Lean Supply Chain Management


LSCM (Lean Supply Chain Managment), referred to as "LSCM, comes from Lean production management. Refers to the entire supply chain link including upstream and downstream of the chain optimization and transformation, remove unnecessary steps, delays, waiting and consumption, and eliminate waste in the enterprise, minimize costs, maximize meet customer demand in a series of process of planning, implementation and control of the supply chain.

Lean supply chain management requires the joint efforts of upstream and downstream of the waste and reduce the cost of the entire process. A single industry to the internal implementation of lean production, but the requirements of lean supply chain upstream and downstream enterprise work together, not simply to push such as inventory and the cost to the supplier is fine. In fact, this is all supply chain participants coordinated efforts as a result, only cooperation can establish lean supply chain management.

Enterprise strategic orientation is different, the measure standard of success are different: when the enterprise USES the concept of "lean", "cost" is the yardstick of success.

Cost not only refers to the definition of the production cost of products, but rather refers to the total cost of the product delivery process in the supply chain: the total cost = material processing cost + cost of marketability in the market.

Material handling cost includes all of the above formula, the cost of production, distribution and storage, this part of the cost is directly related to the efficiency of the enterprise; And marketability in the market cost is refers to the losses and costs caused by the outdated or out of stock, in the past in traditional cost calculation does not consider this part of the cost, but in today's fierce competition environment, consumer for brand loyalty is big than before, this part is produced by the outdated or out of stock and the cost is irreparable, more should cause the full attention of enterprises.

Lean supply chain management research and application

More and more enterprises begin to research its supply chain, and focus on the company's core business, while outsourcing the non-core business, in order to reduce operating costs, improve the resilience and flexibility. Many companies are through the original adopt the ideas and methods of lean manufacturing in the factory application in supply chain management, across the network of supply and demand, create more value for customers.

Experts point out that supply chain research, lean has changed the mode of production and supply mode, which USES frequent small batches of transport to reduce inventory, JIT needs to work closely with suppliers, using simple kanban techniques to simplify the ordering method reduces the complexity of the supply chain, steady circulation of kanban is used to reduce the variability of the supply chain. However, JIT has also caused the fragility of the supply chain, any interference in the supply chain will make the whole chain to stop operation. Although JIT also has its limitations in some respects. But in a suitable production environment, use appropriate, JIT can bring great improvement. The pursuit of lean shows a decrease in the supply chain complexity and variability.

Which is more prompt managers from the perspective of supply chain speed, quality and cost.

(1) how to control rapid delivery, which requires coordination ability. Contains two aspects: the management of multiple suppliers and multiple suppliers and logistics transportation coordination ability and technical ability of coordination and integration of multiple heterogeneous system, through the supply chain, make transparent, supply chain alliance, collaborative, and adaptive.

(2) how to control multiple identification standard of product quality, factory set up quality standard system of different industries such as automotive industry TS16949.

(3) how to look at from the perspective of the total cost of the supply chain costs. Local costs, could lead to a total supply chain costs rise, the need to optimize the entire supply chain.

In fact, build lean supply chain strategy contains at least two important thought: originated in just-in-time production system (JIT), lean thinking and the theory of constraints (TheoryofConstraints).

Originated in the Toyota production system of just-in-time production system directly led to the rise of Japan in the 1970 s, after being applied to car companies in the United States. In the 90 s, the American scholar Womack (Womack) and Jones (Jones) developed a JIT thoughts, they think that the core of lean thinking is to eliminate the process of all kinds of waste, including inventory, transport distance, waiting time, etc. This thought also is enterprise implementation of business process reengineering (BPR) is the important guiding principle. Direct benefit is eliminating waste to streamline organization, process optimization, so as to compress the lead time, improve the response speed of the market. Releases the resources can be used in other business, so as to support the long-term growth of the firm.

High draht (Goldratt) novel "target" idea to the theory of constraints. He believes that the goals of the enterprise is to make money, and the ability to make money is determined by the bottleneck of enterprise resources ability, bottleneck resources idle means that companies in the waste of resources. Therefore, the enterprise all the activities are arranged around the bottleneck resources. Other theories are mostly concentrated in the enterprise's each link, steps, or the improvement of each procedure, think that as long as all links to do our best each other, will have the largest improvement of whole enterprise.

