 carrier’s certificate and release order 95 category strategy development 172–173 centers of economic activity 184 central distribution center (CDC) 45 centralize sourcing 219 certificate of conformity (COC) 94 certificate of insurance 94 certificate of origin (COO) 94 charts 27 checklists 27, 31 circular economy 188 cloud computing 187 CMR conditions 147 collaborate with customer 209–211 collect 227 colors 27 commercial goods invoice 92–93 commodity strategies 119–120 commodity strategy 113–115; contract negotiation 120; market intelligence research on suppliers 115–117; project management activities 115; strategy development 117–120; supplier relationship management 120–121 complaint and claim handling 146–148, 207 complete transportation order 162 confirmation of delivery (COD) 116 261 262 • Index congestion 156 ConnectShip 238 consignee 44 consignor 44 container freight station (CFS) 81 container type characteristics 80 continuous improvement (kaizan) 9, 14–17 contract negotiation 120 control chart 31 Convis, G. 10 cost and budgetary control 104–109 cost and root cause analysis 106–108 cost performance 153–154 cost price indicator (CPI) measures 116 costs and transit-times: per modality 87; transportation 86–88 countermeasures 18; impact 28 cross-dock location 45 cross-functional team 19 crowd funding 184–185 crypto currencies 188 C-TPAT 99 current state 19 customer-facing mistakes 154 customer requirements 210 customer service 2, 166 customer survey tools 3 customer’s voices 2–4 customer value 6 customization 185 customs broker 97 customs clearance 95–97, 249 customs entry 95 customs trade reference number (CTRN) 50 cycle time 24, 34; vs takt time 35 daily management (DM) 4, 25–28 daily management board 26 daily performance reporting 228–229 dangerous goods 65, 99–101 dangerous goods declaration (DGD) 94 decision matrix 125 defects 7 delay codes 139 delivery frequency 210; reduction 211 delivery information acquisition device (DIAD) 59 delivery instructions 95 delivery note (DN) 47 delivery order 95 delivery performance 153 delivery reliability 139 Delta Air Lines 67 DESADV 239 develop and co-operate with carriers 244–245 DHL 43, 61 direct deliveries 73 disaster recovery plan (DRP) 98 dock-to-stock lead-time 233 documentation 92–95, 206 document verification 162 door-to-door (DD) carrier 67 door-to-port (DP) carrier 67 double-deckers 74 downstream flow 46 3D printing 186–187 DTDC 61 dynamic carrier choice system 238–239 e-commerce 195 EDI and interfacing 169–171 effort-impact matrix 21 electric pallet truck (EPT) 51 electronic data interchange (EDI) interface 47 electronic logging device (ELD) 189 elimination of wasted resources 6 embargoed and sanctioned countries 101–102 employee’s voices 4–5 enterprise resource planning (ERP) system 46, 47 EUR1 certificate 94 European Pallet Association (EPAL) 51 expected time of arrival (ETA) 49 export accompanying document (EAD) 92 export control officer (ECO) 91 export declaration 94 export license 92 express service 56 factory 46; warehouse 45 fair trade 189 FedEx 61 field stocking location (FSL) 44 financial goals 8 fishbone diagram 30 Index • 263 flow, install 6 flowchart 31 Food and Drug Administration (FDA) 96 forecasting errors 229 forty-foot equivalent unit (FEU) 79 FPA 167–168 freighter deliveries 61 freight payment and auditing 109–111 freight release 95 front-line workers 4 fuel surcharge costs (FSC) 61 full container load (FCL) 79 full truck load (FTL) 72–73 gemba (workplace) 1 general rate increases (GRIs) 221 global positioning system (GPS) 58 global sourcing 183 good distribution practice (GDP) 73 graphs 27 groupage see direct deliveries Hague-Visby rules 147 handling unit 51 Hazmat see dangerous goods heat treatment (HT) 52 hire qualified employees 242–244 histogram 31 hold for pick-up (HFPU) 44 Hoshin Kanri 12; action plan 16; bowling chart 15; compass management 12; template 12–13, 13, 14 house air way bill (HAWB) 68 hub-and-spoke system 73 human resources 175 imbalanced workload (mura) 7 in- and outsourcing 227–228 inbound process, transportation 50 Incoterms® rules, transportation 88–90, 89–90, 209 Industry 4.0 187–188 information technology 176 integrity, honestly, ethically, and fair trade 251–252 intermodal, transportation 84–85 International