What is lean supply chain management and why it is considering to be important?

It is the supply chain without any extra processes that does not add value to the supply chain.

It is important because of the definition, it removes the unneeded processes which will reduce production cost.

The concept of “Lean" is a team-based approach to continuous improvement which focus on eliminating waste (non-value added activities) from the business processes. 

There are many areas in the supply chain where waste can occur, and lean supply chain management can help root out those problem areas.

The Lean Supply chain is a system of network of interconnected and interdependent partners which operate in unison to accomplish supply chain objectives.

 

Lean Supply Chain Management is a department or section in the Organization wherein the function is to have proper planning of goods to produce, items to procure , inventory planning and control. It is a vital and important in the organization since all the operational from the procurement, planning , receiving, issuance and deliveries are part of the supply chain management.

Lean supply chain management is one that produces or provides only what is needed and when it is needed. This typically has a number of key advantages over traditional supply chain management, just like supply is more tightly linked with demand, lover inventory risk, processes focusing on activities that add value to customer & to focus on providing processes without any mistakes.

Lean supply chain is considered important because it leads to improved availability and customer services at a lower cost.  It also involves people to eliminate wastage, build in quality - preventing mistakes before it happens, reduce lead time by establishing continuous supply chain at the right place, right time & in the right quantity, standardization - to document & follow the best practices & by continuous improvement

 

 

 

Lean supply chain management can be described as less waste as possible supply chain. You are managing supply chain with improvements along the process to eliminate wastes. Any wastes eliminated be it as less cycle time, less travel, less production over-runs, less machine set-up time etc will lead to lean supply chain. Leaner supply chain means less cost. Less cost means higher profit. Less cost can be passed to customers, customers happy, good business. Good business, happy investors. Happy investors, more business. More business- more work. More work- more jobs. More jobs- means more money for us supply chain professionals.

 

There are 9 steps to  establish Lean Supply Chain Management

 

1. 1.     Eliminate All Waste in the Supply Chain So That Only Value Remains
2. 2.     Consider Advancements in Technology To Improve The Supply Chain
3. 3.       Make Customer Usage Visible To All Members of The Supply Chain
4. 4.      Reduce Lead Time
5. 5.      Create a Level Flow/Level Load
6. 6.      Use Pull Systems, Like Kanban
7. 7.      Increase Velocity, Throughput and Reduce Variation
8. 8.       Collaborate and Use Process Discipline
9. 9.       Focus on Total Cost of Fulfillment