Report on Lean Supply Chain Management in Warehousing and Inventory

This report provides an in-depth analysis of lean supply chain management, emphasizing its application in warehousing and inventory management. It begins with an introduction to the concept of lean supply chain management, highlighting its role in reducing waste and optimizing processes within manufacturing companies. The report then delves into the importance of supply chain management in warehousing and inventory control, discussing the benefits of lean principles in minimizing unnecessary inventory and space utilization. It outlines the principles and tools of lean management, including identifying value, value stream mapping, creating flow, establishing pull systems, and striving for perfection. The report further explores the framework of lean management, emphasizing waste elimination, just-in-time inventory systems, and continuous improvement. It identifies problematic issues in warehousing and inventory management, such as inaccurate quantities, capacity limitations, damage, product identification errors, and inadequate training. The report suggests improvement strategies, including the use of inventory optimization tools, real-time analytics, supplier management, leveraging mobile devices, and managing slow-moving items. Finally, the report discusses the difficulties and challenges in implementing lean management, such as expenses, labor costs, and resistance to change, as well as supply chain issues and employee development. The report concludes by emphasizing the importance of addressing these challenges to achieve effective lean management practices.

Lean supply
Chain
Management

Contents
INTRODUCTION.......................................................................................................................................3
TASK..........................................................................................................................................................3
1. Supply chain in warehousing and inventory management...................................................................3
2. Problematic issues in warehousing and related inventory management activities and suggest
improvement............................................................................................................................................4
3. Difficulties and challenges in lean management..................................................................................6
CONCLUSION...........................................................................................................................................7
REFERENCE............................................................................................................................................17
Books and Journal.................................................................................................................................17

INTRODUCTION
This report is based on the lean supply chain management. This report contains all the
information which is related on the lean supply chain management. Lean supply chain
management is reduces the waste and non-value added activities. Basically, lean supply chain
management is used by the manufacturing companies. This report shows the concept of the lean
supply chain management. In this report, it also involves the tools and techniques, lean
management principles and framework of the supply chain management. It identifies the risk and
problem of the manufacturing companies. The lean supply chain management minimizes the
waste. So, this report is totally depending on the lean supply chain management. Waste can be in
time, cost and in the inventory of the manufacturing companies. This report shows the
framework of the supply chain management (Myerson, 2012).
TASK
1. Supply chain in warehousing and inventory management
Supply chain is important in warehousing and in inventory management activity. The
supply chain management is important in the warehousing and its inventory management
activities. The warehousing is important to reducing the waste of resources and waste of time and
in the non-value added activities.
The supply chain management is also important in the inventory management because it
manage the inventory or stock systematically. The supply chain management reduces the
preventable inventory. Through the controlling of unnecessary inventory, a company manager
can manage the supply chain of the business and can reducing the unnecessary space of the
warehousing. The supply chain management is helpful in controlling the activities of the
warehousing and inventory (Fernie, Sparks, 2014).
Lean management: Lean management is a process which is useful for running an effective
business. The lean management involves the continuous improvement for the long period of
time. It is useful for the manufacturing the product. The lean management always involves the
effective quality of the product. Lean management is also helpful in the reducing the waste of
resources and waste of time. So, it is the effective process for the business.
Principles and tolls of lean management: There are some principles of the lean management
which is useful for the business manager. They are given below:
● Identify value: It identifies the value of the product. The value is play a important role in the
satisfaction in the consumer needs and wants for the effective product. So, it is the first principle
of the lean management.

●Value stream: It is the next step of the lean management. Value stream is a process through
which it determine the raw materials and convert it into the finished goods foe their consumers.
In this principle it removes the wastage.
● Create flow: It is the next step of the value stream. It makes an effective flow for the product
and services and provides the effective product to the consumers. It makes a flow among the
goods and services and provide for their effective consumers (Krajewski, 2013).
● Establish pull: It is the next activity of lean management. In this activity, consumers are able to
pull the value of the product and it is also satisfy the need and wants of the consumer. The pull
values provide the goods and services according to their needs and wants and are able to satisfy
their needs.
● Perfection: After these four principles, it determines that which activity or values are effective
with no waste. It improves the all factors of improvement for the business environment. The
perfection is important for managing the lean.
Framework of lean management: There is a framework of lean management which is given
below:
● Waste elimination: There is no value of the product and services because the waste is not
providing any kind of effective value for the product. It eliminates all kind of wastage like, waste
in time, waste in cost and waste in the resources. The lean management is effective and helpful
in reducing the any kind of waste. There is some waste in many things. They are- time delay,
waiting, transport, waste in resources, in the production, waste in cost, extra activity and in the
inventory. So, it implements the lean management for reducing and minimizing the waste.
● Just in time: Just in time (JIT) is very important in continuous improvement of the product and
services. It provides the pull and push strategy for the supply chain management of the
organization. The just in time is effective for reducing the waste and provide the effective the
quality product and services to the consumers. There is some main strength of the just in time.
They are: sort-out standardizes, scrub, sustain and systematize etc. they all are strength of just in
time. These are point are important for an effective supply chain framework (Wisner, 2014).
● Continuous improvement: the continuous improvement is also important for the effective
framework of the lean management. The continuous improvement is taken from JIT approach. It
is useful for reducing the waste at the continuous basis. It maintains the quality and quantity of
the product and makes it effective for the consumers. The continuous improvements provide the
effective framework of the lean management. So, this process is the effective framework of the
lean management.

