Can you afford to not implement lean in warehouse logistics?
lean, Warehouse management, Warehouse optimizationIntroduction to Agility and Resilience in Warehouse Logistics
Recently, I have written about agility and resilience in warehouse logistics. I have received some questions about lean in warehouse logistics. Some people ask, why all this talk about agile? If you implement lean, you are also agile.
The Proven Success of Lean Practices
I couldn’t agree more! I am truly passionate about lean and have written several articles about lean in warehouse logistics earlier. The big problem is there seems to be very little interest in lean right now. It surprises me a lot, and I don’t know why this is the case. Lean has been a proven success story in so many cases and actually has a long history with proven success. There are so many scientific reports about the benefits of lean that no one can actually argue about it.
Challenges in Adopting Lean Practices
Maybe that is the problem. It is not a new trend, a buzzword in social media. Many organizations in warehouse logistics are young, with new and young leaders looking for quick fixes in the hunt for lowering operational costs in their e-commerce and omnichannel operations. Moreover, many leaders in younger generations trust technology more than “soft” values.
Importance of Leadership and Trust in Lean Implementation
The implementation of lean is not something you can hurry or do in a few days. You need to have the right leadership and mutual trust and respect throughout the organization from top to bottom. For best results, you need flat organizations with great communication between leaders and staff. You want your employees to be experts on the floor who work actively with continuous improvement. They should have ownership of the processes in order to take responsibility and have a critical mindset.
Lean in Modern Warehouse Logistics
Lean suits modern warehouse logistics very well because there are many similarities with the production-based flow where lean originated. According to a McKinsey report, “Lean and mean: How does your supply chain shape up?” you can reduce warehouse operations costs by 20-50% when implementing lean! How can you ignore that? I have my own experience of implementing lean that can verify the benefits of lean warehouse logistics. Therefore, I know what I am talking about.
Balancing Technology and Leadership
There is a lot of focus on technology like automation, robotics, AI/ML, digital transformation, etc., in warehouse logistics. However, if you want to achieve the maximum impact of your tech investments, you need to have the analog part in place. That means leadership and organization—the whole management part. Lean is the perfect tool for managing efficiency, quality, and securing continuous improvement. The static mindset is history. Lean has its origin in a volatile production environment with an on-demand mindset that is perfect in a retail e-commerce or e-grocery flow, for example.
Consider Implementing Lean Practices
I will not go into any details about lean warehouse management, but I strongly advise you to read about it carefully and strongly consider implementing lean if you have not done it yet. As I wrote before, this is nothing new; there is a lot of literature about lean, and if you google lean warehouse management, you will find a lot of great information.
Roberth Karlsson
I agree , I think with the pandemic businesses have shifted their focus, lean must never be ignored to maintain the edge.
Just a thought! Wouldn’t a lean warehouse number the aisles as opposed to the racks in your photo so you can pick from side to side?