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supply chain managemment
1. http://www.industryweek.com/blog/lean-supply-chain-management-what-it-and-why-should-
you-care
The concept of “Lean,“ which is essentially a team-based approach to continuous
improvement focused on eliminating non-value added activities or “waste“ from
the viewpoint of the customer, has been around in one form or another for many
years, at least in manufacturing. It is only recently that it has been applied
to the supply chain & logistics management area.
My new book from McGraw-Hill entitled “Lean Supply Chain & Logistics Management“
explores this subject in great detail. It offers explanations of both basic and
advanced Lean tools, as well as specific Lean implementation opportunities. The
book then describes a Lean implementation methodology with critical success
factors. Real-world examples and case studies demonstrate how to effectively use
this powerful strategy to realize significant, long-term improvements and
bottom-line savings.
In the first Chapter (available at the above web page on the left side menu
under “Downloads“), we look at what Lean is, why in many cases it fails, how to
successfully implement it and the SCOR model of “Plan, Source, Make, Deliver and
Return“ which is a nice way to identify Lean opportunities in the Supply Chain,
and in fact is used for that purpose later in the book.
In terms of the SCOR model, we can look for areas where “waste“ might exist such
as:
Plan “ Sales and Operations Planning (S&OP) process (or lack thereof)
Source “ Procurement and the use of JIT principles (including Vendor Managed
Inventory or VMI)
Make “ (light) Manufacturing, Assembly and Kitting (much of which is done in the
warehouse or by a 3PL these days)
Deliver “ Transportation optimization (especially important with high fuel
prices)
Return “ Shipping mistakes, returns, product quality and warranty issues often
ignored or an afterthought
It is also discussed why Lean is (or should be) of such great interest to supply
chain & logistics professionals and how it can help to give your company a
competitive advantage by supporting strategies based upon one or more of the
following concepts:
Differentiation “ your product is better or different than the competition in
some way
Cost Leadership “ a low-cost strategy
Response “ a quick-response strategy
Over the coming months, this blog will discuss concepts, opportunities,
methodologies and applications in the supply chain that will hopefully get you
excited about the chance to “energize“ your supply cThere are many areas in the
supply chain where waste can occur, and lean supply chain management can help
root out those problem areas. hains