Balance in all logistics departments

When things get out of balance, it can have unpleasant consequences. For some, it can be more annoying than for others. For the circus performer high up in the tent, getting out of balance can even be life-threatening. Things won't go that far in logistics, but we can benefit greatly if things are in balance.

Tangents
The fun and interesting thing about logistics is that it interfaces with a host of other fields. This is the reason why good business from a logistics point of view also has to do with balance.

Similarly, changes in logistics concepts almost always lead to changes in other sub-areas.

A good example is a manufacturing company where I recently came to provide support for a change. If series sizes are reduced in production as a result of reduced changeover times, this has consequences for logistics. After all, the (internal) transport packaging must become smaller. In such a case, the Purchasing Department may be able to arrange something through the supplier so that repackaging in the warehouse is not required. If different packaging is eventually delivered, this in turn may have implications for storage methods and means of transport for internal use. Perhaps the layout of the factory can or should be revised because there are smaller quantities around the machines. less space is then required.

Savings instead of costs
Before you know it, savings opportunities suddenly come into view, as that planned expansion may no longer be needed now that space is being used more efficiently!

Different working methods may well result in new work instructions being required. If the existing work instructions are reviewed, it may suddenly turn out that over the years there have been quite a few discrepancies between the day-to-day and how we had actually designed and planned it.

Steering and follow-up
With the new work instructions, a new way of steering and follow-up can also be introduced. How do we ensure that work is actually done as described in the instructions? Suddenly, production appears to proceed with fewer breakdowns and fewer hours and/or less material are needed to produce a similar quantity of products. Savings opportunities suddenly appear here, too, and another interface of logistics emerges: cost prices may need to be revised.

One thing leads to another
When we initiate the improvements described above, there seems to be no end in sight, and there is. After all, we have found the (upward) spiral of continuous improvement. In doing so, it seems as if 'everything is falling into place' and various processes are coming into balance with each other.

External help can come in handy, but a lot can also be achieved by your own people and what first conjured up an image of extra costs turns out, if based on a good plan, to lead to significant savings.

Frits de Wind - logistics consultant