Lean Supply Defined

1
Lean Supply - Defined

• In Lean Supply, the Entire Flow From Raw
  Materials to Consumer Is Considered As an
  Integrated Whole. Interfaces Between Stages,
  i.e. Between Companies - Suppliers and Customers,
  Are Thus Seen As Artificial - Created Not As
  Natural Transformation Stages in the Development
  (or Addition) of Value, but As a Result of the
  Economic Arrangement of Assets Boundaries of
  Firms, Governed by Many Other Factors, Eg Labour
  Skills, Convenient Configurations of Technology,
  Geographical Location of Raw Materials, Etc.

2
Fundamental Principle of Lean Supply

• Effects of Costs Associated With Less Than
  Perfect Execution of Sub-processes Are Not
  Limited to the Location of the Execution

3
Lean Supply

• Origins of the Concept
• Traditional Positions of Customer and Supplier
• Links With Just-in-time
• Mutual Destiny
• Close Relative of Process-oriented Organisations

4
Lean Supply - Summary

• Lean Supply May Be Summarised, Therefore, As the
  Product of an Operating Attitude That Recognises
  the Cost Associated With Any Departure From
  Perfect Execution of the Tasks Necessary to
  Provide Long-term Customer Satisfaction, Thereby
  Achieving Total Eradication of Those Costs.

5
Lean Supply

• Cost Transparency
• Relationship Assessment
• Excuses and Blame

6
Best Practice in Supply Chain Management

• Extent of vision
• Strategies for supplier development
• Cascade
• Intervention

7
Lean Supply - Conclusions

• Value Management
• Implementation
• Market Competition