ROI Case File No.215 | 'The Middle Eastern Logistics Company's Invisible Traffic Jam'

Chapter 1: A Chain of Delays—Invisible Obstacles

The day after the resolution of SuperMercado Futuro's PDCA reconstruction case, an urgent consultation arrived from the Middle East.

"Detective, our delivery system is plagued by delays of unknown origin. Physical traffic congestion has improved, yet our delivery efficiency continues to deteriorate."

Desert Logistics Operations Manager Ahmed Hassan visited 221B Baker Street with a serious expression. In his hands were GPS tracking data and delivery delay reports.

"We operate the largest logistics network in the Middle East region. Due to rapid e-commerce growth, demand is increasing at 20% monthly, but our delivery quality cannot keep pace."

Desert Logistics Business Overview: - Delivery area: 6 Middle Eastern countries, 50 major cities - Delivery vehicles: 2,800 units - Distribution centers: 45 locations - Daily deliveries: 280,000 packages - Annual revenue: ¥85 billion

The numbers certainly indicated a large-scale logistics company. However, Ahmed's expression was clouded.

"What confuses us most is that despite road infrastructure improvements and introduction of latest vehicle systems, delivery delays have intensified. Particularly over the past 6 months, delay rates have deteriorated rapidly."

Deteriorating Delivery Performance: - On-time delivery rate: 89% → 67% (22-point deterioration) - Average delivery time: 35% longer than planned - Customer complaints: 580 cases monthly → 2,200 cases (3.8x increase) - Delivery costs: 28% over budget

"Government infrastructure investment has improved road conditions, and we've introduced new GPS systems. Yet somehow 'invisible traffic jams' are occurring."

Chapter 2: Who, When, Where—The Chaotic Scene

"Mr. Ahmed, could you describe the specific situations where delivery delays occur?"

Holmes inquired quietly.

Ahmed answered with a confused expression.

"That's the problem. We know 'deliveries are delayed,' but we cannot grasp 'why they're delayed' or 'where they're delayed.'"

Typical Delivery Delay Examples:

Case 1: Dubai City Delivery (Monday Morning) - Scheduled delivery time: 10:00-12:00 - Actual delivery time: 15:30 - Delay: 3 hours 30 minutes - Driver report: "Traffic wasn't heavy" - GPS record: "Travel time was as scheduled"

Case 2: Riyadh Suburban Delivery (Tuesday Afternoon) - Scheduled delivery time: 14:00-16:00 - Actual delivery time: 19:45 - Delay: 3 hours 45 minutes - Driver report: "Customer was absent" - Customer testimony: "I was home all day, but nobody came"

Case 3: Abu Dhabi Commercial District Delivery (Wednesday) - Scheduled delivery time: 9:00-11:00 - Actual delivery time: Delivery incomplete (postponed to next day) - Delay reason: "Address not found" - Fact: Address was correct, same location delivered to 10 times previously

I focused on the fragmentary nature of information.

"For each delay, it's unclear 'what,' 'when,' 'where,' and 'why' occurred."

Ahmed sighed deeply.

"Exactly. We only see 'results' and cannot grasp what's happening in the 'process.'"

Current Information Collection System Limitations: - GPS tracking: Location only (action content unknown) - Driver reports: Subjective and fragmentary - Customer feedback: Complaints only (success factors unknown) - Distribution center records: Only departure and arrival times

"We have advanced technical systems, but 'human actions' and 'information flow' are invisible."

Chapter 3: 5W1H Reveals the Shadows—Invisible Information Traffic Jams

⬜️ ChatGPT | Catalyst of Ideas

"By asking questions, the net of facts becomes visible. 5W1H is like the first witness to a case."

🟧 Claude | Alchemist of Narratives

"Stories need elements of 'when, where, who.' Logistics mysteries unravel from the same clues."

🟦 Gemini | Compass of Reason

"The real culprit wasn't surface-level congestion but delays in information transmission."

The three members began their analysis. Gemini developed the "5W1H Analysis Framework" on the whiteboard.

5W1H Analysis Structure: - Who (Who): Stakeholders and responsible parties - What (What): Occurring events and problems - When (When): Time and timing - Where (Where): Location and position - Why (Why): Causes and reasons - How (How): Methods and processes

"Mr. Ahmed, let's analyze typical delivery delays using 5W1H in detail."

