Lean Warehousing / Distribution

The business world is changing rapidly.  Technology is exploding and global competition is no longer a flight of the imagination; it is our next door neighbor.  Therefore, for an organization to be successful today, they need to embrace proven processes that can substantially improve their business over the long haul and that allow them to compete in an arena that was foreign (no pun intended) to us only a few short years ago.    

Warehousing and distribution centers need to look to other industries who have overcome many of the challenges that we face in this global economy by implementing “Lean”.  The implementation of “Lean,” which had its roots in Toyota, created such astonishing success that other industries are saying, “I want that too...” 

Warehousing and distribution is no exception. GDC Total Business Solutions is a forerunner in the adaptation of the Lean processes to areas other than automotive and aerospace.  We have taken the best of the best in Lean processes and, through practical application, created a structured system of continuous improvement. Dedication and commitment are the critical components to the long-term and sustainable results that can be achieved specific to this industry.  [NB: see also LEAN LOGISTICS as it applies to Distribution]

As more manufacturers and wholesalers are attempting to Lean out their processes, they are turning more of their inventory over to the warehousing and distribution houses around the world. Import and Export of products and raw materials is more common and increased lead-times plays havoc with manufacturers here and customer satisfaction everywhere. So what do the warehousing and distribution centers in the United States have to do to compete in what is rapidly becoming a cut-throat economy?  Lean!

Lean Thinking is used to streamline operations and to trim the fat out of internal processes.  Warehouse operations must adopt this both philosophically and practically.  Each process must be mapped out to determine any underlying problems and to identify wasteful practices.  Opportunities for improvement are identified by employees who work directly in the process.  It is these employees who will find sustainable solutions and who will ultimately take ownership of long-term and continuous improvement.  Each solution builds a stronger, more flexible, and more robust process.  These new process will, in turn, be able to withstand the stress and strain of today’s fluctuating economy. 

The largest cost savings generally comes from the ability to decrease the process lead-time, thereby reducing the need to carry excessive inventory.   In Lean Warehousing, inventory control is key!  A Lean warehouse will focus on having the right inventory, at the right time, with minimal waste and cost.  The key to remember is that Lean is a journey, not a destination, so dedication and commitment are critical components to the long-term and sustainable results that can be achieved. [NB: also see Lean Logistics as it applies to Distribution]

“You can’t afford to wait until it’s too late.”

Allow us to come in to give you a preliminary assessment.