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Lean Procurement PDF Print E-mail
Written by Richard Lebovitz   
Monday, 23 August 2010 00:00

In today’s demand-driven manufacturing and supply chain world, your company faces growing challenges around market volatility, costs, long lead times and unpredictable forecasts. Your inventory management decisions can make or break your firm’s financial bottom line. LeanDNA's Lean Procurement solutions lets your company meet these daily challenges and optimize working capital efficiency.

The challenges of Supply Chain Management in Today's Complex Business Environment

In today’s volatile market, forecast accuracy is almost non-existent.   Manufacturing operations are more global and complex.  Customers demand more but want to pay less.

Companies expect their procurement and supply chain organizations to provide purchased materials and assemblies on time, at the lowest costs, and highest quality to meet their customer demands. But Procurement staff often lack the processes and visibility to drive the efficiencies required in today's competitive environment.  The lack of analytical tools and Lean Best Practices often results in the procurement of too much of what is not needed and critical shortages on those items needed today.  The end results is excess inventories with missed deliveries.

Purchasing organizations cannot afford long material lead-times. And if suppliers cannot deliver consistently on time, they will be replaced. Today’s “pull” supply chain replenishment processes are better than traditional procurement practices, but they are still not optimized, lack visibility, lack tools for collaboration and are not leveraging the best practices expected of Lean principles.

What are the financial and business objectives for your company? Inventory management and supply chain decisions are becoming a critical component in the financial performance of your company.

The Objective:  A Lean Procurement System

Today, the buyer’s responsibilities have changed dramatically. Instead of simply finding the right materials and services at the best price, buyers must play a critical part in improving the flow of information and materials throughout the supply chain.  Through these demand-driven supply chains, their goals are to accomplish the following:

  1. Prevent Shortages
  2. Reduce Inventory Investment
  3. Reduce Procurement Lead Times and Optimize Buying Quantity
  4. Implement Lean Best Practices and Systems


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