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Lean six sigma and sustainable supply chain management: a case study in electric vehicle parts manufacturing

Arulnageswaran Aruleswaran,J. Muraliraj,S. Zailani

Published 2025 in International Journal of Lean Six Sigma

ABSTRACT

Third-party logistics (3PL) services for international freight are usually outsourced, where service providers are sourced, and the services are procured. This case study aims to provide an in-depth analysis of how the DMAIC (Define-Measure-Analyze-Improve-Control) methodology of Lean Six Sigma can be effectively applied to optimize and reduce the costs for 3PL services employed at an electric vehicle parts manufacturing facility located in Thailand. This paper employs a case study approach to examine a Thailand-based electric vehicle parts manufacturer. Utilizing the DMAIC (Define-Measure-Analyze-Improve-Control) methodology of Lean Six Sigma, the study aims to stabilize and optimize the company’s freight procurement process and its costs. The case study follows the DMAIC framework to identify inefficiencies, implement improvements and establish control mechanisms to improve and streamline the procurement process. This case study combines statistical tools for transactional data analysis and Lean tools for improving the sourcing and procurement process. The project identified a disconnect between the freight forwarding procurement process and the overall supply chain operations. They revamped the procurement process, from prequalifying freight forwarders to tracking and monitoring performance transparently. The case study findings affirm Lean Six Sigma’s effectiveness in establishing a thorough and lean sourcing process, improving supplier selection and performance monitoring, and ultimately reducing the overall freight costs. This study is limited to the freight sourcing and procurement segment within the electric vehicle (EV) manufacturing plant. Although the findings can be conceived in similar settings, generalizing the outcome should be done cautiously. This paper offers targeted insights into applying Lean Six Sigma’s DMAIC methodology to resolve complex process-related challenges in the freight procurement of an electric vehicle parts manufacturer in Thailand. The findings serve as a practical guide for managers and supply chain practitioners facing similar supply chain or procurement operations issues. This paper delves into the intricate relationship between Lean Six Sigma and sustainable supply chain, focusing specifically on freight procurement within a Thailand electric vehicle parts manufacturing company. Utilizing the DMAIC (Define-Measure-Analyze-Improve-Control) methodology, the case study uncovers actionable insights valuable for industry professionals and academic researchers. The findings demonstrate how Lean Six Sigma can effectively streamline and stabilize complex supply chain processes, leading to reduced freight costs and more efficient operations. Moreover, the study offers a unique perspective by showcasing how the DMAIC methodology can serve as a robust framework for pivoting, improving and sustaining the transactional processes for sourcing and procuring as well as reducing the third-party logistics (3PL) service costs during unforeseen crises, such seen and experienced during the recent COVID-19 pandemic.

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