As seen on MultiChannelMerchant.com. 

The distribution industry has always tried to be at the leading edge of technological innovation. However, technology, at best, will keep an industry at par with national averages with respect to productivity. To excel and exceed national averages, the application of technology must be supplemented with innovation in processes—that is, with the application of business and lean principles.

Reducing the internal operational costs is the only way a distributor can increase its profitability without requiring its customers to support higher prices. By reducing waste, a distributor’s capacity to service its customers will greatly increase while reducing its operational costs. To be a low-cost provider of distributor services, the supplier has to improve its internal costs.

So what are the advantages of becoming lean?

1. Become a more effective company—one that operates with minimal waste and few errors, adding value to the products and services it provides.
2. Continually improve the way you process orders and serve customers—from the time you seek an order, to order entry, and all the way through to the delivery of products and services.
3. Enhanced your profitability: Becoming lean will improve your operational profitability by at least 20% to 30%.

Continue reading to learn how to become lean.