As the new year approaches, many organisations start to review their performance. Naturally, the focus shifts to cutting unnecessary costs and improving processes. For a large organisation, small changes in logistics processes, such as optimising delivery routes or implementing better inventory management systems, can result in significant cost savings and improved customer satisfaction.
By focusing on efficiency at every level of the supply chain, companies can streamline operations and increase profitability whilst also enhancing their overall competitiveness in the market.
Here at JNBA, we have consultants who specialise in analysing logistics processes and identifying areas for improvement. With our expertise, we can provide tailored solutions to optimise your supply chain, reduce costs, and enhance overall efficiency.
In this post, we will delve into the key benefits of optimising logistics efficiency with the help of JNBA Consultancy. We will explore how our specialised services can drive cost savings, reduce waste and ultimately boost your company's bottom line.
Challenges in Logistics Efficiency
Inefficiencies in transportation, goods in and inventory management can lead to increased costs and delays in the supply chain. When you engage a JNBA Consultant, we can help you streamline your logistics operations and overcome these challenges to improve overall efficiency.
Logistical inefficiencies can result in excess inventory, stockouts, and increased carrying costs. Lack of communication between departments can lead to delays in decision-making, coordination issues, and ultimately impact the overall performance of the supply chain.
By fostering better communication practices and collaboration between teams, we can streamline processes, enhance productivity, and drive success for your organisation. Let us help bridge the gap and create a more cohesive and efficient supply chain network.
Small Changes for Improved Efficiency
Process Mapping can help identify bottlenecks and areas for improvement in your current inventory management system. Implementing simple changes based on this analysis can lead to significant increases in efficiency and cost savings for your organisation.
Utilising data analytics for better inventory control can provide valuable insights into demand forecasting and inventory optimisation. Improving communication through regular meetings and updates with key stakeholders can also help ensure that everyone is on the same page and working towards the same goals. Additionally, investing in training programs for employees on best practices in inventory management can further enhance the effectiveness of your system.
Benefits of Organisation-Wide Impact
Cost savings through reduced transportation expenses and minimised stockouts can be achieved by implementing data-driven inventory management strategies. This can lead to increased customer satisfaction and loyalty, ultimately contributing to the organisation's long-term success.
Optimised inventory and consistent processes lead to faster order fulfilment and improved accuracy in forecasting demand. These improvements can result in increased efficiency and productivity, ultimately driving overall business growth and profitability.
Properly documented processes can empower better collaboration between departments. This leads to a more cohesive and efficient operation. Every one of our consultants has been handpicked for their communication skills. By bringing key stakeholders together for interviews and workshops, we ensure that each one of them buys into the improvements we’re working on together.
Goods In Project Case Study
We recently looked in some depth at a case study for a goods in project that we carried out for one of our clients. I’ll summarise it here, but please feel free to take a look at the full blog to find out more.
The scenario
Our customer contacted JNBA Consultancy to investigate why their goods-in department was not operating as effectively as it could be. Having worked with us previously, the client was confident they could rely on JNBA's team of process improvement professionals to assess what was happening and recommend workable adjustments to assist the team save time
Project objectives:
1. Improve efficiency
2. Improve management of delivery
Targeted areas
Through further exploration of the client's essential results, our consultant was able to precisely identify the parts of the goods-in process that needed improvement. It is helpful to examine each of the three areas that were identified as needing improvement as a consequence of this research.
1. Effectiveness
Enhancing communication between the departments and relevant documentation to elevate overall performance and satisfaction.
2. Technology
Using current technology to organise inbound deliveries and enforce a delivery booking process to structure Goods In.
3. Efficiency
Streamlining operations to ensure faster delivery times and increased productivity.
Timings before and after
The goods in process within this organisation could be measured with reference to the time it was taking each staff member to process pallets and boxes. By carefully monitoring these timings before and after a Lean Six Sigma analysis, it was possible to definitively measure the improvements made.
This can be seen visually by reference to the below charts:
Insights provided
- Sam's average time for processing a pallet started off at 85 minutes and is now down to 47 minutes. An increase in performance of 45%.
- Sam's average time for processing a box was 22 minutes and it is now down to 17 minutes. A performance increase of 23%.
- Sharon's average time for processing a pallet was 154 minutes and she is now averaging 67 minutes. This is a performance increase of 56%.
- Sharon's average time for processing a box was 42 minutes. She is now averaging 32 minutes per box. An increase in performance of 23%.
Additional observations
On looking at the data in isolation, it would be easy to assume that Sharon was simply slower at doing her job than Sam. However, JNBA consultants always look deeper into any anomalies.
Upon further analysis, it became apparent that Sharon is being interrupted by ForkLift requests. This potentially accounts for her taking longer on the process. Additionally, Sharon had complex orders to process that we were able to simplify for her using some quick process changes.
As you can see from the charts, a few deliveries are still falling outside of the standard deviation (expected fluctuations). Our consultant feels that it would be useful to analyse these areas individually to understand how they could be improved further.
Conclusion
The streamlined goods in process discussed in the case study demonstrates the significant impact that efficient logistics can have on an organisation's bottom line.
It evidences how small changes within the logistics department can have a huge impact on operations. Even minor adjustments in this area can lead to major improvements in efficiency and cost savings. By implementing efficiency in logistics best practice, organisations can position themselves for long-term success and growth in a competitive market.
Leveraging technology and data analytics allows companies to optimise their inventory levels, reduce carrying costs, and improve order fulfilment rates. It is crucial for organisations to continuously evaluate and refine their logistics strategies to stay ahead of the competition and drive sustainable growth, so many clients choose to work with JNBA consultants on an ongoing basis to foster a culture of continuous improvement.
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