Lean adds value. People in top management know that. Still, many have not gone beyond the initial education stage 
into extensive lean supply chain implementation. One simple reason could be that they don’t have a plan in action – or they don’t have a plan at all for implementation. The Lean Supply Chain is a network of interdependent and interconnected partners that function together to achieve supply chain objectives. To achieve success across the supply chain, there should be metrics involved to monitor the objectives and it needs to be reviewed regularly to ensure supply chain success.
Why Implement a Lean Supply Chain?
By successfully implementing a lean supply chain, you will be able to achieve increased supplier performance, creating cost reduction and reduction in lead times as your suppliers are experts in their respective fields. You will be able to get good supply chain visibility and increased performance measurement. It may open up avenues for cost reduction through value analysis while ensuring increased customer satisfaction and customer-fill rates.
The above advantages of a Lean Supply Chain can be achieved by the following:
- Eliminating Waste in the Supply Chain
In order to create an easy flow of products downstream in a lean supply chain, it is important that all functions and departments in the organization work together. The seven waste that are in the supply chain are: 1) Transport—needless movement of product; 2) System complexity—extra, needless, methods and confusing processes; 3) Lead time—long and unnecessary wait times; 4) Inventory—useless raw, inactive processes, or finished goods; 5) Space—holding places for needless inventory; 6) Human effort—activity that does not bring about any value; and 7) Energy—waste of energy in the supply chain such as gas, electricity etc. or in the packaging due to use of containers that are prone to damage or air leakage.
- Upgrading Technology
You need to consider technology advancements to improve the supply chain. These are some of the technologies you can consider to use in your lean supply chain:
- GPS for freight tracking;
- Transportation Management Systems (TMS);
- Customer Order Management;
- Electronic Data Interface (EDI); and
- Supply Chain Management (SCM) systems.
You may also consider any other technological upgrades that will streamline the supply chain and improve communication and value to the customer.
3. Customer Usage Visibility and Reduced Lead Time
Customer usage visibility to all supply chain partners is important as the flow in the lead chain starts with customer usage. It is also important to reduce lead time by working and coordinating with each other and brainstorming on ways to create a Lean Supply Chain that brings value above your customer expectations.
- Reducing Variation, and Increasing Throughput and Velocity
Velocity and throughput to your customers can be increased by meeting customer demands frequently through smaller shipments. With this approach, you can adjust delivery to meet actual customer need consumption by reducing inventories and lead times.
- Reduction in Total Cost Of Fulfilment
Eliminate decisions that benefit only one part of the stream at the expense of others and make decisions that meet customers’ requirements and expectations at the lowest possible cost. This is possible when all the partners of the lean supply chain share in the benefits and waste is eliminated.
- Collaboration and Discipline
When the entire team in the lean supply chain see that they are operating in tandem with customers’ needs, collaboration to identify problems, determine root causes, and develop solutions becomes a whole lot easier. Lean’s Value Stream Mapping (VSM) helps break down processes and gives you the ability to rebuild your process more effectively. Six Sigma’s Define, Measure, Analyze, Improve and Control (DMAIC) and Lean’s Plan, Do, Check and Act (PDCA) can be used by all members of the lean supply chain to solve problems, reduce costs and increase value to the customer.
- Level Load/Level Flow
Creating a level flow of information translates in to lesser waste at all the critical points in the lean supply chain allowing you to take advantage of the system.
To stay ahead of your competition and to get more detailed insight and tips on applying the proven rules of lean supply chain, join this webinar, “Moving From Generic to Spectacular: Recasting Your Lean Supply Chain from Efficient To Transformational!” by Robert Sabath on Thu, Jan 14, 2016. Robert will demonstrate actual lean transformations developed by his team and their clients. These unique lean transformations when applied have multiplied profits, repositioned competitors, built breakaway strategies, and clobbered the accepted best practices. You should take advantage of these innovative strategies.