High Della, think the enterprise each link related local optimal optimal, does not represent the overall improvement of a single link can affect the overall efficiency of the enterprise. An American firms, for instance, if only from the cost of production, the production of certain goods can be outsourced to overseas factories, but this will affect the enterprise response speed of the local market. Theory of constraints, therefore, is to emphasize the essence of the system thinking, rational utilization of limited resources to create maximum value stream.

The role of lean supply chain management

Choose lean strategy, for upstream or downstream supply chain management has tremendous measurable benefits, including: reduce the inaccurate demand forecast uncertainty which brings to the supply chain; Reduce the delivery cycle to ensure rapid response to market changes; Increased working capital utilization; Enhance production capacity; Guarantee better time performance. When successful application of the lean strategy, enterprises can improve performance, increase income and improve cost advantage. Due to the appropriate lean concept, principles and policies taken, so as to improve the market share, thus make the enterprise to increase sales and profits. Applying lean concept, and adhere to the correct principles and policies, to make the enterprise in the fierce competition.

Four, the challenges of the lean supply chain management

The lean strategy in product demand is relatively easy to predict, less varieties of bulk large enterprises is relatively easy to implement. Today the customer as the center of the consumer era, customers demand more and more picky, competition between enterprises is becoming more and more fierce, it brought two major challenges for the implementation of the lean supply chain: how to coordinate the supply chain of enterprise to make the global optimal decisions at all levels? How to deal with changing customer needs and market environment?

Traditionally, in the supply chain because of a lack of coordination and information sharing between enterprises at all levels, only make decisions to suit their own interests, resulting in a decline in supply chain efficiency and distortion of information, namely the bullwhip effect, a negative influence on the supply chain management. Just think, if one day customer orders reduced, in under the influence of bullwhip effect, manufacturers may greatly reduce production, thus caused the shortage brought about by the loss of who should assume? In this highly information-based society, the accuracy of the information of the serious influence the quality of decision making. Build lean supply chain, should strengthen collaboration and information sharing between enterprises, maximize the elimination of the negative impact of bullwhip effect in supply chain.

Some enterprise in order to improve the efficiency of supply chain, tend to construct large centralized supply chain. Due to a lack of ability to respond to market changes, the model of supply chain under the trend of globalization is often don't have a competitive edge. Lucent company's electronic switching system department in the last century the late 80 s to establish a set of quick response supply chain costs low. The system will be all the company's spare parts procurement, production, assembly, testing, shipping department on all located in Oklahoma city, Oklahoma city (Oklahomacity).

Because at that time most of the company's customer orders from the United States, and almost all of the raw material suppliers are located in the United States, the centralized supply chain play a huge advantage. But in the last century 90 s, with the rapid rise of the Asian markets, lucent's response to customer orders speed significantly extended, because they have no factories in the far east. In addition, due to the processing of orders across the ocean need huge investment, on the time and money in product customization and alcatel-lucent did not look good.

Later, as the lucent's raw material suppliers are moving factories to Asia in order to reduce labor costs, enterprises are faced with the problem is more serious, they had to raw materials from Asia to the United States, will have finished the order back to Asia again, virtually created a lot of waste. For this kind of situation, lucent in 1996 decided to set up factories in mainland China and Taiwan, in order to solve the difficulties in terms of supply chain.

Lean supply chain management requires six core competences:

Three experts Kate Vitasek, Karl Manrodt and Jeff Abbott specially carried on the investigation and study, experts say six competencies should be equally important to pay close attention to at the same time. If who want to build a lean supply chain, then it must be at the same speed and equally treat the six skills.

1, requirements management capabilities

Lean principles is the basis of the products are made from real consumer demand and bring "thrust"; Is not the company will try our best to product "to" the result of the market. Ideally point-of-sale (POS) data can be real-time transmission to all partners in the supply chain. And each layer of the supplier can receive the demand of consumer information.