Case 1 Detailed 5W1H Analysis:

Who (Who is involved): - Delivery driver: Mahmoud (5 years experience) - Distribution center manager: Fatima - Customer: Al-Fahad Trading (corporate client) - Call center staff: Sara

What (What is happening): - Package: Office supplies (15kg weight) - Delivery schedule: 10:00-12:00 delivery - Actual result: 15:30 delivery completion - Delay: 3 hours 30 minutes

When (When/timing): - 8:30: Departed distribution center - 9:45: Arrived at delivery area - 10:15: Called customer (no answer) - 11:30: Contacted distribution center - 13:00: Called customer again - 14:45: Reached customer - 15:30: Delivery completed

Where (Where problems occurred): - Physical location: In front of delivery building (parking no problem) - Information location: Driver ⇔ Customer communication - System location: Call center ⇔ Distribution center connection

Why (Why delays occurred): Deep analysis revealed shocking facts: - Customer phone number: Old number registered in database - Correct number: Existed in distribution center's separate system - Driver: Could only access old number - Call center: Knew correct number but no coordination

How (How delays occurred): 1. Driver called old phone number 2. Contacted distribution center unable to reach customer 3. 2 hours later, call center discovered correct number 4. Customer contacted and delivery completed

Claude reported an amazing discovery.

"This isn't physical traffic congestion. 'Information traffic jams' are the real culprit behind delivery delays."

Other Cases Also 5W1H Analyzed:

Case 2 (Riyadh Suburbs): - True cause: Poor coordination between delivery instruction and inventory systems - Process: Delivery instruction for out-of-stock item → Customer visit → No product → Return to center

Case 3 (Abu Dhabi Commercial District): - True cause: Mismatch between GPS coordinates and driver maps - Process: Correct address → Wrong GPS coordinates → Driver gets lost

Common Pattern Discovery: All delays' root cause was "poor coordination between information systems."

Chapter 4: Breaking Information Traffic Jams—Optimizing Invisible Flows

Detailed 5W1H analysis applied to all delivery delay cases revealed the structural problems at Desert Logistics.

5W1H Analysis Root Cause Identification:

Information System Disconnection Problems:

Who (Responsible parties/stakeholders) Disconnection: - Distribution centers, call centers, and system departments operate independently - Each department manages different customer information - Unclear responsibility ranges with no coordination

What (Information/data) Inconsistencies: - Customer information: Different data in 3 systems - Inventory information: Not updated in real-time - Delivery instructions: Based on outdated information

When (Timing) Asynchronization: - Information update timing varies between systems - Emergency information sharing takes time - Lack of real-time capability

Where (Information location) Dispersion: - Customer data: CRM system - Delivery instructions: Delivery management system - Inventory information: WMS system - Each system independent, no coordination

Why (Causes) Structural Problems: - Patchwork system construction due to rapid growth - Department-specific optimization without overall optimization - Insufficient recognition of information coordination importance

How (Process) Inefficiencies: - Manual information verification and transcription - Duplicate work across multiple systems - Undefined error response processes

Quantitative Information Traffic Jam Loss Analysis: - Information verification time: Average 23 minutes wasted per delivery - Duplicate work: 12,000 hours annually in human costs - System operation costs: ¥800 million annually for 3 systems - Opportunity loss from delays: ¥4.5 billion annually

Comparison with Competitors:

Efficient Competitor A: - Real-time coordination through integrated information system - Information processing time per delivery: Average 3 minutes - On-time delivery rate: 94% - System operation efficiency: 2.8x Desert's

Critical Differences from Desert Logistics: - Integration vs. dispersion - Real-time vs. batch processing - Automation vs. manual processing - Prevention vs. post-incident response

Ahmed was stunned.

"We were worried about road traffic jams, but actually our internal information traffic jams were the problem."

Chapter 5: Detective's 5W1H Analysis—The True Bottleneck

Holmes compiled the comprehensive analysis.

"Mr. Ahmed, the essence of 5W1H is 'problem structuring.' By breaking down vague issues into specific elements, true solutions become visible."

