The 5 Original Principles of Lean Thinking — Value, Value Stream, Flow, Pull, and Perfection — stop at the company's boundaries. The 6th principle by Bonfiglioli Consulting extend this logic to the entire supply chain, transforming the supplier from a counterparty to an integrated partner in the value flow.
The goal is to apply the Lean methodology to eliminate boundaries with the supplier, making them an integral part of the company.
The objectives to be achieved are:
- Improve the service level by creating and ensuring a seamless flow of purchased materials between the supplier and the user production line.
- Reduce the Supply lead time, to improve responsiveness and flexibility in market response
- Reduce inventory levels
- Improve the quality of supplies
- Reduce total procurement costs (considering not only the cost of the component but also all the costs it incurs (e.g., for managing its sourcing, for storage and internal handling, for insufficient quality, ...))
During the application of 6th principle Strategic decisions (such as Make/Buy and global sourcing) are taken, and critical supply chains are worked on in order to optimize them. Tools such as Price lists, Cost Index, Cost Breakdown, Vendor List, etc. help us in this phase, allowing us to measure our performance, set goals, achieve them, and maintain them over time!
But let's not forget the main players: people! That's why change, to be effective, must be supported by a lean organization focused on continuous improvement, through the creation of key roles (commodity buyer, product buyer, supplier auditor, …) and a plan for their professional growth.
Expected results
For each critical supply chain, it is possible to achieve goals in terms of:
- Indicator|Performance
- Number of suppliers|-30-40%
- Inventory levels of raw materials, semi-finished goods, and components|-20-40%
- Transit and delivery times|-40-50%
- Non-conformance Index (% or PPM) | +30–50%
- Service Level|90%
An integrated Production Planning and Supply Chain Management system—one that aligns Demand Planning, SOP, MPS, and Capacity Planning—enables companies to reduce inventory by up to 30–40%, increase OTD and OTIF, and stabilize the production plan by reducing rush orders and hidden costs. Learn more about how to integrate digital processes and tools into planning → How to optimize Production Planning to transform the Supply Chain into a competitive advantage
The transformation of the supply chain with a Lean approach requires method, expertise, and a structured approach involving people, processes, and suppliers. Discover how Bonfiglioli Consulting manages development programs for Lean World Class® Supply Chain →
