The Best Practices for Lean Supply Chain Management


lean supply chain management graphic

Those wanting to work smart and make bigger sums in profits essentially need to think along the lines of lean supply chain, whether they are a new business or have been running for years. Creating a lean supply chain calls for the optimization of the supply chain processes and implementation of standard protocols and efficient technology.


In this article you will learn about the importance of a lean supply chain, its benefits and how to smoothly transition to a lean supply chain by collaborating with an expert third party logistics (3PL) fulfillment company.


What Is a 'Lean' Supply Chain?


An optimized supply chain in which there are no inefficient or unimportant processes, unnecessary costs, or wastage of resources is a Lean Supply Chain. A lean supply chain ensures minimum expenditure, maximum output and accurate order fulfillment.

Why Are Lean Supply Chains Important?


Being hit by the pandemic has woken the world to the realization of its systems not being agile enough and requiring optimization to cope with multifarious challenges. Businesses now accept the urgency and importance of pacing up their order fulfillment services, faster packing and shipping, reducing the cost of logistics, and gaining customer loyalty. Some of the key benefits of a lean supply chain include:

  • Enhanced order fulfillment

  • Optimized inventory processes

  • Well-informed decisions

  • Order accuracy


Best Practices for Lean Supply Chain Management


Having a leaner supply chain for eCommerce warehousing and logistics calls for serious action, such as opting for efficient end-to-end eCommerce solutions and implantation of revised and improved standard operating procedures (SOPs). A lean supply chain approach tends to cut down on redundant and unnecessary processes and lower overall costs while improving the entire supply chain operation. The following practices can optimize the supply chain and ensure enhanced eCommerce fulfillment and greater profits.


Analyze past sales data for forecasting demand

Making use of previous sales data and figures over the past, businesses can efficiently forecast demand and avoid hoarding unnecessarily high inventory volumes resulting in huge inventory-carrying costs and ending up with deadstock.

Leverage technology and automation

Make use of technology to organize inventory, monitor the performance of different SKUs and track its levels, using the digital warehouse approach. By utilizing automated operations, you will enjoy a higher accuracy in eCommerce fulfillment, at a much faster rate and experience much reduction in errors. Collaborating with a company like ShipBots that is an expert in the 3PL fulfillment process, you can enjoy a streamlined and leaner supply chain with ease.


Assess your suppliers and processes

Make certain that your current supplier or manufacturer is your best option, otherwise switch. Look for partnering options with a supplier who will provide the best quality in the least price. Moreover, make sure to evaluate their supply or manufacturing process as well and see if that needs to be optimized.


Digitize your warehousing process


The optimized operations of eCommerce warehousing and logistics go a long way in achieving a leaner supply chain. Therefore, it’s important to frequently conduct warehouse inspections and assure the implementation of best practices and implementation of updated