Supply chains and logistics essay

The approach meets the requirement of both supply chain enterprise and end user The supply chain performance initiatives have put efforts into the matching of supply and demand and hence lowering the costs and improving the satisfaction of the customers simultaneously. However, the invariably demands uncertainty within the supply chain based on the type of product involved. Therefore, the article will evaluate the primary activities involved in the global and international logistics and the supply chain management (Mason-Jones, 2000). Logistics and Supply Chain Management Logistics primarily involves delivering the right product, to the required consumer at the proper condition, quantity, place time and cost. Therefore, they are the activities which take place within the boundaries of the entire organization while the supply chain is the networks of organizations and companies which collaborate and coordinate the actions in the process of delivering a product in the market.

Therefore, the supply chains should be ready and willing to evaluate that create values and identify the ones which are wasteful. The notion of the lean paradigm in the supply chain is the abolition of waste and enhancing the amount of the products. The notion of value and waste The cost according to the lean paradigm in the supply chain management is the product or service that a potential customer is willing to pay. However, the activities involving the addition of the value is the transformation of the materials and information into a product which is desired by the customer. On the other hand, the no-value adding activities consume the resources of the organization and these activities do not add any advantage to the final result desired by the consumer.

The pulling of the materials products, parts and items from the customers is another way to improve the value of the products also the continuous practice to reduce an eliminate the waste (Cachon & Fisher, 2000). The stream of value is made up of the value-adding practices which are designed to order, and provide goods and services from concept to launch, raw materials to end user and order to deliver. The development of the value map of a particular product requires the collection of relevant process information. The current state map of the value creation of a product in a supply chain involves making steps by sequence and the flow of information. The essence of the current map is offering a picture of the actions of processing and flow of information in the present moment.

Elimination of the excess material handling and avoiding the costly handling steps is also an essential step towards the improvement of a supply chain process. The unnecessary process steps are also eliminated especially those who do not contribute to the final product. The reduction of time spent waiting for crucial items like parts, information, people and orders should also be considered to ensure all sorts of wastage are eliminated and hence an elevation in the supply chain processes results (Rogers & Tibben‐Lembke, 2001). Therefore, the manufacturing environments employing the lean thinking paradigm reduces all forms of wastage which in turn creates benefits of the minimized manufacturing cycle time. The labor expenditure is also reduced via the lean approach also the product quality improvements ensures the customers are maintained and satisfied.

The strategic sourcing, bidding also the reverse auctions by the use of web-based applications. The contemporary strategy uses the software which eliminates human element from the various procurement roles, also integrating with the monetary. The major lean procurement is visibility where the suppliers should understand what the customers require. Hence, the lean acquisition should initiate the flow of information also the establishment of pulling information and products. Application of lean thinking paradigm in lean manufacturing ensures the process produces the exact products which are required by the end customers by using the most minimum resources possible. Reduced inventories is another advantage of the lean systems because in the lean paradigm the concept of the list is considered to be a waste.

However, the manufacturing takes place efficiently. Various contemporary companies are aiming at reducing the production cost and producing high-quality products which satisfy the end consumers which is achievable by the adoption of the lean thinking paradigm in the supply chain. Therefore, to recuperate the extensive development and the primary costs, the costs require to be minimized. The improvement in consumer satisfaction is also another advantage of the lean systems in the supply chain, and hence the product is delivered to the market faster by making it more comfortable in the incorporation of the current requirements into the product. However, if the managers are not in a position to implement the risk strategies appropriately the process can inhibit successful global supply chains.

For instance, the demerit of increasing the number of suppliers influences the risk of supply from any given source. However, the strategy in the reduction of risks also may increase other threats like the strategy involved in increment of inventory levels (Mason-Jones & Naylor, 2000). Hence, the supply chain managers are required to come up with particular approaches in an attempt to reduce costs and increase the supply networks. Such essential strategies offer an opportunity for the trade-off between increasing value and decreasing the possible risks. ” concentrating on the lean thinking paradigm. The report has also evaluated the concept of lean thinking in a supply chain and the notion of creating value and wastage. Various elements of lean supply chains have been evaluated and the significance of lean thinking paradigm in a supply chain enterprise.