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Lean Supply Chain Management: a lean approach applied to distribution - a

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Lean Supply Chain Management: a lean approach applied to distribution –
a literature review of the concepts, challenges and trends
________________________________________________________________

Silvio Luiz Alvim* [email protected]

Ottomar Antônio Galizio de Oliveria* [email protected]

*Federal University of Santa Catarina, Florianopolis, SC, 88.040-001 BRAZIL, (Tel: +55-48-
3721-7076)
_______________________________________________________________

Article History:

Submitted: Revised: Accepted: 8/2/2019

_______________________________________________________________

Abstract: Developed between 1948 and 1975, the Toyota Production System (TPS) has in its
essence increasing profitability through the elimination of losses. The TPS continued to
evolve, becoming better known as just-in-time (JIT) production and, in the sequence, as lean
production or lean thinking. In this line, the lean philosophy and its concepts were extended to
manufacturing industries over the years. However, up to the present, the challenge for many
companies lies in how to reduce the gap in the application of these concepts to their
distribution operations process. The distribution operation is responsible for the success of
customer services and, at the same time, it works under intense pressure to reduce costs and
inventory, keeping the high service level. The purpose of this paper is to present a literature
review about distribution related to the lean concept, and it aims to provide an overview of
recent ideas, challenges, and trends to implement the lean distribution. The research is
supported by Scopus database articles published in English; it has been limited to a period,
from 2007 to 2017. As a summary conclusion, it is imperative that the implementation of a
lean distribution program considers the supply chain management (SCM) as a system and
does not apply the lean practices to isolated parts of the chain.

Keywords: Lean distribution. Lean logistics. Lean manufacturing. Lean supply chain. Supply
chain management.

1 INTRODUCTION

Currently, the planning and the process aim to optimize the production on pursuing
customer satisfaction, through excellent customer orientation and operational excellence. The
distribution operations are susceptible to the global trends and can be impacted in cost and
performance due to the direct connection with the customer service. The lean approach
improves the flexibility and simplicity by reducing dependence on forecasts and offering
more optimized plans to achieve better results in the supply chain management (SCM)
performance. In this environment, the distribution operation tends to be an indicator of the
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accuracy of the forecasts. An unbalanced inventory and a frequent fluctuation are visible in a
distribution center where the shortages or excesses are usually attributed to inaccurate
previsions. The success of a forecast can be measured by distribution service level, inventory
health, costs and allocated resources, and the achievement of these distribution indicators is
related to the planning process and limited by the efficacy of the forecast (Zylstra, 2005).
Even being efficient, the SCM often becomes uncompetitive because it does not adapt
to changes in the structures of markets. SCM efficiency is necessary, but it is not enough to
ensure that firms will do better than their rivals (Lee, 2004). The focus of SCM practices must
shift from functional and independent to general and integrative initiatives (Frazzon, Albrecht,
Hurtado, & Pannek, 2015; Theagarajan & Manohar, 2015). Based on this study and in a
comparison of the publications researched, it was observed that a number of companies do not
understand the lean philosophy and its concepts; therefore this is one of the main reasons for
failures when it is applied to the distribution operation. Taking this scenario into account, an
opportunity to develop this review has been identified, and the purpose of this paper is to
present a literature review about distribution related to the lean concept, and it aims to provide
an overview of recent ideas, challenges, and trends to implement the lean distribution (LD).
If considered, managers would be able to have a clearer idea and a better perception of
the elements that need to be improved by filling the gaps and knowing where the leaders need
to focus. It should be observed that most companies do not obtain results with lean philosophy
due to the lack of understanding on how the kit of tools work together, in a synergistic way
for the construction of lean system (Sturdevant, 2014). The benefits of lean principles can
motivated managers and professionals thinking about expanding lean philosophies to the
entire supply chain (Berger, Yokoyama, & Rodriguez, 2018).
It proposes to analyze the literature, within a limited period – from 2007 to 2017,
presenting a revision of distribution operations within the lean philosophy. This paper is
structured in three sections, beyond this introduction. The section 2 presents the research
methodology used in the construction of the work. The section 3 introduces the theoretical
literature as the base of concepts for lean distribution, aligned with the most important
publications, analysis and abstracts, comments and the summary of ideas by the referenced
authors. Finally, the section 4 brings the conclusions and recommendations from the authors.

