Lean The Lean Supply Chain Management - 1552 Words

Lean Management Approach In modern day world, organizations are facing a myriad of challenges. They are facing increasing and continually changing demands by customers, keen and knowledgeable competitors who seize every opportunity that comes their way, and a reduction of the resource base owing to increase spending. Most organizations, therefore, are seeking to increase customer satisfaction, reduce operational costs of doing business, and change their research strategy to improve their know-how on new trends in the market as a way of grasping a competitive edge among their competitors. Companies are engaging the lean supply chain management as a way of achieving their goals. As such, through the approach they can provide the right†¦show more content†¦Lean management eliminates instances where an organization requires pressuring suppliers to reduce prices, it eliminates the use of batch and queue method in managing inventory, and instances where an organization is forced to hold inventory in the semi-finished product status all of which cause missed opportunities for identifying wastes and adding value (Maleki Machado, 2013). The Lean Supply Chain Management (LSCM) approach leads to several effects in the firm. To begin with, due to the planning process involved, a company will reduce the number of suppliers that they have for each commodity that they regularly purchase. The approach will bring about the concept of vetting and which will lead to one or a few suppliers (Slack, Chamber, Johnston, 2007). Additionally, a company will look into the finer details of the company that they intend to keep as their supplier. They (the company) will look for details about corporate culture, growth plans, and technology and check if they tally with its own. A supplier whose detail will be similar with that of the company will then be taken up and upheld as the supplier. The aim of this will be to maintain a cordial relationship that will be defined by similar principles. Further, a company will identify and keep supplier partners because of the future growth of the company. Undoubtedly, after