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SpinDistribute.com Article Directory

The following article was published in our article directory on September 10, 2016.
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What is Lean Supply Chain Management?

Article Category: Advice

Author Name: Dr Bello Omololu Ed.D

Lean supply chain management is where you produce the exact amount that is needed with as little waste as possible. The core theme is basically producing more using fewer resources and still giving the consumers a quality service. To achieve this, companies must be willing to get some supply chain training to help them enhance value and eliminate wastage.

Understanding waste and value in lean supply chain management

Value refers to anything that consumers are ready to pay for. Any value-adding activity will transform information and materials into something that customers want. In the same context, waste is things that do not any value, particularly from the perspective of the consumer. Examples of waste in supply chain management include overproduction, defective products, logistics, waiting period and inventories.

It is very important that businesses get supply chain training to be able to appreciate the difference between value-adding processes and non-value-adding process. In many cases, it is challenging to discern whether your whole supply chain offers more value or waste. The best option is to get more information through supply chain courses and then examine all the parts of your supply chain, making sure to apply lean approaches to all of them.

Creating value in supply chain management

Through supply chain training, businesses are able to map their value stream to ensure they are working as efficiently as possible. Mapping allows you to scrutinise the whole process for process improvements, bottlenecks, and waste. You can then use what you discover from the current-state mapping, to create a perfect-state map that shows a clear vision of the best lean supply chain management should look like if complete integration occurs.

The current-state map may show that while flow within the facilities has been well defined, transportation and logistics between facilities results in excess inventory and more expenses. In this case, supply chain courses should help you create better flow between your facilities and remove waste. This may include solutions like installing web-based processes that support a real-time information flow or installing more effective logistics.

Reducing waste in supply chain management

Waste reduction is an essential component of lean supply chain training. When well implemented, waste reductions in the manufacturing process results in reduced production times, and less labour costs, better product quality, reduced inventory, faster customer response and space savings. By reducing waste in the supply chain, the benefits are also similar, in that overall cycle period is improved, reduced staff costs, improved product quality, better delivery time and overall, a more efficient and responsive supply chain.

With the right supply chain training, you can start implementing a lean supply chain management system and reap all the benefits mentioned above.

Lean supply chain management is where you produce the exact amount that is needed with as little waste as possible. Examples of waste in supply chain management include overproduction, defective products, logistics, waiting period and inventories.

The best option is to get more information through supply chain courses and then examine all the parts of your supply chain, making sure to apply lean approaches to all of them.

By reducing waste in the supply chain, the benefits are also similar, in that overall cycle period is improved, reduced staff costs, improved product quality, better delivery time and overall, a more responsive and efficient supply chain.

Keywords: lean supply chain management,supply chain training,supply chain management

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