Understanding the importance of lean logistics

The purpose of introducing supply chain management was to eliminate waste within the supply chain. Removing this waste helped reduce excess inventory whilst saving time and money. The purpose of the supply chain is to pull rather than push inventory through the supply chain. This is also what lean logistics does. Lean logistics helps remove waste and any other constraints on time, money and inventory storage that affects the smooth functioning of the supply chain. There is always pressure on various parties such as retailers, manufacturers, wholesalers, suppliers and distributors as well as other parties to reduce and balance costs. Time also needs to be saved whilst inventory storage needs to be kept in check. This is the case only for domestic supply chains but also for global ones.Read less