{"id":747,"date":"2020-02-23T23:42:57","date_gmt":"2020-02-24T07:42:57","guid":{"rendered":"http:\/\/themanwhosoldtheweb.com\/blog\/?p=747"},"modified":"2020-02-23T23:42:59","modified_gmt":"2020-02-24T07:42:59","slug":"are-you-interested-in-transforming-your-traditional-warehouse-into-a-lean-warehouse","status":"publish","type":"post","link":"https:\/\/themanwhosoldtheweb.com\/blog\/2020\/02\/are-you-interested-in-transforming-your-traditional-warehouse-into-a-lean-warehouse\/","title":{"rendered":"Are You Interested In Transforming Your Traditional Warehouse into a Lean Warehouse?"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"http:\/\/themanwhosoldtheweb.com\/blog\/wp-content\/uploads\/2020\/02\/Warehouse-3-1024x683.jpg\" alt=\"\" class=\"wp-image-748\" srcset=\"https:\/\/themanwhosoldtheweb.com\/blog\/wp-content\/uploads\/2020\/02\/Warehouse-3-1024x683.jpg 1024w, https:\/\/themanwhosoldtheweb.com\/blog\/wp-content\/uploads\/2020\/02\/Warehouse-3-300x200.jpg 300w, https:\/\/themanwhosoldtheweb.com\/blog\/wp-content\/uploads\/2020\/02\/Warehouse-3-768x512.jpg 768w, https:\/\/themanwhosoldtheweb.com\/blog\/wp-content\/uploads\/2020\/02\/Warehouse-3.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>As the last decisive step in customer service, a warehouse ensures cost effective distribution. \u00a0Latest technological innovation has turned warehousing into a competitive advantage.\u00a0 It offers untapped potential for improvement.\u00a0However, warehousing is a hugely neglected part of global supply chains.\u00a0 There is inconsistency in picking, packing and shipping orders, storing receipts, and managing inventory and logistics operations.<\/p>\n\n\n\n<p>These and the following roadblocks in the way of smooth warehousing operations and <a href=\"https:\/\/flevy.com\/lean-management\">Lean Management<\/a> exist in every traditional warehouse:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Lack of focus on acquiring technology to facilitate in improving efficiency and quality.<\/li><li>Inability to utilize a structured approach to ascertain the reasons for poor performance.<\/li><li>Lack of a big picture viewpoint pertaining to processes, costs, or external supply chain partnerships.<\/li><li>Absence of a <a href=\"https:\/\/flevy.com\/business-toolkit\/continuous-improvement\">continuous improvement<\/a> culture to achieve warehouse operations excellence.<\/li><li>Lack of communication, organization, and proper training of resources.<\/li><\/ul>\n\n\n\n<p>These shortcomings call for implementing <a href=\"https:\/\/flevy.com\/browse\/flevypro\/lean-warehousing-transformation-4056\">Lean Warehousing<\/a> methodology to unlock improvement opportunities and savings in operational, efficiency, and maintenance related costs.&nbsp; First initiated by Toyota, the Lean Warehousing approach has a deep emphasis on eliminating 3 basic limitations: waste, variability, and inflexibility. The Lean Warehousing methodology focuses on the following 3 improvement areas:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Cost Reduction<\/strong><\/li><li><strong>Customer Quality<\/strong><\/li><li><strong>Service Levels<\/strong><\/li><\/ol>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/flevy.com\/browse\/flevypro\/lean-warehousing-transformation-4056\"><img decoding=\"async\" src=\"http:\/\/flevy.com\/blog\/wp-content\/uploads\/2020\/02\/Lean-Warehousing.png\" alt=\"\" class=\"wp-image-6395\" \/><\/a><\/figure><\/div>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Cost Reduction <\/strong><\/h4>\n\n\n\n<p>The Lean Warehousing methodology concentrates on increasing productivity and reducing operating costs.&nbsp; This is achieved by:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Cutting undue walking and searching<\/li><li>Preventing needless replenishment, reworks, waiting times, and double handling<\/li><li>Upgrading demand and capacity planning and manpower allocation<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Customer Quality <\/strong><\/h4>\n\n\n\n<p>A Lean Warehouse seeks to take the customer quality to the next level by avoiding:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Order deviations<\/li><li>Picking errors<\/li><li>Damaged goods<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Service Levels <\/strong><\/h4>\n\n\n\n<p>Improving service levels is at the center of a Lean Warehousing methodology, which involves:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Reducing lead times<\/li><li>Enhancing on-shelf availability<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Lean Warehousing Transformation<\/strong><\/h3>\n\n\n\n<p>Lean Warehousing Transformation entails streamlining operations to identify waste, know how to increase service levels, implement standardization and innovative ideas, and learn to evaluate and manage performance. &nbsp;Such transformation becomes a reality in an experiential learning environment and by developing organizational capabilities in 3 critical areas:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Operating System<\/strong><\/li><li><strong>Management Infrastructure<\/strong><\/li><li><strong>Mindset and Behaviors<\/strong><\/li><\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Operating System<\/strong><\/h4>\n\n\n\n<p>The organizational capability to configure and optimize all company physical assets and resources to create value and minimize losses.