In the world of supply chain management it is all about speed, precision and cooperation. Just like in Formula 1.
A well functioning supply chain management system is like a perfectly tuned Formula 1 car. Cooperation and precision are crucial for succes. You need a team that pays attention to details, and that team must value team spirit; all for one and one for all! In a Formula one team data is constantly analysed to learn how to achieve maximum results. Similarly in supply chain management you need real-time information. In both racing and logistics, precision is key to succesfully reaching the finish line before the competition. But how do you create such a well oiled supply chain management team? Here are three tips;
1. Set up an onboarding proces
Each teammember in a Formula 1 circuit undergoes a training proces, not only about their tasks but also to undersand the tasks of all the other team members. This way every team member knows what the rest of the teams does and why they must (and will!) rely on the capabilities of the new team member. The new team member in turn learns to rely on the existing team members and understands the importance of the team spirit.
In a supply chain management system it is the same. New order pickers, reach truck drivers, team leaders and so on have to be properly trained so that they understand their roles and responsibilities, as well what they can expect from each other. Additionally, there must be an onboarding process for new clients. A new client must be introduced to the logistics team to understand their needs and challenges. Theu also need to be acquinted with customer service, operations, finance and last but not least; the ins and outs of the warehouse management system.
Just like Hannibal Smith from The A-team said; “I love it when a plan comes together”.
2. Set up SOP’s
In Formula 1 they work with rigid standard operating procedures. Lots of forms and lots of ticking boxes ensure that nothing can be forgotten. This can be compared to the aircraft industry, where safety is top priority.
In a supply chain management system we work with SOP’s. Together with the client the operational department creates a Standard Operation Procedure tailored for this specific client. Many aspects will be similar for various clients, but there can be specific differences in inbound processes, storing, picking, packing, shipping or even invoicing. These SOP’s should be known by everyone in the company – not only in operations but also customer service and finance.
3. Evaluate your supply chain management system
In the F1 circuit they measure a lot, and they do so to learn from it. Every change in the car, circuit, weather conditions, and so on is registered and evaluated. Every training, every competition. Because of this learning process, they get better.
A supply chain management system must do the same. Evaluate the results of each day, week, month, quarter, half year and year. How does the unloading of containers develop? What is your average putaway time? What is your average order processing time? Evaluate each item in the proces and learn where you can or should optimize. Consider what kind of investments would be needed for this optimization? If you can optimize, you can most likely reduce costs and time.
Can you optimize and gain speed?
With the above-mentioned three tips, you can strive for operational succes and maintain a lead in a competive world where precision and speed are key. Wondering how we can help you create a supply chain like a Formula 1 car? Contact us.
Kolibri Logistiek is at play in the field of logistics. And we play at Champions League level! We cover your supply chain from collecting your products at location of production up to the last mile to your customers. Request a quote!
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