Press release – New LEI Book: “Building a Lean Fulfillment Stream”

I wanted to pass along this press release from the Lean Enterprise Institute.

I will be getting a copy and post a review after I actually read it.

[Edit: I read it, and decided not to post my review.]

One thing I am going to be looking for is how the proposed model implements PDCA to drive continuous improvement. There are lots of good schemes for building a fulfillment system out there. In the past, I have used a few pages in Chapter 4 of “Lean Thinking” as a solid, workable starting point for fulfillment streams that did just that. So I will be curious whether this book builds on that foundation. [Edit: It doesn’t.] Anyway – here is the LEI’s release for the book:

New Workbook Demonstrates Use of Lean Management to Rethink Supply Chains and Logistics

Building a Lean Fulfillment Stream, the latest workbook from the nonprofit Lean Enterprise Institute, shows how lean thinking converts “supply chains” into swift, smoothly flowing “fulfillment streams” while reducing the total cost of fulfillment.

Cambridge, MA, May 11, 2010 — Despite the substantial progress many organizations have made using lean management techniques to improve internal operations, they have paid little attention to launching lean transformations in their external links to downstream customers and upstream suppliers.

Now, in the pioneering new workbook, Building a Lean Fulfillment Stream, (Lean Enterprise Institute, May 12, 2010, $50.00) lean logistics veterans Robert Martichenko and Kevin von Grabe describe a proven approach for applying lean principles to supply chains and logistics.

Using the example company ABE Corp. as their model, the authors illustrate both the implementation process and the benefits to ABE’s bottom line from applying lean principles. Plus, they show how the conversion process is a win-win for every company along the supply chain. The narrative is supported by 41 charts and illustrations, including value-stream maps, calculation details, and financial analyses.

Readers will learn:

  • How to calculate the critical total cost of fulfillment so you make decisions that meet customer expectations at the lowest possible total cost, no matter where costs occur in the supply stream.
  • How to apply the eight guiding principles for implementing lean fulfillment, even when all the data and variables are not known.
  • The seven major types of waste in logistics and supply chains.
  • How a fulfillment stream council comprised of representatives from internal departments, customers, suppliers, and transportation providers critical guidance and support.
  • The “eight rights” used to measure perfect order execution.
  • What lean metrics to use to measure progress, such as why average days on hand of inventory is a better measure than inventory turns.
  • A method for collaborating effectively with customers.
  • How to identify waste in shipping, receiving, and yard management.

Building a Lean Fulfillment Stream: rethinking your supply chain and logistics to create maximum value at minimum total cost

– By Robert Martichenko and Kevin von Grabe

– Published May 12, 2010, Lean Enterprise Institute

– 111 pages; 41 charts and illustrations

– ISBN: 978-1-934109-19-9

– $50.00 (hardcover)

– Excerpts, author Q & A, bios, more: http://budurl.com/vamd

– Media: Chet Marchwinski, LEI, cmarchwinski@lean.org, 617-871-2930

Based on the workbook, the workshop Building the Lean Fulfillment Stream: Supply Chain and Logistics Management teaches supply chain and logistics managers the “must know” lean concepts and applications.

Robert Martichenko
Robert is an LEI faculty member and CEO of LeanCor, a third-party logistics provider dedicated to the application of lean principles throughout supply chain functions. He learned about lean working at Toyota Motor Manufacturing Indiana and has over 15 years of lean supply chain and third-party logistics experience. He is co-author of the business management book Lean Six Sigma Logisticsand the lean primer Everything I Know about Lean I Learned in First Grade. Robert also teaches global business at Saint Louis University’s John Cook School of Business.

Kevin von Grabe
Kevin is vice president of lean deployment LeanCor. His experience in materials management, transportation, and third-party logistics includes a greenfield start up at Toyota Motor Manufacturing Indiana. Kevin’s international experience includes operational start ups for Jabil Circuit at plants in Hungary and China.

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