Is there a point where high fuel costs will force us to abandon smaller transportation batches?
A. Possibly. This is where a good total cost of fulfillment model will help us understand the balance between transportation strategy and inventory strategy. As fuel costs go up, the benefit of moving smaller batches more frequently is reduced. As our businesses evolve and external factors change so should or strategies to keep our supply chains waste free. Q. Is applying lean to logistics any different than applying it to other functions in an organization? A. Some of the tools and tactics are different but the lean principles remain the same. We need standard work, a stable work environment, quality at the source to reduce defects and the need for rework, to flow material and information through the supply chain/value stream, visibility to that material and information and the pace setting process should be actual consumption of product by the end customer. Q. Meaning no disrespect, but we have been hearing about lean for a lots of years. What’s preventing organizations for moving fo