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2 METHODOLOGICAL APPROACH

This section presents the research methodology used to construct this paper, regarding
the literature review related to lean concept applied into SCM. The methodological approach
of this research is characterized as exploratory, documentary and descriptive (Gil, 2008), and
the authors used bibliographic references and sampling as instruments to execute the study,
accessing a public journal portal (CAPES), in connection with other publications. After
defining the keywords lean distribution, lean logistics, lean production , lean supply chain and
lean supply chain management, a total of 193.523 articles in English language, on the portal
CAPES were found. A significant result from this analysis was the total number of articles per
database, this being a parameter that supports the outlining of the collection chosen in the
research, where Scopus represented significant 74% of the publications from the period
between 2007 and 2017.

Figure 1 - Articles publication Figure 2 - Scopus publication

Source: CAPES (2018). Source: CAPES (2018).

In order to continuing the analysis, the first phase consisted in the search for the
keywords in the articles written in English, from the previously referred period, regarding the
areas of Engineering, Business Management, Accounting and Decision Sciences. In the
second phase, the main topics, which approximated the article contents to the subject of the
research, were found. The third phase worked on the database definition. During the fourth
stage, the articles were selected, based on the number of citations, classification, and
alignment with the research objective. In the fifth stage, the journals presented in the
production of the article were identified. In the last phase, the tabulation and evaluation were
executed, with the major results being presented and discussed. At this time, the keywords
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and the main topics were inputted to approximate the content of the articles to the research
proposal as shown in Figure 3.

Figure 3 - Article publication by subject areas

Source: Scopus (2018).

In order to achieve the aim of this paper, the bibliometrics of previously selected
3.413 articles was carried out. As results, by eliminating duplications, reading the keywords
and titles, identifying alignment with the research objectives, the highest number of citations,
classification and reading the abstract or the article content, 30 articles were pre-select from
this total.

3 LITERATURE REVIEW

3.1 Lean logistics

Lean Thinking is a philosophy of management and/or business strategy that objective

of streamlining the flow of production (Womack & Jones, 2003), while seeking to reduce
costs through a system of identification and elimination of waste, making the customer
receive exactly what he need, at the requested time and in the quantity requested (Ferreira,
Francescki, Melo, Silva, & Reichert, 2017). The analysis of the concepts and principles of the
lean mentality should always precede the choice of management tools since the concepts
dictate the behavior of the system. Concepts knowledge are relevant in decision making and
determination of appropriate tools. Operating with smaller stocks, greater flexibility and better
customer service - all at the same time - requires a very coherent logic, and often surprising

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for its simplicity. Unlike the traditional SCM, which has excessive inventory and tolerates
many inefficiencies, the lean culture is to maximize flow value, to reduce waste and loss
(Guimarães & Rodriguez, 2018). Simplicity is a fundamental part of Lean Logistics, but in
many cases, it would not be possible to apply it. In other cases, to simplify it, it is necessary to
adopt a different way of thinking - which may represent a break with the dominant paradigms
(Bañolas, 2006).
Ohno (1988) defined seven common forms of waste, activities that add cost but no
value: production of goods not yet ordered; waiting; rectification of mistakes; excessive
processing; excessive movement; excessive transport; and excessive stock. It is common to
find that, in fact, in a factory, less than 5% of activities add value, 35% are, necessarily, non-
value-added activities and 60% add no value at all. It is easy to see the steps that add value,
but it is much more difficult to see all the waste that surrounds them. Optimizing each piece
of the supply chain in isolation does not lead to the lowest-cost solution. On the contrary, it is
necessary to look at the whole sequence of lean events, from the customer’s order right back
to the order given to the raw materials producer, and forward through all successive
companies making and delivering the product to the customer.
In trying to identify possibilities for eliminating waste, this makes more sense if it is
done for one particular product or product family, and for all the tributaries that flow into this
stream of value creation. Focusing on the whole chain is the first step; focusing on the product
is the second and focusing on the flow of value creation, and not on the more traditional
performance measurement of departments and enterprises, is the third; this is called “value
stream” – a new and more useful unit of analysis than the supply chain or the individual firm.
The focus on the flow of value creation challenges immediately the notion that batches are
necessary and better (Jones, Hines, & Rich, 1997).
Lean thinking concepts can be used in all areas of business. The most prominent
intersection can be seen between the logistics and the production area (Bednár, Vidová, &
Beluský, 2012). The usage of the fundamental concepts of lean manufacturing techniques –
listed below – can be usable in the logistics system:

a) Specifying the value of products (products and services) from the customer’s
point of view: the value specification typically begins with the identification of
customers. People should develop and understand their needs and desires
concerning products, results, benefits, and services.
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b) Customers define value: identifying the value chain for each product (products
and services) and removing the waste; mapping the tasks of the organization in
such a way as to allow people to view processes, including activities that are
efficient and those that are "Wasteful".
c) Lean analysis groups activities into three categories: activities that add value;
activities that do not add value, but are necessary; activities that do not add value -
unnecessary.
d) Making value flow through the chain: after the "wasteful" activities have been
identified, the remaining ones are coordinated so that the inputs and outputs flow
between the process steps. That requires a focus on the needs of the object flowing
in the process (products, results, benefits, and services) and should not be
influenced by the existing infrastructure or organizations.
e) Customers can pull the creation of value in the chain: an organization should not
do something until that is necessary, so do without a lead time. Nothing is done at
a stage of the process without knowing what the client of the next step whether
and when it wants.

The features of lean logistics are:

a) Customer demand-oriented: in the lean logistics system, customer demands are

the motivation of production and starting point of value; systematic production is
pulled by customer demands.
b) Timely, accurate and fast: timely means the material is completed on time in each
stage of the flow; accurate means accurate information and communication,
accurate storage, accurate prediction of customer demands and accurate shipping
quantity; quickly indicates the response speed of customer demands and
transmitting speed of cargo in the logistics system.
c) Cut down costs and raise efficiency: lean logistics system ensures the low cost
and high efficiency by reasonable resource allocation.
d) Systematic integration: a lean system needs a better allocation of the resources,
including facility and equipment sharing, information sharing and benefit sharing.
e) Informatization: modern logistics service is a complicated systematic project; thus
the electronic information is convenient for transmitting, saving and computing
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 that can prompt the information flow fast, accurate and ensures logistics service
timely, highly-efficient. Informatization is the core and guarantee of lean logistics.

3.1.1 Case study analysis

Focused on material flow and working in process (WIP) in an automobilist production

