Extending Lean Supply Chain Thinking

Page 11

Business901

Podcast Transcription

Implementing Lean Marketing Systems Once we took over, we were able to actually manage it so much better. We had a better presence of our product. We were never out of stock. We carried two, three, four weeks of supply. We were placing the orders before them. In effect, we were helping them become Leaner and have less inventory, less quality issues, less out of stock, things like that. It's kind of a win/win situation with our customer, in that case. Joe: It sounds like a great opportunity for sales and marketing people to really expand on by getting deeper with the customer. Those are significant relationships you build up by doing it that way. Paul: Oh, absolutely. Quick response started in the apparel industry, I think, in the late '80s. So some people are already doing this kind of thing and they don't need to think of it as Lean. Again, I take a lot of the thoughts and concepts and things that have been going on and kind of put them under this Lean umbrella. But it's certainly a competitive advantage. I think the key thing is that companies, like a manufacturer, have to think about and say, "Well, maybe I have to have a few more planners. I have to create a structure where marketing and sales and operations work together as a team to go to the customer and try to sell this as, 'Hey, we can help you manage your inventory better.'" It's going to cost you something in the short run in terms of maybe I have to have an extra planner or have some more meetings or effort or travel time. But in the long term, as I said, it reduces that bullwhip effect so your customer gets Leaner, you get Leaner, and everybody wins. Joe: Why is Lean so popular in the supply field? There are Theory of Constraints, Demand-Driven planning but Lean seems to be the popular methodology out there. Extending Lean Supply Chain Thinking Copyright Business901


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