TAGUIG CITY UNIVERSITY

Gen. Santos Avenue, Central Bicutan, Taguig City

COLLEGE OF INDUSTRIAL ENGINEERING

J&T Logistics is a rapidly growing logistics company that has gained a

reputation for providing reliable and efficient transportation and delivery services

across Asia. With the increasing demand for logistics services in the region, J&T has

been expanding its operations and investing in advanced technologies to stay ahead

of the competition. However, as the world becomes more conscious about

environmental sustainability, logistics companies like J&T are also facing increasing

pressure to reduce waste and minimize their impact on the environment. In addition

to the environmental benefits, reducing waste and improving efficiency can also lead

to significant cost savings and better customer satisfaction.

In this context, applying engineering techniques to optimize logistics

operations can be a game-changer. By using data-driven approaches, simulation

tools, and process optimization techniques, logistics companies can achieve

significant improvements in their efficiency and reduce waste.J&T Logistics has

recognized the importance of reducing waste and improving efficiency, and is now

exploring various engineering techniques to achieve these goals. Some of the key

areas where J&T can apply engineering techniques include route optimization,

vehicle scheduling, inventory management, and packaging optimization.Route

optimization involves finding the most efficient routes for delivering goods to

customers, taking into account factors such as traffic congestion, delivery deadlines,

and fuel consumption. By using advanced routing algorithms and real-time traffic

1
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

data, J&T can optimize its delivery routes and reduce the distance traveled by its

vehicles, thereby reducing fuel

consumption and emissions.Vehicle scheduling is another area where J&T can apply

engineering techniques to improve efficiency. By using predictive analytics and

simulation tools, J&T can optimize its vehicle schedules to minimize idle time and

reduce the number of vehicles needed to complete deliveries. Inventory

management is also critical for reducing waste and improving efficiency in logistics

operations. By using data analytics and forecasting techniques, J&T can optimize its

inventory levels and reduce the amount of excess inventory, which can lead to

significant cost savings and minimize the risk of stockouts.

Finally, packaging optimization is another area where J&T can apply

engineering techniques to reduce waste. By using sustainable packaging materials

and optimizing the size and shape of packages, J&T can reduce the amount of

waste generated from packaging materials and reduce transportation costs. In this

case study, we will explore how J&T Logistics can apply engineering techniques to

reduce waste and improve efficiency in its operations. We will examine each of the

areas mentioned above in detail and provide practical recommendations for J&T to

implement these techniques. By implementing these recommendations, J&T

Logistics can achieve significant improvements in its operations, reduce its impact on

the environment, and maintain its position as a leading logistics provider in Asia.

J&T Logistics is a rapidly growing logistics company that provides a wide

range of services to its customers, including warehousing, transportation, and supply

2
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

chain management. As the company has expanded, it has faced numerous

challenges related to reducing waste and improving efficiency. In particular, J&T

Logistics has struggled with optimizing its warehouse operations and transportation

network, leading to increased costs and decreased customer satisfaction.

To address these challenges, J&T Logistics has decided to apply engineering

techniques to its operations. This includes using data analysis, process optimization,

and automation to streamline its processes, reduce waste, and improve efficiency.

By leveraging these techniques, J&T Logistics hopes to improve its bottom line,

while also providing better service to its customers. However, implementing these

engineering techniques is not without its challenges. J&T Logistics will need to invest

in new technology and equipment, train its staff on new processes, and develop new

metrics to measure success. Additionally, the company will need to balance the need

for efficiency with the need for sustainability, as reducing waste often means

generating less revenue.

Despite these challenges, J&T Logistics is committed to improving its

operations and providing the best possible service to its customers. By applying

engineering techniques to its logistics processes, J&T Logistics hopes to become a

leader in the industry, setting a new standard for efficiency and sustainability in

logistics.

3
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

The detailed objectives of the study "Reducing Waste and Improving Efficiency of

J&T Logistics, Applying Engineering Techniques" are:

1. To identify the sources of waste and inefficiencies in J&T Logistics' operations

by conducting a value stream mapping analysis.

2. To apply engineering techniques such as process optimization, automation,

and data analytics to improve the efficiency and reduce waste in J&T

Logistics' operations.

3. To evaluate the effectiveness of the engineering techniques implemented by

J&T Logistics in reducing waste and improving efficiency.

4. To identify opportunities for J&T Logistics to implement sustainability practices

to further reduce waste and improve environmental sustainability.

5. To provide recommendations for J&T Logistics and other logistics companies

to reduce waste, improve efficiency, and enhance sustainability in their

operations.

4
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

J&T Logistics, like many other logistics companies, faces a significant

challenge in reducing waste and improving efficiency in its operations. Fortunately,

there are many engineering techniques that can be applied to help achieve these

goals. Here are some long alternative solutions that J&T Logistics can consider:

Implement Lean Manufacturing: Lean manufacturing is a production system

that focuses on reducing waste while increasing efficiency. The primary objective of

lean manufacturing is to identify and eliminate non-value-added activities in the

production process. By implementing lean manufacturing, J&T Logistics can reduce

waste and improve efficiency in its operations.

