Lean Management Approach Essay
Lean Management Approach Essay – Organizations face several obstacles in today’s environment. Customers’ expanding and constantly changing needs, astute and experienced rivals that embrace every chance that presents itself, and a decline in the resource base due to increased spending are all challenges they face.
As a result, most firms are attempting to raise customer satisfaction and lower business operational expenses. They adapt their research approach to improve their knowledge of new market trends to get a competitive advantage over their competitors.
Companies are implementing lean supply chain management to achieve their objectives. Using this strategy, they can supply the correct product in the right condition, in the right amount, and at the appropriate time and location.
Description of Lean Supply Chain Management
Lean supply chain management is a management strategy that enables manufacturing and subsequent planning along the supply chain. Consequently, any disadvantages that might otherwise define the supply chain, as in the case of the traditional form of the supply chain, are eliminated.
The strategy is to design and implement new activities that will assure success. In doing so, the method removes an organization’s reliance on supply forecasting and the complexity that it involves. Instead, an organization will be forced to plan and, consequently, accomplish more than they would have if they had projected.
The Lean Supply Chain Management (LSCM) strategy has numerous implications for the organization. First, because of the planning process, a corporation will lower the number of suppliers it has for each product it routinely purchases. The method will introduce the notion of vetting, resulting in one or a few vendors. A corporation will also investigate the finer points of the company that they desire to maintain as a supplier.
A supplier whose details are identical to the firms will then be accepted and maintained as the supplier. The goal will be to preserve a friendly relationship characterized by similar ideals. Furthermore, due to the organization’s potential expansion, a corporation will discover and retain supply partners.
Without a doubt, after implementing lean supply management, the firm will have more room for dialogues in which it can comprehend quality, pricing, and technical concerns concerning the supplier’s goods and make informed judgments.
The firm will obtain cost data ahead of time, avoiding the common duplication of work. It will also put in place procedures to help quantify the cost of poor quality and any other obstacles that arise throughout supply, such as transportation concerns. Finally, the management strategy will put the supplier in a situation where they will actively seek to please the firm.
Because dual commodity sourcing is reduced, a company’s flexibility will be limited. As a result, a firm’s sole supplier may influence it for their selfish advantage. As a company adopts this method, it will most certainly become overexposed due to the relationship.
Because they will be locked in, it will be impossible for a company to switch vendors. The firm may suffer as a result of this. Small enterprises will move resources away from their main activity and towards the supplier chain. They will face business failure in the long run. The technique has hidden costs, such as the company operation not being solid; it may end up overpaying.