Guiding Principles of Supply Chain Advancement

As leaders and as organizations, we need to establish our principles relative to how we will design, execute and improve our supply chains. Leaders align around the principles and collectively decide that “this is the way we will do business and run our supply chain.” Supply Chain Advancement can be realized by:compass

  • Visibility: Real time visibility to material and information flow
  • Value Stream Thinking:  Internal and external end to end collaboration to manage total cost
  • Lead Time Reduction: Flow, Velocity, Pull, JIT,  and leveling
  • Quality at the Source: Standardization, error proofing first time quality of core processes
  • Complexity Management: Supply Chain centric decision making  to manage planned complexity
  • Performance Management: Clear targets, PDCA & Continuous Improvement

 

What is the Lean Supply Chain?

The lean supply chain is planned, stable, visible and collaborative. The lean supply chain relentlessly focuses on lead-time reduction by eliminating all non-value creating activities (waste). This is accomplished through rigorous process discipline, inventory reduction and first-time quality. The lean supply chain flows to the beat of customer demand, where all supply-chain activities are triggered by the pull of the pace-setting process. The goal of the lean supply chain is to deliver the highest value to the customer at the least total systems cost.