Air Transport Association (IATA) 100 International Chamber of Commerce (ICC) 88 International Forwarding and Transport Message Instructions (IFTMIN) 170 International Forwarding and Transport Status (IFTSTA) messages 170 International Maritime Organization (IMO) 99 International Organization for Standardization (ISO) 52 International Plant Protection Convention (IPPC) 52 International Standards for Phytosanitary Measures (IPSM) 52 Internet of Things (IoT) 187 inventories 7 inventory levels 7 Ishikawa diagram 30, 31 ISO 9001:2008 157, 158 Japan Post Group 61 Jennings, Charles 10 Jones, D.T. 5 Just in Time 11, 41 kaizen 17–21, 198 kaizen template 18 Kamishibai 35 key transportation leadership position 246 knockout criteria 124 Known Consignor 69−70 lead-times 7, 24 Lean: culture 8–9; defined 1–2, 4; principles 8 Lean compliance 248; carbon footprint 250–251; carrier quality agreement 248–249; customs clearance processes 249; integrity, honestly, ethically, and fair trade 251–252; manage transportation risks 249–250; neutral delivery service 250; preferential trade agreements 251; reduce duties and prevent delays and penalties 251 264 • Index Lean customer: adverse weather conditions, peak seasons, and holidays 214; collaborate with customer 209–211; order cut-off times 213; pack properly and prevent damages and losses 211–212; strategy and policy 209; transit times and variances 213–214; visibility 212–213 Lean finance 216–217, 222–226; consolidate shipments 218; direct deliveries 221; leverage purchasing volumes 219–220; loading degrees 220; modal shifts 217–218; negotiate fuel surcharge costs 219; set up tender roadmaps 218–219; silk route 221; TCO tool 220–221 Lean IT 236–237; automate and digitalize more 239–240; dynamic carrier choice system 238–239; online transportation market places 241; TMS 237–238; yard management system 240–241 Lean leadership 9–11 Lean maturity 38–40 Lean maturity level 198 Lean organization 242; develop and co-operate with carriers 244–245; hire qualified employees 242–244; key transportation leadership position 246; standardize processes 245–246; value streams and value stream loops 246 Lean processes 226–227, 233–236; daily performance reporting 228–229; in- and outsourcing 227–228; level out demand 229–230; limit and manage returns 230–231; optimize vendor inbounds 231–232; plan docks 233; smart and re-useable packing material 232–233 Lean thinking 5–7 Lean Thinking: Banish Waste and Create Wealth in Your Corporation 5 Lean tools 11; applicability 38; breakthrough improvement 12–14; continuous improvement 14–17; daily management 25–28; kaizen 17–21; problem solving 28–31; 5S 36–38; standard work 32–36; value stream mapping (VSM) 21–25 Lean transportation management 193–196; change 196–199; reduce waste 208–209; reduce waste, Lean compliance 248 (carbon footprint 250–251; carrier quality agreement 248–249; customs clearance processes 249; integrity, honestly, ethically, and fair trade 251–252; manage transportation risks 249–250; neutral delivery service 250; preferential trade agreements 251; reduce duties and prevent delays and penalties 251); reduce waste, Lean customer (adverse weather conditions, peak seasons, and holidays 214; collaborate with customer 209–211; order cut-off times 213; pack properly and prevent damages and losses 211–212; strategy and policy 209; transit times and variances 213–214; visibility 212–213); reduce waste, Lean finance 216–217, 222–226 (consolidate shipments 218; direct deliveries 221; leverage purchasing volumes 219–220; loading degrees 220; modal shifts 217–218; negotiate fuel surcharge costs 219; set up tender roadmaps 218–219; silk route 221; TCO tool 220–221); reduce waste, Lean IT 236–237 (automate and digitalize more 239–240; dynamic carrier choice system 238–239; online transportation market places 241; TMS 237–238; yard management Index • 265 system 240–241); reduce waste, Lean organization 242 (develop and co-operate with carriers 244–245; hire qualified employees 242–244; key transportation leadership position 246; standardize processes 245–246; value streams and value stream loops 246); reduce waste, Lean processes 226–227, 233–236 (daily performance reporting 228–229; in- and outsourcing 227–228; level out demand 229–230; limit