Lean Distribution
Chapter One
Taking the Lean Approach
Lean Distribution breaks the forecast accuracy barrier to
improving customer service and profit with flawless
execution of simplified operating processes
Competition is growing at an ever-increasing rate, and price tends to be
the main battleground. Finding the lowest-cost source or manufacturing
location has been the strategy with sourcing from China, the preeminent
destination. Low cost sourcing is creating and extending supply chains
across the globe making distributing products more challenging than ever.
There is just no room for error when planning and moving products across
complex, global supply chains.
Distribution in these price-sensitive times must evolve to meet the competitive
threats and realities of global markets. In the past, distribution
processes relied on customer order forecasts to find the most cost-effective
plan, but forecast accuracy continues to be an elusive goal. Forecast-based
plans are becoming less reliable, making cost reductions more elusive.
Some companies have been successful with new distribution processes
and strategies that transcend the forecast accuracy barrier to lower costs.
Dell Compu ... read full excerpt from Lean Distribution: Applying Lean Manufacturing to Distribution, Logistics, and Supply Chain ebook