Thinking about upgrading your Enterprise Resource Planning (ERP) system to solve your supply chain’s materials logistics problems?

You may want to learn how the market leaders manage their materials logistics before you call your software vendor.

Dell, Toyota, and Wal-Mart-- did you know that none of these productivity leaders run large-scale ERP systems? Yet their operational excellence is indisputable and has given them a distinct competitive advantage. What makes these companies market leaders, and how can you take advantage of the same approach?

In two words- LEAN Logistics. These companies and a growing number of other market leaders recognize the importance of creating a high-velocity, yet accurate materials logistics process.

What are the symptoms of a struggling materials logistics process?

Continual parts shortages handled by a full-time staff of parts expeditors
Mediocre delivery performance
Increasing inventory levels
Lengthy production status meetings
A well staffed materials “planning” or “analyzing” department
Complicated BoM structures with “phantom” assemblies and operations
“Lumpy” or “whip-saw” dependent demands
High volumes of unexpected purchase requisitions and orders
Resources consumed with the following wasteful activities
- Frequent MRP regeneration and “back-flushing”
- Line-balancing, WIP reporting
- Order confirmation, kitting

What results can you expect with LEAN Logistics? Typical results for a LEAN Logistics solution during the first few months include:

Increased throughput: 20% - 100%
Decreased inventory: 30% - 80%
Reduced lead times: 30% - 80%
Less materials planning workload
Less materials handling workload
Improved delivery performance
Improved purchased parts quality and better supplier relations
Lower IT costs
Increased enterprise agility

With a LEAN Logistics solution in place, the acquisition and delivery of purchased parts is a logical extension of your internal production process. This enables your extended value chain- your enterprise, your suppliers and your customers- to achieve industry leading agility, throughput, and efficiencies.