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.