We take geely company as an example, the POS system from the vendor to receive real demand data, through these data establish replenishment orders, will the right product number sent to each store. At present the company is developing RFID technology (i.e. the so-called electronic tags), the purpose is to continuous monitoring of inventory, and when need to replenishment the computer system can provide automatic notices, to remind staff pay attention to.

Known from this practice is, in fact, solve the supply chain "bullwhip effect", namely the initial demand information in supply chain transfer process due to the information distortion and the original requirements the infinite amplification process. This will only lead to manufacturers can't respond fast and accurate to demand.

2, waste, and cut costs

Waste reduction is the key tenets of lean supply chain management. The meaning of "waste" covers more widely, including time, inventory flow data redundancy, garbage, etc. Please note that the focus on "waste reduction" rather than the cost. Mainly to suppliers and customers can feel confused "less of a threat". Actually, cut waste often produce an important by-product of all members in the supply chain cost is reduced. If the target is to cut waste, so most of the participants are willing to consider each other throughout the process.

We with dell computer company as an example, the company according to single production mode is very much in the first core competency - the demand management. Actually, dell company work closely with suppliers to cut inventory, improve the process. The company's inventory turnover is calculated on the "hour". So dell can more quickly than its competitors introduce new technologies and products, such as on the CPU upgrades, not on sale to market either too much or obsolete processors. Now that company does not need to keep unfinished products (according to orders on-demand production), thus saving the cost and reduce the "waste".

3, process and product standardization

Process standardization can make products and services throughout the system to continuous flow. Can borrow management here are very famous in the "value chain" theory, namely the whole process of every activity can bring value to the consumer. Process standardization can reduce the complexities of the past, in other words, the enterprise should first decide what is best way to management process, and the standardization of practice.

We in Toyota, for example. The company is very emphasis on standardization of processes and tools to arrange, this greatly reduced the production time of each car. Toyota and suppliers at the same time, to help suppliers to adopt similar lean practice, the corresponding implementation of the standardization in the whole supply chain.

Establish product standardization, the enterprise can also benefit a lot, especially in parts of standardization. If component standardization in the whole production chain, research, production, storage and can save cost.

4, and adoption of industry standards

Establish industry product standards not only benefit for consumers and manufacturers, so that can reduce the complexity of product difference. In consumer electronics products in the industry standardization problems. Class electronic products, such as USB memory in the industry has the standard USB interface specification, the manufacturer, as long as they are in accordance with the specifications in the universal. We can imagine if every manufacturers to launch their own USB interface requirements, then the result will be how? Actually produced by companies such as dell, HP, and lenovo PC function and quality about the same, the biggest difference lies in the name of the product, marketing strategy, after-sales service and so on.

For all partners in the supply chain, using industry standard can effectively save costs (including production cost, communication cost, information cost), and "tacit understanding" between the upstream and downstream production and logistics service, and according to requirements of the industry that is between each enterprise with a "common language" to communicate with each other.

5, a cultural change ability

Want to successful implementation of the lean supply chain, including one of the biggest obstacles is resistance from employees. Those who act according to the old people don't want to change on the one hand, on the other hand, there may be a quick profit. So cultural change is becoming the key of the success implementation of the lean supply chain challenges.

Success of culture change requires, first of all, to formulate a clear roadmap. In the face of the change of time or a turbulent period, employees want to know the development direction of company, what is the future? Roadmap should be clear to the employees on lean ways the purpose and benefits of, and the development direction in the future.

6, cooperation across the enterprise

Through mutual cooperation practices and processes, in the supply chain partners need to work together, to maximize "value chain", meet the needs of the consumers. In order to achieve this goal, first of all to know is how to define the value of the consumers. Any additional services provided by the enterprise, only consumers think is valuable, so these services to value for money.

Based on supply chain across the enterprise is to maximize the "value chain" effective method. In lean supply chain, the teams that can't be function orientation, also can't just focus on the enterprise internal. They should focus on the entire supply chain and assemblies to find out solutions are beneficial for all participants. The most effective team should include all from end to end supply chain cooperative members of the company. And the team members should come from the main supply chain functions, such as planning, procurement, manufacture, delivery, finance, technology, etc. In the best case comes from the retail supply chain cooperation. For instance. Worm of cooperation between companies and their suppliers.

