iiseise,ogistics is a crucial aspect of efficient supply chain management. It encompasses the procurement and movement of materials, scheduling of personnel, and organization of manufacturing processes. These processes work together to convert inputs into finished goods that meet customer demand and generate revenue. Logistics, procurement, and supply chain professionals must assure that all logistics and supply chain activities add value to customer and stakeholder portfolios:

The value must be the driving force of all activities an organization undertakes. According to various experts, value has three characteristics.

  1. A physical transformation takes place, such as the conversion of raw materials to finished goods
  2. We perform all logistics and supply chain activities correctly the first time.
  3. The end-user or customer is willing to pay for these goods or services.

Through a careful analysis of an organization’s value-creating and value-enabling activities, we can uncover numerous problems and inefficiencies. These may include defects, inventory build-ups, customer dissatisfaction, errors, cost overruns, and process waste. The list goes on, highlighting the importance of identifying and addressing these issues to improve overall performance.

Logistics and Supply Chain Professionals must be proficient in Business Problem Solving. Two very powerful problem-solving methodologies are the DMAIC (Define, Measure, Analyze, Improve and Control) and PDCA (Plan, Do, Check, Act) Models.

The Define Phase

The Define Phase of the DMAIC process can be described in simple terms as such: “To have the team and its sponsor reach agreement on the scope, goals, and financial and performance targets for the project” (George, Maxey, Price, & Rowlands, 2005, p. 4).

The Measure Phase

The Measure Phase of the DMAIC Model is responsible for establishing the current state performance of a process. Verification should be done through a process of value stream mapping and capability measures. Identify and measure Key Performance Indicators (KPIs) and current process capabilities to depict the current state of performance.

Analyze Phase

Leverage the Analyze Phase of logistics problem-solving to understand the root causes of deviation from customer requirements and specifications.

Improve Phase

Likewise, in the Improve phase of the DMAIC problem-solving model, we verify critical outputs, design process improvements, and pilot new processes. Resulting outputs include newly defined KPIs, action plans for improvement, future state process maps, control plans, and associated new documentation. (Goetsch, 2013). The PDCA model can be leveraged in the Improve phase, where effective solutions are the plan, deployed, checked or verified.

Control Phase

The Control Phase focuses on ensuring that the improved processes continue to work well, produce desired outcomes, and maintain agreed-upon quality levels.  Standardization, Change Management, Response, and Counter Measure Management are crucial to this phase

Indeed, effective problem-solving is more than just a mindset or philosophy. It’s a powerful assembly of tools and know-how that no supply chain or logistics professional can function or lead without.

Effective logistics problem-solving requires a thorough understanding of the industry and the ability to address challenges that may arise.

Furthermore, as highlighted in  “Qualified to Handle Your Company’s Logistics? Think Again!” companies need to ensure that their logistics professionals possess the necessary skills and knowledge to handle the complexities of the job. With the right training and support, logistics professionals can identify and address issues in a timely and effective manner. Moreover, this will ensure that operations run smoothly and efficiently. By investing in the development of logistics professionals, companies can achieve significant cost savings and improve customer satisfaction.

NLPA Learning: Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in NLPA Learning.

Categories: Procurement

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Published On: December 5th, 2020Comments Off on Effective Logistics Problem Solving
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