No other business operation operates in ways that logistics do. Throughout the world, 24/7, seven days a week and 365 days a year, the field of logistics encompasses various activities that are all focused on providing product and services to the place where they are needed and at the right time, logistics involve a complex range of different activities, it becomes vital that the various departments be made more specialized so as to achieve efficiency and timely delivery of goods with the lowest costs possible. This is especially true when it comes to the supply of goods from one country to the other. Not only do the laws differ from country to country, but also the cost borne for transport of goods in the international market is very high that needs to be kept to the minimum. This is where Lean logistics come into use.
Lean logistics are the advanced ability for designing and administering systems that would ensure that the movement of raw materials and other items are controlled at the lowest possible costs. To achieve this goal, it ensures that the human workforce and the financial means employed are kept to the minimum. Therefore the goals and objectives underlined in this type of logistics may be difficult to achieve but still very much possible if all the skills, resources and systems are efficiently utilized. Once these tasks are achieved, then the benefits are reaped at a massive scale.
The importance of lean logistics for the international market cannot be underestimated. It achieves many important targets for the international market. Globally, it meets the challenge of accounting for the additional time needed in shipping items from door-to-door over long distances. Also, there are a large number of parties involved in each shipment that takes place. The number could be as high as seventeen parties. These include truckers, terminals, freight forwarders, shipment suppliers, custom brokers, air or ocean carriers and many others. Lean helps handle this extended and multi-transactional supply chain.
The significance of lean can be understood by the fact that more and more companies are now employing the concept of this type of logistics in their businesses.
Lean employs principles that help in the creation of an efficient network of global transport. These are important when it comes to controlling the costs of movement of goods in the international markets. First and foremost, it helps in controlling the logistics cost. This is achieved through the dynamic routing of shipment and market competitive rates. Premium freight management is also taken into account. Secondly, it fosters accountability that helps manage effective network design that is inclusive of carrier and supplier appliances. Thirdly, visibility through the application of web based solutions is ensured. Another advantage is flexibility that helps match capacity with capability. Another important advantage that it brings is cost savings through the implementation of lean tools. This helps reduce waste. That is why lean logistics is extremely important.