Two key lean supply chain management

Lean management of the core issues is to eliminate all unnecessary activities in supply chain, simplify processes across the supply chain, increasing the flexibility and bring more value for customers. Creator Taiichi Ohno got the Toyota lean production systems will waste in the supply chain is divided into seven categories: to correct the mistakes, excessive production and unnecessary inventory, unnecessary processing, unnecessary mobile, unnecessary goods transportation and waiting for the invalid.

In the process of implementing lean supply chain, supply chain managers use a variety of different ways, such as six sigma, SCOR model, kanban management, and VMI, etc. But either way, the lean supply chain strategy of the ultimate goal is to contribute to an efficient and quick response organization, realize the synchronization of supply chain processes and timely response to customer demand changes. To achieve this goal, all participants in the supply chain must have visibility of information, and so on between companies gain greater control over the process.

But the reality is that the market competition forces companies to constantly increase the range of products, and will be more and more outsourcing. Every company is relying on external organization finish the work in many aspects in the supply chain process. As a result, no company can obtain all visibility into the entire supply chain process.

No visibility and timely and accurate information, supply chain manager cannot effectively control processes and eliminate waste. For example, if demand changes could not be delivered to the supplier in time, inventory surplus or shortage will occur, and if the supply constraints fail to show up in the supply chain, supplier may appear communication mistakes or delays in order confirmation. Similarly, if the system is not integrated, or data not use sharing mode, not only a waste of time and money, also to the integration error due to manual.

Supply chain visibility and control

How to get visibility in the supply chain? First, all participants must be able to see the product by contact with real-time information, guarantee the accuracy of the product can be passed on to the customer. At the same time, they also have to believe in the accuracy and source of the information. Trust can be built over time, or you can through the contract and the framework agreement set up immediately.

For all supply chain participants, single real-time information is very necessary, it is the key to realize supply chain parties acting in concert. Even a very simple process, such as a single order, if implemented in the supply chain information visibility, and can be realized by the parties of the supply chain moving in tandem and be able to improve. Retailers for your store to buy a computer, for example, send a order to computer manufacturers. Computer manufacturers in the middle of the procurement office to accept the order and arrange production, and then through the third party logistics partner to delivery order. Order before has not been assigned to retailers, 3 pl partner to retailers. In this simple process, there are four parties involved: 3 pl partner retailers, retailers, computer manufacturers, computer maker, 3 pl partner. If can deliver goods in order confirmation procedure, advance notice and receiving notice of information in real-time in the process of visibility, will help to eliminate the manual tracking order status and such additional work, promote supply chain parties to work efficiently.

However, this seemingly simple single order process in reality is not so simple. Because in addition to the above four, other parties may be involved. Such as when a computer manufacturer received a single order of mass, they likely will order to other contract manufacturers, and outsourcing contract manufacturer will according to the received orders, arrange production from the global production capacity, supply of raw materials, obtained from the center of VMI and issue the new purchase order to the raw material suppliers.

To participate in the VMI contract manufacturers in the process after received the new purchase order, supplier to replenishment of VMI center, in order to meet the next cycle of manufacturing plan. For supply chain parties to effectively follow the process, the requirements from VMI order, production plan, pick up the goods in the warehouse and inventory information real-time visibility is crucial. If turn to more upstream of the supply chain level, you may also find need replenishment on VMI center hard drive suppliers to inform the factory to increase production in another country. In this way, and will start the procurement and logistics process is discussed.

More aptly said, when the relevant information in real time to improve visibility and safety, can have higher efficiency of supply and demand network, the entire supply chain can achieve lean. Visibility of information will help supply chain managers to improve control of the entire supply chain process. In addition, the relevant information and process synchronization, real-time reflect exceptions in the supply chain and supply chain key performance indicators (kpis) real-time visibility and contribute to the formation of a lean supply chain, and help supply chain managers can effectively control the entire supply chain process.