and manage returns 230–231; optimize vendor inbounds 231–232; plan docks 233; smart and re-useable packing material 232–233); success factors (Lean leadership 200–201; Lean metrics 203–205; Lean value stream manager transportation 201–202; Lean value stream organization chart transportation 202–203); transportation house of Lean 205–208 Lean value stream organization chart transportation 204–205 less than truck load (LTL) 73, 81 letter of credit (LC) 95 letter of intention (LOI) 130, 130 level out demand 229–230 Liker, Jeffrey K. 7, 10, 40 limit and manage returns 230–231 loading 206 local authorities 102 local distribution center (LDC) 45 location and flow types, transportation 44–46 logistics 41 long heavy vehicle (LHV) 220 mainstream flow 46 managed transportation services 169 manage transportation risks 249–250 market intelligence research on suppliers 115–117 market trends 179–180, 181–182; Big Data/open data 185; block chain technology 188; circular economy 188; cloud computing 187; crowd funding 184–185; crypto currencies 188; 3D printing 186–187; fair trade 189; global sourcing 183; increasing political instability 180; increasing supply chain complexity 180–183; Industry 4.0 187–188; Internet of Things (IoT) 187; mass customization 185; mergers and acquisitions 184; new centers of economic activity 184; omni-channel business models 183–184; resource and energy limita 188; robotics 187; safety 189–190; segmentation 184; share economy 185; sustainability 189; trade barriers and regulations 180; uberization and online logistics marketplaces 186; urbanization 185 market warehouse 46 mass customization 185 master air way bill (MAWB) 69 master data management 161 material and information flow diagram 23 material safety data sheet (MSDS) 99 mature Lean companies 208 maturity 171–172; category strategy development 172–173; human resources 175; information technology 176; measurement 176; organizational design 176; supplier evaluation and selection 173; supplier management and development 174–175; supplier quality management 173–174; transportation strategy 176–179; worldwide sourcing 175 measurement, maturity 176 266 • Index mentors (“sensei”) 10 Merchandise Processing Fee (MPF) 96 merchant haulage 77 merge center 46 mergers and acquisitions 184 modalities 93 modality 206, 210 Montreal Protocol 147 mother-and-child structure 58 motion 7 muda (waste) 7 muri (burden for the team members) 7 network optimization 148–150 neutral delivery 93 neutral delivery service (NDS) 250 next business day (NBD) delivery 56 nice-to-know thing 150 non-disclosure agreement (NDA) 130 non-performance 116 non-standard order management 163 non-value-added activities 6, 6 non-vessel operating common carrier (NVOCC) 82 non-wood declaration 94, 95 notify party 44 ocean freight see sea freight Ohno, Taiichi 7 omni-channel business models 183–184 on-carriage (port-to-door) 77 online transportation market places 241 on-the-job learning 11 optimize vendor inbounds 231–232 order and capacity planning 162 order consolidation 162–163 order cut-off time 47, 213 order quantities 210 organizational design 176 outbound process, transportation 47–49 outsourcing 151–155 over processing 7 overproduction 7 packing 206 packing instructions (PIs) 100 packing list 93 pack properly and prevent damages and losses 211–212 pallet 52; goods within the pallet boundaries 54; outbound process 53 parcel and express, transportation 56–61 parcel and express services 57 parcel sorting belt 59 parcel weight and measurement restrictions 60 Pareto diagrams 27, 31, 140, 141 party logistics 151–152 peak season surcharge (PSS) 116 perfection, strive for 6 performance reviews 169 pick-up and drop-off (PUDO) 44 Plan–Do–Check Act (PDCA) cycle 14, 17, 28 plan docks 233 platooning 187 3PL company 151 4PL company 151 POD coverage 165 policy deployment 12 Political Economic Social Technological Environmental Legal (PESTEL) 179 political instability 180 port-to-door (PD) carrier 68 port-to-port (PP) carrier 68 PostNL 61 pre-carriage (door-to-port) 77 preferential trade agreements 251 prepaid 227 proactive shipment monitoring 165–166 problem-solving 28–31; capabilities 3; cycle 29, 29; tool 11 process: box 24; improvement 1; performance 19; standardization 168; voice of 5 