[FR] Lean supply chain management: why and how can you implement it in your warehouse?

If you run a logistics business, you know that continuous improvement of your supply chain is a major challenge. That’s where the lean supply chain management model comes in. Only vaguely heard of it? Let us explain very simply what it is, how to implement it and what concrete benefits you can expect.

What is lean supply chain management?

Lean supply chain management is an approach aimed at streamlining the various processes in your supply chain. The idea is to minimise waste in terms of finance, materials and time.

The method is largely inspired by the kaizen philosophy, popularised by the car manufacturer Toyota in the 1950s.

It’s all about streamlining the entire supply chain. By eliminating non-value-added tasks, you reduce your production times while optimising your stocks. The result? Greater productivity, lower logistics costs and therefore greater profitability.

However, you need to bear in mind that this approach involves profound changes. Your current processes and working habits will be called into question. It is therefore crucial to prepare well for the implementation of lean supply chain management within your company.

How do you implement lean supply chain management in your warehouse?

To facilitate change management and maximise the benefits of the method, we recommend that you follow these 3 steps:

1- Audit your current performance

First and foremost, it is essential to take a step back and analyse in detail the existing processes throughout your supply chain. You need to objectively assess the performance of each operation in order to identify friction points and opportunities for improvement.

This overview will enable you to consider all the changes you need to make, prioritise them and estimate the resources required.

Among these resources, you need to identify :

• the budget needed to implement the changes identified
• the cost of interrupting links in the supply chain for the duration of the modifications
• the technical skills of the employees you can mobilise
• the training required to support employees
• the new hardware and software to be deployed
• the need for external services

2 – Standardise and automate processes and repetitive tasks

Encouraging the adoption of new working methods is often complex. That’s why it’s essential to demonstrate the positive aspects as early as possible. Communicate about the problems that have been eliminated, the time that has been saved and the automation of recurring tasks that are the source of much frustration.

To do this successfully, you need to design and customise the new processes individually, right down to the smallest detail. Structure them, automate everything that can be automated and make sure that employees are well trained in the new tools and working methods.

Once your processes have been optimised, make sure that the interactions between the various links in the supply chain are as fluid as possible. The faster and better the information circulates, the better the cumulative impact.

Finally, listen to your teams so that you can adjust the new processes in the light of initial operational feedback.

3 – Integrate the latest technologies into the heart of your organisation

The use of new logistics technologies represents a decisive competitive advantage in highly competitive markets. Artificial intelligence, big data and blockchain open up infinite possibilities for optimising the supply chain.

The digitisation of logistics operations, with solutions such as Warehouse Management Systems (WMS), enables logistics specialists to anticipate stock movements to improve responsiveness, reduce lead times and rationalise costs. Other tools, such as predictive maintenance, make it possible to limit or even totally eliminate interruptions to the production line.

Logistics managers then have all the data they need to make the best strategic decisions at the best time.

The 6 key benefits of lean supply chain management

1 – Improved productivity and competitiveness

Lean supply chain management is a continuous improvement approach. In other words, it aims to develop the entire supply chain so that it remains competitive and flexible, particularly in the face of market uncertainties.

Automating repetitive tasks is one of the major challenges of lean supply chain management. For example, picking during the order preparation phase is optimised using devices such as put-to-light, pick-to-light, voice picking and visual picking. Employees work in better conditions, which boosts morale and therefore productivity.

2 – Enhancing the added value of your supply chain

Implementing lean supply chain management brings with it a host of new processes, tools and equipment. This means greater planning, flow management and traceability capabilities. In warehouses, movement and safety are enhanced by automated and sometimes even robotised equipment.

Every link in the supply chain is optimised to deliver maximum added value. From the supply of raw materials to delivery to the end customer. What’s more, the elimination of low added-value activities helps to reduce costs.

3 – Greater customer satisfaction

The lean supply chain management method aims to put the customer at the centre of attention. This means that all actions are based above all on customer satisfaction.

Production lead times, delivery reliability, product quality… All the benefits of lean supply chain management are aimed at meeting your customers’ expectations as effectively as possible. You limit returns and strengthen customer loyalty. And winning over customers is the best way of achieving your growth targets.

4 – More efficient stock management

Lean supply chain management means adapting your logistics and production processes to demand. There are many benefits in terms of stock management and shipping.

Firstly, by avoiding overproduction with a just-in-time strategy. With fewer products to stock for less time, storage costs in your warehouses are drastically reduced.

5 – Enhancing the quality of your supply chain

Process optimisation naturally enhances the quality of the links in the supply chain. Anomalies and errors are eliminated, helping to improve customer satisfaction and productivity.

Part of the lean supply chain management strategy is based on detecting the risk of errors at an early stage. It then makes improvements to resolve them with maximum impact.

6 – Encouraging collaboration between all your stakeholders

Lean supply chain management strengthens relations between the stakeholders in the supply chain. Implementing ERP software means better communication and therefore better collaboration between the various players: service providers, suppliers, employees, carriers, partners, end customers, etc.

Convinced by lean supply chain management? Take your supply chain to the next level with this approach!