Comments on: Does Lean Increase Supply Chain Risk? http://www.leanblog.org/2007/01/does-lean-increase-supply-chain-risk/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Behzad http://www.leanblog.org/2007/01/does-lean-increase-supply-chain-risk/#comment-26756 Behzad Fri, 21 Oct 2011 11:29:14 +0000 http://leanblog.bigbigdesign.net/2007/01/does-lean-increase-supply-chain-risk/#comment-26756 “Just in Time” and "Safety Stock"!!? It is really confusing “Just in Time” and “Safety Stock”!!?
It is really confusing

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]]> By: Updated: Step 1 Earthquake, Step 2 JIT Bashing — Lean Blog http://www.leanblog.org/2007/01/does-lean-increase-supply-chain-risk/#comment-22847 Updated: Step 1 Earthquake, Step 2 JIT Bashing — Lean Blog Thu, 28 Jul 2011 03:36:45 +0000 http://leanblog.bigbigdesign.net/2007/01/does-lean-increase-supply-chain-risk/#comment-22847 [...] Journal wrings its hands about JIT and risk about once a year. Others pick up on this tired theme, which I blogged about here in response to an article in The [...] [...] Journal wrings its hands about JIT and risk about once a year. Others pick up on this tired theme, which I blogged about here in response to an article in The [...]

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]]> By: Kevin Carrelli http://www.leanblog.org/2007/01/does-lean-increase-supply-chain-risk/#comment-1627 Kevin Carrelli Wed, 31 Jan 2007 18:51:00 +0000 http://leanblog.bigbigdesign.net/2007/01/does-lean-increase-supply-chain-risk/#comment-1627 I would say that Lean increases visibility to Supply Chain weaknesses. As you list, continuous supply of parts is best achieved by suppliers that are Capable and Nearby. If a company has suppliers all over the globe, then yes, there is more risk to the Supply Chain. Logistical and quality problems can take weeks, or months, to be found when sourcing parts from thousand of miles and weeks of transit.<br /><br />As long as companies only look to move costs from the COGs line to the overhead line by sourcing from the cheapest (many times furthest) distance, there will be a need for larger inventories, warehouses, and risk. But then, that's not very Lean. I would say that Lean increases visibility to Supply Chain weaknesses. As you list, continuous supply of parts is best achieved by suppliers that are Capable and Nearby. If a company has suppliers all over the globe, then yes, there is more risk to the Supply Chain. Logistical and quality problems can take weeks, or months, to be found when sourcing parts from thousand of miles and weeks of transit.

As long as companies only look to move costs from the COGs line to the overhead line by sourcing from the cheapest (many times furthest) distance, there will be a need for larger inventories, warehouses, and risk. But then, that’s not very Lean.

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