Lean supply chains gained popularity in the manufacturing sector because substantial improvements can be made to eliminate waste and non-value added activity. Today, a lean supply chain refers to best-in-class supply chain execution; a process that produces what’s needed, when it’s needed, and where it’s needed with minimal waste in time or capital. In addition, lean strategies work for businesses who want to simplify and improve operational processes.
To implement lean practices into a supply chain, companies must examine all processes. Ultimately, the goal in employing a lean strategy is to deliver value to each customer. Through a thorough examination, companies can identify waste and overproduction in the supply chain and create solutions to find efficiency, profitability and service.
Many companies find that in their effort to improve customer satisfaction and decrease waste, they make poor or costly shipping decisions. With limited carrier capacity and fluctuating fuel prices, a company needs visibility into the shipping process in order to choose the best mode and lane.
There is no way to measure service or performance with a manual approach. One key factor proven effective in a lean supply chain is transportation management software. To improve service and reduce costs, companies must implement a TMS.
Using TMS technology allows companies to quickly book loads online. A TMS allows shippers to compare rates, automate the BOL and have access to comprehensive reports. With lean thinking, 50% of companies discover reduction in overhead costs. By analyzing your entire supply chain, a shipper can benefit through enhancements in operations, throughput and costs.
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