LEANSUPPLYCHAIN [ INSIGHT ] by Paul A. Myerson Adjunct Professor, Supply chain Management, Kean University and author of books on Lean and the Supply chain for McGraw-Hill, Pearson, and Productivity Press 732-441-3879 | myersonp@kean.edu
The Lean, Green Supply Chain: Where 1+1=3
The topic of sustainability is starting a trend toward supply chains that are both lean and green. While many organizations across the
Manufacturing, retail and supply chain management all realize that while consumers generally want to be more sustainable, they also demand value. LEAN, GREEN FRAMEWORK To accomplish this, companies need a formalized, combined framework to solidify the relationship between lean and green and their impact on business sustainability. Some places to start, in addition to the (modified) Seven Wastes of Lean, are: Product design. Supply chain professionals can offer valuable input to product design to both minimize cost and lessen the impact on the environment. Sustainable materials. Being a proactive steward of natural resources is a key part of green supply chain solutions. Transportation. Sustainable transportation includes improved fuel performance, increased use of electric and liquified natural gas vehicles, more efficient routing, and better use of backhauls. Circular supply chain. A closed- loop system that aims to eliminate waste by continually reusing, recycling, and refurbishing materials and products. Synergies will result from simultaneously integrating lean and green (think 1+1=3), even if you have to make trade-offs and balance divergent goals. n
that, lean practices help reduce some environmental impacts because they focus on eliminating waste. Separately, green initiatives attempt to minimize environmental impacts by reducing CO2 levels and the consumption of natural resources among other things, while lean initiatives tend to minimize waste in the supply chain by removing non- value-added activities, reducing inventories and supply lead time. LEAN AND GREEN: COMBINED For the long term, integrating—and possibly combining—lean and green thinking and methodology in supply chain management is crucial to help supply chains to become more efficient, streamlined, and sustainable. Implementing green and lean supply chain practices simultaneously influences the sustainable development of businesses. For example, lean supply chain tools not only improve an organization’s economic performance, but they also contribute toward environmental performance by reducing logistics activity, cutting CO2 emissions levels, and reducing the consumption of natural resources.
globe use lean practices to improve product and service quality, and reduce costs, they do not necessarily integrate environmental concerns in their lean thinking. Lean and green thinking have different drivers and approaches, but can be compatible using complementary and integrated systems. SEPARATE (BUT SOMETIMES IN PARALLEL) In a lean supply chain, direct interaction with supply chain partners can enable a company to reduce total inventory levels, decrease product obsolescence, lower transaction costs, react more quickly to market changes, and respond more promptly to customer requests. At the same time, considering the environmental impact and related bottom-line effects of their decisions and actions can enhance fundamental supply chain changes. Lean can also add value to green efforts by reducing many types of environmental impacts, connecting green practices to stronger financial drivers and improving the effectiveness of green procedures. Unfortunately, environmental wastes and risks are not usually included in the wastes targeted by lean. Despite
22 Inbound Logistics • October 2024
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