Reducing Waste and Optimizing Your Supply Chain - Global Trade Magazine
  August 12th, 2020 | Written by

Reducing Waste and Optimizing Your Supply Chain

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  • Lean approaches like JIT (Just-in-time) logistics can help you get closer to a 100% perfect-order measure.
  • It’s very important to first know how much and what kind of waste your supply chain produces.
  • One of the most effective methods for reducing waste is developing lean methods.

Waste is, well, it’s a waste; and if you’re trying to optimize your supply chain, it can be an expensive waste. There are a lot of sources, both internal and external, which can create waste in your supply chain, like process inefficiencies, communication gaps, lack of or delayed responses, and even errors in ordering or procurement. Whatever the reason, they often end up becoming an enormous waste of time and money, which can be drastically reduced by making supply chain processes more efficient. In fact, most successful companies focus heavily on decreasing waste and reducing wasteful processes.

One of the most effective methods for reducing waste is developing lean methods for supply chain management.

How to reduce waste and optimize your supply chain

Analyze Product Design

One way of not just reducing waste, but also optimizing your production is to examine and re-evaluate your products’ design. Identify any areas or methods to reduce raw material use or replace expensive materials with cheaper ones. If you can shave off small costs, they might result in substantial savings.

You should also evaluate your product packaging options and see if there’s any way you can use cheaper materials.

Manage Resources

Apart from just looking at just using cheaper materials, you should examine each of your production processes to identify which ones are generating waste. Redesign processes that are creating non-recyclable or non-reusable waste. Even recyclable waste should be assessed and you should take the cost of recycling into account.

When you’re optimizing processes, the cost of implementing changes may seem high, but the cost of the waste, as well as associated handling, disposal and even recycling, can add up over time.

Select the Right Equipment

On the topic of handling and disposing of waste, having the right waste management equipment can save time, money and a lot of hassles. We’ve made a lot of advancements in waste management technology and equipment. Trash compactors are a great example of simple solutions to make managing and handling waste much more efficient and save a lot of money over time.

It’s very important to first know how much and what kind of waste your supply chain produces, so start with that. There are a host of solutions, some with very specific uses which you might benefit from.

Improving Production Quality

Quality control is often focused on finished products, but one of the goals of quality management should be minimizing raw material wastage. If you optimize your manufacturing processes to reduce overall waste, it might have a two-fold advantage of increasing the number of goods that clear quality inspection.

Employee Feedback

The employees who have the task with the actual production will probably have a much better idea of where waste is being produced and the challenges with managing it. They could also provide a lot of feedback on how best to reduce waste and optimize waste management.

You can create focus groups tasked with identifying and optimizing waste since this kind of collaborative approach tends to have effective results.

Inventory Management

Lean approaches like JIT (Just-in-time) logistics can help you get closer to a 100% perfect-order measure. Apart from reducing order errors, it can also help you cut down tremendously on a lot of associated costs of inventory management like warehousing, utility costs rentals, and even insurance and taxes.

However, placing multiple orders may increase transport costs and your vendors might charge higher rates if each order is of a lower value, so weigh the pros and cons carefully.

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Erich Lawson is passionate about saving the environment by effective recycling. He has written a wide array of articles on how modern recycling equipment can be used by industries to reduce monthly garbage bills and increase recycling revenue. You can learn more about environment savings techniques by visiting Northern California Compactors, Inc blog.