From the course: Lean Foundations
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Lean logistics
- When I say lean logistics, what's the first thing that comes to your mind? I immediately think of inventory, how to manage it better so that I can reduce my cost of holding inventory. So let's talk about inventory cost. The most expensive type of inventory is finished goods, the final product you sell to your customers. So it follows that products that are less than finished would cost less. Raw materials cost less than components, which cost less than sub-assemblies, which cost less than the final product shipped from the factory, which cost less than the final product sold to the customer. I think you get the picture. As your product moves through the system, it gains value. Looking at a simple supply chain of supplier, manufacturer, wholesaler, retailer and customer, it makes sense that the further away inventory is from the customer, the less value it has. Again, because it's not the completed product. Therefore, the…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.