How to Reduce Waste and Add Value to Your Supply Chain Processes
By Israel Rosales on Jul 6, 2016
Prioritizing issues is a critical component in any SCM improvement initiative. If you’re using Lean methodology, (find out more about lean in the Lean Data Management Practices: Seeking value is a never-ending story white paper) prioritization should be based on value vs. effort, which applies the Pareto rule or 80-20 rule:
“80% of effects come from 20% of the causes”
This example focuses on the two recurrent SCM challenges of increasing employee productivity and reducing stock levels. By focusing on improving just these types of issues without wasting effort on other minor issues, users will see huge improvements because these issues correspond to an accumulated 61% of total issues.
For more details, check out the white paper “How to Reduce Waste and Add Value to Your Supply Chain Processes with Winshuttle.”
About the author
Israel has a degree in Computer Engineering from ETSII in Seville and an Executive Master Degree in SCM (Supply Chain Management) from ICIL Madrid, where he is also a part time lecturer for Lean Manufacturing. After 10 years in the SAP SCM arena, he joined Winshuttle in 2012 and is currently Enterprise Solutions Manager, specialized in Lean, SCM and Master Data. When he's not solving ERP problems, he shares his life with his wife, daughter and two dogs.
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