KAIZEN IN THE WAREHOUSE,
LOGISTICS, AND DISTRIBUTION
(WLD) SECTOR
WAREHOUSE, LOGISTICS, AND
DISTRIBUTION
Current Scenario
The warehousing, logistics, and distribution (WLD) sector is experiencing a dynamic and
evolving landscape, shaped by various factors like the e-commerce boom, technological
advancements, and changing consumer demands.
• Global market size: A whopping $12.2 trillion in 2022, projected to reach $27.5 trillion by
2028
• E-commerce boom fueling growth: Online sales driving demand for faster, more
efficient WLD solutions
• Consumers want it all: click-and-collect, same-day delivery, and seamless returns
• Eco-friendly packaging gaining traction: recycled cardboard, paper padding, and even
mushroom-based bioplastics.
• Renewable energy sources like solar power lighting up warehouses and reducing
carbon emissions
• Average order fulfillment time: 2.3 days, constantly decreasing thanks to automation
and data-driven optimization.
• Logistics costs as a percentage of GDP: 8% globally, varying significantly by region
and infrastructure development.
ARE THESE YOUR OBJECTIVE?
Zero Accidents Minimize Overall Costs Low Carbon Footprint
Maximize On Time Compliance to
Zero Customer
In Full Error Free government rules and
Complaints Delivery (OTIFEF) regulations
ARE THESE YOUR BARRIERS?
High High Ware-
Low
Distribution housing
Productivity
cost Costs
Non-
Unsafe
Loss of compliance
acts by
Business with Govt.
employees
Policies
If YES, you NEED
YOU NEED YOU NEED TO
TO IMPROVE ADOPT
Processes Inventory
(Picking, Packing, Loading, Process Automation
Documentation, etc.) Management
Logistics –
Material Handling Green Operations
Internal & External
Continual
Flow Health & Safety Improvement
KAIZEN Culture
OUR APPROACH & METHODOLOGY
KBS (KAIZEN™ Business System)
Creating Customer, Shareholder & Employee Long Term Value
LONG TERM COMPANY VALUE
G: GROWTH Q: QUALITY C: RESOURCE EFFICIENCY D: FLOW EFFICIENCY M: RESPECT FOR PEOPLE
DIGITAL KAIZEN™ Smart Operations | Smart Development | Digital Services | Digital Change Management
GROWTH MODEL CHANGE MODEL OPERATIONS MODEL
Insight Marketing
STRAT Flow Improvement
KAIZEN™
Breakthrough Initiatives
Challenger Selling VALUE STREAM Logistic Operations
KAIZEN™
Gemba Kaizen
Innovation & Research Workshops Productive Maintenance
DAILY
Accelerated Development KAIZEN™ Service Operations
Team Development
Energy & Environment Sourcing Improvement
KAIZEN™ FOUNDATIONS Values & Principles | KAIZEN™ Audits | KAIZEN™ Governance | TQM
We transform teams into true
KAIZEN™ agents, capable of
leading changes within the organizations
Daily KAIZEN™ Value Stream KAIZEN™ Strat KAIZEN™
Under the Daily KAIZEN™ program, teams and With Value Stream KAIZEN™ skills, leaders will The success of the business strategy will be
their leaders acquire management and problem- be able to improve business processes by possible through an effective methodology for
solving skills that will enable them to improve implementing innovative solutions together with selecting strategic initiatives, implementing them
results. project teams. across the entire organization, and correcting
deviations.
They will be able to design and implement Leaders will transform interdepartmental
incremental improvements in their teams. processes, contributing with disruptive The strategy will be understood by all
improvements for key performance indicators. collaborators and each of them will have a clear
contribution towards the organisation's growth.
WAREHOUSE MANAGEMENT
Elements Sub-elements Improvement Initiatives
Five S & Visual Management
Unloading Layout & Workstation design
Materials Receipt Segregation
Storage Order Entry Management
Improving OTIF Delivery
Minimize Lost Orders
Store
What? Optimize Inventory
Warehouse
Storage & How much?
Management Handling Where? Prevent Slow & Non Moving Inventory
How? Pull Planning Using Kanban
Handling?
Organization by Value Streams
Flow in Pick & Place Logistics
Picking
Packing Creation of Standards
Material Despatch
Invoicing
Loading Safety Practices
Return and reject goods handling
LOGISTICS OPERATIONS
LOGISTICS MODEL DESIGN WAREHOUSE OPTIMISATION TRANSPORT OPTIMISATION
3. Supply Chain Pull Planning 2. Transport Network 7. Operations 6. SKU & Layout 5. Planning model
planning & control Management optimisation
Trailer
Supermarket
Milk Run
2. Outbound:
Picking
3. Inbound:
Receiving 4. Park
Full automation
Management
Standard Work
Hubs &
Capillary
Distribution
1. Capacity
Intermodal Optimisation Stock
allocation 2. Lean Fuel
4. Inbound: 1. Outbound: strategies Consumption
Storage Shipping 6. Maintenance Fronthauling
improvement
5. Cross-Dock, PBL, JIT Backhauling
3. Pick & Delivery
1. Warehouse Network Standard Work
8. Customer
Raw Materials Finished Main Regional Local Service & Support
& Components Product Distribution Distribution Distribution Organisation Final
Warehouse Warehouse Centre Centres Centres Clients
DISTRIBUTION MANAGEMENT
Elements Sub-Elements Improvement Initiatives
Warehouse Location Optimization
Cross docks
Inbound Logistics
3PL Contracts
Distribution
Milkruns
Management
High Frequency Logistics
Outbound Logistics
Levelling
Reduce Bull Whip Effect
SUPPLY CHAIN - TRADITIONAL
Traditional Supply Chain:
High Inventory, High costs, Low Delivery Performance
SUPPLY CHAIN – LEAN
Lean Supply Chain:
Low Inventories, Lower costs, High Delivery
performance
OVERALL IMPACT TO WLD
During assessment, detailed calculations will be done, as
per identified projects
Complaints Service Level
reduction: OTIF:
-50% +30%
Transportation
Productivity:
Cost:
+25% -15%
Breakage
Inventory Turns:
reduction:
-25% 2x
OVERALL IMPACT TO WLD
Intangible Benefits
Increased Continual Problem solving
Operator’s Skill
Employee Improvement Team Work tools learnt by
Improvement
Engagement Culture Project teams
ABOUT US
ABOUT KAIZEN INSTITUTE
Our Mission
Improving the World
with Everyone,
Everywhere, Every Day –
The KAIZEN™ Way
KAIZEN™ means “Change for the Better”
ABOUT US
Key Facts
Established 1985 45+ Sectors
6 Continents 55+ Offices 1 Kaizen Institute
60+ Countries 30+ Languages
OUR BRAND PROMISE
Authentic Practical WE HELP LEADERS
We introduced the We make our clients ACHIEVE DREAMS
KAIZEN™ experts in their Gemba OF PERFORMANCE
methodology to the
world in 1985 IMPROVEMENT
IMPLEMENT
CONTINUOUS
IMPROVEMENT
Holistic Worldwide
CULTURES
Our methods touch Our expertise, from
everyone in the helping the world‘s
organisation leading organisations,
working for can be applied to any
the same goal situation
and sharing the same
KAIZEN™
OUR GLOBAL CUSTOMERS
WE EXPECT
We wish to meet,
share, understand,
and engage with
your leadership team
kaizen.com
THANK YOU
KAIZEN™ Institute SAIN
[email protected] | in.kaizen.com
KAIZEN™ Institute AFAE
[email protected] | afr.kaizen.com