process survey tools (PSTs) 171–172 production technology 2 pro-forma invoice 93 project management activities 115 Proof of Attorney (POA) 97 purchase order (PO) 50 quality management system (QMS) 156–159 quality performance 153–154 Index • 267 reduce duties and prevent delays and penalties 251 regional distribution center (RDC) 44, 45 registration accuracy 53 regulated agent 70 repair center (RC) 45 repairs 46 (repair) vendor site 46 reporting 168–169 request for information (RFI) 122 request for proposal (RFP) 124 request for quotation (RFQ) 125, 126–128 resource and energy limitations 188 responsiveness 206 return on investment (ROI) 217 returns 46; consolidation location 46 return to sender (RTS) goods 230 return warehouse 46 risk assessment matrix 191 risk management 190–192 road transportation 43, 72–77 road transportation equipment characteristics 75 robotics 187 root causes 139 Royal Mail 61 5S (straighten, sweep, standardize, and sustain) 36–38; checklist 37 6S (straighten, sweep, standardize, sustain, and safety) 36 safety 189–190 sales order (SO) 46, 47 scatter plot 31 scheduling 206 Schenker 61 scrap 46 scrap center (SC) 45 sea freight 77–83 security surcharge (SSC) 116 segmentation 184 self-development process 11 Serial Shipping Container Code (SSCC) 51 service level agreement (SLA) 130, 131 service portfolio 117, 118 share economy 185 Shigeo Shingo 32 ShipItSmarter 238 shipment preparation, transportation 50–54 shipment status 164, 165 shipping 206 shipping lines 77 smart and re-useable packing material 232–233 Specific Measurable Achievable Realistic and Time (SMART) 29 spend analysis 111 stacking 206 standardize processes 245–246 standard operating procedure (SOP) 132, 135 standard work 32–36 Statement of Work (SOW) 149 strategy and policy 209 strategy development 117–120 Strengths Weaknesses Opportunities Threats (SWOT) analysis 117–118, 118, 129 structured carrier performance analysis 142–144 sub-optimizing individual processes 21 success factors: Lean leadership 200–201; Lean metrics 203–205; Lean value stream manager transportation 201–202; Lean value stream organization chart transportation 202–203 supplier evaluation and selection 173 supplier managed and owned inventory (SMOI) 232 supplier managed inventory (SMI) 232 supplier management and development 174–175 supplier quality management 173–174 supplier relationship management 120–121 supplier’s view analysis 119 supply chain complexity 180–183 supply chain management 41, 232 supply chain security 97–99 supply chain visibility 163–165 sustainability 155–156, 169, 189 system as a service (SaaS) solution 160 Taiichi Ohno 9, 32 takt (beat) 21 268 • Index takt time 34 Target to Improve (TTI) 11, 12, 14 T-document 94 tender document content list 122 tendering 168 TIM WOOD (wastes) 7 TMS 237–238 TMS and MTS providers 171 total cost of ownership (TCO): cost and budgetary control 104–109; freight payment and auditing 109–111; spend analysis 111 total cost of ownership, transportation 102–104 Toyota Production System (TPS) 9 Toyota Production System—Beyond LargeScale Production 7 Toyota’s Lean philosophy 1–2 The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer 8 tractor 74 trade barriers and regulations 180 trade compliance 91–92; customs clearance 95–97; dangerous goods 99–101; documentation 92–95; embargoed and sanctioned countries 101–102; local authorities 102; supply chain security 97–99 train, transportation 83–84 train-the-trainer approach 217 “train the trainer” approach 40 transit time (TT) 44 transit-times 206 transit times and variances 213–214 transportation 7, 41–44; costs and transittimes 86–88; house of Lean 205–208; inbound process 50; Incoterms® rules 88–90; KPIs 138; location and flow types 44–46; manager 201; outbound process 47–49; phases of transportation flow 56; shipment preparation 50–54; total cost of ownership 102–104 (cost and budgetary control 104–109; freight payment and auditing 109–111; spend analysis 111); trade compliance 91–92 (customs clearance 95–97; dangerous goods 99–101; documentation 92–95; embargoed and sanctioned countries 101–102; local authorities 102; supply chain security 97–99); transportation modalities 54–56 (airfreight 61–72; intermodal 84–85; parcel and express 56–61; road transportation 