Lean Six Sigma Logistics: Strategic Development to Operational Success


Capable systems are visible. In fact, logistics visibility is now on the priority list of all logistics professionals. Yet, what exactly is logistics visibility? Is visibility only realized with massive investments in technology? Lean Six Sigma Logistics drives inventory reduction, a process that requires visibility: What inventory do we continue to hold in the pipeline? In fact, organizations that do not have logistics visibility are managing in the dark, not a sustainable proposition. The three strategic focus areas for logistics Visibility are:
Understandability
Measurability
Actionability
These three areas will be discussed in this chapter.
Truism: Most logistics processes are hidden from plain view. This means that we need to understand intuitively how the system works.
It is alarming how little some managers know about their logistics and supply chain processes. Although the system produces results in the end, its workings can be puzzling to the typical executive. Traditionally, logistics has not been a boardroom topic, in many cases considered an evil cost of doing business and one that simply needs to be minimized. However, the tides are turning and logistics is beginning to gain momentum in corporate boardrooms. Some of this change is proactive and some is reactive. The proactive change is driven by organizations that recognize that improved logistics functions can provide a competitive advantage. Reactive organizations are being forced to study their supply chain due to changing global dynamics and increased supply chain security requirements. Regardless of the motivating factor, organizations need to understand their...