process environment, the scheme proposed by Zhao e Ning (2009) offers a lean operational
model. Analyzing the proposal, the model has flexible production lines where the
configuration arrangement presents flexible lines that allow producing different types of
vehicles in the same assembly line, using the production order pattern, answering the dynamic
marketing demand. The supply chain can use just-in-time (JIT) production standard process
aligned with zero inventory metric, where the transit inventory corresponds to the existing
material and the volume needed in the warehouse. The manufacturing company needs only to
set a re-distribution center operations management in order to keep the reduced safety stock
near to the production line.
The use of Research Institution & Faculty Development (RIFD) technology, matched
with management fundamental concepts and methodologies as JIT, Enterprise Resource
Planning (ERP), E-commerce, and others, in the model proposed by Zhao and Ning (2009),
reflect the operation and control systems of lean logistics in an automotive manufacturing
business. The tracking of a collection is supported by RFID in real-time information.
According to the author, the application of the system can adequately compensate the
shortage of ERP and other systems regarding the real-time collection, data accuracy and real-
time input of material and product data, promoting the realization of JIT production pattern of
manufacturing companies.
In this system through establishing the logistics information management system of
the Internet-based automobile parts, and by visiting websites of related companies, the
manufacturer can obtain the information of the demands about the associated automobiles
parts directly. The information about transportation, cargo tracking, inventory, and order
management status, planning-making can also be found.
According to its provision of information about accurate real-time status of the parts,
quantity and the real-time data which is collected at the scene of the production, with the use
of RFID system in the Auto manufacturing companies, so the Auto manufacturing companies
that are making the pull-production plan have a reliable source of information. By visiting the
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websites of the auto manufacturing companies, the automobile suppliers are able to know the
real-time dynamic demands in the production line. Then, the production can be arranged
reasonably. It will provide the manufacturers with the parts which meet the accuracy of the
requirements. By doing this, the waste can be eliminated, the producing efficiency and quality
can be improved, and the costs can be cut down (Zhao & Ning, 2009).
Each material provided by the suppliers is affixed with RFID tags which contain a
unique electronic production code. When the labeled materials are taken out of the factories,
the information about them will be stored in the database through the RFID reader. It can
realize the inventory management, and the information-sharing in the whole range of the
supply chain is provided at the same time.
By accessing the relevant information, the third party logistics company can not only
make distribution plan arrangement reasonably and timely but also supervise the
transportation by utilizing of the RFID system and get the real-time situation of distribution.
In this way, they can avoid repetition of distribution, cut down the transportation time, reduce
the total logistics costs and improve their competitive forces. Also, the ERP system can send
and share the demand signal on time, asserting and balancing the market demand. Logistics
system, combined with lean thinking (LT), becomes lean logistics, which means the upper
suppliers provide right logistics service with the right price, on the right time, in the right
place, to satisfy the personalized demands of the customers (Zhao & Ning, 2009).

3.2 Supply chain management

SCM aims the integration of key business processes, from the end user to those who
provide products, services, and information to enable the creation of value for customers and
stakeholders (Cooper, Lambert, & Pagh, 1997). Simchi-Levi, Kaminsky and Simchi-Levi
(2003), define SCM as “a set of approaches utilized to integrate suppliers, manufacturers
warehouses, and stores efficiently, so that merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in order to minimize system-wide costs
while satisfying service level requirements”.
SCM is the dynamic administration of supply activities to maximize client value
and accomplish an economic upper hand. It includes the management of product
development, sourcing, production, and coordination of supply. Supply chains are

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"connected" through physical streams and data streams (Yi-Tao, 2010; Sun, Li, Song, &
Jiang, 2011).
The council of supply chain management professionals (CSCMP) asserts that SCM
encompasses the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service providers, and customers. In essence, SCM integrates supply and demand
management within and across companies. Sometimes the SCM can be confused with the
term “logistics management”, and as follows, it is presented the definition published by
CSCMP (2018): “Logistics management is that part of supply chain management that plans,
implements, and controls the efficient, effective forward and reverses flow and storage of
goods, services and related information between the point of origin and the point of
consumption in order to meet customers' requirements.”.
The strategy used in the SCM to achieve a better performance of suppliers is based on
the implementation of programs that aim to transmit knowledge gained with the use of lean
manufacturing practices. For example, the application of lean manufacturing practices in the
supply chain allows the organizations to achieve higher reliability, a sharp reduction in
inventories. Regarding inventories management, in the traditional business model, the
inventory rotation usually is on 3 to 5 times, and in a company that uses and applies the lean
concepts, the turnover can achieve 20 times per month.

3.3 Lean distribution

Global SCM is the management of the supply chains physically far from each other.
SC consists of suppliers, the factory, the vendor, the distribution channels and mainly the
customers. The channel starts the demand orientation to the plant, then the production of
products, procurement, logistics and distribution to the customer. Enterprises plan, evaluate,
improve and optimize their SC to grow over a period. These results of these actions converge
to cost reduction, improve the delivery speed and enhance customer satisfaction. In this
dynamic scenario, the distribution operation plays a key role in the SCM process, where the
operation needs to be effective and efficient managing resources as transportation to connect
goods and customers. It enhances inventory turnover development.

