Lean thinking is a management concept that takes its cue from management practices implemented by Toyota and eventually other members of the Japanese automobile industry in the 1980s. Manufacturers who implement Lean management do so with the goal of achieving operational improvement and cost reduction. While some firms keep to the initial focus of Lean, which is to improve internal efficiency, it can be extended to external suppliers as a way of coping with uncertainty within the supply chain. Lean Supply (LS) techniques are used to focus on external integration and extended value streams that bring value to products and services that help sustain value chains, while keeping businesses competitive.
The Lean Supply Chain Model
A Lean supply model for manufacturers of cosmetic and food products has 12 key elements:
1. Lean production and logistics, which includes “Just-in-Time” (JIT) delivery, Pull, and Flow
2. Problem solving and continuous improvement, which includes frequent feedback and shared risk/benefit
3. Flow integration system supply for integrated and continuous flow
4. Involvement in product development
5. Customer focus involving CRM
6. Supplier quality assurance through a strict process and evaluation system
7. Effective with information sharing, including supplier feedback and communication
8. Collaboration and partnership
9. Long-term collaboration with focus on trust and commitment
10. Few suppliers that helps for better inventory management
11. Supplier selection based on multiple criteria, including relation or added value
12. Supplier development which provides programs to support development
Within the Lean supply model, favorable conditions are created for manufacturers and suppliers to share best practices and build relationships. This can be crucial for integrating resource flows and performing collaborative improvement. Such improved relationships are essential for enhancing supplier efficiency.
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