72–77; sea freight 77–83; train 83–84) transportation management 113; benchmarking 150–151; carrier review process 136–146; carrier selection process 121–135; commodity strategy 113–115 (contract negotiation 120; market intelligence research on suppliers 115–117; project management activities 115; strategy development 117–120; supplier relationship management 120–121); complaint and claim handling 146–148; key drivers 205; market trends 179–180 (Big Data/open data 185; block chain technology 188; circular economy 188; cloud computing 187; crowd funding 184–185; crypto currencies 188; 3D printing 186–187; fair trade 189; global sourcing 183; increasing political instability 180; increasing supply chain complexity 180–183; Industry 4.0 187–188; Internet of Things (IoT) 187; mass customization 185; mergers and acquisitions 184; new centers of economic activity 184; Index • 269 omni-channel business models 183–184; resource and energy limitations 188; robotics 187; safety 189–190; segmentation 184; share economy 185; sustainability 189; trade barriers and regulations 180; uberization and online logistics marketplaces 186; urbanization 185); maturity 171–172 (category strategy development 172–173; human resources 175; information technology 176; measurement 176; organizational design 176; supplier evaluation and selection 173; supplier management and development 174–175; supplier quality management 173–174; transportation strategy 176– 179; worldwide sourcing 175); network optimization 148–150; outsourcing 151–155; quality management system 156–159; risk management 190–192; sustainability 155–156; transportation management system 159–161 (carrier selection 163; complete transportation order 162; customer service 166; document verification 162; EDI and interfacing 169–171; FPA 167–168; managed transportation services 169; master data management 161; non-standard order management 163; order and capacity planning 162; order consolidation 162–163; performance reviews 169; proactive shipment monitoring 165–166; process standardization 168; reporting 168–169; supply chain visibility 163–165; sustainability 169; tendering 168; TMS and MTS providers 171) transportation management house 207 transportation management system (TMS) 159–161; carrier selection 163; complete transportation order 162; customer service 166; document verification 162; EDI and interfacing 169–171; FPA 167–168; managed transportation services 169; master data management 161; non-standard order management 163; order and capacity planning 162; order consolidation 162–163; performance reviews 169; proactive shipment monitoring 165–166; processes 160; process standardization 168; reporting 168–169; supply chain visibility 163–165; sustainability 169; tendering 168; TMS and MTS providers 171 transportation modalities 54–56, 86; airfreight 61–72; intermodal 84–85; parcel and express 56–61; road transportation 72–77; sea freight 77–83; train 83–84 transportation-related customer requirements 4 transportation strategy 176–179 transportation time 44 turn around time (TAT) 44 twenty-foot equivalent unit (TEU) 79 uberization and online logistics marketplaces 186 unique selling point (USP) 194 unit load devices (ULDs) 63, 64 unloading 206 UPS 61 upstream flow 46 urbanization 185 270 • Index value-added activities 6, 6 value-added services 47 value stream map 22 value stream mapping (VSM) 6, 21–25; phases of 23–24 value streams and value stream loops 246 value tracking 104 vendor managed inventory (VMI) 232 Vessel Operating Common Carrier (VOCC) 82 visibility 206, 212–213 visualization tools 27 voices 2; business 5; customer 2–4; employee 4–5; process 5 volume leveling 206 volumetric weight 49 waiting 7 waiting time 24 warehouse management 232 warehouse management system (WMS) 47 Warsaw Convention 147 waste 7 waste reduction: Lean compliance 248–252; Lean customer 209–214; Lean finance 218–226; Lean IT 236–241; Lean organization 242–246; Lean processes 226–236 wastes in trasportation processes 194–195 waybill 49 weighted average cost of capital (WACC) 42, 42 “what if ” scenarios 149 “5w + 1h” tool 29 Womack, J P. 5 working capital 6 work in process 24 workload 8 worldwide sourcing 175 Yamazumi 34 yard management system 240–241 Yoji Akao 12 YRC Worldwide 61