Strategic logistics: Re-designing companies in accordance with Lean Principles

Abstract

This paper attempts to show how Lean Thinking and Strategic Logistics concepts applied to Organization’s design and structure can result on an effective and efficient approach. A Strategic Logistics organization model was developed, in accordance with Lean Thinking principles. A pilot project was implemented in a small group of SME’s and now it is being prepared to be implemented in a technological park. The model addresses a simplified organization structure with two branches or dimensions - Logistics and Mission - based on Business Process Management (BPM) and Activity Based Cost and Management (ABCM); it eases the outsourcing of non-nuclear activities and establishes a proper framework to increase the focus on organization’s core business. With this approach considerable advantages are expected to be achieved, such as fewer activities, less processes, less people and less costs. In addition, higher service level, effectiveness, efficiency, more flexible organization, and a better image are expected. The innovation work related to this paper is an attempt to implement Lean Principles at a superior level of the organization: the organization design level.

Keywords:

• lean thinking
• strategic logistics
• business process management