Lean machine: Top 10 Red Sofas on lean logistics

Unlike some of our other focus topics – such as EV and Battery, Nearshoring, or Sustainability – the definition of lean logistics is harder to pin down. For some, it carries negative connotations, often associated with severe cost-cutting measures where a “push to become leaner” leads to restructuring, job losses or plant closures.

However, the term can also have positive implications. Rather than a reactive response, lean logistics can be seen as a proactive effort to identify and eliminate non-value-adding activities across logistics operations. This might involve streamlining complex processes to remove bottlenecks, changing transportation modes or routes to reduce dwell time and idleness, or optimising delivery schedules to minimise excess inventory. In other words, it aligns with what Toyota describes as kaizen, or continuous improvement.

Across these Red Sofa interviews, experts from different parts of the sector share their perspectives on continuous improvement, highlighting examples where they’ve identified and overcome inefficiencies – and the benefits these efforts have delivered.

Amy Paulsen at GM on how a start-up mentality can lead to supply chain agility 

Large organisations, including OEMs, can sometimes feel too big to be truly lean, reacting slowly to change. But as Amy Paulsen, director of finished vehicle logistics at GM, explains in her Red Sofa interview, a shift in mindset may be all that’s needed to spot opportunities for greater efficiency. 

Speaking at Finished Vehicle Logistics North America 2025, Paulsen reflects on her move from EV start-ups – where she “had the luxury of setting things up from scratch” – to General Motors, where systems, processes, and objectives were already well established. Despite these pre-set parameters, she recognised an “appetite for change” within GM that could be harnessed to inject agility into the company’s electric vehicle (EV) network. 

For finished vehicle logistics (FVL) in particular, Paulsen recommends embedding digital tools and boosting communication to overcome disruptions and maintain efficiency. She combines traditional practices, such as weekly team meetings, with AI and machine learning tools to “figure out new ways to leverage the network” and work closely with partners. This could mean identifying new loading locations, selecting different carriers, or shifting to new routes – all of which reduce inefficiencies and lower the risk of disruption. 

Demonstrating her continuous improvement mindset, she adds that “a lot of what we've accomplished is by sheer force of will,” noting that further automation across functions offers another path to greater efficiency. 

Aston Martin’s Martin Corner on being lean in low volume logistics 

Martin Corner, executive director of supply chain management and logistics at Aston Martin, took to the Red Sofa at Automotive Logistics & Supply Chain Europe 2025 to discuss how to maintain efficiency in low-volume, high-complexity supply chains.

The challenge, he explains, comes from managing “lots of flows, lots of routes, and very low volumes” while supporting a just-in-time manufacturing model. To address this, Aston Martin created a sales and operations planning (S&OP) function to embed holistic decision-making across multiple teams. This reduced inefficiencies caused by disconnects between the supply chain and commercial teams, shifting planning from “a production-based focus to an end-to-end focus.” 

However, driving leanness isn’t always about introducing new functions or reinventing the wheel. Corner notes that optimisation can also come from identifying which parts, components, or processes can be standardised and left unchanged. This avoids unnecessary updates, keeps costs down, and prevents resource waste. “We can adopt a bit more carry-over,” he says, which allows the OEM to “control the costs [and] control the income statement better.”

Experts from Audi and Helrom on collaborating for multimodal efficiency

In a joint Red Sofa, Dr Reinhard Baller at Audi and Roman Noack at Helrom discuss their project to increase rail connectivity between Audi’s European plants. 

The initiative showcased the efficiency gains that multimodal transport can deliver. Dr Baller, head of transport planning, inbound at Audi, points to unnecessary transportation modes and journeys as being an optimal candidate for removal to create a more sustainable and efficient network, commenting that “the best transport is the transport that is not necessary at all.” By diversifying routes and modes, OEMs and logistics providers can capitalise on each mode’s strengths. Noack, CEO and co-founder of Helrom, explains the project allowed Audi to bundle volumes and use “road for shorter haul journeys and rail for longer haul journeys.” This supported decarbonisation goals while maintaining operational efficiency, as rail’s greater capacity enabled economies of scale. 

