Ashley Y. Metcalf Bio Lean Are Lean Supply Chains Responsible for Shortages? How lean and JIT organizations can withstand supply chain disruptions Published: Tuesday, February 16, 2021 - 13:02 Comment Rss Send Article (Must Login) Print Author Archive L ean supply chains are designed based on several key principles. First, the general philosophy of lean is to reduce or eliminate nonvalue-added waste. The concept of reducing waste is always beneficial to organizations. We should continuously strive to reduce things like wasted time, wasted effort, wasted processing, wasted travel, and wasted packaging. So, even in times of disruption or crisis, efforts to reduce wasted steps or processing can actually benefit the organization. This efficiency is a good thing. A second key principle of lean supply chains is where it gets tricky regarding the risk of disruptions. This principle is just-in-time (JIT) supply. The JIT principle means inventory and supplies are delivered just when they are needed. So instead of holding weeks or months of inventory, an organization might get daily deliveries, just as needed. When things are running smoothly, this is a great system because it significantly reduces the amount of money spent on holding inventory. Lean can even reduce losses due to perishable inventory or obsolescence because there are no warehouses full of dusty redundant items. But, of course, in the case of supply chain disruptions, the same lack of inventory can be devastating to ongoing operations.Like what you're reading? Log in or create FREE account to continue Enter your Quality Digest username OR email address. Enter your Quality Digest password. By logging in you agree to receive communication from Quality Digest. Privacy Policy. Remember me Create a FREE account Forgot My Password Quality Digest does not charge readers for its content. We believe that industry news is important for you to do your job, and Quality Digest supports businesses of all types. However, someone has to pay for this content. And that’s where advertising comes in. Most people consider ads a nuisance, but they do serve a useful function besides allowing media companies to stay afloat. They keep you aware of new products and services relevant to your industry. All ads in Quality Digest apply directly to products and services that most of our readers need. You won’t see automobile or health supplement ads. Our PROMISE: Quality Digest only displays static ads that never overlay or cover up content. They never get in your way. They are there for you to read, or not. So please consider turning off your ad blocker for our site. Thanks, Quality Digest

L ean supply chains are designed based on several key principles. First, the general philosophy of lean is to reduce or eliminate nonvalue-added waste. The concept of reducing waste is always beneficial to organizations. We should continuously strive to reduce things like wasted time, wasted effort, wasted processing, wasted travel, and wasted packaging. So, even in times of disruption or crisis, efforts to reduce wasted steps or processing can actually benefit the organization. This efficiency is a good thing.

A second key principle of lean supply chains is where it gets tricky regarding the risk of disruptions. This principle is just-in-time (JIT) supply. The JIT principle means inventory and supplies are delivered just when they are needed. So instead of holding weeks or months of inventory, an organization might get daily deliveries, just as needed. When things are running smoothly, this is a great system because it significantly reduces the amount of money spent on holding inventory. Lean can even reduce losses due to perishable inventory or obsolescence because there are no warehouses full of dusty redundant items. But, of course, in the case of supply chain disruptions, the same lack of inventory can be devastating to ongoing operations.

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Ashley Y. Metcalf, Ph.D. is an Associate Professor of Operations Management and Chair of the Management Department at Ohio University. She specializes in process improvement across many industries.

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