5W1H Integration Solution: "Information Flow Optimization Project"

System Integration Information Traffic Jam Resolution Plan:

Phase 1: Information Integration Infrastructure Construction (3 months)

Who Integration: Unified Responsibility Structure - Establishment of new Delivery Information Director - Cross-functional team organization - Standardized inter-departmental coordination processes

What Integration: Centralized Data Management - Integrated customer database construction - Real-time inventory information system - Unified delivery status visualization

When Integration: Real-time Synchronization - Real-time coordination across all systems - Immediate reflection of information updates - Instant emergency information sharing

Where Integration: System Integration - Migration of 3 systems to integrated platform - Automatic data synchronization through API coordination - Single-screen access to all information

Phase 2: Process Optimization (2 months)

Why Analysis: Preventive Management - Advance detection system for delay factors - Problem prevention through predictive analysis - Continuous root cause analysis

How Improvement: Automation Promotion - Complete automation of information collection and distribution - High-functionality driver app - Automated customer communication

Phase 3: Continuous Improvement System (Ongoing)

5W1H Continuous Monitoring: - Daily 5W1H analysis reports - Early detection of new problems - Quantitative measurement of improvement effects

Investment vs. Benefits: - System integration investment: ¥1.5 billion - Annual reduction effects: ¥5.2 billion - Investment recovery period: 4 months - 5-year ROI: 320%

"Logistics efficiency cannot be achieved through physical movement optimization alone. Optimizing information flow creates true competitive advantage."

Chapter 6: Improving Invisible Flows—Resolving Information Traffic Jams

Six months later, a report arrived from Desert Logistics.

Results from 5W1H Integration Solution:

Dramatic Delivery Efficiency Improvements: - On-time delivery rate: 67% → 93% (26-point improvement) - Average delivery time: 18% reduction from plan - Customer complaints: 2,200 cases monthly → 380 cases (83% reduction) - Delivery costs: 22% reduction from plan

Information Processing Efficiency Enhancement: - Information verification time: 23 minutes → 2 minutes (92% reduction) - Inter-system coordination: Manual → Automated (100%) - Data accuracy: 78% → 99.2% (significant improvement) - Emergency response time: 2 hours → 8 minutes (94% reduction)

5W1H Element Improvement Results:

Who (Responsibility Structure): - Unified management by integration director - Inter-departmental coordination time: 2 hours → 5 minutes - Decision-making speed: +85% improvement

What (Information Quality): - Information unified through data integration - Information accuracy: 99.2% achieved - Duplicate data: Completely eliminated

When (Timing): - Real-time information updates - Delay prediction accuracy: 89% achieved - Preventive response: +340% increase

Where (System Integration): - 3 systems → 1 integrated system - Operating costs: 45% reduction - System uptime: 99.8% achieved

Why (Root Causes): - Problem advance detection rate: +78% improvement - Recurrence prevention effect: 95% achieved - Continuous improvement cycle: Established

How (Process Efficiency): - Business automation rate: 85% achieved - Human error: 92% reduction - Process standardization: 100% completion

Overall Business Impact: - Revenue growth rate: Monthly 20% → Monthly 28% (growth acceleration through efficiency) - Employee satisfaction: +35% increase due to improved delivery quality - Customer satisfaction: 4.6/5 (industry-leading level) - Market share: Established regional No.1 position

Ahmed's letter contained deep emotion:

"Through 5W1H analysis, we transformed 'invisible problems' into 'visible solutions.' While the logistics industry tends to focus on physical efficiency, we learned that information flow is the true source of competitive advantage. Most importantly, we broke down vague problems into specific elements and solved them one by one. Now information flows smoothly, and we can achieve efficient delivery with company-wide unity."

Detective's Perspective—Information as Invisible Logistics

That night, reflecting on the case, I pondered.

Desert Logistics' case demonstrated a typical "invisible problem" in modern business. Physical aspects are improved, yet overall performance doesn't improve. The cause often lies in the invisible part called "information flow."

The true value of 5W1H lies in structuring complex, ambiguous problems and breaking them down into specific improvement points. By analyzing problems from six perspectives—Who, What, When, Where, Why, How—surface symptoms can be distinguished from fundamental causes.

Particularly in modern enterprises where information systems have become complex, poor coordination between systems creates serious inefficiencies. Optimizing not just physical business flows but information flows has become an important element of competitive advantage.

"Modern logistics is completed only by optimizing both physical movement and information movement."

As the fifth case in Volume XVI "Quest for Agility," Desert Logistics provided important insights. Agility is also the ability to visualize invisible problems and solve them structurally.

"Problems don't always appear on the surface. Using 5W1H detective techniques to reveal invisible truths becomes the first step toward true problem-solving."—From the Detective's Notes