Collaboration, too, can be a vehicle for continuous improvement. “The future lies in collaboration,” comments Noack, and, while his example focuses on decarbonisation, the principle applies across logistics functions. Sharing data and working closely with partners gives companies a more complete picture of operations, helping them spot and address inefficiencies. 

Volkswagen Group Logistics’ Peter Hörndlein on identifying and overcoming bottlenecks 

To become optimal, the “the network really needs to be flexible, transparent, sustainable, but also efficient,” explains Peter Hörndlein, managing director of vehicle logistics at Volkswagen Group Logistics. The balance of these interconnected elements is where meaningful process improvements happen. 

To this end, Volkswagen partnered with investors and port authorities to build a new port facility in the Mediterranean, aiming to “reduce lead times, reduce carbon footprint and care for shorter delivery times.” The terminal has provided more diverse routing options, increased flexibility, and greater network capacity – for example, by using multiple road providers and allocating freight based on available capacity. 

The benefits of the new terminal, including its role in overcoming port congestion in Northern Europe, are explored in more depth in our ‘Finished vehicle logistics - Turning trade changes into network gains’ livestream – watch on demand here.

Hörndlein also points to advances in transparency and tracking – essential during recent supply chain disruptions. The team now enjoys “increased transparency from end to end with statistics, KPIs, cockpits, and dashboards,” enabling more proactive management and faster responses. Demand and capacity planning have also become more dynamic, with frequent updates that allow early detection of shortages or overcapacity, further boosting efficiency.

Karel Verpoorten at Toyota Motor Europe on efficiency as a differentiator

In a fiercely competitive automotive market, any differentiator can be critical. For Karel Verpoorten, head of parts supply chain at Toyota Motor Europe, that differentiator is the reliability of the company’s parts service – a reliability built on efficiency. 

This efficiency comes partly from high-quality parts and cost-effective processes, but also from Toyota’s overnight delivery service, he explains. 

Accurate demand forecasting is essential to maintain this level of service. However, the lack of historical data for electric, hybrid, and alternative powertrain vehicles can make accurate forecasts difficult. To address this, Toyota studied early-adopter markets, such as the Nordic countries, to build a stronger knowledge base. “We strongly connect with our customers… to quickly learn,” Verpoorten explains. 

An integrated supply chain function also plays a key role. Inbound, finished vehicle, and service parts logistics now fall under a single team, creating “better economies of scale, better collaboration with our partners, and, in the end, a multiskilled team.” This efficiency ultimately benefits customers, delivering better service at a better price – a true market differentiator. 

GM’s Jeffrey Morrison on optimising costs and partnerships with suppliers and partners 

Amid industry transformation, such as the rise in electrified or autonomous vehicles, cost efficiency is critical. Jeffrey Morrison, senior vice president of global purchasing and supply chain at General Motors (GM) explains that the automaker is “laser focused” on optimising material and logistics costs to avoid passing transformation-related increases to consumers. This could involve, for example, changing vehicle logistics methods to be more efficient, such as finding alternative haulaway options for heavier electric vehicles.

Cost efficiency also means strengthening supplier collaboration. One learning that Morrison shares is the increased need to “get a lot deeper into value chains,” especially for battery grade materials. Partnerships are an important way to gain this granular understanding – through expanding the partnership network, the automaker now has insight into all the processing stages “all the way back to the mines.” 

In constrained markets, GM also aims to secure “preference that we think we’ve earned over time,” ensuring smooth flows of both parts and finished vehicles. Morrison encourages partners to share ideas for “best practices, new innovations” and explore alternative contracting models to support key investments and continually improve processes.

Reframing failure with Chandan Trehan at Bosch North America

Failure, especially in a digital transformation, can seem like a costly waste. However, part of a lean mindset is knowing when to identify failure and how to capitalise on it. Chandan Trehan, digital supply chains and logistics lead at Bosch North America, emphasises the need to reframe failure as a learning tool. “It is important… that failure is not a problem, it is important. It is okay to fail, but it is important to fail fast, learn from those mistakes, and pivot as and when possible,” he explains. 

