Reducing Costs and Improving Accuracy: Lessons from Leading Manufacturers

Across precision manufacturing operations, inconsistent and informal internal logistics drive higher costs, inventory inaccuracies, and production delays, eroding throughput and product quality. Even the most comprehensive manufacturing process improvements can fall short when materials movement remains fragmented and logistic functions don’t receive dedicated focus. By structuring internal logistics as a dedicated onsite 3PL operation, manufacturers reduce waste, improve accuracy, and free production teams to focus on value-added manufacturing work that drives improvements and growth in their core business.

As an integrated managed services partner, Canon Business Process Services helps leading manufacturers scale their operations with onsite materials management, labor management, and comprehensive, customized solutions. Through the Canon Internal Logistics Excellence Program, precision manufacturers align production goals—via labor, parts, inventory control, and material handling processes—with overarching business objectives. Partnering with Canon enables manufacturers to boost quality, increase production speed, improve accuracy, and enhance scalability—transforming internal logistics into a strategic advantage. It directly impacts critical business units outside of the supply chain as well, including production, purchasing, finance, and more.

Why Internal Logistics Holds the Key to Manufacturing Process Improvement

When manufacturers treat internal logistics as a support function, rather than a strategic driver, hidden bottlenecks ripple through production, increasing costs and reducing throughput. Materials flow inconsistently across the facility, and storage, delivery, and kitting processes lack standardization. These inefficiencies create operational drag that undermines manufacturing process improvements, reduces accuracy, and limits scalability.

By transforming fragmented internal logistics into a structured, strategic function guided by performance metrics and mutually defined SLA’s, enterprise manufacturers turn an operational chokepoint into a competitive advantage. Predictable workflows, optimized inventory, and standardized safety practices form the foundation for successful manufacturing process improvements, setting the stage for scalable, high-performing operations.

Labor and Workflow Inefficiencies

In unstructured logistics operations, skilled technicians and engineers spend hours moving, locating, or tracking parts. Manual materials management dominates workflows, and disorganized processes increase variability and errors. Re-work and excessive touch flows contribute to variability, additional labor, quality and productivity issues. Production teams struggle to meet daily quotas, their focus constantly redirected away from high-value manufacturing tasks.

Clear roles and cross-trained logistics teams streamline workflows. Reducing labor waste improves predictability and productivity, allowing production staff to concentrate on high-value tasks that increase manufacturing throughput.

Inventory Challenges and Capital Impact

Prior to implementing structured logistics, inconsistent inventory management often led to stockouts and overstocking that disrupted production schedules. Miscounts tied up working capital and required time-consuming reconciliation. These compounding issues create cascading delays across the facility, inhibiting smooth production flow.

After optimizing inventory levels and integrating real-time tracking, inventory management becomes predictable and aligned with production needs. Improved storage management and process standardization drive measurable improvements in inventory accuracy for manufacturing facilities, freeing capital and enabling greater operational efficiency. Production employees can now regain focus on tasks that align with their salaries and skill levels, maximizing the return on labor investments.

Throughput and Quality Bottlenecks

Miscommunication and inconsistent materials movement create recurring bottleneck conditions, interrupting workflows and placing product quality at risk. By standardizing logistics workflows, manufacturers ensure that materials move seamlessly from receiving to line delivery. Integrated technology and optimized processes accelerate production, reduce errors, and improve overall throughput. Efficient execution at the line level enables manufacturers to maintain schedules and deliver finished goods to customers on time.

Safety and Compliance Risks

Mismanaged or deprioritized logistics processes create unsafe conditions where personnel safety and compliance become serious organizational risks. Unclear responsibilities, ad hoc material handling, and disorganized storage increase the likelihood of accidents, injuries, and regulatory violations. Every time an incident causes downtime, it further disrupts production and drives up labor costs.

Manufacturers that institute standardized safety protocols and compliance monitoring can reduce risk and maintain adherence to industry regulations. Production continues uninterrupted, while teams operate in a safer environment. Clear accountability and structured workflows create both operational stability and peace of mind for executives and floor managers alike.

Leading Aerospace Manufacturer: Full-Scale Internal Logistics Optimization

When a leading aerospace manufacturer approached Canon Business Process Services to drive manufacturing process improvement, we implemented the Canon Internal Logistics Excellence Program. Designed to boost production speed, accuracy, and scalability, our onsite materials management program not only brought efficiency to their internal logistics but also integrated these objectives with existing business processes and aligned them closely with the manufacturer’s strategic initiatives. Key success metrics include the following:

• More than 99% inventory accuracy with advanced tracking and process controls
• Over 99% on-time delivery to manufacturing cells
• Nearly 40% throughput improvement via cross-trained manufacturing support teams 

In addition, Canon optimized the facility’s design—via mezzanine and supermarket deployment—to promote faster kitting. Our onsite materials management team also instituted safety protocols that corresponded to an Experience Modification Rating (EMR) of less than 1.0, exceeding industry averages and historical site safety metrics. 

Maximizing Manufacturing Performance by Transforming Logistics

Close partnership with Canon equips leading manufacturers with the tools to turn fragmented workflows into predictable, high-performing operations, including Six Sigma process improvements. From maximizing labor utilization to improving inventory accuracy and boosting throughput, the measurable benefits of a Canon partnership manifest almost immediately. Manufacturers gain operational improvements along with visibility and control that drive continuous performance enhancements.

Internal logistics optimization transforms routine operations into a strategic driver of efficiency and accuracy. Production moves seamlessly, errors decline, and executives gain actionable insights to guide smarter data-driven decisions. 

Fill out the form below today, and a Canon Business Process Services representative will contact you about how your facility can leverage our internal logistics program to reduce costs, improve accuracy, and achieve peak manufacturing performance.