Thursday, June 05, 2008

Lean Delivery Systems



Lean Delivery Systems

Toyota Motor Company developed many early lean delivery systems processes to improve up-stream to down-stream customer services internally and externally. Their network of supplier sources willingly reduced distances between manufacturing plants to reduce necessary lead time and improve fill rates. Additionally these suppliers began to build component or cellular manufacturing units, for example entire drive train component systems and or interior electrical units to simplify delivery and accelerate flow. Ultimately the end user customer could benefit from higher quality measures, shorter delivery times for optionalized products and more competitive pricing options based on just in time inventory which allowed Toyota to grow its market share through increased production at lower unit costs than many of its competitors.

Walmart was mentioned as an example of the push versus pull transition in supply chain management. A full sixty minutes documentary, "Is Walmart Good for America?" may be watched for free(my favourite word) at PBS Frontline

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