Lean and Agile

An agile supply chain is capable of responding to customers changing demands efficiently. Whether this be related to new product innovations or unpredictable order volumes. The focus of an agile supply chain is short order lead times and quick customer response times.

The principles of lean supply are based on those of lean production, with the focus being on the customer and efficiency of the operation. Lean supply is part of continuous improvement and aims to streamline processes within the supply chain to eliminate waste and non-value added activities. Waste can be defined as time, costs or inventory. Lean procurement can be described as a supplier having one point of contact across a buying organisation, one contract and offers one price for all locations.

CIPS Procurement Content

Related concepts

Lean Supply Chain (LSC)

Lean supply is often viewed as one of a set of techniques for managing operations effectively (Found and Rich)

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Lean Manufacturing / Production

The benefits of lean manufacturing include lead time reduction, reduced inventory and overall cost saving (Feld)

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Agile Supply

In todays globalised, free-market environment, the ability to satisfy customer expectations is core to profitability. If you are not agile, you can't do it, because...

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