Lean Supply Chain Management Essentials

6 Lean suppLy ChaIn ManageMent essentIaLs

In addition to defining Lean, let’s make sure that we are all on the same page when

defining philosophy:

• e rational investigation of the truths and principles of being, knowledge, or

conduct

• A system of principles for guidance in practical affairs

—Dictionary.com

It is important to note up front that Lean involves the entire company, not just the

manufacturing part. While the above definition of Lean from the APICS Dictionary is

focused on Lean manufacturing, the word Lean has expanded to include administra-

tive functions as well.

Why is Lean being so widely adopted? Companies go Lean to:

• Increase velocity

• Decrease working capital

• Increase cash flow

• Increase inventory turns

• Gain market sha ...