Supply chain dictionary : lean logistics

Imagine a logistics company that operates like a Formula 1 team: fast, fluid, and without waste. This is the essence of Lean logistics, an operations management approach that aims to eliminate “muda,” or activities that do not add value to the customer. Lean logistics focuses on the essentials: Delivering the right product, to the right place, at the right time, and at the right cost. Eliminating unnecessary steps, unnecessary inventory, and waiting times. Improving the quality and reliability of service. Lean logistics has many advantages: Cost reduction:lower inventory, transportation, errors,…

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SUPPLY CHAIN DICTIONARY – PULL PRODUCTION: AN EFFICIENT PRODUCTION METHOD

Pull production is a manufacturing method that involves producing goods or services only in response to actual demand. This demand can come from an end customer, a distributor, or another player in the supply chain. What is Pull Production? In pull production, production stages are not initiated in advance but only when demand justifies it. This helps avoid the production of unnecessary stocks, which can lead to storage, transportation, and product depreciation costs. To operate, pull production relies on several fundamental principles: Demand drives production: It is the customer’s demand…

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Supply Chai Dictionary : What is Cross-docking?

Cross-docking refers to a  method consists of moving goods from the arrival docks to the departure docks without putting them back in the warehouse. The cross-docking operation is based above all on careful sorting of the packages, which is essential to guarantee the continuity of the distribution chain. As a general rule, goods packages do not remain on the receiving site for more than 24 hours. They are forwarded for delivery on the same day or the day after their arrival at the unloading platform, which makes cross-docking an ideal solution for urgent or…

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Supply Chain Dictionary : Urban Logistics

Urban logistics refers to the set of processes, strategies, and solutions implemented to efficiently and sustainably manage the flows of goods, information, and services within a dense and complex urban environment. Its goal is to optimize the distribution of goods while minimizing negative impacts on mobility, the environment, and citizens’ quality of life. Illustrative Examples: Parcel Delivery: E-commerce companies face the need to swiftly deliver parcels to customers in urban environments. Urban logistics involves planning optimized delivery routes for couriers, using collection points to consolidate packages, and exploring more sustainable…

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Supply Chain Dictionary : Depreciation

Depreciation in the supply chain domain refers to the decline in the value of a product, service, or asset over time. This can occur for various reasons, including obsolescence, physical deterioration, market fluctuations, or technological advancements. Let’s take the example of an electronic product, such as a smartphone. When a new model with improved features is launched in the market, older models lose their value. This depreciation can be accelerated if the market is flooded with similar smartphones, leading to a decrease in demand and consequently, a decline in prices.…

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𝗦𝗨𝗣𝗣𝗟𝗬 𝗖𝗛𝗔𝗜𝗡 𝗗𝗜𝗖𝗧𝗜𝗢𝗡𝗔𝗥𝗬 : 𝗪𝗛𝗔𝗧 𝗜𝗦 𝗦𝗖𝗛𝗘𝗗𝗨𝗟𝗜𝗡𝗚 ?

Scheduling is a supply chain management function that involves planning and organizing production activities in an effective and efficient manner. It involves determining the order in which tasks should be performed, taking into account factors such as resource availability, delivery times, production priorities and capacity constraints. The main objective of scheduling is to optimize the use of resources to achieve production objectives while minimizing costs. This requires the ability to work with the various stakeholders involved in production, including planning teams, production supervisors and material suppliers. In short, scheduling allows…

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SUPPLY CHAIN DICTIONARY : CROSS CANAL

Cross-channel refers to a supply chain management strategy that aims to integrate different distribution channels to provide a consistent and optimal shopping experience for customers. This approach consists of using different sales channels, such as physical stores, websites, social networks and mobile applications, to offer a seamless and fluid service. In logistics, cross-channel involves close coordination between the different distribution channels to optimize inventory management, order preparation and delivery processes, while ensuring a satisfactory customer experience. This strategy helps to meet consumer expectations of being able to buy and pick…

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