The Lean Supply Chain

A Lean and Agile Supply Chain: Not an Option, But a Necessity

In today’s global, dynamic economy, it is beneficial for companies to operate a supply chain that is both Lean and agile. Using Lean and agile in combination is known as having a hybrid supply chain strategy. A hybrid supply chain strategy may be appropriate for a company attempting to become a "mass customizer"—producing progressively smaller […]

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Selecting the Right Technology to Support Your Lean Operations

Technology plays a key role in enabling Lean supply chain operations. For example, connecting to suppliers in real time facilitates re-supplying parts and materials for a just-in-time production environment. But choosing the wrong software can create waste in terms of the time, effort, and money spent evaluating, selecting, implementing, and using the system. Surveys commonly […]

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Lean Retail: It’s About Time – and Money

Thanks to forward-thinking retailers such as Walmart and OfficeMax, Lean thinking is spreading in a variety of manufacturing sectors, including consumer goods, apparel, and food and beverage. These retailers have dramatically changed how products are ordered, moving inventory rapidly through their distribution centers to stores by gathering and sharing point-of-sale data with suppliers, and using […]

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Streamlining Inventory Through SKU Rationalization

While supply chain and logistics managers pursuing Lean operations generally seek to eliminate excess inventory, sales and marketing programs often lead companies to increase the volume of products they keep in stock. During the past few decades, the number of stockkeeping units (SKUs) retailers offer has soared. For example, in 1970, the average grocery store […]

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Collaborative Programs: Not a Chore But an Opportunity

Many corporate executives view the supply chain and logistics function as a source of savings through cost reduction. Their position is understandable, as supply chain and logistics costs can represent 50 to 70 percent of a company’s sales dollars. Making these operations more efficient and effective can have a great impact on the bottom line. […]

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Tapping Technology To Improve Lean Warehouses

Lean is traditionally thought of as a methodology for using visual signals, optimized layouts, and streamlined processes to improve material and information flow. But technology also plays a critical role in Lean operations, especially for companies managing global supply chains. Implementing forecasting, advanced planning and scheduling, distribution requirements planning, and transportation and warehouse management systems […]

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Putting a Lean Spin on Reverse Logistics

Reverse logistics—the processes involved with handling products returned by customers—is often overlooked during supply chain planning. As a result, it is frequently a source of waste, because companies lack Lean procedures for handling defective, damaged, mislabeled, or incorrectly shipped items when customers return them. Recently, businesses have started paying more attention to their reverse logistics […]

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We’re All in This Together: Teamwork in a Lean Workplace

While some Lean practitioners focus on manufacturing pioneer Taiichi Ohno’s Seven Wastes (transportation, inventory, motion, waiting, overproduction, overprocessing, and defects), many add an eighth waste: behavioral waste, or under-utilized employees. It takes a real change management effort to successfully implement a Lean program—especially when it involves changing workers’ habits. Someone who has been doing a […]

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Reducing Defects and Errors: Don’t Make the Same Mistake Twice

One popular definition of insanity is "doing the same thing over and over again, and expecting different results." So why does that occur all the time in business? Whether it involves producing many items with the same defects, or continuous incorrect inventory counts, we keep shooting ourselves in the foot. Although 85 percent of quality […]

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Are Your Processes Adding Value or Waste?

Packaging helps protect and preserve products, but these days companies tend to over-package and over-protect. Excess packaging illustrates the waste known in Lean methodology as overprocessing. Added processing that doesn’t bring value to goods or services in the customer’s eyes creates unnecessary waste. When trying to eliminate overprocessing waste, start by focusing on standardized work. […]

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