Implementing lean six sigma methodology to reduce the logistics cost: a case study in Turkey

Abstract

Purpose The purpose of this study is to propose the implementation of Lean Six Sigma (LSS) framework in supply chain by providing an actual case study of how to reduce the logistics cost. Design/methodology/approach In this paper, it is shown how LSS approach, basic tools and Define, Measure, Analyze, Improve and Control methodology can significantly improve a company by enhancing the supply chain and reducing the logistics expenditures. Findings Root causes to the main problem of this study were analyzed to identify appropriate solutions. After the implementation of solutions, the company’s product quality and internal communication were improved. Correspondingly, the percentage of customer orders that have to be transported by road instead of maritime reduced to 5% from 13% and the percentage of the road transportation cost paid unnecessarily by the company decreased to 1% from 5%. Practical implications This case study provides a roadmap and step-by-step implementation of LSS framework for especially companies in plastics industry. Originality/value To the best of the author’s knowledge, this paper is the first example of a LSS case study conducted in Turkey to improve the supply chain of a company by targeting primarily a reduction on logistics costs.