September 13, 2011

How to Integrate Lean Principles in Distribution Supply Chains

Content courtesy of MCA Associates.

Howard W. Coleman, Principle of MCA Associates management consulting firm, proposes radical change in his thought leadership white paper, “Lean Principles in Wholesale Distribution Supply Chains: Do you Pull or Push?” Coleman challenges wholesale distributors to adopt a different approach to managing product inventory and supply chain costs. He recommends incorporating “Lean Principles” to overcome ingrained preconceptions about supply chain management and forecast planning. The main premise of his argument debates the merits of Push vs. Pull Replenishment and unlocks the ideal of “sell one – buy one” inventory management. In one of his points, Coleman suggests bringing a strategic focus to the supply side of inventory management. Instead of distributing inventory based on customer demand, distributors should lower inventory at branch locations and concentrate on reducing lead times. Coleman goes on to encourage distributors to critically evaluate the costs of the supply chain and to form truly collaborative relationships with partners. Coleman will be speaking on this topic at the E-Biz Forum on Tuesday, Sept. 27.  View his session “Lean Distribution – A Change in Thinking; Lean Forever” on the agenda to learn more.

Download the white paper>

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