In the July issue of Business Excellence, manufacturing journalist, TRCutler, addressed “Lean Logistics,” and the article may be read in its entiretyathttp://trcutlerinc.com/Lean%20Logistics%20July%202007%20Business%20Excellence.pdf.
“For distributors to maintain margins and survive these much higher energycosts require a commitment to continued process improvement and leanprinciples,” says Brian Devine, vice-president of ProLogistix(www.prologistix.com). “The impact of rising energy costs on the supply chainrequires better methods than beating suppliers for cost reductions which do notpay in the long run, and passing costs along to customers is not a viableoption. The only viable solution for the distribution supply chain is toachieve higher levels of personnel efficiency, coordination, planning andproductivity.”
While even the most skilled logistics professional cannot avoid passing aportion of mounting fuel surcharges along to customers, distributors can armthemselves with staffing expertise to mitigate the increased costs. Optimizingrouting selection requires experienced lean logistics professionals andrepresents an opportunity for significant cost savings. Inexperienced staffersmight have flown an order to achieve expedient on-time delivery, when in factthe same result to the customer could have been achieved by hiring a driver totransport the package overnight for a tenth the cost of air transport.
Experienced logistics personnel are able to recommend ways in whichdistributors can consolidate their shipments, as well as use morecost-effective transportation alternatives to reduce spending related to fuelcharges. “One of the most useful tools to help our customers,” says Devine, “isto place strategic logistics experts who are able to interpret the informationwhich accumulates in ordering behavior, often uncovering purchasing patternsthat lend themselves to substantial money-saving techniques. The idea of hiringthe least expensive warehouse personnel always costs distributors more in theend because lack of experience has a price. Seasoned logistics professionalshave already learned from their mistakes and while their per-hour rate isgreater, wisdom, experience, and knowledge translates into the example ofcontinued process improvement in action.”
When lean logistics professionals perform an account review it will oftenreveal that the customer’s embedded release program automatically schedulesorders to the distributor based on preset production requirement parameterswhich permit opportunities to consolidate shipments. Bypassing the embeddedinstructions, logistics strategists make sure customers still get everythingthey need, when they need it, at a single freight cost versus multipleshipments.
Another cost-saving through best logistics hiring practices is inconsolidating employees in the inbound and outbound logistics groups, oftenresulting in a single, smaller team. Typical same-day shipments improve as muchas 40 percent with fewer staff through improvements in hiring efficiencies.
Necessity being the mother of invention, rising fuel costs mean thatdistributors must develop inventive new methods to reduce costs that willbenefit the supply chain in the future, regardless of the price per barrel.“It’s the nature of the logistics profession to aggressively explore ways toreduce spending, while maintaining high service levels,” says Devine. “The mostimportant lean techniques employed by distributors are found in a team ofexperienced lean logistics professionals, temporary or permanent, who willcontinue to benefit customers regardless of energy costs.”
ProLogistix www.prologistix.com Melissa Phillips 904-262-6325 MSN andAOL IM: MelissaRPhillips Melissa.Phillips@employbridge.net
July 21st, 2010 at 2:46 am
Buy:Human Growth Hormone.Zovirax.Petcam (Metacam) Oral Suspension.Valtrex.Synthroid.100% Pure Okinawan Coral Calcium.Retin-A.Prednisolone.Accutane.Mega Hoodia.Actos.Lumigan.Zyban.Arimidex.Prevacid.Nexium….