LEAN PRINCIPLES: DRIVING VALUE IN UPSTREAM SUPPLY CHAIN MANAGEMENT

It is crucial that, particularly in the USCM (value chain towards suppliers), suppliers are managed in a way that means processes and activities are lean and run parallel to each other. Despite the fact that only streamlined enterprises with a lean and flexible supply chain can survive in the curren...

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Bibliographic Details
Published in:Supply Chain Europe 2011-07, Vol.20 (4), p.48
Main Author: Helmold, Marc
Format: Article
Language:English
Subjects:
Corporate purchasing
Cost control
Lean manufacturing
Principles
Success
Suppliers
Supply chain management
Value chain
Online Access:Get full text
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Summary:It is crucial that, particularly in the USCM (value chain towards suppliers), suppliers are managed in a way that means processes and activities are lean and run parallel to each other. Despite the fact that only streamlined enterprises with a lean and flexible supply chain can survive in the current economic environment, in many companies only 20%-30% of activity actually adds value. The so called lean principles, the effects and combination of which are essential for success, were developed by Taichi Ohno, an employee of Toyota Motors. Lean production is based on the Just In Time philosophy and the Toyota Production System and focuses on the elimination of waste and the minimization of stock. Lean principles are frequently not synchronized with the USCM, resulting in limited success. In this respect, it is the crucial role of procurement and supplier relationship management to transfer this competency to its supply chain.
ISSN:1742-447X