Being lean can help any company succeed

September 6 2013

In this day and age, every organization needs to take it upon themselves to assess their operations and figure out if their system is effective for them and stands up against the competition.

The history of American auto sales is a great example, which a recent PWC article examined. For years, car sales in the U.S. were dominated by the local manufactures. Then Japanese companies started turning out cheaper products in the 1930s and created a stiff competition that still lasts today.

According to the article, the reason the Japanese were able to make such a splash is because they entered the market with a leaner approach. Basically, they examined their entire operation, including labor, the supply chain and marketing and cut out all unneeded or extraneous pieces. That allowed them to gain a strong foothold and take over the market. It caused U.S. companies to have to play catch up.

"Whether companies are simply trying to survive or they are conducting an annual assessment of their productivity, they need to determine that every activity they engage in is essential in the value chain to providing a competitive product," the article reads.

This idea should be used by every company to make sure all of their processes are as effective as they can be. For example, examining the shipping process can unveil that thinking outside the box and moving away from the traditional service and using a local courier service can be the most effective way to send business packages and parcels.