Automobile supply chain and logistics network involves an entire network of multiple-tier suppliers, manufacturing plants, sub-assembly plants, assembly plants, warehouses, distribution centers, dealers and customers. The vastness of this supply chain structure makes logistics and information flow—the most important functions to ensure comprehensive coordination between the firms. Lean distribution starts with the trends and drivers that lead to the need for new approaches in distribution and then consider customer service expectations to initiate the lean design. In order to address the complexity as stated above, this paper attempts to model outbound logistics using shortest routing algorithm in a lean enterprise. The data and information are collected at the tactical level for automobile supply chain, and two echelons of distribution are considered. The methodology adopted includes studying the processes involved in lean distribution system, collection of data using primary and secondary sources, identification factors and modeling using Floyd Warshall algorithm for multiple sources and multiple destinations, and calculation of the number of cars which can be accommodated in a truck. The verification and validation of developed model is done for automobile logistics and supply chain network. The comparison of performance of current and proposed model for outbound logistics was carried out. Vehicle routing has helped us in identifying the right routes to be chosen in order to reduce the distance traveled and hence logistics cost. The understanding of current system and proposing new system has helped in improving the efficiency of the complete outbound logistics system and resulted in large cost savings through improvement in schedules, demand allocation and choice of routes.

Lean distribution starts with the trends and drivers that lead to the need for new approaches in distribution and then consider customer service expectations to initiate the lean design. A lean transformation designs processes according to growth, profits, and customer service can be optimized. This improves shifting markets by streamlining the total distribution cost and delivering lowest cost to customers that results in demanddriven approach as variation is expected. A logistics system is a closely linked network of logistics services, information systems and infrastructure. The performance of different players together constitutes the success of the supply chain and hence satisfaction of the customer (Yung, 2005). While outsourcing the products by developing a comprehensive structure for the company that outsources the logistics and 3PL companies, it was observed that the profits are not only gained from the products, but also from the delivery process through which the products are made available to the customers (Mohammed and Chang, 1998; and Michelle, 2003). Better tools and techniques are being reviewed for decision making to reduce their cycle time that adds value to their customers and achieving excellence through proper management of logistics (Pankaj and Nimit, 2007). Activitybased costing is meant for forward flow of products, but it focuses more on reverse flow of products, hence activity-based costing needs to be developed in such a way that it focuses more on forward flow of products (Thomas et al., 2000). In outbound logistics, 44 barriers were identified from the literature review and 15 critical barriers were determined by means of brainstorming technique (Avinesh and Sasikumar, 2013).

Supply Chain Management Journal, Studying, Outbound Logistics Modeling, Shortest Routing Algorithm, Lean Enterprise, Lean Distribution system, A Case Study.