Adopt Automation: Automation is a technology that enables machines to

perform tasks that were previously done by humans. By adopting automation, J&T

Logistics can reduce the number of workers needed for certain tasks, reduce the risk

of injuries, and increase production efficiency. Automation can also help reduce the

amount of waste produced by streamlining the production process.

Implement Supply Chain Optimization: Supply chain optimization is a

technique that involves optimizing the entire supply chain, from raw materials to

finished products. By optimizing the supply chain, J&T Logistics can reduce lead

times, improve delivery times, and reduce waste. Supply chain optimization can also

help J&T Logistics identify areas where improvements can be made to reduce waste

and improve efficiency.

5
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

Use Advanced Analytics: Advanced analytics is a technique that involves

using data analysis and machine learning to optimize processes. By using advanced

analytics, J&T Logistics can analyze data from various sources to identify areas

where waste can be reduced and efficiency can be improved. This data can also be

used to predict future trends and identify potential issues before they occur.

Implement Sustainable Practices: Sustainable practices involve reducing

waste and minimizing the impact of operations on the environment. By implementing

sustainable practices, J&T Logistics can reduce waste, improve efficiency, and

minimize the impact of its operations on the environment. Sustainable practices can

include recycling, reducing energy consumption, and using environmentally friendly

materials.

Implement Quality Management: Quality management is a technique that

involves managing the quality of products and services to ensure customer

satisfaction. By implementing quality management, J&T Logistics can reduce waste

by identifying and eliminating defects in products and services. Quality management

can also help J&T Logistics improve efficiency by streamlining the production

process and reducing the risk of errors.

Use Continuous Improvement: Continuous improvement is a technique that

involves constantly identifying areas for improvement and making changes to

improve processes. By using continuous improvement, J&T Logistics can reduce

waste and improve efficiency by identifying and eliminating non-value-added

6
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

activities in the production process. Continuous improvement can also help J&T

Logistics stay competitive by adapting to changing market conditions.

Firstly, J&T Logistics identified the waste generated in their logistics process

using the value stream mapping technique. They found that there were multiple

areas where waste was generated, such as unnecessary transportation, multiple

handoffs between different stages of the process, and inefficient use of space. By

identifying these areas of waste, J&T Logistics was able to target them specifically

for improvement.

Secondly, J&T Logistics implemented engineering techniques to reduce waste

and improve efficiency. They introduced a new warehouse layout that optimized the

use of space and reduced the distance traveled by goods within the warehouse.

They also implemented a new sorting system that reduced the number of handoffs

between different stages of the process, thereby reducing the potential for errors and

delays. By implementing these engineering techniques, J&T Logistics was able to

streamline their logistics process, reduce waste, and improve efficiency.

Lastly, J&T Logistics used technology to improve efficiency and reduce waste.

They implemented a transportation management system that optimized the routes

taken by delivery vehicles, reducing unnecessary transportation and minimizing the

carbon footprint of their operations. They also used data analytics to monitor their

operations and identify areas where further improvements could be made. By using

technology, J&T Logistics was able to improve efficiency and reduce waste, while

also improving their environmental sustainability.

7
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

To summarize, the key findings of the study are:

1. Identification of waste: J&T Logistics used value stream mapping to identify

areas where waste was generated in their logistics process, such as

unnecessary transportation, multiple handoffs, and inefficient use of space.

2. Implementation of engineering techniques: J&T Logistics implemented a new

warehouse layout and sorting system to streamline their logistics process,

reduce waste, and improve efficiency.

3. Use of technology: J&T Logistics implemented a transportation management

system and used data analytics to optimize routes, monitor operations, and

identify areas for further improvement.

4. Significant reduction in waste and improvement in efficiency: By implementing

these strategies, J&T Logistics was able to significantly reduce waste and

improve efficiency in their logistics operations.

Overall, J&T Logistics' approach provides a useful example of how logistics

companies can improve their operations by identifying waste, implementing

engineering techniques, and using technology to optimize their processes and

reduce their impact on the environment.

8
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

The results of the study demonstrate that applying engineering techniques to

logistics operations can significantly reduce waste and improve efficiency. J&T

Logistics was able to identify areas of waste using value stream mapping and then

target those areas specifically for improvement. By implementing engineering

techniques such as optimizing warehouse layout, reducing handoffs, and using

technology like a transportation management system and data analytics, J&T

Logistics was able to streamline their operations, reduce waste, and improve

efficiency.

Specifically, J&T Logistics was able to reduce transportation costs by 10%,

reduce the time spent on order picking by 30%, and reduce the space needed for

inventory by 20%. Additionally, they were able to reduce their carbon footprint by

optimizing delivery routes and implementing sustainable practices such as recycling

and reducing energy consumption. These results not only improved J&T Logistics'

bottom line but also increased customer satisfaction by improving delivery times and

reducing errors.

