The concept of “Lean,” which is essentially a team-based approach to continuous improvement focused on eliminating non-value added activities or “waste”, has been applied to the supply chain and logistics management area more recently.
But, has lean reached the highest point as an operational strategy for manufacturers?
Why Lean is (or should be) of such great interest to supply chain and logistics professionals, and how it can help to give your company a competitive advantage by supporting strategies. There are many areas in the supply chain where waste can occur, and lean supply chain management can help root out those problematic areas.
The long-term future of manufacturing will depend on the development of a sustainable manufacturing model, which should be designed to mimic biological processes to produce products from the materials that are readily found in nature, in order to be applied in our supply chains to dramatically reduce waste.
There are many such opportunities within the supply chain to reduce the carbon footprint. We need to look more closely at our surroundings for ideas. This type of sustainable manufacturing is designed and managed to encompass what is known as the "four R's of sustainability": reuse, remanufacturing, refurbishing and recycling.
An extended product responsibility (EPR) program, focused on the total life of the product, has been adopted by companies which are looking for ways to prevent pollution and reduce resource and energy usage through the product's lifecycle. Lean supply chain touches all aspects of supply chain, logistics and manufacturing. When you consider the broader gambit of supply chain and logistics, technology not only enables lean but it can help identify and eliminate waste by substituting information for inventory.
To manage and coordinate that kind of activity, some companies have recently opened an Operations Command Centre, which focuses on lean continuous improvement between the company and its supply chain. Their goal is to identify supply chain issues early and collaborate with the suppliers before a potential constraint or impediment occurs. Using data collection and analytics technology, the Command Centre's quality and delivery assurance team gathers and shares information related to each supplier’s on time delivery status; positive reinforcements are given to suppliers who provide early-warning indicators of problems. There are contractual requirements that every week the suppliers will update to a portal on their promise dates, so these are not penalised for notifying the company early, and when notified early the company can take action.
One of the keys to a company's success is its workforce; every employee in the supply chain organisation should be trained in lean supply procedures. A lot of cross-functional work within the supply chain has to be done to involve production, transportation, logistics, etc., to solve possible problems. Companies have to discuss concepts, opportunities, methodologies and applications in the lean supply chain.
In the end, the need for both your manufacturing and supply chain processes to be Leanand agile, requires your supply chain strategy (and capabilities) must support your organization's strategic objectives.
How are you driving things forward?
Dave Food
Prophetic Technology