Timely and accurate data can help managers immediately to solve potential problems. , for example, a problem of unmet needs, if you need to rely on manual search supply chain parties held by different data table, not only time consuming, and often the problem has not been identified and resolved, it has become even worse. In addition, the real-time visibility for key performance indicators (kpis) can help supply chain managers and the effective collection and sorting performance information, so as to timely revise or improve the supply chain.

Implement process synchronization

When process to achieve synchronization between the company and information with real-time visibility, supply chain managers can better control on the supply chain. Process synchronization can make non value added activities, such as waiting, unnecessary processing or unnecessary buffer stocks are minimized.

The JIT production system is a typical example of process synchronization. Taiichi Ohno got according to the theory of the JIT production is one of the two pillars of eliminating waste. It is a demand driven based system, in order to deliver the right product in the right time for the target. To achieve JIT production and delivery, Toyota invented a kanban production mode, adopting kanban or threatening the production needed raw materials in the process of information communication. Kanban is placed around the production line, when parts are removed, kanban will show the change. Only this way to help enterprise actual consumption in the production of spare parts will send out the new purchase order requirements, the implementation process of synchronization of supply and demand.

When the flow of information to achieve synchronization, on the basis of the demand driven the VMI process is functioning effectively. VMI process is the purpose of inventory management more than one company. When the delivery requirements, delivery quantity, current inventory and demand replenishment quantity, etc. The information in the process to achieve synchronization, the company can dramatically reduce inventory. Supply chain parties according to actual customer demand to take action to keep the consistency of information and product flows. Lean supply chain requires that all company processes, including supply and demand planning and inventory management to achieve synchronization.

Set the exception event management process

Lean supply chain management is focused on by quickly and solve problems, achieve the goal of zero defect. Real-time exception event notification can significantly shorten the duration of problem determination and problem solving, and to reduce supply chain parties to quarrel.

Through exception process automatic management, supply chain managers can will mainly focus on more value-added activities, such as long-term improvements. Taiichi Ohno, points out that process automation is the second pillar, eliminate waste of the supply chain concept is simple and automated and manual intervention management.

Exception event management is a typical example of process automation. Such as Toyota in its production system for prevention measures, namely when observed quality problems, stop production immediately. And once the automated process is intervention, a dedicated supply chain team will use a set of methodology of problem, find the root of the problem occurred, and immediately set out to solve the problem.

The constant progress of science and technology, information process of supply chain exception events not only have the ability to prompt and also can provide alternative systems. For example, the supply chain system can be based on the demand parameters, the current inventory level in library and production cycle, suggest that the number of requirements. When demand beyond the original estimates, including a possible proposal is not to take any action. Because the center of the VMI inventory or future shipments from the supplier show can meet this new demand. Proposal is to start another possible alternative suppliers, in order to meet the growing demand, and to avoid production stop line of the crisis.

Problem between real time notification to ensure that the companies in the supply chain process consistency, and timely response to customer demand changes. Through the class based on the exception event management system, the participants in the supply chain can make quickly to fluctuations in demand or supply changes effective response, to avoid more serious crisis.

Tracking key performance indicators

Lean management is a kind of never-ending, continuous improvement of processes. In order to keep to improve the driving force, supply chain managers must be able to obtain the performance information, supply chain and to share about the company key performance between processes.

To track and share from requirements to deliver the required time period, for example. Track the performance of the key performance indicators (kpis) helps to reduce unnecessary time and cost in the supply chain, and fully meet customer requirements. For simple order process described earlier, in the process synchronization and exception event management, on the basis of integration of historical data delivery, receiving date and exception handling process, can help supply chain managers analyze the root cause of the delay delivery. By analyzing the problem, supply chain managers may find the cause of the problem lies in the two suppliers of logistics services in transport route fails to realize the effective connection, which can lead to time delay. Therefore, supply chain managers only need to use some simple improvement methods, such as to change the delivery plan, or delivery will merge into one of the 3 pl, can achieve continuous improvement, obtain the end-to-end performance.

Another example is to track and report the accuracy of the VMI process in the replenishment needs. Through the acquisition and integration of the VMI warehouse center frequency of demand and inventory, supply chain partners to buffer inventory too high or too low are analyzed and summarized, and adjust the process or take measures to eliminate unnecessary inventory or goods.

