Increasing Customer Satisfaction Through Lean Distribution

Current supply chains are in constant pressure to maintain market share. They need to satisfy higher levels of customer service in terms of on time and complete order deliveries. Distribution strategies definition and execution are fundamental to achieve these requirements. These determine the behavior and the size of order lead times and therefore customer order satisfaction. This paper presents a description of the design and implementation of a distribution strategy for a Mexican company located in Monterrey that needs to improve order delivery time to stay competitive. The suggested approach includes the application of waste elimination in warehousing and transport operations, and the re-definition of inventory control policies. The validation of the strategy through a pilot test is included and current performance results are illustrated.