Reducing Lorry Movements

about this project

The logistics client identified unnecessary lorry movements of raw materials between a staging warehouse and manufacturing sites. Materials were often being shipped to the staging warehouse first, before being transferred to the production sites, resulting in double handling, additional costs, and inefficiencies.


The aim of the project was to reduce these unnecessary journeys by sending materials directly to manufacturing sites wherever possible, as well as to review and re-negotiate haulage contracts to address excess movement surcharges.

Key Project Summary "At a glance"

Project Scope


  • Focus on reducing unnecessary lorry movements between warehouse and manufacturing sites


  • Target: Avoid staging materials where possible by delivering directly to manufacturing sites



  • Applicable to inbound raw materials, primarily packaging

Improvement Strategy


  • Ship materials directly to manufacturing sites where feasible


  • Reduce reliance on staging warehouse for intermediate storage


  • Re-negotiate haulage contracts to reduce or remove excess movement surcharges



  • Continue to monitor warehouse-to-site lorry movements for further opportunities


Benefits Delivered


  • 3,400 fewer palletised shipments transported between January and June, representing nearly a 50% reduction in lorry movements


  • £41,000 cost avoidance from reduced lorry journeys, per year


  • Greater efficiency in raw material delivery


  • Reduced double handling and associated labour


  • New, repeatable monitoring process established to track lorry movements and identify future reduction opportunities


People Involved

  • Sponsor: Logistics Operations Director
  • Delivery team: Site Warehouse Teams and Logistics Planning
  • Support: Procurement and Finance teams for contract negotiation and cost tracking
  • Role of PBI: Facilitated root cause analysis, coordinated process changes, supported contract re-negotiations, and tracked savings



Focus Area

  • Primary issue: Unnecessary staging of materials leading to extra lorry movements
  • Impact: Increased haulage costs, excess handling, and operational inefficiency
  • KPIs targeted:
  • Reduction in total lorry journeys between warehouse and manufacturing sites
  • Cost avoidance from reduced movements (£)
  • Percentage of materials shipped direct to manufacturing sites


Process Taken

  1. Problem identification: Reviewed warehouse-to-site transport data to identify unnecessary journeys.
  2. Baseline calculation: Established 2022 movement volumes and costs to compare with 2023 data.
  3. Solution design:
  • Redirected supply chain to send packaging materials directly to manufacturing sites
  • Reduced reliance on staging warehouse for intermediate storage
  • Initiated contract re-negotiations to address excess movement charges

   4. Implementation: Rolled out direct delivery changes and began monitoring performance weekly.

   5. Performance tracking: Measured reduction in movements and associated cost avoidance.