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Lean Supply Chain Management

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Introduction to Lean Supply Chain Management

This report is based on the lean supply chain management. This report contains all the information which is related on the lean supply chain management. Lean supply chain management is reduces the waste and non-value added activities. Basically, lean supply chain management is used by the manufacturing companies. This report shows the concept of the lean supply chain management.

In this report, it also involves the tools and techniques, lean management principles and framework of the supply chain management. It identifies the risk and problem of the manufacturing companies. The lean supply chain management minimizes the waste. So, this report is totally depending on the lean supply chain management. Waste can be in time, cost and in the inventory of the manufacturing companies. This report shows the framework of the supply chain management (Myerson, 2012).

Task

1. Supply Chain in Warehousing and Inventory Management

Supply chain is important in warehousing and in inventory management activity. The supply chain management is important in the warehousing and its inventory management activities. The warehousing is important to reducing the waste of resources and waste of time and in the non-value added activities.

The supply chain management is also important in the inventory management because it manage the inventory or stock systematically. The supply chain management reduces the preventable inventory. Through the controlling of unnecessary inventory, a company manager can manage the supply chain of the business and can reducing the unnecessary space of the warehousing. The supply chain management is helpful in controlling the activities of the warehousing and inventory (Fernie, Sparks, 2014).

Lean Management

Lean management is a process which is useful for running an effective business. The lean management involves the continuous improvement for the long period of time. It is useful for the manufacturing the product. The lean management always involves the effective quality of the product. Lean management is also helpful in the reducing the waste of resources and waste of time. So, it is the effective process for the business.

Principles and Tolls of Lean Management

There are some principles of the lean management which is useful for the business manager. They are given below:

Identify Value

It identifies the value of the product. The value is play a important role in the satisfaction in the consumer needs and wants for the effective product. So, it is the first principle of the lean management.

Value Stream

It is the next step of the lean management. Value stream is a process through which it determine the raw materials and convert it into the finished goods foe their consumers. In this principle it removes the wastage.

Create Flow

It is the next step of the value stream. It makes an effective flow for the product and services and provides the effective product to the consumers. It makes a flow among the goods and services and provide for their effective consumers (Krajewski, 2013).

Establish Pull

It is the next activity of lean management. In this activity, consumers are able to pull the value of the product and it is also satisfy the need and wants of the consumer. The pull values provide the goods and services according to their needs and wants and are able to satisfy their needs.

Perfection

After these four principles, it determines that which activity or values are effective with no waste. It improves the all factors of improvement for the business environment. The perfection is important for managing the lean.

Framework of Lean Management

There is a framework of lean management which is given below:

Waste Elimination

There is no value of the product and services because the waste is not providing any kind of effective value for the product. It eliminates all kind of wastage like, waste in time, waste in cost and waste in the resources. The lean management is effective and helpful in reducing the any kind of waste. There is some waste in many things. They are- time delay, waiting, transport, waste in resources, in the production, waste in cost, extra activity and in the inventory. So, it implements the lean management for reducing and minimizing the waste.

Just in Time

Just in time (JIT) is very important in continuous improvement of the product and services. It provides the pull and push strategy for the supply chain management of the organization. The just in time is effective for reducing the waste and provide the effective the quality product and services to the consumers. There is some main strength of the just in time. They are: sort-out standardizes, scrub, sustain and systematize etc. they all are strength of just in time. These are point are important for an effective supply chain framework (Wisner, 2014).

Continuous Improvement

The continuous improvement is also important for the effective framework of the lean management. The continuous improvement is taken from JIT approach. It is useful for reducing the waste at the continuous basis. It maintains the quality and quantity of the product and makes it effective for the consumers. The continuous improvements provide the effective framework of the lean management. So, this process is the effective framework of the lean management.

2. Problematic Issues in Warehousing and Related Inventory Management Activities and Suggest Improvement

There are some issues in warehousing and their related inventory management. They are:

Inaccurate Quantities

Inaccurate quantity is the biggest problem for the all warehousing and its inventory management. In this problem, the entire warehouse can not satisfy the need and wants of the consumers. The inaccurate quantity also presents the incorrect warehousing. In this case, entire warehousing cannot maximize the production for their consumers (Heizer, 2013).

Capacity

Capacity is also a big major problem for the warehousing. The capacity issue associate with the inventory issues. If the warehouses has more inventory or stock and there are lack of space in that case the product will be damaged. The capacity issue is important issue for the warehousing. So, warehouses need to provide the more space for the inventory because the more inventories depend on the capacity of the space.

Damage

Damage issue is also a major problem for the inventory in the warehousing. The damage shows the inaccurate quality of the product and services which cannot satisfy the needs of the consumers. The warehouses should reduce the damage and for that they need to provide the more space for the stock or inventory. So, it is the major problem in the warehousing.

Product Identification

The incorrect identification of the product cannot provide the effective inventory for the consumers. The incorrect identification of the product includes the incorrect barcode, label and product packaging. The warehouses should the all information in the identification of the product. So, the effective warehouses provide the effective barcode and label on the product (Jacobs, 2010).

Training

The improper training is a major problem for the warehousing and its related inventory. The warehouses need to provide the effective training to their employees and need to motivate them for the big production. If a company does not provide the effective and efficient training to their employees in that case, warehouses cannot produce the more products for the consumers. So, the improper or incorrect training is the major problem for inventory in the warehousing.

