Building a Lean Fulfillment Stream will change the way you think about your supply chain and logistics networks. Even better — it gives you a way to act using lean principles to transform and continuously improve these two key flows. In this pioneering workbook, lean logistics veterans Robert Martichenko and Kevin von Grabe explain step-by-step a comprehensive, real-life implementation process for optimizing your entire fulfillment stream from raw materials to customers, including practical insights into two critical concepts: calculating the total cost of fulfillment and collaborating across all functions and firms along the fulfillment stream. Your company, like most, probably calculates costs at different points within departments, such as the piece price paid by the purchasing department to a supplier. Few companies figure the total cost associated with each major function across the whole fulfillment stream. Calculating total cost, which most executives find surprisingly large, lets you measure the impact of your improvement efforts on operational performance and overall income. Martichenko and von Grabe also give you guidance and tools for collaboration. Using the example company ABE Corp. as their model, the authors illustrate how the lean conversion process is a win-win for every company along the supply chain. And an accompanying analysis illustrates the financial benefits and shows you how to apply the metrics.
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