Tracking key performance indicators (kpis) for timely response to changes in demand are also useful. For example, a leading semiconductor company in the world in order to manage the unforeseen changes in demand, analyses the historical demand patterns and customer order change trend, based on these data, the company can configure stereotypes about their production capacity, so as to realize in a more accurate way to manage supply.

Lean management information technology investment

Aberdeen company recommendations in a report, in order to promote lean strategy, enterprises need to implement lean supply chain IT solutions. According to the report, many organizations still depends on the data sheets and paper-based scheme, and only a minority of the staff understand the lean management.

IT technology can eliminate the manual work, and to more employees to expand the amount of information. But at the same time investing in IT technology solutions also need apply lean management concept, which does not need to spend too much time for deployment, deployment is not related to, or don't have the function of the elastic. Technical proposal should be has the property of easy deployment and high return on investment. Complex and long implementation cycle is not only a waste of time and a waste of money, also may have value-added role to overall objectives is not unnecessary features included.

Lean methodology thought is gradual change, focus on improve the process of continuous improvement, therefore also includes the gradual improvement of the IT system. A company that is committed to achieve demand-pull management process that can be executed first an integrated planning and execution of the process system, and then migrated to a pure demand response system, and to plan as a "weather forecast", for long-term production capacity planning and management, with the potential demand in more front end processes to respond quickly. As time goes by, more and more lean supply chain, IT technology solutions need to be able to response to changes in the elastic, IT must be a process of continuous improvement and change, rather than to stop this change.

Technical solution must be added value for all participants in the supply chain, as well as bring value for customers is the purpose of the supply chain. IT solutions service for all participants, but do not distinguish between company size and the technical ability difference, both have the ability to handle EDI or RosettaNet company, also can only use simple interface methods such as using the Excel or Internet company. IT technology should not become the dominant factor driving supply chain integration, more can't become hinder the supply chain process integration, and to evaluate supply chain parties.

Investing in IT technology goal is to bring value for all stakeholders, which means IT solutions simply automate existing processes. Industry analysts pointed out that automation of the process for an original, does not represent the implementation process of lean, instead is not really used to the power of science and technology. Which has the best lean practice experience of supply chain manager will to comparison of the original process and simplified, as the prerequisite to import new technology.

Lean the connotation and principles of supply chain management

Lean supply chain originated in Japan's Toyota production system in time is a kind of supply chain management thinking, metamorphosis from the concept of lean production, which is the application of lean thinking in supply chain management. Its core is to eliminate all waste, including inventory, pursuit, with as little resources as possible to create as much value as possible. As a new mode of organization of supply chain, lean supply chain provides a new way of thinking. It includes the following several aspects:

To customer demand as the center. From the customer's position, not only from the enterprise's position, the position or function of a system to determine what what create value, not creating value.

The value chain of product design, manufacturing and order of each link carries on the analysis, find out cannot provide value-added waste.

Create only driven by customer value in a timely manner.

Once found in a timely manner to eliminate wasteful link, continuous improvement, striving for perfection.

Womack in "lean thinking", a summary of the implementation of the lean thinking out of the five basic principles, these principles are:

1. Determine the value correctly. Correctly determine if the value is to the customer's point of view to determine the enterprise whole process from design to production to distribution, to achieve the maximum to meet customer requirements. And the supply chain to minimize the excess consumption of the whole process, and will not be additional cost to customers.

2. Identify the value stream. Value stream refers to from raw materials to finished products, and to give all it gives value activities. These activities include: from concept to design, to the production technical process; From order processing, to plan, and from raw materials to the distribution of the information process, the semi-finished products, material conversion process to finished goods, as well as the whole life cycle of product support and service process. In lean thinking to identify the value stream is the meaning of the value stream to find out what is really a value-added activities, which can be immediately remove non-value added activities. Lean thinking will be consumed in the supply chain resources waste and non-value added activity is called. In short, to identify the value stream is the discovery of waste and eliminate waste.

