Jun
2
What Is A Lean Supply Chain?
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A Lean supply chain is not perhaps as well known as Lean manufacturing but it is also a very big part of the whole Lean way of thinking and can bring about benefits that ensure an efficient and effective supply chain, with the minimum of waste, so it is also extremely effective. But before exploring further the exact nature of a Lean supply chain, it is important to look at exactly what a supply chain is!
Nature Of Supply Chain
A supply chain is not, in fact, a chain. It is actually a very complex structure and network that can be so complex and intricate, that if pictorially represented, it may look like some kind of lace or lattice work, as opposed to a chain. It is sometimes depicted as a triangle or even a diamond, but the reality is that is multifaceted, so although the term supply chain efficiently describes the way in which supplies are provided, it should always be remembered that it is not a chain. We are talking about something that is much more multi-layered.
Lean Supply Chain
A Lean supply chain perhaps is the epitome of a good supply chain. It delivers supplies to a customer with the minimum of waste. Waste is defined as any extra use of resources that need not be used. So a Lean supply chain will not have any surplus, it will not need heating and lighting to store large quantities of stock and the processes used to manage stock supply will be geared up towards Lean thinking, where stock will not be surplus, but the systems used will be flexible enough to ensure that any sudden increases in demand can be met without undue delay.
Lean supply chains also need to minimise the transportation and shipping of supplies, so that there are no unnecessary transport costs. This condition can often result in Lean supply chains being predominantly local to the customer or at least having some kind of depot locally so that the supplies can be quickly delivered.
One interesting aspect of a Lean supply chain is that sometimes it may have to withstand some waste (i.e. keeping stock in a local depot) so that less waste is generated within the longer term, which in itself makes it a complex framework for the delivery of supplies and stock.
Despite the fact that a description or overview of the nature of a Lean supply chain sounds very effective and almost breathtakingly simple, it is actually incredibly difficult to achieve. This is simply down to the fact that there are a number of demands that may be made at any given time. Systems have to be flexible to meet these demands, without having surpluses of stock and since stock cannot simply be plucked out of the air, this makes life difficult for those who manage a Lean supply chain!
Benefits Of A Lean Supply Chain
A Lean supply chain is a great foundation for any organisation that is embarking on Lean practices. It ensures that the organisation can safely transfer over to being Lean, in a manner that is much quicker than if there is a traditional means of supply in place. A Lean supply chain means that companies can respond to customer needs in a way that is speedy and meets their needs, which in turn helps consolidate the position of the supply chain.
Due to there being no waste within the supply chain it also offers a superior performance in terms of the supply chain. In turn this gives companies a competitive edge over their competitors. Again a cyclical effect comes into being and the importance and advantages of a Lean supply chain are clearly seen, thus confirming that such a supply chain is actually necessary.
Jun
2
Why improvement initiatives like Supply Chain 21 Matter?
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Supply Chain 21, is an initiative that was launched within the defence and aerospace sector to try to improve the performance achieved within the supply chain. So is SC21 limited to be used within this sector alone, or does it have a wider application?
In essence SC 21 is a programme to manage change, with an overall aim of improving competitiveness through creating a supply chain that can accommodate rapid improvements with the minimum of disruption. It is also a framework in which organisations operate, as opposed to being a very prescriptive set of rules. It is also implemented on a national basis.
Signatories then sign up to the framework and make specific pledges or commitments, stating that they will bring about a new culture and way of doing business. This focuses on transparency, sharing data and information and working together to bring about improvements.
There are various other commitments such as being keen to implement change at an accelerated rate and being responsible ethically and in terms of leadership etc. Signatories also have to be prepared for their adherence to the pledges being annually tested and additionally, performance will be assessed and then the results of the assessments are published. So there is no room to hide in SC 21.
A principal aim of SC 21 is to make sure that Lean becomes much more integral to all aspects of supply chain performance; so Lean becomes essential and fundamental to the supply chain in all its forms. SC 21 also seeks to eliminate waste on an almost ruthless basis.
Benefits Of SC 21
Companies can reap a number of benefits from this scheme. When it was first launched the number of companies who were keen to join doubled within only 2 months of the launch, so it was immediately seen as beneficial. It is free to join and although some resources are required to implement the change programme, the number of audits and ‘quality checks’ that companies need to undertake are reduced, so savings are made there.
In addition, companies that can adhere to this programme clearly indicate that they are a market leader within their field and that they are keen to establish constructive and long term relationships with suppliers and customers.
Due to the improvements that will happen within the supply chain, additional benefits will be gained by participating companies.
Widespread Appeal of SC 21?
Companies have already picked up on the fact that there are advantages to be gained from implementing SC 21, so although it was initially developed for the aerospace industry, the principles can be applied anywhere that a supply chain exists.
Indeed, even if companies are too small to actually sign up to such a scheme, the principles can still be applied, to ensure that Lean becomes an inherent part of the company and its philosophy.
Consequently,while SC 21 is a distinctly aerospace/defence initiative its principles should not be viewed as being limited to the aerospace sector, the tools it offers are used outside of this section of industry and they will continue to spread rapidly into different sectors as time progresses. It is far from being a ‘flash in the pan’ it is a radical way of improving performance, embedding Lean within the bones of an organisation so that Lean becomes the overwhelming driving force within it.