Using LEAN In Your Supply Chain Part 5 – Short Lead Time
- 2 August, 2016
Lead-time is the length of time that elapses from the exact moment the customer places an order to that point of time the customer receives that product. In a nutshell, the shorter the lead time, the LEANer the supply chain.
By having shorter lead times companies have less cash tied up in safety stock. Also companies don’t have to build extra days into production or distribution cycles. Instead the company relies on a consistent flow of inventory that arrives exactly when it’s needed.
By streamlining its work and eliminating any steps that don’t add value to the product a LEAN company can reduce lead times. Even minutes saved on each step can add up quickly saving time and money. A well-built LEAN operation designs it’s facilities to keep working flowing without waste.
To achieve an efficient flow, a company must continually strive to reduce steps in every process. To do this, the company must start at the most basic level, facility layout and design. The facility should be designed in a way that allows material to move from point A to point B with minimal handling.
At Arab Cartage we have over 30 years of experience when it comes to warehousing and logistics. Over our 3 plus decades of existence we have learned and developed how to process goods and materials in the most efficient ways possible. If your company is in need of cost and time efficient warehousing and logistics, hit the ground running by choosing us. Our knowledgeable staff can help your company save time and money. Call us today at 1-800-423-0478 or email us at dispatch@ac-an.com.