Lean enterprise principles and practices have been widely adopted in many companies and continue to enjoy strong support. Many organizations have realized incredible gains such as faster cycle times, reduced costs, higher quality and increased customer satisfaction. The lean movement began in manufacturing and has spread to administrative functions and services industries such as healthcare and education. But in one area in particular, procurement and supply management, applying Lean can be very effective, but is not as well understood.
Often Lean Procurement is viewed primarily as an inventory reduction method where a customer reduces its own inventory exposure by just-in-time material shipments from suppliers or by arbitrary reduction of inventory in the supply chain. Others see Lean Procurement as implementation of procurement and supply management automation software. Or, some companies think that the “lean and mean” approach — staff cuts — will make procurement Lean.
Interested in finding out more? I’ve just written a white paper for BravoSolution’s thought leadership series: Using Lean to Improve Procurement and Supply Management.
After you’ve had a chance to read this white paper, please let me know your thoughts and reactions.
-Sherry R. Gordon