Theory of Constraints

Invented by Dr. Eli Goldratt and popularized in his 1984 book The Goal, the Theory of Constraints systematically identifies and removes constraints that hinder business productivity.

Business improvement through Theory of Constraints begins with a hypothesis that there is some factor inside a company that limits the overall ability of a company to make money. By optimizing a business to its constraint, or constraints, Lading can elevate the overall output and profitability of a company.

Theory of Constraints in Logistics

Below are the three examples of where Theory of Constraints can be applied to the logistics industry:

Timely Delivery
Data entry
Creating a shipment, consol, or invoice often takes considerable time, potentially many days, especially if the data required to complete the task does not reside in one central system.
Knowledgeable professionals
Freight routing
Scheduling pickups and deliveries, especially with pre-arranged times, to optimize driver utilization is an excellent application for Theory of Constraints methodologies.
Organized projects
Freight loading and unloading
Optimizing the stripping of, or loading of, a truck can be done with Theory of Constraints practices and produces a faster result at a lower net labor expense.

Productivity Tool

Productivity Tools

Until now, the implementation of Theory of Constraints practices has been done without any sort of dashboard to ensure maximum productivity. That has now changed.

Companies are now able to create processes for employees to follow and managerial oversight in a manner that was not possible with the current tools of whiteboards and spreadsheets.

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