3. The flow value. Lean thinking requires creating value of each activity (step) flowing, emphasizes the uninterrupted "flow". "Value stream" itself is the meaning of "move", but due to the deep-rooted traditional concepts and practices, such as department of division of labor and mass production, etc., blocking the value stream should flow up. Lean will all stalled as waste in the supply chain, is to use methods such as system of continuous improvement, in a timely manner at any batch create value under the condition of continuous flow.

4. Demand. "Demand pull" is to input and output according to the customer's demand, make the customer at the time they need to get what they want. After implementing demand, customers or downstream of supply chain enterprise will be like in the supermarket shelves to choose what they need, rather than the customer does not want the product to push to the customer. Demand principle correspond directly due to supply and demand, to eliminate premature, excessive investment, reduce the scene of the large number of inventory and wip, greatly compress the lead period. Its profound significance lies in the enterprise have once when customer need, you can immediately to carry on the design, planning, manufacturing and distribution of products to customers really ability, finally forecasts, directly according to the actual needs of customers for production and logistics management.

5. Perfect. The above four principles are necessarily the result of the interaction between marked acceleration value flow, so you must constantly use value stream analysis method is a more hidden waste, make further improvement, so that the virtuous cycle of the process of becoming a more perfect. Although in reality is never reach "perfection", but by constant pursuit of perfection, will create a vibrant, progressive enterprises forever.

Characteristic of the lean supply chain management

(1) the structure is simple

This is one of the important principles of supply chain modeling. Simple supply chain can reduce the negative impact of uncertainty on supply chain, and can be made: (1) production and management processes more transparent; (2) the value creation activities to reduce to a minimum; (3) the order processing cycle and production cycle shortened.

(2) the object-oriented model of supply chain

Object oriented supply chain in order to drive, in order for an object, achieve "production supply a flow, a flow, a flow distribution".

(3) nonlinear systems integration patterns

Integration reengineering the advanced manufacturing system is an important method and means, in the supply chain integration is not a simple JianBingShi collectivization enterprise, but a loose lotus root collection, condensation and organic combination of diffusion: there are different forms of business organization of the joint type of integration; A technical communication between the enterprise and diffusion, in the form of fusion of integration; A cross between the different disciplines form of integration. This is a kind of nonlinear integration, collaborative way, enables the system to the overall effect of "1十 1 > 2".

(4) the production mode of independent manufacturing island

Networked manufacturing enterprise organization form from "machine type" to "biological type", based on this kind of production pattern transform to unitize the independent manufacturing island. The production unit has the ability of self organization optimization. Therefore, enterprises need to restructure business processes, strong - strong joint, simplify the structure of production relations, make each enterprise focus on their best work and projects, and through the Internet EDI, etc. Modern electronic commerce technology, in the form of virtual organization form trans-regional cross-department dynamic alliance, the sophisticated supply chain model is the development direction of the future.

(5) the purchasing and supply and marketing of integrated logistics system

Fine production if there is no fine matching supply and distribution system, the entire supply chain to reach "a flow" three fine operation, therefore, elaborate supply chain should implement JIT procurement law suit with JIT production.

(6) based on Internet/EDI electronic business model

Modern information technology has changed the way business communication and transactions, Internet, EDI technology becoming more mature business faster between the supply chain, greatly reduces the transaction cost and other business investment. At present there are two modes: electronic commerce based on Internet of e-commerce and e-commerce based on EDI. Business is more convenient and cheaper, because of the Internet and e-commerce, small and medium-sized enterprises also can enter into two modes coexist communion.

(7) the organization form of dynamic alliance

Dynamic alliance based on "strong - strong joint" thought, it makes enterprise from "company" into "federalism", make the enterprise with the minimum of organizations to achieve maximum power. From the perspective of a fine idea, it can get a better cost efficiency, the cost efficiency from optimizing the cost structure and the structure of the virtual redundancy reduction.

(8) open enterprise information system

Integrated supply chain model, the enterprise has good information transparency between requirements, suppliers, manufacturers, distributors should maintain good communication and contact between, to achieve information sharing, to achieve parallelism, synchronization in supply chain. In order to achieve this kind of operation mode, the enterprise information system is no longer a closed non-isolating enterprise information system, but based on the Internet's open information system, also called cooperative information system.