How it works: Lean and agile logistics

How can logistics and transports become lean or agile? Be taking a holistic approach. The transportation setup cannot be isolated from how the rest of the company operates.

Lean and agile are well‑established concepts in manufacturing. They are discussed in relation to production systems, factory efficiency, and operational strategy. But when the focus shifts from production to logistics and transportation, the picture becomes less clear.

To explore how lean and agile thinking applies to transport and logistics, we spoke with Begoma board member, Jan Olhager, Professor Emeritus in Operations and Supply Chain Strategy. His starting point is simple: lean or agile logistics cannot be separated from how production is organized.

– Lean generally focuses on cost efficiency, while agile is about flexibility. That distinction holds true not only in production, but across the entire supply chain, he says.

“Need to have the same mindset”

Lean aims to reduce time and material waste through efficient planning and organization. Agile systems, on the other hand, are designed to cope with variation: changing volumes, product mix, or demand patterns.

Both approaches can extend into logistics and transportation, but under different conditions.

– If we are talking about B2B transportation, to achieve lean or agile logistics, both companies need to have the same mindset. Otherwise, it’s difficult to create lean or agile transport flows between them, says Jan Olhager.

He points to the automotive industry to illustrate the principle. Car manufacturers operate assembly lines with even production rates, which means components are needed in steady quantities.

– If a supplier is expected to deliver a fixed number of components every day, you can design an efficient transport system that picks up and delivers at exactly the right time. If suppliers are unable to operate in the same lean way, the alternative is often to build buffers in the form of inventory, an approach that quickly becomes inefficient, he says.

Few companies think lean in logistics

Despite the many advantages, Olhager notes that most companies still do not think in lean terms when it comes to transportation. Transport is often procured separately, routes vary, and flows can lack long‑term structure.

There are, of course, exceptions. Some companies have developed structured inbound systems with so called ”milk runs” and cross‑docking terminals, where goods are collected, reloaded, and forwarded without unnecessary storage.

– For those systems to work properly, products shouldn’t stay overnight. By avoiding that, you can create cost‑efficient logistics for your company, says Jan Olhager.

Let Begoma optimize your transports

Contact us at Begoma. By analyzing your current transportation setup, we present ways to optimize and improve in terms of cost, time and climate impact.