Effect of lean supply chain on competitive advantage: a systematic literature review

Abstract

Undoubtedly, Lean Supply Chain Management (LSCM) has been widely identified as a powerful approach to improving supply chain performance and gaining competitive advantage (CA). Despite the challenges faced by numerous organizations in effectively implementing and sustaining lean practices. This research endeavor seizes the opportunity to conduct a comprehensive and methodical review of the existing literature to offer an in-depth examination of the relationship between LSCM and CA, focusing on the critical success factors (CSFs) for the lean supply chain that affect competitive advantage. The current study employed a systematic literature review (SLR) approach to identify studies on the relationship between LSCM and CA. A total of 529 published papers were selected from Web of Science (WoS), ScienceDirect, and Scopus databases. A comprehensive literature review was conducted, in which 55 relevant articles were analyzed from 2003 to 2023. The results revealed that the critical success factors (CSFs) for implementing LSCM can be broadly categorized into internal factors, external factors, and factors related to the implementation of LSCM. The most significant internal factors include customer focus, flexibility, cost reduction, time-to-market, and quality. External factors, such as collaboration with suppliers, customers, and other stakeholders, innovation, and technology, were also deemed critical. Effective LSCM practices such as lean principles, supply chain integration, information management, and logistics management are identified as significant contributors to success. The key results of this paper reveal that LSCM can be a practical approach for improving CA, as it addresses many of these critical success factors (CFSs). By adopting lean principles and integrating all aspects of the supply chain, firms can reduce waste, enhance efficiency, and improve responsiveness to customer demands. The study further discusses the current trends in LSCM and CA and provides implications for future research. However, the research has limitations, which include the restricted scope of the literature review and the lack of empirical research. In conclusion, this study provides valuable insights into the critical success factors (CSFs) for implementing LSCM and their effect on CA, which can benefit practitioners and researchers.

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