Lean Supply Chain

Lean Supply Chain refers to an organizational approach whereby inventory across the supply chain is minimized for cost-reduction purposes. With the understanding that holding excess inventory, or redundant inventory, can be costly, Lean processes aim to reduce costs and bolster supply chain efficiency and facilitate Just-in-Time manufacturing procedures. However, lean supply chains may pose business continuity risks to an organization in the event of a demand surge. Since Lean processes seek to minimize inventory, there is the risk an organization may have insufficient inventory to service demand fluctuations.