Before selecting software to any supply chain, there needs to be intimate knowledge of what the supply chain consists of. this also needs to be coupled with what the software will be used for.
One of the biggest problems that companies find today is that their SCM is now a legacy system and not supported anymore, as a result their ability to correctly manage the supply chain diminishes. In selecting a software system one not only has to think about what is required in the "here and now" but also what will or maybe required 5 years down the line. To ensure that the most suitable system is chosen there needs to be some ground work done at the outset. If you are starting the selection method for a software system then the supply chain itself needs to be as lean as possible to ensure that a stability factor exists and that that the supply chain is not going to go through radical changes half way through an implementation.
Top management knows that lean can add value, but many still have not moved past the initial education stage into full-scale lean supply chain implementation. One reason may be that they have not made the paradigm shift as to how to implement lean. The Lean Supply Chain is a system of interconnected and interdependent partners that operate in unison to accomplish supply chain objectives. There should be metrics involved to monitor these objectives to ensure success across the supply chain. These metrics should be reviewed frequently to ensure supply chain success. These objectives are accomplished as follows:
- Eliminate All Waste in the Supply Chain So That Only Value Remains
- Creating a smooth flow of products downstream in a lean supply chain requires all departments and functions in the organization to work in collaboration.
In the supply chain, the seven wastes translate to:
- System complexity—additional, unnecessary, steps and confusing processes
- Lead time—excessive wait times
- Transport—unnecessary movement of product
- Space—holding places for unnecessary inventory
- Inventory—inactive raw, work-in-process, or finished goods
- Human effort—activity that does not add value
- Packaging—containers that transport air or allow damage
- Energy-(Sometimes called the eighth waste): eliminate wasteful energy in the supply chain: minimize electricity, gas, utilities, etc.