The Internal Lean Logistics Study Of L Company

Nowadays in sharply competitive environment, cutting edge relies on flexibility, speed and productivity. Lean Logistics rightly provides those three. Comprehensive lean logistics module is hardly imitated easily. That enhances the advantage of a company over the competition for longer period. Therefore lean logistics is of indispensable for one company to build up its own superiority. Generally every company has its own predators in the market. In this highly developed information age today, the gap between the company and its predators are rather small. Except for product development, most companies are competing against each other in response time, product quality, delivery reliability and cost. All those are closely linked to its logistics system.L Company has a wider product spectrum and operates in small lot-size with numerous lots. It faces pressure form unstable demand and higher logistic cost. This paper utilizes lean philosophy and lean production method to study the company's internal logistics system, applies Toyota Production System(TPS) concept – Value Stream Mapping, Balanced Production, Job Standardization, Kanban and Visualization etc. – to analyze its logistics processes, especially in material dispense system. It then develops blueprint for the internal lean logistics system and implementation strategy. Highly effective logistics management makes delivery lead-time shorter, delivery more reliable. Higher inventory turn rate with low stock level increases productivity and reduces cost. Therefore, it is true that lean logistics generates profit without additional investment. Lean Logistics becomes new source of profitability. That is why we have this study. As approaching to post-industrialization, Lean Logistics is widely promoted and deployed in industries. It must lift up competitiveness of manufacturing, electronic commerce(B2B, B2 C, O2 C etc), even all other industries in long term.