What are the principles, tools and methods of Lean logistics to improve efficiency?

Recent crises have massively impacted but also revealed the fundamental importance of the supply chain. To meet the new challenges it faces, logistics must commit to a logic of continuous improvement. This is the purpose of Lean logistics, which applies the fundamental principles of the Lean methodology to the supply chain.

What is Lean logistics?

Like all improvement processes inspired by the Lean Management methodology, Lean logistics is a concept that aims to optimise the supply chain. Its goal is to reduce, and even eliminate, waste, inventory requirements and cycle times, to accelerate flows, lower costs, improve the quality of service and strengthen the overall responsiveness of the logistics chain.

Of course, Lean logistics did not have to wait for the various crises to arouse the interest of supply chain managers. However, it has made its relevance even more apparent. “It has highlighted the ever more pressing need for companies to have complete visibility across the entire logistics chain, from the manufacturer to “the last mile”. It has shown that it is crucial to be able to provide all delivery and supply information in real time to all customers.” Grégoire Koudrine, Supply Chain Director at the Manutan Group, emphasises

The collaborative spirit, the cornerstone of Lean logistics

To achieve this, Lean logistics encourages the supply chain to commit to a very practical approach of ongoing learning, based on real and transparent collaboration between all players in the logistics chain, from the workshop to delivery. The aim is to promote a daily dynamic of resolving minor issues to target continuous improvement, reliable supplies and optimised transportation. In this way, when a real breakdown situation occurs, the supply chain is immediately able to act and demonstrates very rapid resilience.

“Innovation and creativity must be the watchwords in these troubled times. The agility of our structures and delivery methods, as well as communication with our customers, are essential,” Grégoire Koudrine indicates. It is therefore fundamental to create the right conditions to allow this innovation and creativity to flourish. First and foremost, the adaptability of distribution centres and delivery methods must become the norm, in a more structured and industrialised way.

The essential principles of Lean logistics

Relying on persistent flows, speed of response and process agility, Lean logistics provides concrete solutions in the warehouse, provided its fundamental principles are respected. These make it possible to improve the efficiency and performance of flows upstream and downstream from production. Here they are:

• Developing skills focused on adaptability and problem solving;
• Emergence of coordination structures based on a culture of mutual assistance and creative energy;
• Continuous updating of the mapping of supplier risks, as well as supply and industrial risks;
• Maintaining a minimum stock level to cover replenishment lead times and prevent stock outs;
• Developing “pull” rather than “push” systems to reduce waste and reduce storage costs.

As a reminder, when Lean management principles are applied to production flow management, this is known as Lean manufacturing.

The tools and methods of Lean logistics

It’s difficult to optimise flows without tracking tools. In this regard, RFID (Radio Frequency Identification) technologies and WMS (Warehouse Management System) software support Lean logistics. For its part, developing value stream mapping provides a simple, clear view of the entire logistics chain.

Lastly, because it aims to streamline processes, the Lean methodology obviously places the identification and elimination of sources of waste at the heart of its system. Applied to stock management and logistics, this consists in avoiding:

• Overstocking;
• Waiting times;
• Empty transport journeys or stock movements that do not add value;
• Unnecessary stocks;
• Picking errors;
• Unnecessary or insufficiently optimised operator movements;
• Deterioration of parts during storage or order picking.

The 5S methodology

Initially developed in Toyota’s Japanese factories, the 5S methodology aims to create a functional work environment to continuously improve the overall operation of the company and its productivity. Perfectly suited to organising the supply chain and managing warehouses, it is an integral part of Lean logistics. This process improvement strategy consists of 5 stages.

Seiri: Getting rid of the unnecessary

The aim here is to identify waste, i.e. everything that has no place in the warehouse and eliminate it, so as not to unnecessarily clutter the workspace.

Seiso: Make it shine, gain in cleanliness

The idea is to always keep all the equipment used in the warehouse, from forklifts to pallet trucks, in perfect working order and clean, to ensure their optimal operation at all times and avoid unnecessary downtime.

Seiton: Best organise your workplace

Both perfect organisation of space and proper storage of tools and equipment aim to avoid waste of time and of energy.

Seiketsu: Standardise the rules

The standardisation of the 5S method principles, in other words, how teams scrupulously comply with them daily, guarantees their effectiveness.

Shitsuke: Monitor improvements and progress

The 5S method would remain ineffective if it were not applied rigorously and with determination. It therefore requires a specific mindset and the real involvement of all employees. In this way, if unexpected disruptive events happen, all energies can be devoted to the rapid resolution of the difficulty to ensure the resilience of the logistics chain.

To find out more, download our “Guide to inventory management” white paper.