Lean Supply Chain

Having an efficient and effective supply chain is a strategic advantage because competition is not confined to the markets

The Supply Chain (SC) can be defined as the flow of information and materials between companies, customers and suppliers. Companies operate in sectors with different complexities and without lean strategies extended to the entire Supply Chain, but customers and suppliers are strategic elements for the survival and prosperity of the companies themselves.

It is important to remember that:

  • obtaining new customers is strategic; maintaining existing ones is essential.
  • winning customers means taking them away from others. An innovative approach to sales is required; instead of selling, you need to get people to buy from you
  • Good suppliers are contended by everyone

It is, therefore, essential to rethink the entire supply chain (company, customers and suppliers) using a lean approach by eliminating waste and by building new partnerships, i.e.:

  • Sharing the concept of value for the customer with all the actors in the supply chain
  • Creating a communal plan for growth with a Lean approach
  • Working as a team

The approach to the Lean Supply Chain (LSC) includes three intersecting points:

  • Being a company that has applied the principles of Lean Thinking
  • Extending these principles to the entire supply chain
  • Applying the Lean approach to distribution and sales processes

Being a Lean Factory means creating the essential foundations on which to build company know how and then moving outwards and applying the Lean principles to external business partners.

The improvement of the whole supply chain includes the choice of strategic partners (suppliers/subcontractors and customers/distributors) with whom to map the processes of mutual interface, identifying waste and opportunities for improvement by planning the future status together.

Upstream of the supply chain, with a view to a collaborative partnership and not merely a supply relationship, a PULL system is implemented that could evolve into a JIS supply (Just in Sequence). This means sharing the investment costs and transparency on the benefits obtained.
On the supply chain toward the market it will be possible to provide a logic of delivery to customers/distributors in a pull approach by offering advanced services (e.g.: Kanban) anticipating any future market demands (e.g.: the automotive sector and GD/DO). It could then be possible to redesign the sales processes with a view to Lean Sales and Lean Distribution.
The methodology must be applied in perfect coherence with the market approach strategies.

Lo.Go.S.® (Logistic Governance System) >

Measure , Plan and Improve the performance of the logistics business