Lean Information and Supply Chain Effectiveness

Abstract

This paper summarises the findings of the author's research into the role of information as a determinant of supply chain effectiveness. This research was conducted as a part of the Supply Chain Development Programme (SCDP)—Lean Information Project. The applied methodology was a derivative of the Value Stream Mapping framework, modified by the author for the information domain. Significant levels of waste were found. A value-added contribution of up to 1% was suggested as the norm in the information domain. The major causes were attributed to dependent decision cycles, unsynchronised push-pull triggers and complex external supplier relationships. The “Five Lean Principles” were confirmed to be equally applicable in the information domain. A new model of generic value streams was proposed and information was concluded to be the key determinant of supply chain effectiveness in the majority of these generic value streams. It was also concluded that a supply chain's physical and information management capabilities are symbiotic and that a supply chain's ability to effectively manage the flow of material will ultimately be constrained by its ability to manage information. This has major implications for future investment decisions.

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