Lean Supply Chain : Case Study

2336 Words Nov 30th, 2014 10 Pages
Lean supply chain

Dr. Cheng, Liang-Chieh

The manufacturing sector has in the last several years has moved from a vertical structure to a horizontal structure. It implies that a single company no longer controls the whole supply chain; different companies all over the world can control different pieces of supply chain. Although this helps a particular company to focus on the particular task they have at hand, it makes the supply chain longer and complex. In todays world it is hard to distinguish between manufacturing process and supply chain.
This has an advantage too; the principles used for effective manufacturing can also be used for an effective supply chain. One such concept is ‘lean’.
Adoption of lean principles in supply chain worldwide has enabled manufacturing to be customer-focused, flexible and profitable. More professionals are trying to identify the key lean principles in the supply chain, trying to adopt these principles to build a adaptive and flexible supply chain. They primarily start with reducing wastes, increasing turns and incorporating more flexibility into their supply chains.
Lean tools are being used to reduce wasteful activities in the supply chain. A surveys conducted in 2008 indicated that 14% of the companies have adopted lean principles in their supply chain network. However recently 30% of the companies (classified as ‘lean adopters’) have been found to move towards adopting these…

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