ABSTRACT
Lean thinking has expanded well beyond its origins in repetitive assembly line manufacturing to encompass process- and product-focused manufacturing. To reach the goal of a Lean, demand-driven supply chain, one can focus on these characteristics and try to come up with improvements, from either the “demand side” or the “supply side.” On the demand side, companies try to get a better sense of actual market demand and in some cases, can attempt to shape it as well through various tools such as promotions, discounts, everyday low pricing, etc. On the supply side, companies try to become more flexible and Agile to be able to use more of the actual demand, thus becoming less reliant on forecasts. While cost reduction is always an area of focus for procurement along with an improved and more efficient process using Lean techniques, technology can help to enable a Lean procurement strategy to reap the full reward.
