2 May 2023 The quest for the perfect process is a reality in the business world. This desire has gained followers worldwide and has become a true work philosophy cultivated across all sectors of the supply chain. Market leaders, as well as companies aspiring to achieve better productivity rates and greater visibility in their sector, have prioritized the application of continuous improvements in their organizations’ workflows. Constantly improving operational processes within the warehouse is a challenge. From another perspective, it brings a series of benefits, such as cost reduction and resource optimization, maintaining market competitiveness, and increasing efficiency in supply chain management, providing the end consumer with a quality product and/or service with added value. The biggest challenge for logistics managers and entrepreneurs in this scenario is the uncertainty when implementing improvements: “where should I start?”, “how will I implement them?”, “what is the best methodology and strategy to follow?”. Topics like these may arise on the path of those who want to initiate changes for the development and improvement of their logistics chain performance. In this article, we will talk a bit more about the Kaizen methodology and how it can help you overcome the obstacles preventing your company from reaching greater milestones. Shall we go together? What is the Kaizen methodology? The concept of the Kaizen methodology was developed in Japan and originated in the Japanese industrial sector when it was first used right after World War II, when the country needed to recover from the consequences left by one of the greatest military conflicts in history, worldwide. The name Kaizen means “change for the better,” in other words, it is a philosophy focused on practices that seek continuous growth, both personal and corporate. Applied to the industrial sector, it aims at the uninterrupted development of small, medium, or large businesses. The Kaizen methodology gained strength after Professor Masaaki Imai published his book “Kaizen – The Key to Japan’s Competitive Success,” where he gathered the main ideas and practices to expand the knowledge of managers and entrepreneurs on a global scale. If properly applied in the business environment, the Kaizen methodology offers numerous advantages, such as increased productivity and optimization of overall costs. When aligned with inventory management strategies, this system helps reduce waste, improving profitability. The Kaizen method thus brings together a series of practices capable of improving the performance of the supply chain as a whole, promoting successive changes in corporate culture, as we will see below. Main advantages of the Kaizen methodology Now that you know what the Kaizen methodology is, what gave rise to the term, and its differences, it’s time to delve into the practical advantages that you, as a logistics manager, can gain from its application. We know that change is necessary and making changes to the different sectors of your company can be decisive for the results. By choosing to apply the Kaizen methodology in your business, you will be able to observe: Reduction of waste throughout the supply chain, from the receipt of products, to warehouse storage, and even to order fulfillment. Greater employee involvement and commitment to the company, as the Kaizen methodology aims to become a continuous work philosophy. Identification of improvements in all sectors, as well as low-cost suggestions to optimize work in different areas with the collaboration of the entire team. Ease of application in any sector that requires optimizations. Identification of operational problems and bottlenecks that reduce or hinder productivity. Greater attention to process details and particular attention to employees, regardless of their hierarchy or job role, to make the environment safer, more comfortable, and productive. Prioritization of people, whether employees or customers, who seek the best quality for performing the function and, consequently, the satisfaction transmitted to the end consumer. Step by step to apply the Kaizen method in the supply chain Applying the Kaizen methodology to your logistics chain is no secret. On the contrary, it is simple and quick, and the benefits are seen immediately. But like any improvement, it must be carried out continuously, that is, repeated week after week, after all, consistency will lead to quality and ever-improving results. Step 1: Identify possible improvements Everything starts from the following question: “what improvements can be made in a given sector to increase productivity, promote work optimization, and reduce supply chain costs?” This is undoubtedly the starting point for brainstorming the project, that is, gathering the team for a dynamic where ideas are shared by different collaborators who can suggest changes to the operational flow. During this meeting, your main task as a manager is to raise the main problems highlighted by your team, highlight the major existing operational bottlenecks in your logistics chain, and outline a series of solutions that may exist for the same problem. This step is essential, so do not discard any idea: all can be worked on in the long term. Step 2: Choose an improvement and test solutions With the ideas and suggestions presented by your team and some solutions already proposed, the next step in implementing the Kaizen methodology is to choose a topic to optimize. Once you have the list of problems in hand, it’s time to choose a specific problem and a way to solve it practically and effectively. Let’s take a practical example: suppose one of the main problems and complaints presented during the meeting was delivery delays. This happened because employees involved in the order dispatch process feel overwhelmed with manual work, resulting in decreased productivity and increased error rates. All this ends up generating a consequence: delays in deliveries to consumers and a poor shopping experience. Without a doubt, there will be countless ways to improve the picking area, such as the strategic organization of your team, defining an adequate layout, proper addressing and identification of products in stock, reducing paper use, and digitizing information through equipment and software, such as the WMS system. Therefore, it is up to you, the manager, to decide which method will be chosen to start the optimization process. Make a list of the pros and cons of each solution, check the available value for applying