Lean Distribution: Implementing Lean in Distribution, Logistics, and Supply Chain Operations

• A desire to develop people, improve efficiency, and eliminate waste in distribution and supply chain operations.

Audience

• Managers and professionals responsible for implementing lean principles in distribution, logistics and supply chain operations

Lean Distribution refers to the application of Lean Manufacturing concepts to distribution, logistics and supply chain operations. The focus is on adding value for customers, while identifying and eliminating waste—anything that doesn't add that value.

In this instructor-led, live training, participants learn the methodology, teams and tools needed to implement Lean within their own distribution centers and supply chain operations while establishing a culture of continuous improvement.

The training combines case activities and discussions with live, hands-on practice using the tools, metrics, and methods needed to implement Lean systems and processes. Some of the concepts covered include:

• Calculating the true cost of fulfillment
• Lowering total costs across the supply chain
• Overcoming resistance to change
• Cultivating leadership and instilling a mindset of Lean thinking across the organization

Format of the course

• Part lecture, part discussion, exercises and hands-on practice

Introduction

• History of Lean: The Toyota Production System
• Lean Manufacturing vs Lean Distribution

Lean Distribution Concepts

• Lean change and distribution
• Distribution operations improvement
• The framework for Lean Distribution
• Distribution challenges
• Distribution optimization
• Business process transformation
• ERP transformation

Lean Distribution Methodology

• Lean capabilities
• Customer service policy
• Buffer strategy
• Replenishment cycles
• The pull approach

Preparing for Lean Distribution

• Planning a Lean transformation
• Taking inventory of the process
• Calculating the total cost of fulfillment
• Defining KPIs according to the client
• Observing transactional-level details from receipt to delivery
• Overcoming resistance
• Preparing a pilot project

Questions to Ask

• The Five Whys
• Identifying probable cause - beyond symptoms and uncovering root causes of problems
• The cause and effect diagram

Implementing Lean Distribution

• Assembling the teams
• Measuring and adjusting
• Eliminating waste
• Just-in-time delivery
• Minimizing human effort
• Prioritizing safety and cleanliness

Improving the Flow of Inventory

• Improving events is not enough
• Providing vision and plans to connect improvement activities
• Value Stream Mapping (VSM)

Lean Tools for the Warehouse

• Pareto analysis – what are the big problems?
• Cause and effect diagram – what’s causing the problem?
• Stratification – how is the data made up?
• Check sheet – how often does it occur?
• Histograms – what is the overall variation?
• Scatter charts – what are the relationships between the factors?
• Process control chart – which variations to control and how?

Assessing the Results of Lean

• Lean maturity matrix
• Tracking performance
• Benchmarking against other companies
• Continuous monitoring and improvement

Developing Lean Leaders

• Creating a Lean leadership team
• Creating a succession system

Complimentary Methodologies

• Agile and Scrum
• Six Sigma

Closing Remarks