Lean Warehouse aims at controlling costs and increasing customer service.
In the traditional world, warehouse is seen as a place to hold or store inventory. It coordinates product supply with customer demand by fulfilling the storage needs of different types of commodities. Seasonal demand affects the consumption pattern; therefore the production happens throughout the year to meet the demand. Warehouse store large quantities and typically supplied mostly to the industrial and agricultural sectors.
With the advent of Lean Manufacturing and other operational techniques over the last decades, warehouses now function to mix inventory arrangements in order to meet customer requirements. Storage of products is held to a minimum.
The explosion of economy brought the rise of distribution networks of consumer goodsespecially in the rapidly growing world of e-commerce. E-commerce growth affects both the warehouse and the inbound and outbound logistics that support the facility.The goal of a warehouse has become to efficiently receive inventory, store it as required, and assemble it into complete orders and make a customer shipment. Warehousing over the decades has evolved to accommodate the dynamic aspects such as:
- Distributions Centers.
- Consolidations Terminals.
- Break-Bulk Facilities.
- Cross Docks.
Lean Warehouse is a paradigm shift from passive storage to strategic assortment. It is integral to Just-in-Time methodology and offers a way for stockless production strategy. Lean Warehouse maximises flexibility by reducing the idle time of materials in order to respond to ever-changing customer demand. With our clients, we have helped to facilitate these changes. Many organizations have begun to understand the importance of warehousing with respect to controlling costs and increasing customer service.
Why Lean Warehouse!
Lean is a time-tested and systematic approach for identifying and reducing wastes. Lean Warehouse emphasises at minimizing resource paired with continual improvement and customer satisfaction.
The typical wastes identified in a Warehouse are:
- Waste of Defects – errors resulting in waste, rework or rejection.
- Waste of Waiting – is as true in warehouse operations as it is inproduction.
- Waste of Transportation – Unnecessary movement of cargo is a major source of waste in materials handling.
- Waste of Inventory - Poor inventory control, particularly when stock-outs are frequent.
- Waste of Motion – Movementinvolving searching hunting for stored items, tools etc.
- Waste of Over-processing – is over checking of information, materials etc.
- Waste of Employee Potential – unused employee creativity represents a waste of human resources.
Lean Warehousing provides both economic and strategic benefits by emphasizing on product flow. The value added services performed in a Lean Warehouse are:
|In-transit merge||Pool Distribution|
|Labelling/ Pre-ticketing||Returnable Container Management|
|Lot Control||Reverse Logistics|
|Mass Customisation||RFID Tag Application|
|Speciality Packaging||Store Support/ Direct Store Delivery|
Main Benefits of Implementing Lean Warehouse
Lower Operating Costs
Reduction in Inventory
Better Customer Satisfaction
Improved Delivery Performance
Higher Sales Revenues
Our Areas of Expertise (Tools and Techniques)
- Waste Control: Identification & Elimination of 8 classical wastes.
- Flow Management: Mapping material flowsfrom raw material vendors to customer finished goods; challenge each point at which material flow is stopped.
- Quick Customer Response: Vehicle Turnaround Time Improvement for Inbound & Outbound Logistics through careful dock scheduling and synchronization of warehouse workflows; correct use of Material Handling Equipment’s with total system improvement.
- Optimization of Cost & Inventory: Milk runs reduce transportation costs and build more consistency into an inbound supply network. Electronic data interchange (EDI) Logistics makes extensive use of EDI. Communicating data electronically eliminates errors caused by manual data entry.
- Warehouse efficiency: Logistics designs warehouse layouts that streamline inbound and outbound flows, maximize labour efficiency,and deliver high space utilization. Techniques like dynamic slotting quick picking, task management and system- directed put away to optimize labour and space efficiencies.
- Continual Improvement: creating a culture of making small improvements every day to deliver higher service quality at lower costs.
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