improvements, see the possibility of its application in the short term, and analyze the benefits it can generate. Step 3: Create an action plan For change to occur, there is a fundamental law: action. Once a problem is identified and the main ways to solve it are known, as well as to avoid it, it’s time to create an action plan. What is the time needed to apply? Who are the people involved in the changes and how will they be implemented? What measurement metrics will be monitored? How much will be invested to conduct the tests? These and other questions need to be answered in the action plan so that improvements can be evaluated and applied in the best possible way. Step 4: Have a committed team After the improvements contained in the action plan are approved, make sure to communicate with your team, present the project with the final results, and detail how the improvements will be made in the chosen sector. One of the main philosophies of the Kaizen methodology is the inclusion of the team in the entire process, which must feel comfortable and confident with the proposed changes. Consider each employee’s opinion, closely monitor performance, ensure no employee has doubts, and is willing to help with everything necessary to make the idea work. Once the team is aligned, it is possible to standardize processes and obtain numerous advantages in the sector. Step 5: Perform repetitions The Kaizen methodology is continuous. It is necessary to closely monitor the proposed solutions and add details and improvement points based on what was planned. Repetitions are necessary to further refine the process. Naturally, at some point, everything will work perfectly. When this happens, attention can be directed to making improvements in another area, identifying new optimization points in the supply chain. In general, applying the Kaizen methodology in your company is easy. In short, it is necessary to follow these steps: Plan Execute and apply Measure Adjust To efficiently apply the Kaizen methodology, it is important that this improvement process is carried out in the shortest possible time. This ensures a motivated and creative team focused on seeking better results and high performance. Kaizen in practice: ideas for applying the methodology If you, as a manager, wish to seek greater productivity and cost optimization as soon as you finish this article, but don’t know where to start, we will leave here some of the main bottlenecks identified by our clients and the solutions each one used during the implementation of the Kaizen methodology. Take a look: Waste generation Waste production is a significant concern for many companies seeking to make better use of their resources and adopt a more sustainable approach. This could be an issue affecting your supply chain and could be linked to: Excessive transportation without proper planning, which generates, for example, excessive fuel costs. Employee waiting times: malfunctioning machines, lack of proper communication, and disorganized work processes can generate downtime and resource loss in the supply chain. Defects and damages caused by poor storage of goods or lack of maintenance of stock and machinery. Some ways to improve the above points include: Updating and maintaining machinery. Improving storage conditions and stock safety. Optimizing delivery routes. Standardizing processes. Improving communication between sectors, making it clearer and more objective. Investing in technologies and inventory management systems (e.g., WMS integrated with RFID collectors). High operational costs The optimization of financial resources is one of the major challenges faced by logistics chains in different market sectors, and small improvements can be made to generate significant savings in warehouse expenses. If your operation has generated high costs, this could be the result of: Decision-making without accurate and reliable data. Dependence on exclusively manual work. Delays in operations and workload overload. To address such issues, eliminating excessive costs, it is important to: Automate intralogistics processes with the WMS system. Invest in yard management systems (YMS) and transportation systems (TMS). Conduct seasonal planning based on solid and accurate information. Prioritize an organized and well-identified infrastructure. Apply the cross-docking strategy. Low productivity index One of the most frequent complaints from logistics managers is low productivity in their supply chains. Using the Kaizen methodology, it is possible to identify issues that can interfere with the productive pace, such as: Low employee satisfaction with the company. Unsafe workplaces and disorganized infrastructures. Work overload and low motivation. Repetitive work. Communication errors. Problems involving employees can be resolved through strategies aimed at: Improvements in work infrastructures, leaving the environment organized and safer. Investments in machinery and management systems, such as WMS, which automates operational processes, organizes functions based on employee positioning, determining tasks, and saving time. Prioritizing employees, promoting training, taking care of their well-being at work, showing concern for their health, and providing benefits so they are satisfied with the work environment. Starting this way, you will have excellent results! Automation for the daily optimization of your warehouse Through this article, you have understood the importance of seeking improvements in your supply chain and have learned how to apply the Kaizen methodology based on problems and solutions to optimize resources, increase productivity, and achieve greater profitability for your company. To apply continuous improvements in different sectors of your warehouse, consolidating data for accurate planning, monitoring activities in real-time, and identifying errors and improvement points, the best way is to invest in technology, especially in management systems. The WMS is a complete solution to a variety of common supply chain problems. The software is capable of performing a series of tasks to increase efficiency, reduce the burden on human resources, and lower costs. Investing in a WMS will result in better management of each stage of the process, allowing for continuous adjustments to achieve concrete improvements. To maximize results, it is crucial to rely on trusted suppliers and prioritize a solution suitable for your business. What is the Kaizen method and how to apply it in logistics? Deagor WMS per ecommerce può aiutarti!