Lean logistics might sound very familiar to many, but not everyone understands the importance of the same. In this article, we will learn about how lean logistics can be implemented in a business to achieve success.
If you are into production or manufacturing, you would be handling several moving parts, which at times makes it hard to streamline the supply chain. If you deal with international shipments, managing a global supply chain can be quite demanding. Even when the process is tightened, strategies applied, there is always a question as to whether the improvement made is substantial or not. Also, do you have the time, resources and the expense in order to make such changes?
One of the proven solutions to achieve substantial improvement is the use of lean logistics. Ask a shipper, and they might not speak any encouraging words about lean logistics at all, and some might even term it unattainable.
But is it right? Well, not completely! Lean logistics can be implemented to bring the operational costs down, and let us understand how.
Identify waste
Unfortunately, the truth is always bitter. Supply chain mangers who often manage their own operations fail to spot the issues, which are right in front of them. They fail to notice what other managers do, and this might prevent them from seeing how the functions are actually stacking up.
It always helps to bring in help from outside, as an expert has the perspective, which helps to analyze the waste and risks if any. It always takes a fresh pair of eyes to diagnose the low optimal processes, which the employees are used to.
An expert supply chain manager not only provides you with the insights needed, but also gives you a thorough analysis of what works and does not work based on his/her experience.
Some of the common issues that are encountered are,
No automation – Not every business welcomes automation. Manually entering data not only wastes the time but can also cause errors, which in turn lead to discrepancies. All these factors slow down the supply chain.
Untapped data – Every business needs a well-planned process to capture, store and analyze the data. This data has to be monitored from time to time. When the shippers fail to measure the firm’s efficiency, they often oversee the opportunities to improve.
Manual audit or not auditing at all – Timely audit of the bills is important to spot waste. Firms need to work on auditing from time to time, without causing a burden on their accounts department.
Not willing to outsource – Every business has a few processes that can be handled by a trusted partner who uses innovative technology and have skilled work force. Supply chain management is one such process.
How to create a waste-free business with lean logistics
Be it a long or even a complex supply chain, lean logistics need not be a distant dream. The key to achieve success and reduce waste is to focus on various problematic areas (one by one), and make the necessary changes that enhance efficiency.
Once the above is achieved, the processed can be further altered to get rid of all those extra minutes or billings that affect your bottom line. However, even before you start doing that, you need to focus on having the right infrastructure. It is similar to strengthening the handle when the bucket has a large hole at the side.
Understanding the building blocks of lean logistics can help you learn about the process in detail.
Tips to implement lean logistics
Let us now have a look at a few tips.
Make use of a transport management system
A TMS or a Transport Management System not only automates manual tasks, but it also makes it easy for businesses to pick carriers and optimize every load. TMS saves both time and money, and provides various customizations to help staff achieve more in the same scheduled period. You can thus bid good-bye to time wasting workarounds or replacements.
Make good use of the data
Every business needs to analyze the data they have in hand to grow leaner with every passing year. This helps businesses to identify the existing bottlenecks, and allows them to stay ahead of their competitors. Make sure you collaborate with a logistics company that makes use of intelligence tools. Remember, that you do not need a data scientist here; all you need is a reliable expert who can understand the data.
Embrace outsourcing
Outsourcing of supply chain management or logistics is not an added expense. If you give it a thought, it helps save money and time, and even adds value to the firm. Hire an expert supply chain manager who can manage the firm’s supply chain efficiently and from end to end.
Conclusion
Lean logistics is not unachievable anymore. All you need to do to get started is to build a strong foundation, and work on eliminating waste. By doing so, every business can get leaner and achieve more profits.
Remember not to knock it off until you have given it a try! Streamline your operations today!
CDS Group of Company (Author)
CDS Group of Company is warehouse services providers in Canada such as cold storage, transportation, transload, and supply chain etc. For more information, https://www.cdsltd.ca/