A Lean Supply Chain for Cosmetics and Food - What Makes it Special? - (3/3)

by Dawn M. Turner on May 13, 2020

Business relationships are an essential component of an efficient and successful Lean supply chain for cosmetics and food, including those in which Desjardin is a participant. The Lean supply model is special because it provides 12 elements that are designed to improve efficiency in a businesses’ value chain and supply base.

1. Delivery Practices – Lean Production and Logistics

The aim of Lean supply is to adopt Lean production. To do this, many aspects of relationships need to be considered. All elements of the chain’s relationships may be involved when Lean production principles and practices are transferred from internal organizations to suppliers.

2. Problem-Solving with Continuous Improvement

Lean focuses on continuous improvement to the supply chain. Therefore, those adopting Lean supply principles perform problem-solving activities with their second-tier suppliers.

3. Flow Integration and Systems Supply

Integration of flows start at the lower business relationship level. The production departments of buyers and suppliers, activities that have taken place, and resources used are crucial to achieving flow integration.

4. Supplier Involvement in Product Development

Lean promotes supplier involvement in product development. This is extremely important when manufacturers are developing a new design to have their suppliers involved at an early stage.

5. Customer Focus

In Lean supply, the customer focus element is related to production processes that have been adopted in terms of demand. However, this focus does have an impact on activities like implementing pull systems and inventory reduction.

6. Supplier Quality Assurance

Activities, such as supplier quality assurance that is done through an evaluation system are directed at relationships with suppliers. These activities emphasize a supplier’s improvement based on feedback generated through evaluations.

7. Effective Communication and Information Sharing

Effective communication is crucial for sharing information and promoting trust and understanding among all actors of the supply chain. This includes sharing production information that is sometimes confidential in nature.

8. Collaboration and Partnership

Activities, such as joint problem solving, and improvement are included n collaboration and partnership. These collaborative practices are devoted toward improving single relationships with suppliers.

9. Long-Term Relationships

Long-term relationships are like collaboration and partnership in building bonds between supply chain members. Maintaining these relationships involves many different activities, including resource mobilization and actor engagement.

10. Few Suppliers in the Supply Base

This element focuses on how firms relate to their suppliers and the number of suppliers that are used for single products. How supply chain activities are coordinated and conducted, includes aligning expectations of supply and sourcing arrangements.

11. Multi-Criteria Supplier Selection

While multi-criteria supplier selection is similar to the element of few suppliers in the supply base, it can become more complex with activities that go beyond simple supplier choices. This element addresses how firms approach their network of supplier relationships.

12. Supplier Development and Support

Relationships with suppliers require activities to help achieve supplier development and support in Lean supply chains. This may include training, supplier associations, or visits between firms.

Desjardin’s Role in the Lean Supply Chain Model

As a provider of metal packaging for cosmetics and food products, Desjardin enters the Lean supply model as part of the JIT process of the supply chain. Desjardin does not package products, but instead, supplies manufacturers with adapted tins (made from tinplate or aluminum) that are custom printed according to each manufacturers’ specifications. These specifications may include using the same type and sized tin but using varied printing for example for products sold in different regions or different content.

When included in a manufacturer’s lean supply chain, Desjardin responds to manufacturing’s need for packaging according to demand pull. This helps prevent manufacturers from experiencing bottlenecks while having to wait for packaging for products that are ready to be sent out and distributed in a timely manner.


References and Further Reading

  • Read more about industrial supply chain management for food and cosmetics manufacturers (2019 - today)
  • Viewing lean supply from the IMP perspective (2020), by Leandro D.B. dos Santos, Elsebeth Holmen and Ann-Charlott Pedersen. In:  Journal of Business & Industrial Marketing, ISSN: 0885-8624
  • ERP Integration as a Support for Logistics Controlling in Supply Chain(2011), by Adam KolińskiPaweł and FajferPaweł Fajfer.
    In: Information Technologies in Environmental Engineering – new trends and challengesPublisher: ESE. SpringerEditors: Golinska Paulina, Fertsch Marek, Marx-Gomez J

Topics: Supply Chain, Food, Lean, Cosmetic Packaging

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