2. Problematic issues in warehousing and related inventory management activities and suggest
improvement
There are some issues in warehousing and their related inventory management. They are:
● Inaccurate Quantities: Inaccurate quantity is the biggest problem for the all warehousing and
its inventory management. In this problem, the entire warehouse can not satisfy the need and
wants of the consumers. The inaccurate quantity also presents the incorrect warehousing. In this
case, entire warehousing cannot maximize the production for their consumers (Heizer, 2013).
● Capacity: Capacity is also a big major problem for the warehousing. The capacity issue
associate with the inventory issues. If the warehouses has more inventory or stock and there are
lack of space in that case the product will be damaged. The capacity issue is important issue for
the warehousing. So, warehouses need to provide the more space for the inventory because the
more inventories depend on the capacity of the space.
● Damage: Damage issue is also a major problem for the inventory in the warehousing. The
damage shows the inaccurate quality of the product and services which cannot satisfy the needs
of the consumers. The warehouses should reduce the damage and for that they need to provide
the more space for the stock or inventory. So, it is the major problem in the warehousing.
● Product Identification: The incorrect identification of the product cannot provide the effective
inventory for the consumers. The incorrect identification of the product includes the incorrect
barcode, label and product packaging. The warehouses should the all information in the
identification of the product. So, the effective warehouses provide the effective barcode and label
on the product (Jacobs, 2010).
● Training: The improper training is a major problem for the warehousing and its related
inventory. The warehouses need to provide the effective training to their employees and need to
motivate them for the big production. If a company does not provide the effective and efficient
training to their employees in that case, warehouses cannot produce the more products for the
consumers. So, the improper or incorrect training is the major problem for inventory in the
warehousing.
There are some guidelines to solving the problem. They all are given below:
● Consider inventory optimization tools: The warehouses need to identify the entire network
flow through which they can evaluate the inventory policies for the effective product and
services in the supply chain management. For solving these problems, the warehouses should
consider about the optimization tools. So, effective warehousing needs to adopt effective tools
for solving the problem.

● Employ business solutions that use real time analytics under the platform: The effective
businesses are useful for solving the problems which is come in the inventory management. The
effective warehouses take the decision for the real time analysis under the platform. So, it is the
important solution for solving the problems.
● Keep an eye on your suppliers: It is also a guideline for solving the problems. An effective
supplier team provides the batter inventory and also would like to take the inventory from their
parties. After the identification, the effective suppliers, a warehousing can minimize the risk and
problem which is come in the inventory management. So, the valuable suppliers can reduce the
problem for their related party.
● Leverage mobile devices: This is the useful technology for solving the risk and problem which
is done in the inventory management. In the modern time, the mobile devices are important for
taking the any kind of information which is related to the inventory data. This device provides
the accurate information and data related to the inventory. So, it is most important technology for
solving the inventory problems (Thun, 2011).
● Be smart about slow moving and outdated items: Firstly, a warehouse need to identify their
slow moving and outdated items or product. After the identification of slow moving and outdated
product, they need to focuses on the fast moving products and services. The fast moving product
and services always improve the warehousing. The fast moving product can reduce or minimize
the problem which is creating the problem in the inventory management. So, these guidelines
and approaches are useful for minimizing the problem of warehousing and its related inventory
management.
3. Difficulties and challenges in lean management
There are some difficulties and challenges in lean management which is faced by the
organization and the organization need to minimize these difficulties or problem. The challenges
in the lean management which is given below:
● Expense
● More outlays for labor
● Opposition
● Expense: It is the challenge which is faced by the organization in the lean management. With
the help of this, an organization can identify the equipments which are useful for the production.
Expense is the part of cost of the products and services. So, it the main challenge in the lean
management which is faced by the all type of organizations.

