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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
These and the following roadblocks in the way of smooth warehousing operations and Lean Management<\/a> exist in every traditional warehouse:<\/p>\n These shortcomings call for implementing Lean Warehousing<\/a> methodology to unlock improvement opportunities and savings in operational, efficiency, and maintenance related costs.\u00a0 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 The Lean Warehousing methodology concentrates on increasing productivity and reducing operating costs.\u00a0 This is achieved by:<\/p>\n A Lean Warehouse seeks to take the customer quality to the next level by avoiding:<\/p>\n Improving service levels is at the center of a Lean Warehousing methodology, which involves:<\/p>\n 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. \u00a0Such transformation becomes a reality in an experiential learning environment and by developing organizational capabilities in 3 critical areas:<\/p>\n The organizational capability to configure and optimize all company physical assets and resources to create value and minimize losses.\u00a0 The focus areas under operating systems include eradicating variability, encouraging flexibility, and promoting end-to-end design.<\/p>\n The organizational capability to strengthen formal structures, processes, and systems necessary to manage the operating system to achieve business goals.\u00a0 The focus areas under Management Infrastructure are performance management<\/a>, organizational design<\/a>, capability building, and functional support process.<\/p>\n The organizational capability to manage the way people think, feel, and act in the workplace individually as well as collectively.\u00a0 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 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.\u00a0 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.\u00a0 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 Such a setting allows people to observe and analyze the performance of an exemplary warehouse and implement this knowledge at their own premises. \u00a0Leading 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. \u00a0The participants of the Model Warehouse Knowledge Sharing Workshop are excellent candidates for \u201cchange agents\u201d to implement Lean Transformation.<\/p>\n Interested in learning more about Lean Warehousing, Model Warehouse Implementation, and Lean Warehousing Transformation?\u00a0 You can download an editable PowerPoint on Lean Warehousing Transformation<\/strong> here<\/u><\/a> on the Flevy documents marketplace<\/a>.<\/p>\n You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro Library<\/a>. FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:<\/p>\n “My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”<\/p>\n \u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n “As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. 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While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant’s toolbox.”<\/p>\n \u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n “FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”<\/p>\n \u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n “Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients’ benefits.”<\/p>\n \u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":" 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… How To Transform Your Traditional Warehouse into a Lean Warehouse?<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":6394,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82],"tags":[1919,1918,1635,1915,1916,1917,500],"class_list":["post-6285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","tag-capacity-planing","tag-demand-planning","tag-lean-transformation","tag-lean-warehousing","tag-model-warehouse","tag-service-levels","tag-supply-chain-management"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=6285"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6285\/revisions"}],"predecessor-version":[{"id":7841,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/6285\/revisions\/7841"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/6394"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=6285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=6285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=6285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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<\/a><\/p>\nCost Reduction <\/strong><\/h3>\n
\n
Customer Quality <\/strong><\/h3>\n
\n
Service Levels <\/strong><\/h3>\n
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Lean Warehousing Transformation<\/strong>
\n<\/strong><\/h2>\n\n
Operating System<\/strong><\/h3>\n
Management Infrastructure \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong><\/h3>\n
Mindset and Behaviors<\/strong><\/h3>\n
Model Warehouse Implementation<\/strong><\/h2>\n
Do You Find Value in This Framework?<\/h2>\n