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There are some guidelines to solving the problem. They all are given below:

Consider Inventory Optimization Tools

The warehouses need to identify the entire network flow through which they can evaluate the inventory policies for the effective product and services in the supply chain management. For solving these problems, the warehouses should consider about the optimization tools. So, effective warehousing needs to adopt effective tools for solving the problem.

Employ Business Solutions that use Real Time Analytics under the Platform

The effective businesses are useful for solving the problems which is come in the inventory management. The effective warehouses take the decision for the real time analysis under the platform. So, it is the important solution for solving the problems.

Keep an Eye on your Suppliers

It is also a guideline for solving the problems. An effective supplier team provides the batter inventory and also would like to take the inventory from their parties. After the identification, the effective suppliers, a warehousing can minimize the risk and problem which is come in the inventory management. So, the valuable suppliers can reduce the problem for their related party.

Leverage Mobile Devices

This is the useful technology for solving the risk and problem which is done in the inventory management. In the modern time, the mobile devices are important for taking the any kind of information which is related to the inventory data. This device provides the accurate information and data related to the inventory. So, it is most important technology for solving the inventory problems (Thun, 2011).

Be Smart About Slow Moving and Outdated Items

Firstly, a warehouse need to identify their slow moving and outdated items or product. After the identification of slow moving and outdated product, they need to focuses on the fast moving products and services. The fast moving product and services always improve the warehousing. The fast moving product can reduce or minimize the problem which is creating the problem in the inventory management. So, these guidelines and approaches are useful for minimizing the problem of warehousing and its related inventory management.

3. Difficulties and Challenges in Lean Management

There are some difficulties and challenges in lean management which is faced by the organization and the organization need to minimize these difficulties or problem. The challenges in the lean management which is given below:

  • Expense
  • More Outlays for Labor
  • Opposition

Expense

It is the challenge which is faced by the organization in the lean management. With the help of this, an organization can identify the equipments which are useful for the production. Expense is the part of cost of the products and services. So, it the main challenge in the lean management which is faced by the all type of organizations.

More Outlays for Labor

It is also a challenge in the lean management. It increases the cost of the labor and provides the height salary to the employees. So, a organization need to reduce the cost of the work and should make more effective work at the minimum cost. So, it is the major challenge in the lean management which is faced by the organization (Dües, 2013).

Opposition

It is important for the training and development of the employees. Some people panic from the innovation ideas because they can change or improvement in the organization. It is difficult for the some employees who are working in the organization. The organization needs to provide the effective and proper training and education to their employees. So, it is the challenge which is faced by the organization in the lean management (Cabral, 2012).

There are the some difficulties in the lean management which is face by the organization. The organization is responsible for reducing the all problem or difficulties. They all are given below:

Supply Chain Issues

It is a difficulty in implementing the lean management which is faced by the organization. The raw materials are totally based on the demand of the consumers and it is also helpful in the decision making which provide the effective objectives to the organization. The supply chain should be effective for the organization production. An organization need to coordination with suppliers in the supply chain management.

Employee Development

It is also a difficulty in the lean management. If the employees are not educated in that case it creates the problem in the lean management. The employee development is important for reducing the unnecessary difficulties which is facing by the organization in the lean management. An organization need to select the educated and trained employees in the lean management. So, it is main difficulty in the lean management which is faced by the all department of the organization.

Cultural Issues

Cultural issues are the main difficulty in the lean management. The cultural issues are comes from the outside the organization. A effective culture provide the effective supply chain for the organization. The lean management need to small number of employees in the organization for taking the more responsibilities. An organization should identify the problem and issues related to the culture and after the identification, an organization need to reduce these difficulties for implementing the lean management (Erik Eriksson, 2010).

Technological Challenges

The technological challenges are a major difficulty in the lean management which it faced by the organization. The innovative and effective technologies is useful according to the modern time. An organization should implement the new technologies in the lean management for the purpose of the organization. An innovative technology provides the effective organization labor. So, an effective or innovative technology can reduce the difficulties of the organization.

Conclusion

From the above mentioned report it has been concluded that all the information is related to the lean supply chain management. It provides the effective supply chain for the organization. The lean supply chain management is important in the warehousing and its related inventory management. In this report, it has been also mentioned about the tools, principles, concepts and framework of the lean management and how they can be effective in the organization. What are the difficulties and challenges in the lean management and how the organization can minimize these difficulties and how they can improve the challenges.

Reference

  • Myerson, P., 2012. Lean supply chain and logistics management. Colombus: McGraw-Hill.
  • Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.
  • Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.
  • Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: Processes and supply chains (Vol. 1). New York: Pearson.
  • Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A balanced approach. Cengage Learning.
  • Heizer, R. and Barry, R., 2013. Operation Management, Sustainability and Supply Chain management (Vol. 11). Pearson, UK.
  • Jacobs, F.R., Chase, R.B. and Chase, R., 2010. Operations and supply chain management. McGraw-Hill/Irwin.
  • Thun, J.H. and Hoenig, D., 2011. An empirical analysis of supply chain risk management in the German automotive industry. International Journal of Production Economics, 131(1), pp.242-249.
  • Dües, C.M., Tan, K.H. and Lim, M., 2013. Green as the new Lean: how to use Lean practices as a catalyst to greening your supply chain. Journal of cleaner production, 40, pp.93-100.
  • Martínez-Jurado, P.J. and Moyano-Fuentes, J., 2014. Lean management, supply chain management and sustainability: a literature review. Journal of Cleaner Production, 85, pp.134-150.
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