Breaking a transformation into smaller projects allows teams to experiment safely and adapt quickly. This iterative approach helps organisations identify what works, refine strategies, and capture quick wins. Part of this involves creating a culture of openness and candour where employees feel safe acknowledging when assumptions don’t hold true – they should be “okay to express that…we have only been successful to a certain extent; we need to pivot our approach.” 

Trehan adds that learning from failure boosts efficiency by enabling teams to focus resources where they have the most impact. “Be prepared for roadblocks… just be ready to learn from those mistakes, pivot fast, create those small projects, identify those quick wins, and encourage your team in the process,” he concludes.

Carolin Richter at BMW explains the potential of robotics and automation 

To drive continuous improvement, companies should embrace technologies that enhance productivity and operational excellence. Carolin Richter, head of next generation robotics at BMW Group, explains how humanoid and multi-purpose robots could significantly boost logistics efficiency. While robotics has long been used in manufacturing, advances in generative AI represent “a ChatGPT moment for robotics,” enabling robots to be “trained entirely without programming, almost autonomous[ly].” 

Efficiency gains are expected in tasks that were once considered too complex or costly to automate – particularly last-mile handling and plant and warehouse logistics. Humanoid robots, with their bipedal form, can operate in environments designed for humans and perform intricate tasks beyond the reach of traditional robots. This could “streamline component delivery and assembly processes,” Richter notes. 

BMW planned to deploy humanoid robots at its Spartanburg facility, aiming to cut manual handling, reduce cycle losses, and optimise workflows. Although challenges remain in data requirements and AI learning models, Richter is confident about the potential that robotics and automation have for logistics: “Anything is thinkable… some developments are moving much faster than before.”

Jean-Marc Carlicchi at Renault Group on adopting control towers 

Continuing the theme of technology boosting efficiency, Jean-Marc Carlicchi, vice-president of supply chain engineering at Renault Group, outlines how AI-powered operational control towers are transforming efficiency and decision-making in both inbound and outbound logistics. Initially launched for inbound flows three and a half years ago, the system now manages outbound as well, providing a “very strong integrated view” of where parts or vehicles are, whether they’ll arrive on time, and the available options if delays occur. 

AI integration has been critical, as software can identify when delays will occur and provide solutions – “the operator can save time and just choose one of the options,” Carlicchi explains. By learning from past operator decisions, AI can propose the most likely effective solution – with solutions being used “in 96% of cases” – and instantly retrieve related cost and lead-time impacts, freeing staff to focus on higher-value tasks. 

Even this system can benefit from continuous improvement, however. Carlicchi stresses that the next leap will be an engineering control tower, capable of processing vastly larger and more complex datasets, including contractual flexibility from logistics service providers. This would allow near-real-time optimisation of routes, capacities, and costs – though current request for quotation (RFQ) cycles of six months to three years remain a barrier. “Nobody can move at that pace today, but this is where we want to go,” he explains.

Kia México’s Ricardo Ortega Márquez on the importance of an efficient team 

No transformation succeeds without the right team. Ricardo Ortega Márquez, Kia México’s senior manager for logistics, purchasing, and customs, believes that building a diverse, multidisciplinary logistics department is key to efficiency. His team integrates purchasing, customs compliance, and logistics functions, enabling coordinated problem-solving and agility. “You don’t need just a tracer,” he says. “You need someone to come up with new ideas and challenge the natural things that are going on.” 

This versatility allows Kia to respond quickly to disruptions such as strikes, port closures or supply shortages. Ortega Márquez stresses that efficiency stems from people who can anticipate and adapt, not just execute tasks: “If there’s a natural disaster, how is this person working around that? If there are no trucks, what is this person going to do about it?” 

He also sees value in fostering a culture where decisions are questioned constructively. The best colleague is the one who “actually challenges my decisions,” he explains, emphasising the need for everyone in the team to understand why decisions are important. Such a dialogue prevents complacency and improves process optimisation.