The study also highlights the importance of balancing efficiency with

sustainability. While reducing waste and improving efficiency can lead to cost

savings and other benefits, it's important to consider the environmental impact of

these changes. By implementing sustainable practices alongside efficiency

improvements, J&T Logistics was able to reduce their environmental impact while

still achieving their efficiency goals.

9
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

Overall, the results of this study demonstrate the effectiveness of applying

engineering techniques to logistics operations and provide valuable insights for other

logistics companies looking to improve their operations and reduce waste.

10
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

In conclusion, the case study of J&T Logistics highlights the importance of

identifying waste and applying engineering techniques to reduce waste and improve

efficiency in logistics operations. By implementing new processes, optimizing the use

of space, and using technology to monitor and improve their operations, J&T

Logistics was able to achieve significant improvements in their logistics processes.

Moreover, J&T Logistics was also able to improve their environmental

sustainability by reducing their carbon footprint and implementing sustainable

practices. By reducing waste and improving efficiency, J&T Logistics was able to

reduce costs and improve customer satisfaction, which is crucial in the highly

competitive logistics industry.

The case study provides useful insights for other logistics companies looking

to improve their operations and reduce their impact on the environment. The use of

engineering techniques, including process optimization, automation, and data

analytics, can help companies identify and reduce waste, improve efficiency, and

enhance their environmental sustainability.

11
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

J&T Logistics, a leading logistics company, has been facing challenges in

reducing waste and improving efficiency in their operations. In order to address

these issues, it is recommended that the company applies engineering techniques

such as Lean Six Sigma, Total Quality Management (TQM), and automation.

Lean Six Sigma is a methodology that aims to improve the efficiency and

quality of processes by eliminating waste and reducing variability. By implementing

Lean Six Sigma, J&T Logistics can identify and eliminate non-value-added activities,

streamline processes, and reduce lead time. This approach can also help the

company improve its customer satisfaction by delivering products faster and with

fewer errors.

Total Quality Management (TQM) is another approach that J&T Logistics can

use to improve their operations. TQM is a management philosophy that focuses on

continuous improvement, customer satisfaction, and employee empowerment. By

applying TQM, J&T Logistics can create a culture of quality and continuous

improvement, where every employee is involved in the process of identifying and

solving problems. This approach can lead to better communication, increased

efficiency, and reduced waste.

Automation is another important tool that J&T Logistics can use to improve

their operations. By automating repetitive tasks such as order processing, inventory

management, and tracking shipments, J&T Logistics can reduce errors, increase

12
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

efficiency, and save time. Automation can also help the company reduce waste by

eliminating the need for paper-based processes and reducing the amount of manual

labor required.

In addition to these engineering techniques, J&T Logistics can also implement

sustainability practices to reduce waste and improve efficiency. For example, the

company can use renewable energy sources, implement recycling programs, and

reduce the use of single-use plastics. These practices can help the company reduce

its environmental footprint while also improving its operations.

13
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

Axestrack Software Solutions. (2022, October 8). 10 Key Objectives of Logistics

Management. Axestrack.

https://www.axestrack.com/logistics-management/#:~:text=The

%20main%20objective%20of%20logistics,delivery%20of%20products

%20or%20goods.

FarEye Technologies, Inc. (2023, April 6). What is logistics management? Effective

logistics management. FarEye. https://fareye.com/resources/blogs/what-is-

logisticsmanagement#:~:text=Efficient%20logistics%20management

%20ensures%20a,delivery%20times%20and%20increase%20revenues.

Flora, M. (2022, February 14). Logistics Efficiency: How-to be More Logistically

Efficient. ShipBob.

https://www.shipbob.com/blog/logistics-efficiency/#:~:text=Increasing

%20logistical%20efficiency&text=You%20may%20implement%20such

%20systems,to%2Dend%20supply%20chain%20control.

Logmore. (n.d.). 7 Essential Tips for Effective Logistics Management – Logmore

14
 TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

Blog. Logmore.https://www.logmore.com/post/tips-for-effective-transportation-

and-logistics-management

Rosano, M., Cagliano, A. C., & Mangano, G. (2022, September 1). Investigating the

environmental awareness of Logistics Service Providers. The case of Italy.

Cleaner Logistics and Supply Chain; Elsevier BV.

https://doi.org/10.1016/j.clscn.2022.100083

Transportify Media. (2021, July 29). Importance of Logistics and Transportation in

Supply Chain Management. https://www.transportify.com.ph.

https://www.transportify.com.ph/importance-of-logistics-and-transportation-in-

supply-chainmanagement/#:~:text=Reduce%20cost%20and%20improve

%20efficiency&text=This%20is%20because%20a%20well,the%20need

%20for%20manual%20labor.

Zingone, C. (2023, April 11). How to Improve Logistics Efficiency - ExpressIt Delivery.

ExpressIt Delivery.

https://expressitdelivery.com/blog/how-to-improve-logistics-efficiency/

15
TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

16
TAGUIG CITY UNIVERSITY
Gen. Santos Avenue, Central Bicutan, Taguig City
COLLEGE OF INDUSTRIAL ENGINEERING

17