Lean Thinking is a business methodology that originated in the Japanese automotive industry during the late 1980s. Its core idea is to maximize customer value while eliminating waste from all processes. Simply put, Lean means creating more value for customers with fewer resources.
In the logistics sector, Lean is being widely adopted as a way to recognize and eliminate wasteful activities from the supply chain in order to increase product flow and speed. This concept is known as Lean Logistics and has become a staple of supply chain management.
Lean Logistics is all about improving operations at all levels and optimizing the supply chain by minimizing waste. This is achieved through better inventory and material management, and by eliminating unnecessary steps in delivery, such as:
Lean is not a program or short term cost reduction program, but the way companies operate to eliminate waste along entire value streams, with the ultimate goal of providing perfect value to the customer.
In order to achieve Lean Logistics, start the above process again and continue it until a state of perfection is reached, in which perfect value is created with no waste.
In today’s market, logistics companies are embracing Lean initiatives to uncover and deal with waste and efficiencies. Implementing Lean Logistics into your business brings significant improvements not only to one specific area of the supply chain, but to the entire value chain as a whole.
Lean Logistics enables logistics service providers to respond to fast-changing consumer demands with higher quality, lower cost, less need of working capital, and faster throughput times. Also, data sharing becomes much simpler and more accurate.