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 To Pérez, Castro, Simons, and Gimenez (2010), implementing lean supply chains has
four main obstacles to overcome: (a) current “trading” strategies based on fluctuating auction
prices; (b) difficulty to add value in formation of stream teams; (c) senior management
commitment and support; and (d) existing adversarial power-based relationships with
customers and suppliers.
In this context, the questions raised by this paper are:

a) What are the main challenges for the distribution nowadays? The operations are
changing from the historical role resumed to storage and shipping point. Some
organizations are working with a virtual warehouse, where there is a logical
location that receives and ships the goods as a hub; for instance, the factories send
the goods to one specific shipping point where they are consolidated and shipped
to the customer as one unique solution, without inventory allocation. In addition
that, in a multi-level organization, a lean implementation process is not easy, and
sometimes inapplicable.
b) What are the challenges to improve lean distribution and logistics operations? The
challenges identified are freight cost, customers’ requirements, forecast accuracy,
labor costs, quality, and planning process.

The lean practices for distribution are: reducing the set time that causes large batches;
linking use (demand) with production (Kanban), improving material flow, cells and material
handling; and improving quality: consistent output. This process is represented in Figure 4.

Figure 4 - MRP driven distribution planning

Source: Zylstra (2005).

The Figure 5 depicts a summarized Distribution Requirements Planning (DRP). The

Figure 6 shows the Materials Requirements Planning (MRP) flow.
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 Forecast DRP Transfer Schedule & Warehouse Customer
Orders Produce Inventory Orders

Figure 5 - Flow DRP planning process

Source: Zylstra (2005).

Figure 6 - MRP flow

Source: Zylstra (2005).

Inventory management is represented in Figure 7.

Figure 7 - Inventory management

Source: Zylstra (2005).

In this paper about the distribution process the researchers highlighted some of the
results detected:

a) The sales forecasts are only accurate when elaborated in an aggregate way, and
over more extended periods of time.
b) The inventory costs are typically understated.

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 c) Re-planning, according to forecasts changes, takes time and effort, but the
warehouse and DC managers need to protect their customer service level, and they
do not practice this re-planning.
d) Customer service policies are well documented or formalized, but on the other
hand, an inventory close to the customer and in large quantities is considered good
for the service, so some companies do not follow the policies.
e) Minimizing transportation (in isolation) can be a faulty objective; in this case, the
companies do not do this because ERP system and process built around the DRP
model.
f) High inventories may not equal responsiveness, where total cost view is difficult to
obtain.

Considering lean distribution distinct from lean production, the key difficulty is to
define the boundaries of the subsystem in question. To Womack and Jones (1996), and Hines,
Holweg and Rich (2004), the philosophy is centered on maximizing the value and reducing
waste and cost. The lean distribution can be defined as reducing the waste in the downstream
supply chain and delivering the right product on time to the customer at the right place.
Aligned with Toyota Production System (TPS) and lean thinking, this performance can be
better achieved when the products are pulled by the market rather than pushed towards it.
That is a simple JIT concept that can improve the inventory performance avoiding over
inventory in transit, along with the distribution process.
Towill and Cristopher (2002) recommend that the lean (for example inventory-based
in distribution) and agile (responsive distribution for instance) concepts can be integrated in a
combined supply chain strategy; in a scenario where it is possible to separate the chain
configuration, splitting it in one first “lean” plant which manufactures a determined product,
and another second “agile” plant which manufactures a different product. The configuration
can also be separated by time, where one plant produces one product for the summer, and the
other, a kind of product for the winter (fashion segment for example). Up to now, the lean
SCM full implementation achievement can be considered an exception within the inefficient
value chain. On the other hand, the implementation of lean distribution without considering
the SCM as one system may not support the process successfully. The savings achieved in the
distribution must be weighed across the other parts of the chain as manufacturing. It will need
a balance of benefits and impacts into the system (Reichhart & Holweg, 2007).
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3.4 Main authors approach about lean practices implementation

After the research was done, seven authors were selected for having been considered
more in accordance to the proposal of this work – a more in-depth analysis of lean practices
implementation. For this more detailed analysis, an exception was made for some articles of
the period from 2007 to 2017, because they were considered classic articles and could not be
left out of the analysis. It should be noted that, eventually, the articles addressed more than
one of the concepts; however, they were classified according to the emphasis given.