● More outlays for labor: it is also a challenge in the lean management. It increases the cost of
the labor and provides the height salary to the employees. So, a organization need to reduce the
cost of the work and should make more effective work at the minimum cost. So, it is the major
challenge in the lean management which is faced by the organization (Dües, 2013).
● Opposition: It is important for the training and development of the employees. Some people
panic from the innovation ideas because they can change or improvement in the organization. It
is difficult for the some employees who are working in the organization. The organization needs
to provide the effective and proper training and education to their employees. So, it is the
challenge which is faced by the organization in the lean management (Cabral, 2012).
There are the some difficulties in the lean management which is face by the organization. The
organization is responsible for reducing the all problem or difficulties. They all are given below:
● Supply chain issues: It is a difficulty in implementing the lean management which is faced by
the organization. The raw materials are totally based on the demand of the consumers and it is
also helpful in the decision making which provide the effective objectives to the organization.
The supply chain should be effective for the organization production. An organization need to
coordination with suppliers in the supply chain management.
● Employee development: It is also a difficulty in the lean management. If the employees are not
educated in that case it creates the problem in the lean management. The employee development
is important for reducing the unnecessary difficulties which is facing by the organization in the
lean management. An organization need to select the educated and trained employees in the lean
management. So, it is main difficulty in the lean management which is faced by the all
department of the organization.
● Cultural issues: Cultural issues are the main difficulty in the lean management. The cultural
issues are comes from the outside the organization. A effective culture provide the effective
supply chain for the organization. The lean management need to small number of employees in
the organization for taking the more responsibilities. An organization should identify the
problem and issues related to the culture and after the identification, an organization need to
reduce these difficulties for implementing the lean management (Erik Eriksson, 2010).
● Technological challenges: The technological challenges are a major difficulty in the lean
management which it faced by the organization. The innovative and effective technologies is
useful according to the modern time. An organization should implement the new technologies in
the lean management for the purpose of the organization. An innovative technology provides the
effective organization labor. So, an effective or innovative technology can reduce the difficulties
of the organization.

CONCLUSION
From the above mentioned report it has been concluded that all the information is related
to the lean supply chain management. It provides the effective supply chain for the organization.
The lean supply chain management is important in the warehousing and its related inventory
management. In this report, it has been also mentioned about the tools, principles, concepts and
framework of the lean management and how they can be effective in the organization. What are
the difficulties and challenges in the lean management and how the organization can minimize
these difficulties and how they can improve the challenges.

REFERENCE
Books and Journal
Myerson, P., 2012. Lean supply chain and logistics management. Colombus: McGraw-Hill.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain
management. Cengage Learning.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in
the retail supply chain. Kogan Page Publishers.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: Processes and supply
chains (Vol. 1). New York: Pearson.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A balanced
approach. Cengage Learning.
Heizer, R. and Barry, R., 2013. Operation Management, Sustainability and Supply Chain management
(Vol. 11). Pearson, UK.
Jacobs, F.R., Chase, R.B. and Chase, R., 2010. Operations and supply chain management. McGraw-
Hill/Irwin.
Thun, J.H. and Hoenig, D., 2011. An empirical analysis of supply chain risk management in the German
automotive industry. International Journal of Production Economics, 131(1), pp.242-249.
Dües, C.M., Tan, K.H. and Lim, M., 2013. Green as the new Lean: how to use Lean practices as a
catalyst to greening your supply chain. Journal of cleaner production, 40, pp.93-100.
Martínez-Jurado, P.J. and Moyano-Fuentes, J., 2014. Lean management, supply chain management and
sustainability: a literature review. Journal of Cleaner Production, 85, pp.134-150.
Cabral, I., Grilo, A. and Cruz-Machado, V., 2012. A decision-making model for lean, agile, resilient and
green supply chain management. International Journal of Production Research, 50(17), pp.4830-4845.
Stock, J.R., Boyer, S.L. and Harmon, T., 2010. Research opportunities in supply chain management.
Journal of the Academy of Marketing Science, 38(1), pp.32-41.
Pettit, T.J., Fiksel, J. and Croxton, K.L., 2010. Ensuring supply chain resilience: development of a
conceptual framework. Journal of business logistics, 31(1), pp.1-21.
Tang, O. and Musa, S.N., 2011. Identifying risk issues and research advancements in supply chain risk
management. International journal of production economics, 133(1), pp.25-34.
Heizer, R. and Barry, R., 2013. Operation Management, Sustainability and Supply Chain management
(Vol. 11). Pearson, UK.
Erik Eriksson, P., 2010. Improving construction supply chain collaboration and performance: a lean
construction pilot project. Supply Chain Management: An International Journal, 15(5), pp.394-403.
Olhager, J., 2010. The role of the customer order decoupling point in production and supply chain
management. Computers in Industry, 61(9), pp.863-868.
Arzu Akyuz, G. and Erman Erkan, T., 2010. Supply chain performance measurement: a literature review.
International Journal of Production Research, 48(17), pp.5137-5155.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision
support systems, 54(4), pp.1513-1520.