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