You may have heard of the term “Lean Logistics” which is becoming more popular among the European logistics companies from the International Forwarding Association. If you are not quite sure what lean logistics is and how it can improve the supply chain and the processes and services offered by the forwarders throughout Europe, read on to find out everything you need to know about this relatively new concept.
What exactly is lean logistics
Lean logistics is a supply chain process which can help the members of the freight forwarding association reduce the costs for their services, improve their overall performance, speed up their services and create a more positive customer experience.
Photo: https://www.pymnts.com/The term “Lean logistics” first originated in Japan, and can be defined as a process which allows for the efficient identification of time, effort and material wasting processes included in the supply chain. By identifying and eliminating these problems, the members of the international freight forwarders network can start offering much faster and cheaper services. In other words, lean logistics is the removal of any wasteful touchpoints, processes or packaging from the supply chain.
With the latest boom of online commerce, when more people are choosing to buy products online and expect the fastest and cheapest possible delivery by the list of logistics companies, implementing lean logistics allows for a vast improvement in the storage and distribution and the national and international freight forwarding services provided, so that the expectations of the customers are met.
By removing any unnecessary processes and materials involved in the process, the companies from the freight forwarders association can help minimize the delays and the wait time, as well as the shipping and delivery costs.
What are some of the advantages of Lean logistics
One of the main advantages of implementing lean logistics by the companies from IFA is the improved inventory management. This system helps to minimize the waste caused by excess inventory as well as the risk of upsetting the customers due to stocking insufficient inventory.
With lean logistics being applied by many companies from the European network of transportation, the data collected allows for the removal of any redundancies, keeping tighter stocks and ensuring the customers’ production lines can work seamlessly without too much waste from holding inventory for too long. In other words, lean logistics can help reduce inventory risk significantly.
With lean logistics, the list of logistics companies can remove any unnecessary and wasteful steps and processes which can cause a shorter lifecycle of the goods. This no doubt affects the profitability and efficiency of the customers and of the international freight forwarders.
Another benefit is the reduction of the space needed for storage and distribution. By reducing the size of the warehouse space, the members of the freight forwarders directory can reduce the costs and investments for storage space and maintenance needs too.
In conclusion
If the European logistics companies manage to apply lean logistics properly and efficiently, and remove any redundant and wasteful processes from their supply chain management, the benefits for them and for the customers and end clients are plenty – including lower operation costs, higher profits, better efficiency and time management as well as faster shipments and deliveries and happier end clients.