The importance of 5S in the Vehicle Fleet

The 5S is an indispensable methodology in the implementation of any work system in the Supply Chain for the elimination of losses and increased productivity.

For a correct implementation of 5S in the Supply Chain and to be more specific in the “last mile”, the most important person “The Seller” must be consider, this person is not given the correct importance because their daily activities can impact profits or losses throughout the supply chain that can cause the closure or growth of a company.

My experience at Genba – ” The place where the events happen” (CEDI) shows that there is no correct training system for sellers based on creating a culture of Continuous Improvement or Elimination of Losses. Sellers are only “selling” rather than making improvements to minimize losses and increase the profitability of the business focused on reducing costs.

At the end everything focus in a mathematical formula which confirms the above.

Sales-Costs = Profit

Working with the seller in the implementation of the first S “Select” in an orthodox way could be a determining factor to identify the quantity and the exact SKUs that must be requested in their order to supply with their respective customers creating a harmony between the production plant. – the plant warehouse – Cedi warehouse and thus cause that there are no overproductions and begin to request raw material, produce, send and safeguard product that does not yet have a requisition date by the client.

Losses due to lack of the first S – Selection:

  • Over-inventory of product in the warehouse of raw materials and final product
  • Over-use of transportation to move it to Cedi
  • Over-inventory in the box of the vehicle of sale
  • Quality failures / losses
  • Rework by the seller and warehousemen
  • Poor quality

By having only the necessary product and in the necessary quantity, the implementation of the second S- “Order” continues. For this activity the seller is the person who marks the pause of the order in which the product should be placed in your vehicle.

Some recommendations to order the product are:

  1. The sequence of the sales route.
  2. Expiration date (perishable products).
  3. Products size.
  4. Product quality assurance.

The losses that may arise from the lack of the second S –Order are:

  • Non-compliance with the customer visit program.
  • Denying product to the customer due to lack of location.
  • Longer product picking time.
  • Product quality failures.
  • Lower product sales.

 

In the orthodox implementation of the first 2S “Selection and Order” dramatic results can be achieved in the financial results of the company, for this reason it is very important for the Direction and Management to root the 5S as an organizational work model in all levels of the organization.

The tangible and intangible benefits of implementing the first 2S in sales vehicles are:

  1. Sellers with better quality of life and better income.
  2. Decreased picking time.
  3. Increased frequency of visits to clients.
  4. Decrease of product passed.
  5. Decrease in wastes in good and bad condition.
  6. Decrease attraction for being robbed.
  7. The vehicle’s fuel economy rises.
  8. Decreases wear on the vehicle.