How can you use lean principles to manage logistics?

2 Map the value stream

The second step is to map the value stream, which is the sequence of activities and processes that deliver value to your customers. The value stream includes all the steps involved in sourcing, producing, transporting, storing, and distributing your goods and services. To map the value stream, you need to document the inputs, outputs, resources, costs, time, and quality of each step, as well as the flow of information and materials between them. You can use tools such as flowcharts, diagrams, and software to visualize and analyze your value stream.

3 Eliminate waste

The third step is to eliminate waste, which is anything that does not add value to your customers or your business. Waste can be categorized into seven types: overproduction, inventory, motion, waiting, transportation, overprocessing, and defects. To eliminate waste, you need to identify the root causes of waste in your value stream, and implement solutions to eliminate or minimize them. You can use tools such as the 5 Whys, Pareto analysis, and Kaizen to find and solve waste problems.

4 Optimize flow

The fourth step is to optimize flow, which is the smooth and uninterrupted movement of goods and services through your value stream. Flow is essential for delivering value to your customers quickly and efficiently. To optimize flow, you need to eliminate or reduce the barriers and bottlenecks that disrupt or slow down your value stream. You can use tools such as pull systems, kanban, batch reduction, and cross-training to improve the flow of your value stream.

5 Implement pull

The fifth step is to implement pull, which is the principle of producing and delivering goods and services only when there is a demand from your customers. Pull is the opposite of push, which is the principle of producing and delivering goods and services based on forecasts or schedules. By implementing pull, you can reduce overproduction, inventory, and waste, and increase responsiveness, flexibility, and customer satisfaction. You can use tools such as demand management, just-in-time, and replenishment systems to implement pull in your value stream.

6 Pursue perfection

The sixth step is to pursue perfection, which is the continuous improvement of your value stream and your performance. Perfection is the ultimate goal of lean principles, but it is never fully achieved. To pursue perfection, you need to monitor, measure, and evaluate your value stream and your results, and identify the gaps and opportunities for improvement. You can use tools such as key performance indicators, benchmarking, and audits to track and improve your value stream and your outcomes.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?