Table 1 – Resume: main authors approach and conclusions about lean practices
implementation

Author Approach Conclusion

Many organizations have In order to achieve the results in the
implemented Lean Practices, lean distribution implementation is
Zylstra however the major without success. imperative to consider the SCM as
(2005) The extension of these Lean one system and not applied the
principles to the Distribution is a big Lean practices in isolated parts of
challenge the chain.
Lean thinking has been widely
applied across manufacturing in
many industry sectors, with high
In general firms find it difficult to
Reichhart and performance improvements.
extended Lean principles
Holweg However, when extended to lean
downstream into their Distribution
(2017) distribution were not reported these
System.
same good results. In general, the
manufacturing focus and market
focus are not linked.
The main objective of the study
was to extend the OEE concepts to
Villareal,
In this study, the LM approach for each facility to the SCM. As part of
Garza,
waste elimination is applied to Distribution process, the focus was
Rosas
improve the SC in order to achieve in the warehouse and transportation
and Garcia
the high level of chain efficiency. activities working synchronized
(2012)
into the chain as part of the system
and not as separated activities.
In this current era of global It was observed that the empirical
competitiveness, not only the approach articles (53.3%) in LSC
manufacturing organizations are stream have dominated compared
Jasti
facing enormous pressure from their to the conceptual approach articles
and Kodali
customers and competitors but it is a (46.7%). It is a good signal and a
(2015)
challenge for other industries too. clear indication that lean principles
All these factors have given way to have been applied successfully in
integrate the LP concept with the SCM activities
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 complete production process
(starting from the suppliers to the
delivery to the customer). This has
given rise to the concept of ‘Lean
enterprise (LE)’LE does not restrict
to organization but it extends
beyond their limits.
Lean Six Sigma, when applied to the
Global Supply Chain, eliminates The enterprise can optimize the
unnecessary processes as well as activities by reducing costs and
defects in the produced goods which increase value of the goods which
increases the overall efficiency of are delivered to the customer. It
the global supply chain. Industry 4.0 helps to stay ahead in the
Jayaram and IoT helps to improve the competition and focuses on gaining
(2016) efficiency of production and supply customers and profits. In the future
by automation and exchange of data all enterprises will have a smart
between the manufacturing and factory for quick and more efficient
logistics systems. It helps in faster, production as well as smart
efficient and systematic logistics for speedy delivery and
management of supply chain distribution of goods.
management activities globally
Managers must be aware that if
Due to an increasing competitive certain levels of production stability
Frazzon,
pressure for shorter lead times, are not in place, a more
Tortorella,
lower costs and better quality, the conservative approach must be used
Dávalos,
principles of lean manufacturing with regards to lean SCM practices.
Holtz
have been incorporated into the However, once these stability
and Coelho
supply chain integrative approaches issues are mitigated, wider benefits
(2017)
(Cudney & Elrod, 2010). can be obtained from the adoption
of these inventory strategies.
Regarding companies' background
Supplier and customer integration
on LM implementation, results
emerges as an important element to
indicate that companies have been
improve competitiveness beyond the
approaching shop floor
organizational boundaries (Flynn et
improvements disconnectedly from
al., 2010; Frazzon et al., 2015). This
supply chain context. In fact, this
concept is perfectly aligned with
outcome highlights that managers
classical supply chain management
(especially from Brazilian
Tortorella et al. (SCM) definitions, since it
companies) are still focusing their
(2017) comprises the flow of goods from
continuous improvement efforts on
supplier through manufacturing and
internal issues and the elimination
distribution chains until the end user
of waste is treated from a narrow
(Power, 2005). In this sense, the
perspective. This finding alerts
focus of SCM practices must shift
managers that they might be
from functional and independent to
disregarding or neglecting the
general and integrative initiatives
potential benefits arising from an
(Theagarajan & Manohar, 2015).
extended value stream approach.
Source: authors.

