Understanding Lean Supply Chain & Logistics
Many clients, and organizations that CGN Global works with, are in a constant cycle that pushes them to improve their business to gain a competitive advantage. Organizations consistently feel stress to reduce costs, time, and staggering inventory levels. One way proven to improve an organization substantially is a supply chain process known as Lean Supply Chain & Logistics.
What is the importance of Lean Supply Chain & Logistics.
Lean Supply Chain & Logistics can be described as an efficient and effective way to recognize and eliminate wasteful (non-value added) activities from a supply chain to increase product flow and speed. To achieve leaner logistics, organizations need to implement leaner thinking. Organizations that incorporate lean thinking into their supply chain can benefit from improved customer service, by reducing waste and overall corporate citizenship.
What is Lean Thinking?
Lean Thinking originated over fifty years ago, from manufacturing methods (developed by an American W. Edward Deming) used by Japanese automotive manufacturers. Due to minimal resources and shortages, Japanese manufacturers employed a production process that worked with identifying and minimizing waste (or “MUDA”). Lean Thinking soon spread to all manufacturing areas, new product development and supply chain management.
Lean Thinking involves a dynamic cycle of identification, isolation, and elimination of waste and maximizing product value. This process means that end-customers don’t pay for an organization’s inefficiency and waste. Five principles are involved in achieving minimal waste:
Each of these five processes seeks perfection to progressively improve every process; minimizing waste and maximizing value.
Future of Lean in the Digital Age
How organizations embrace the digital economy, in conjunction with lean, will emerge as a key business driver, as consumer “pull” replaces industry “push".
Lean can be a prerequisite, a booster, and a catalyst to the digital economy and not mutually exclusive. Organizations that are already engaged in lean transformation should not stop their efforts and skip to digital transformation. Bottom-line is, one can find increased value in using lean methodologies, by synchronizing them to new digital platforms.
CGN is a leader in transforming businesses through the described lean methodologies. We see ourselves as collaborative innovators, at the forefront of the digital age, developing new digital solutions, designed with lean supply chain methodologies in mind, to drive maximum ROI faster, helping our clients win in the long run.