In case of Nissan, Kaizen and PDCA approach has shown improvements in terms of reduction of lead-time from five days to same day delivery in certain cities. Optimum Costs have been reduced from 24% to 12.5% even after the business for Nissan has doubled over the years. Global benchmark for Optimum Costs is 8% and in order to achieve this aim, consistent cost reductions are required. Key actions of Nissan for achieving the same include schedule pickup, full truckload in transport, specification optimization and flexibility in packaging and space reduction in warehouse. Nissan has successfully reduced space in warehouses to the extent of sub-leasing the extra space and earning from the same. Meeting their benchmark levels has been a huge success for Nissan and they have further set higher goals for themselves. Another important factor of success for them is daily morning meets that has helped in handling certain issues on priority basis. This is called Daily Work Management (DWM). Certain revolutions that have come about include reduction and maintenance of fill rate for which Nissan is at second position in India.
Gradually logistics is becoming the front face of a company, which is accompanied with new challenges like warehouse on wheels, multi depot, reaching customers as quickly as possible, grooming the last mile associates, almost zero inventories, zero tolerance of customers, customer lounge with smart facilities and so on. In order to deal with such requirements, Kaizen, PDCA and DWM help in achieving service excellence and customer satisfaction. With this, floor was opened for questions and our guest, with his profound expertise and competence, answered all the queries of the students.
DMS, IIT Delhi expresses its heartfelt gratitude to Mr. Sanjeev Aggarwal, for sparing his valuable time and delivering such an informative lecture to our students. We look forward to having him on campus again.
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