LEAN, a method that plays an important role today in the decision-making of many logistics service providers
Current and future consumers expect a degree of sustainable business at stable costs (Logistiek.nl). Logistics services are no exception. Many entrepreneurs in the logistics service sector will think ‘another item on the list of challenges’. In a previous blog, we wrote that this very complex sector is struggling with net margins between 3 and 5 percent. It should be clear that the implementation of lean management costs time, but in the long run it also generates a big advantage.
Lean is a management philosophy aimed at eliminating activities which do not add value. A distinction is made between unnecessary (search) movements and waiting times. For logistical services, which are done according to a flow of processing steps and on the basis of goods, lean manufacturing is very interesting. The more components in a flow, the higher the risk of waste.
Implementing lean management
Implementing lean management requires time. To prevent disappointments: in many cases, lean management does not (immediately) deliver the result that management expects. Dangers can be caused by communication problems and lack of commitment, management, and participation from employees and management. The companies which are aware that the journey to a lean organization may be far from smooth, and will require a lot of energy as well as the involvement of every employee, will be able to make the change. Continuous improvement is the key to success! In order to reach the top (of the mountain), management must take care to ensure that the organization is in excellent condition. In addition to staff participation, the availability of some of the latest technologies and smart ICT solutions is crucial. Switching to lean management requires making small steps.
The best basis for successful implementation of lean manufacturing is, among other things, a good partner choice in ICT solutions. LSS, Logistics Software Solutions, provides smart ICT solutions, which are used by the highly innovative logistics service provider, the Royal Rotra. Our iSuite, for transportation and forwarding management, provides an overview of the chain and functionalities that support lean manufacturing. Consider just in time delivery. For more information, take a look at our website www.lss-solutions.com or contact us directly by calling +31 (0) 88 1050300.