Lean systems are meant for producing the best products and services with little or no wastage of various kinds of resources. Lean supply chain management purports to create a well designed supply chain management system where all the resources are effectively utilized. The people, processes, technologies and suppliers will be optimized at the beginning of the implementation and it will be an ongoing process. The best of the best features will be implemented and there will be no room for waste. Lean supply chain helps companies deliver high quality products quickly and efficiently.
What is expected from lean supply chain management?
In fact, lean supply chain management is a new way of thinking to understand the supplier networks. It is required to have cooperation with various suppliers and should be able to balance it with the competition present in the market. There is a great deviation between lean supply chain management and traditional methods. There will be less number of structures in lean model whereas they are more in traditional systems. Most of the lean supply chain management principles are derived from the basic lean principles.
How companies will be benefited by the lean implementation?
By implementing lean methods in a systematic way, companies will be benefited to the greatest possible extent. The winning business strategy realizes the importance of the relation between the supply chain management and the overall financial status of the company. By streamlining the supply chain management with all the other core aspects of the company, the business will emerge into a profitable enterprise and will be able to deliver cutting edge solutions.
Strategy for lean supply chain management
In order to implement the lean supply chain management in an effective manner, it is required to build the core infrastructure and should be collaborated internally and should be executed externally as well. The next step would be the selection of the right kind of suppliers. Meetings should be held at regular intervals and the members should be provided with demand planning and supply chain planning tools. Key members should be motivated and educated. There should be an open book management.
The demand planning should be assessed in an appropriate way. By cross training key personnel in the partner’s business entities greater success can be achieved.
Benefits to companies
Lean supply chain management has caught almost all kinds of businesses. By implementing the supply chain management practices in a better way, it is possible to deliver products to the market in time. The overall supply chain cost will decrease. It is possible to assess the demand from the customers. Businesses will be able to meet the requirements of customers in a better way.
In order to effectively implement the supply chain management, all the partners should cooperate in this matter. It is required to optimize the people, processes, systems and suppliers so that the supply chain management can be implemented in an efficient manner. Lean supply chain can exist and survive by building mutual trust and having a great vision.
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