Building a Lean Fulfillment Stream will change the way you think about your supply chain and logistics networks – giving you a way to act using lean principles to transform and continuously improve. In this pioneering workbook, lean logistics veterans Robert Martichenko and Kevin von Grabe explain step-by-step a comprehensive, real-life implementation process for optimizing your entire fulfillment stream from raw materials to customers, including two critical concepts: calculating the total cost of fulfillment and collaborating with across all functions and firms along the stream.
Your company, like most, probably calculates costs at different points within departments, such as the piece price paid by the purchasing department. Few companies figure the total cost associated with each major function across the fulfillment stream. Calculating total cost, which to most executives is surprisingly large, lets you measure the impact of your improvement efforts on operational performance and overall income. Martichenko and von Grabe also give you guidance and tools for collaboration. Using the example company ABE Corp., the authors illustrate how the lean conversion process is a win-win for every company involved. And an accompanying analysis illustrates the financial benefits and shows you how to apply the metrics.
The book, supported by 41 charts, maps, and illustrations, shows you:
- How to apply the eight guiding principles for implementing lean fulfillment.
- The seven major types of waste in logistics and supply chains.
- How a fulfillment-stream council of representatives from all companies gives critical guidance and support.
- The “eight rights” for assessing perfect order execution.
- What lean metrics to use, such as why average days on hand of inventory is a better measure than inventory turns.
- How to identify and eliminate waste in shipping, receiving, and yard management.