An Efficiency Improvement Approach to Reduce Transportation Costs: An Application

Main Article Content

Bernardo Villarreal
Santiago Macías-Sauza
Elsa Garza-Varela

Abstract

The reduction of transportation costs is an important issue for many companies that need to stay competitive. This work describes the application of a scheme for increasing transportation efficiency to achieve this purpose. This scheme is developed around a modified version of the Operational Equipment Effectiveness index used in TPM. This is adapted to be used as the main performance measure in transport operations. Availability, performance and quality wastes are identified using Value Stream Mapping of the operation. The implementation is carried out in the routing operation of a Mexican firm. The improvement initiatives are still in progress but the projected and available results are provided.

Article Details

How to Cite
Villarreal, B., Macías-Sauza, S., & Garza-Varela, E. (2013). An Efficiency Improvement Approach to Reduce Transportation Costs: An Application. Industrial and Systems Engineering Review, 1(2), 153-161. https://doi.org/10.37266/ISER.2013v1i2.pp153-161
Section
Articles
Author Biography

Bernardo Villarreal, Universidad de Monterrey

Professor

Dept of Engineering

References

Christopher, M., 1992, Logistics & Supply Chain Management, 1st edition (London, Pitmans).

Dirnberger, J.R., 2003, Development and Application of Lean Railroading to Improve Classification Terminal Performance, MSc Thesis, Montana State University.

Fisher, M.L., 1997, “What is the right supply chain for your product?”, Harvard Business Review.

Garza-Varela, E., Rendón-Noyola, A. & Macías-Sauza, S., (2011), `Ruteo Esbelto: Caso de Éxito en una Empresa de Bebidas Regiomontana`, Proyecto de Evaluación Final, Universidad de Monterrey.

Golden, B. L., Assad, A.A., 1988, Vehicle Routing: Methods and Studies, North-Holland, Amsterdam.

Guan, T.S., Mason, R. and Disney, S., (2003), `MOVE: modified overall vehicle effectiveness`, 8th International Symposium on Logistics, Seville, Spain, July.

Hill, T., 1993, Manufacturing Strategy: Text and Cases, 2nd ed. (London, Macmillan).

Hines, P. & Taylor, D., 2000, Going Lean, Lean Enterprise Research Centre, Cardiff Business School.

Jones, D.T., Hines, P. & Rich, N., 1997, “Lean Logistics”, International Journal of Physical Distribution and Logistics Management, Vol. 27, No. 3, pp. 153-73.

Laporte, G., Gendreau, M., Potvin, J.Y. & Semet, F., (2000), `Classical and Modern Heuristics for the Vehicle Routing Problem`, International Transactions in Operational Research, Vol. 7.

Laporte, G., Osman, I.H., 1995, “Routing Problems: A Bibliography”, Ann. Oper. Res., Vol. 61.

McKinnon, A.C., Ge, Y. & Leuchars, D., 2003, Key Performance Indicators for the Food Supply Chain”, Transport Energy Benchmarking Guide 78, London, Department for Transport.

McKinnon, A., Campbell J.& Leuchars, D., 1999, Benchmarking Vehicle Utilisation and Energy Consumption Measurement of Key Performance Indicators, Energy Consumption Guide 76 (DETR).

Molina, P., Nuñez, K.L. & Cantú, L.N., (2012), `Incremento de Eficiencia en el Sistema de Recolección y Entrega de UPS en la Zona Metropolitana de Monterrey`, Proyecto de Evaluación Final, Departamento de Ingeniería, Universidad de Monterrey.

Simons, D., Mason, R. and Gardner, B., 2004, “Overall Vehicle Effectiveness”, International journal of Logistics: Research and Applications, Vol. 7, No. 2, pp. 119-34.

Taylor, L. & Martichenko, R., (2006), `Lean Transportation-Fact or Fiction?`, Executive White Paper, www.fedex.com, September.

Toth, P. & Vigo, D., (2002), `Models, Relaxations and Exact Approaches for the Capacitated Vehicle Routing Problem`, Discrete Applied Mathematics, Vol. 123.

Towill, D. and Christopher, M., 2002, "The Supply Chain Strategy Conundrum: To be Lean Or Agile or To be Lean and Agile?", International Journal of Logistics: Research and Applications, Vol. 5, No. 3.

Treviño, N., Garcia, S. and Torres, G., 2008, Reducción del Costo de Distribución Primaria de una Empresa Embotelladora, Proyecto de Evaluación Final, Universidad de Monterrey.

Villarreal, B., Sañudo, M., Duran, B. & Avila, L., 2009, "A Lean Approach to Vehicle Routing", 2008 IERC Proceedings, Miami, Fla.

Villarreal, B., Garcia, D. & Rosas, I., 2009, "Eliminating Transportation Waste in Food Distribution: A Case Study", Transportation Journal, Vol.48 No. 4.

Villarreal, B., Vega, A. & Siller, D., 2010, "Rooting out Transportation Waste: An Application", Proceedings of The 15th Annual International Conference on Industrial Engineering Theory, Applications & Practice, Mexico City, Mx.

Villarreal, B., (2012), `The Transportation Value Stream Map (TVSM)`, European Journal of Industrial Engineering, Vol. 6, No. 2.

Womack, J. and Jones, D., 1994, “From lean production to the lean enterprise”, Harvard Business Review, February-March.

Zhong, H.,Hall, R.W. & Dessouky, M., 2007, "Territory Planning and Vehicle Dispatching with Driver Learning", Transportation Science, Vol. 41, No. 1.