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Waste Reduction in Business: Lean Logistics | XL Logistics Blog

Waste Reduction in Business: Lean Logistics

Posted on 22. Sep, 2015 by in Logistical Management

Locked into the competitive market that is today’s capitalistic business world, companies are required to continually be in the process of improving their own efficiency and effectiveness in order to stay current with the competition. There are many ways to analyze business logistics and to go about making these necessary adjustments happen, and in the world of supply chain process lean logistics are a shining example of an excellent way to do so.

The Goal

Lean logistics is appropriately named for its purposes. These types of logistics are a way in which wasteful production practices are not only identified in a supply chain process but also eliminated in order to trim unnecessary fat and to increase the production value of a given business. This strategy is also called or attributed to “Lean Thinking.”

The Process

There are four steps typical to the process of engaging in lean logistics with a supply chain process. These four steps occur in a cyclical flow and should be expected to be performed continually in order to ensure the best possible elimination of waste.

  • Customer Value. In this stage the value of the customer is identified and added into the supply chain network.
  • Value Stream. Identification of processes along the supply chain network occurs here in order to discover processes that detract rather than contribute to the overall value of the product.
  • Product Flow. This step involves acknowledging and minimizing factors such as interruptions, detrimental inventories, and unnecessary downtime.
  • Customer Pull. Understanding customer pull has to do with manufacturing products only in response to the demand, and therefore needing to know what that pull is going to be both now and in the future.

Lean logistics, as a general strategy for minimizing unnecessary practices and removing negative value from products, is an excellent way to optimize the functionality of any productive business. Lean thinking contributes greatly as a whole to smooth-running internal mechanisms that ensure that the most is being gleaned from the production, flow, and sale of a product as possible.

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