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 As a summarized conclusion of Table 1, the authors of this paper highlight that,
according to the referenced authors, organizations still focus their continuous improvement
efforts on:

a) Internal isolated matters as part of the chain (inventory, manufacture, and

transportation);
b) The elimination of waste, which is addressed from a limited view, wholly
disconnected from the supply chain context, not considering the potential results
and benefits from extended lean SCM practices.

4 CONCLUSION

This paper worked on the application of the lean thinking concept in the activity of
distribution operations as a crucial process in the SCM. The chief purpose of this study was to
present a literature review about distribution related to the lean concept, and it aims to provide
an overview of recent ideas, challenges, and trends to implement the lean distribution. A
frame time, from 2007 to 2017, was established. Supported by Scopus, using documents
published in English, this study aims to provide an overview of lean distribution concepts,
challenges, and trends. As primary results of the research, it is possible to say that the
majority of the organizations have been approaching manufacturing improvement
disconnected from the SCM context, consequently, from lean distribution.
For some authors, lean manufacturing concepts, when applied to lean distribution, can
generate some conflicts. The main reason for these conflicts is that each area has its proper
focus, for example, manufacturing is focused on operational cost while marketing and sales
are focused on revenue. Moreover, some general management concepts also need to be
changed, for instance: having an inventory close to the customer and in large quantities is
considered good for the service; warehouse and DC managers need to preserve their customer
service levels.
As a second objective – providing an overview of recent challenges for implementing
lean distribution – the finding attests that the challenges identified to improve lean distribution
in logistics operations are: freight cost, customers’ requirements, forecast accuracy, labor
costs, quality, and planning process.

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 The third objective addresses to trends to implement the lean distribution. The trends
of lean manufacturing (LM) stream articles have been continuously increasing from the year
2007 onwards. It clearly indicates the success of LM principles in the organizations as well as
benefits received in all industry sectors due to the implementation of lean principles (Jasti &
Kodali, 2015). The worldwide interest for the lean distribution principles into the Logistics
and Transportation area deserve attention and show a significant opportunity to be explored
from studies and applications perspectives. Figure 8 shows the worldwide interest in lean
distribution and lean manufacturing areas.

Figure 8 - Lean distribution x lean manufacturing worldwide interest

Source: authored using Google Trends (2018).

The acceptance of improvement philosophies and a lean culture generates

opportunities to improve the quality and service of different sectors included distribution.
However, these methods are difficult to apply in these sectors given the volatility of demand
and a high degree of human participation. Alongside this scenario, this trend was only
possible with the technological evolution that was accentuated in the last quarter of the 20th
century. Nowadays, with all the technology available and future resources, allied to the new
concepts as Elastic Logistics, for example, this trend to implement the lean distribution
process will be reinforced.

Based on Jastia and Kodali (2015), we conclude that for the implementation of a lean
distribution program it is imperative to consider the SCM as a system, and not to apply the
lean practices only to isolated parts of the chain.
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 As a recommendation, the authors of this paper suggest continuing this research,
investigating with more details on the subject of lean distribution. As a second
recommendation the authors consider to investigate about the Lean Enterprise Model (LEM)
methodology (Negrão, Monteiro, Ramos, Gonçalves, & Dias, 2016), in order to measure and
improve the SCM performance related to lean philosophy. In addition to that, it is
recommended to encourage the managers to expand their vision from isolated areas, to
integrate the SCM to the lean concepts as an interoperable system, and, furthermore, to be
more competitive in the global market environment.

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