&nbsp; The focus areas under operating systems include eradicating variability, encouraging flexibility, and promoting end-to-end design.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Management Infrastructure &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/h4>\n\n\n\n<p>The organizational capability to strengthen formal structures, processes, and systems necessary to manage the operating system to achieve business goals.&nbsp; The focus areas under Management Infrastructure are <a href=\"https:\/\/flevy.com\/browse\/stream\/performance-management\">performance management<\/a>, <a href=\"https:\/\/flevy.com\/browse\/stream\/organizational-design\">organizational design<\/a>, capability building, and functional support process.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Mindset and Behaviors<\/strong><\/h4>\n\n\n\n<p>The organizational capability to manage the way people think, feel, and act in the workplace individually as well as collectively.&nbsp; The target areas to focus on here include a compelling purpose, collaborative execution, up-to-date skills, drive to improve, and committed leadership.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Model Warehouse Implementation<\/strong><\/h3>\n\n\n\n<p>Lean Warehousing Transformation necessitates developing a \u201cModel Warehouse,\u201d which presents facilities for supply chain people to practically experience state-of-the-art warehouse operations in a modern warehouse and shop-floor environment.&nbsp; The Model Warehouse incorporates newest technology and systems, and offers real-life conditions for building capabilities\u2014i.e., optimization of storage, pick and pack, and dispatch processes.&nbsp; Newest technologies\u2014e.g., Smart Glasses and HoloLenses\u2014available at the facility help improve the performance of pickers significantly and execute multi-order picking efficiently.<\/p>\n\n\n\n<p>Such a setting allows people to observe and analyze the performance of an exemplary warehouse and implement this knowledge at their own premises. &nbsp;Leading organizations organize a week-long rigorous knowledge sharing workshop\u2014in an experiential learning environment of a Model Warehouse\u2014for their people to have a hands-on experience to learn Lean Warehousing, actual picking, packing, root cause analysis, and performance management. &nbsp;The participants of the Model Warehouse Knowledge Sharing Workshop are excellent candidates for \u201cchange agents\u201d to implement Lean Transformation.<\/p>\n\n\n\n<p>Interested in learning more about Lean Warehousing, Model Warehouse Implementation, and Lean Warehousing Transformation?&nbsp; You can download <a href=\"https:\/\/flevy.com\/browse\/flevypro\/lean-warehousing-transformation-4056\">an editable PowerPoint on <strong>Lean Warehousing Transformation<\/strong> here<\/a> on the <a href=\"https:\/\/flevy.com\/browse\">Flevy documents marketplace<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Are you a Management Consultant?<\/strong><\/h3>\n\n\n\n<p>You can download this and hundreds of other&nbsp;<a href=\"http:\/\/flevy.com\/pro\/library\/frameworks\">consulting frameworks<\/a>&nbsp;and&nbsp;<a href=\"http:\/\/flevy.com\/pro\/library\/consulting\">consulting training guides<\/a>&nbsp;from the&nbsp;<a href=\"http:\/\/flevy.com\/pro\/library\">FlevyPro library<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the last decisive step in customer service, a warehouse ensures cost effective distribution. \u00a0Latest technological innovation has turned warehousing into a competitive advantage.\u00a0 It offers untapped potential for improvement.\u00a0However, warehousing is a hugely neglected part of global supply chains.\u00a0 There is inconsistency in picking, packing and shipping orders, storing receipts, and managing inventory and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[418,381,416,414,370,412,413,417,415],"class_list":["post-747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-capacity-planning","tag-continuous-improvement","tag-demand-planning","tag-distribution","tag-lean-management","tag-lean-warehouse","tag-supply-chain","tag-supply-planning","tag-warehouse-operations"],"_links":{"self":[{"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/comments?post=747"}],"version-history":[{"count":1,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/747\/revisions"}],"predecessor-version":[{"id":749,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/posts\/747\/revisions\/749"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media\/748"}],"wp:attachment":[{"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/media?parent=747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/categories?post=747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/themanwhosoldtheweb.com\/blog\/wp-json\/wp\/v2\/tags?post=747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}