Apply Lean to create a sustainable supply chain

Supply chains are vital to the success of any manufacturing company. The transfer of goods – whether parts between different factories or finished products to retailers – is a crucial part in the manufacturing process as it impacts every step along the way, from product conception to customer sales. A company with an ineffective supply chain will have issues with delayed production and struggle with keeping retail stores stocked.

This is precisely the reason many businesses have decided to apply Lean practices to their supply chain processes. By focusing on efficiency and streamlining operations, a number of companies have been able to improve transportation times and minimize costly delays. At the same time, they've also been able to lessen their ecological footprints – shorter transport times and minimized delays translate into fewer resources burned.

There is a synergy between Lean and green supply chain operations, asserts the Financial Times Press. By going green and Lean, companies can discover both internal and external savings.

The internal

The internal supply chain consists of the technologies that are being used to make companies more productive.

“Implementation leads to lowering the amount of space and resources necessary to perform the job,” the news source explains. “This represents the definition of Lean and Green sustainability. The sustainability effort needs to incorporate workflow technologies and the use of software to minimize the use of paper and other costly resources.”

The external

On the other hand, the external side of the supply chain represents suppliers and customers who are involved with the transport of goods. Companies can grow more efficient by collaborating with these parties and using various software to reduce organizational costs and eliminate carbon footprints. When tasks such as forecasting are streamlined, everyone involved in the supply chain can benefit.

By combining these two factors, businesses will not only be able to bolster their own productivity, but also make a meaningful impact on the environment.

“Sustainability is meeting the needs of the present generation without compromising the needs of future generations. For every $1,000 spent on Lean technologies, there is a green payback of approximately $426, which includes savings in the environment,” the Financial Times Press explains.

In today's business climate, achieving sustainability can go a long way in wooing over customers who have become more conscious of their impact on the environment. Lean is one of the best ways of achieving that goal.