Lean adoption in third party logistics industry to achieve efficient logistics activities

Abstract

Purpose: This study focuses on lean implementation evaluation in Third Party Logistics (TPL) industry by using the lean principles measurement from Toyota Ways which consist of 14 principles. The core goal of this study is to appraise the lean implementation level in Third Party Logistics in East Java of Indonesia in order to achieve efficient logistics, distribution and transportation activities. Research design, data and methodology: This study uses a sample of 80 respondent who are Third Party Logistics managers in East Java Province, Indonesia. Data collection uses a questionnaire and standard statistical test was performed in order to analyze questionnaire. Results: The implementation level of lean management in Third Party Logistics shows that application of principle 3 (utilizing pull systems) has a higher score than the other principles. This situation shows that management give the best performance in plan process. They prioritize customer requirement in every process designed. However, the principle 8 (using reliable technology) show the weakness performance. Conclusions: Overall, this study shows the Third Party Logistics in East Java Province of Indonesia have applied the lean principle quite well, although the scores are only slightly above the average. This condition provides a strong basis for further lean implementation, especially for improving logistics, distribution and transportation activities in Third Party Logistics Business.