Lean Supply Chain Definition
A lean supply chain is a supply chain that has been optimized for efficiency and quality. The term “lean” comes from the Japanese word for “improvement” or “efficiency.” A lean supply chain is one that has been stripped of all waste.
The goal of a lean supply chain is to provide the customer with the required product or service at the time it is needed, and in the quantity required, while using the fewest possible resources. In order to achieve this, businesses must identify and eliminate all sources of waste in their supply chains.
There are many different types of waste that can occur in a supply chain. Some common examples include: overproduction, inventory, motion, defects, waiting, and transport. By eliminating these wastes, businesses can create a leaner, more efficient supply chain.
One way to eliminate waste is to implement just-in-time (JIT) manufacturing. JIT manufacturing is a philosophy and set of principles that focuses on reducing waste by producing only what is needed, when it is needed. This approach requires close collaboration between suppliers and customers in order to ensure that everyone is working together towards the same goal.
Another way to reduce waste is through continuous improvement. Continuous improvement is an ongoing effort to identify and improve upon areas of weakness in a business. It involves constantly looking for ways to do things better, faster, or cheaper.
Lean principles can be
