Lean logistics

A pull system with frequent replenishment in small quantities set up between each of the companies and facilities within a value stream. 

Suppose Company A (a retailer) sells directly to the end customer and is supplied by Company B (a producer) through large, irregular deliveries based on a sales forecast. If they applied the rules of Lean logistics, the retailer would have to create a pull signal; the moment small numbers of goods were sold, the producer would be instructed to replenish exactly the number sold. The producer, in turn, should instruct its suppliers to quickly replenish exactly the quantity of goods it has delivered to the retailer, and so the process continues until the beginning of the value stream. 

Lean logistics requires a pull signal (EDI, kanban, web signaling and so on), a leveling tool for each stage of the value stream (heijunka), frequent delivery in small quantities (milk runs linking the retailer to many producers and the producer to many suppliers), and in many cases several cross docks for consolidation of loads within the replenishment loops. 

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