Supply Chain

  Like many other areas that lean is applied to a company's supply chain or "extended value stream" is a tightly linked set of processes.  These processes extend beyond one's organization and connect the entire system together.  The Apics dictionary ©2015 defines the term supply chain as the global network used to deliver products and services from raw materials to end customers through and engineered flow of information, physical distribution and cash.  This includes everything from purchasing, manufacturing, moving, storing and selling.   
  Lean principles and concepts can be applied to this global network just like it can be applied to our door to door value streams.  Some benefits of applying lean principles to the supply chain are:

• Inventory can be reduced throughout the supply chain (RAW, WIP and FG) creating a more efficient "turnover".
• Sharing lean techniques or offering support to help vendors improve quality, efficiency and resource utilization can be a win win situation.
• Lean principles when applied to sales can free up sales teams to go and create new opportunities.
  
• Driving waste from the value stream creates a healthier capital environment that in turn benefits the world.