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SCM - Part 6 - Fixed

Lean supply chains focus on cutting costs by producing high volumes of products with low variability. Key steps to implement lean principles include making customer consumption visible, reducing lead times, leveling the flow of information and materials, collaborating with partners, and focusing on total fulfillment costs. Agile supply chains are built to be highly flexible to quickly adapt to changing situations like economic changes or demand fluctuations. They focus on responding to market demand with smaller, customizable batches. In summary, lean supply chains are more cost-effective and predictable while agile supply chains are more flexible and adaptable.

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35 views

SCM - Part 6 - Fixed

Lean supply chains focus on cutting costs by producing high volumes of products with low variability. Key steps to implement lean principles include making customer consumption visible, reducing lead times, leveling the flow of information and materials, collaborating with partners, and focusing on total fulfillment costs. Agile supply chains are built to be highly flexible to quickly adapt to changing situations like economic changes or demand fluctuations. They focus on responding to market demand with smaller, customizable batches. In summary, lean supply chains are more cost-effective and predictable while agile supply chains are more flexible and adaptable.

Uploaded by

liwanzeinmubarok
Copyright
© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
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Lean and Agile Supply Chain

NURSERY NASUTION
Lean Supply Chain - Introduction
Lean : doing more with less

Lean supply chain management is about removing waste or


unwanted components from a process. Most often this process is
applied to manufacturing, where supplies can be ordered as they are
Lean Supply needed rather than back-stocking a lot of inventory.

Chain Lean is great for company that create goods with high volume but low
variability.

A lean supply chain focuses on cutting costs by producing high


volumes of products with low variability.
•There are basically five key steps on how to implement lean principles in the supply chain:
• Make customer consumption visible : understand how customers consume your product – in what
quantities and at what rates.
• Create velocity: Reduce lead-time and increase speed throughout the supply chain. Focus on flow or
how to keep products moving.
• Level the flow of information and materials through the supply chain: companies accomplish this step
by implementing pull systems that allow customer consumption to trigger the pace for the rest of the
supply chain.
• Collaborate and create a problem-solving culture: Companies need to start collaborating horizontally
and vertically with partners, suppliers and customers throughout the supply chain.
• Focus on the total cost of fulfillment.
Agile = flexible

Agile Supply Agile Supply Chain is built to be highly flexible for the purpose of
being able to quickly adapt to changing situations. This methodology
is considered important for organizations that want to be able to

Chain
adapt to unanticipated external economic changes, such as
economic swings, changes in technology, or changes to customer
demand.

An agile supply chain focuses on responding to the market demand


with smaller, customizable batches of items.
a lean supply chain is more cost-effective and
predictable, while an agile supply chain is
more flexible and adaptable.
Thank You

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