Why Small Medium Enterprise need to venture into Lean Supply Chain

May 18, 2009 | By admin In Supply chain |

Why Small Medium Enterprise SME need to venture into the Lean & Supply Chain Management to stay competitive?

The main reason is there is too much waste in Small Medium Enterprise Supply Chain and directly and indirectly hit the bottom line as well as the profit margin.

Few simple reason SME need Lean in Supply Chain :

1) Stay competitive in the industries
2) Reduce waste.
3) Effective financial planning. Invest your money in more productive area.
4) Less worry on your inventory and fully focus on your business driving.
5) Indirectly knowing your marketing and product strength.
6) Strengten your company profile if you need to expand your business and sound customer base.

Do you know why Multinational company like Apple, Nokia, Dell, Procter & Gamble, IBM, Wal-Mart, Toyota, Cisco System and etc can doing so well and they will continue to stay strong in their own business area. Those big giant have the common area as below :

1) Strong Supply Chain Planning
2) Sound financial performance
3) Stong market leader
4) Big gap on market penetration with competitor

However, Small Medium Enterprise does not require complex model of supply chain management but just need to know the following and develop your own and customize model that fit to your business nature :
1) How competitive your business in the industries?
2) Your % of your inventory on your overall business model?
3) Who is your customer?
4) Your top customer?
5) Your low rank customer?
6) Your fast turn around product?
7) Your low turn around product?

So, you just need to slice in small segment on your business and then merge back into one complete model. Undertand your business nature and customize your own model. More to share…stay tune.

TOP 25 BEST SUPPLY CHAIN MNC in the world :

Apple
Nokia
Dell
Procter & Gamble
IBM
Wal-Mart Stores
Toyota Motor
Cisco Systems
Samsung Electronics
Anheuser-Busch
PepsiCo
Tesco
The Coca-Cola Company
Best Buy
Nike
SonyEricsson
Walt Disney
Hewlett-Packard
Johnson & Johnson
Schlumberger
Texas Instruments
Lockheed Martin
Johnson Controls
Royal Ahold
Publix Super Markets