How to Apply Lean Principles to a Distribution Center
The e-commerce market is
expanding every day. The competition level is touching the sky which is
prompting every company to provide better service to its customers in order to
retain them. One of the most engaging ways to preserve existing customers and attract
new ones is lessening the delivery time. Hence, the whole burden of performing
well shifts on the distribution centre. In such a scenario, it becomes
imperative for distribution centres to work efficiently.
Lean Principle basically
helps companies eliminate waste movement or activities that may not add value
to products. It aims at increasing productivity by removing the unwanted
actions displayed at the distribution centre. It reduces the input cost and
raises the profitability of the company.
Here are few ways to apply the lean principle
Preparing a lean team
Arranging a lean team to
identify a specific problem that might be hindering the whole process or any
activity that plays no such crucial role in the process is the first thing to
do. Once recognised, excluding those problems becomes essential but that should
be done once it has been examined properly by the team.
Adopting lean instruments
Pareto analysis, check
sheet, stratification, histograms, cause and effect diagrams etc lean tools once
incorporated by the management, can benefit in improving performance and
eradicating the non-essential work. These tools not only find out the scrap but
also assist in planning out the evacuation of waste systematically.
Hereabouts are some advantages of practising the lean principle in a
- Increment in perfect order
- Increase of profit as the cost
- Meeting of targets becomes easy
Earlier, the lean
principle applied in manufacturing but now its scope has broadened up. The lean
principle is the most reliable way to meet the current customer’s demand and
expectation. Its application will certainly benefit the company. The tools and
methods can be used to apply it in warehouses or distribution centres.