An Article About Strategic Sourcing - Foundation Of Lean Engineering?

Published By Mahesh H S, 27 Sep 2017

An Article About Strategic Sourcing - Foundation Of Lean Engineering?
A major dealer has chosen to lean with his inventories; this makes a meaningful impact on both the supplier and the buyer of products. From the startup to MNC companies is assessing from lean logistics, where special tools of lean are used in different sections of the company, such as warehousing, stock management and becoming leaner across their entire supply chain. 

A ‘Lean’ is a process which represents a basic change in the corporate companies about how they manage, such as building software, products and websites. The Lean process gives us the validating conclusion and iterative methods of minimizing the size of failures and increases the possibilities of success.

The ‘Lean’ process gives extensive results such as improving and streamlining the strategic sourcing and supply chain management process, eliminating unnecessary and wasteful activities. It also takes into considerations such as reduce overall cost, the satisfaction of stakeholders and work with the best possible suppliers or dealers who meet the optimal requirements and superior performance expectations.  A Lean also helps in retaining the optimal value in procurement for overall customers.
According to the “Sherry Gordon,” there are some types of waste in lean that can apply to every function in a company or organization.

1. Transportation: Transportation related works need to be paper free and completed online such as using of Logistics tool.

2. Wrong processing: It includes invoicing, billing, quotations and returns and so on.

3. Irregularity: Supplier delays, quantity, and quality issues, lost paper works and paper work errors.

4. Unnecessary Activities: Lack of goods storage at particular place leads to search of goods in warehouses.

5. Unnecessary Inventory: Ordering Inventory too early, delaying purchase orders, failing to fill the gap between demand and supply of goods.

A ‘Strategic Sourcing’ won’t work on short term basis it requires a long-term vision to be successful. There are several factors involved in improving a strategic sourcing, such as:

1. Focusing on Organizational goals.

2. Educating and Training to changes.

3. Seeking guidance from Experts.

4. Long term focus

5. Excellent leadership.

6. Measuring of progress on a timely basis.

The ‘Lean Engineering’ is about simplifying the work process which may become complicated and a waste of time. The Lean Procurement is making the working process and communications simpler, more transparent and straightforward. This process focuses greatly on productivity and value-based activities rather than administrative issues.