Warehousing waste can be found throughout the storage process including:
Defective products which create returns
Overproduction or over shipment of products
Excess inventories that require additional space and reduce warehousing efficiency
Excess motion and handling
Inefficiencies and unnecessary processing steps
Transportation steps and distances
Waiting for parts, materials and information
Each step in the warehousing process should be examined critically to see where unnecessary, repetitive, and non-value-added activities might be so that they may be eliminated.
Lean concepts in transportation include:
Core carrier programs
Improved transportation administrative processes and automated functions
Optimized mode selection and pooling orders
Combined multi-stop truckloads
Right sizing equipment
Import/export transportation processes
Inbound transportation and backhauls
The keys to accomplishing the concepts above include mapping the value stream, creating flow, reducing waste in processes, eliminating non-value-added activities and using pull processes.
The synthesis enables even small firms to participate in the results of lean efforts
Competitive advantage and leadership in the global marketplace can only be gained by applying lean principles to the supply chain
These elements are required for success:
A strong supply chain enables the member companies to align themselves with each other and to coordinate their continuous improvement efforts.
Path Forward The challenge is to bring all of these areas out of their traditional silos and make them work together to reduce waste and create flow. Development Quality HR Marketing Finance Purchasing Distribution Reduce Waste & Create Flow
Develop Systems Thinking
Understand Customer Value
Value Stream Mapping
Benchmark Best Practices
Design to Manage Demand Volatility
There are seven steps to developing lean supply chains.