3 tips - LEAN thinking on your freight procurement processes
On average, organisations spend 7% of their expenses in transport. Yet many organisations manage their freight procurement manually, with Excel as “the solution” to support the process. How can LEAN principles, which originate from Toyota’s continuous improvement process, be used to transform freight procurement?
One of our customers used to say “we cannot afford taking wrong decisions”. These words say it all! Relying on manual routines, “hand-made” calculations it is a too big risk in sourcing in general, and transport sourcing in particular.
We would like to propose 3 simple tips how LEAN process can be used to transform your transport procurement processes and empower your organisation added value with new skill-sets.
Applying LEAN principles, we propose these 3 tips:
- Deliver value to your organisation. You do this by good order and routines on your procurement work, planned activities and project to have your freight agreements ready to use, at the right time and with the right service requirements that your organisation needs.
- Eliminate waste by reducing the administrative "monkey-work". Let your colleagues work with what they were hired to do, rather than being the Excel-monkey’s reinventing "the wheel”, creating business logic in various Excel files. Very much risk at high cost. Apply LEAN’s thinking and it’s called waste, and risk should be reduced.
- Continuously improve the procurement process. Build knowledge within your team so you can switch team players and roles. The processes and routines are there to support you, and avoid being too dependent on single individuals. Let your team members share knowledge and work with solutions that actually works, fine tune methods over time, and your team can be the learning organisation where you learn from each other.
Is your organisation ready to make the change and start to think LEAN on your procurement processes?
Interested to know more? Watch our webinars.
About the author
Feel free to comment:
Latest Posts
Latest Comments
-
Asonwl » Our top logistics blogs of 2017: “Great Post..!! Thank You For sharing this meaningful information with us. it is ..”
-
Global Exchain » Our top logistics blogs of 2017: “Thanks a lot for sharing this essential information about <a href="http://www.gl..”
-
SSB Star » When freight cost is not everything: “A good comprehensive piece of information indeed. According to me, Costing does ..”
-
uvshift » Our top logistics blogs of 2017: “Hello please my website <a href="https://goo.gl/ec3f5S">call now</a>”
Blog archive
Links
Tag cloud
tendereasy e-commerce kick-start incumbent lsp feedback lean principles ocean transportation team work sourcing cost reduction delivery service webinar feedback to lsps road tendering ocean freight freight spot rail import tendering fuel containers booking agreement award negotiation tool independency ocean carriers small team new year rail freight creativity procurement tool savings containers shipping strategies procurement analysis transportation esourcing freight sourcing transport tendering transport procurement freight tendering freight procurement logistics spot request freight management procurement process logistics tendering supply chain esourcing lsp freight rfq p2p 3pl ad hoc transport spot request freight managing ad hoc rfq carrier feedback shipping profile quality e-commerce delivery just for fun e-sourcing christmas spot request transport baseline innovative procurement bid validation hanjin purchasing freight review customer value transport spot roi successful tender digitized tms logistics blog hanjin shipping