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Supply Chain Supply Chain Network Design and Optimisation

Keeping Lean Supply Chains Relevant in a Post-pandemic World

8/15/2022

Keeping Lean Supply Chains Relevant in a Post-pandemic World

A lean supply chain, at its heart, focusses on inventory optimisation and operational excellence. It aims to eliminate waste at every stage of the production and distribution process, and so have courted additional terms such as “continuous flow” and “just-in-time”. The critical aim is optimisation of inventory management rather than minimisation, and with its focus on consistency and repeatability, lean supply chains are designed to be arguably less flexible. For this reason, some have come to view this type of network as irrelevant in a disrupted world – agility rules. However, this is not the case.

Cushman & Wakefield’s latest report, Keeping Lean Supply Chains Relevant in a Post-pandemic Worldis the second installation in a supply chain series, exploring key trends in the supply chain industry, highlighting the importance of optimising supply chain networks, with a key focus on lean supply chain how it will continue to be relevant.  

Disruption in Lean Supply Chains

Three key trends affecting lean supply chains:

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Trade Flows

Prior to the COVID-19 pandemic, several economic forecasts and commentators were identifying indicators that the world had reached peak globalisation and that it was starting to retreat from that peak. A key component of this is the rise of domestic consumption – a greater proportion of products are consumed domestically and while this is most evident in mainland China, we expect the next wave of domestic consumption growth to occur in India and parts of South East Asia. However, this is not to say interregional trade is not growing rather that is evolving. 


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Customisation

The fundamental tenet of lean supply chains is that they are optimised for the repeatable and reliable flow of goods. This is being challenged as consumers demand more product customisation; evolving consumer requirements cannot be ignored. The question therefore evolves into how customisation can be incorporated into a lean supply chain rather than abandoning a lean approach.


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Automation

Automation within supply chains is both a disrupter and a solution to network optimisation. Automation presents opportunities to overcome challenges and introduce greater efficiency. Perhaps one of the most visible adoptions of automation has been to overcome labour shortages. As countries simultaneously encounter population ageing and a shift up the value chain, labour shortages at times have become acute and costs have become considerably higher. 

To find out more about understanding and reviewing your supply chain networks, please connect with our team of experts via our Asia Pacific Logistics & Industrial hubExternal Link or our Global Logistics & Industrial page.

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Authors

Dominic-Brown_Headshot_AP
Dominic Brown

Head of International Research, Global Think Tank
Brisbane, Australia


+61 (431) 947161

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Tim-Foster-updated
Tim Foster

Head of Supply Chain & Logistics Advisory, APAC
Singapore, Singapore


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Dennis Yeo
Dennis Yeo

Head of Investor Services, APAC
Singapore, Singapore


+65 96366388

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Nicole Bennett Client Care Lead
Nicole Bennett

Americas Logistics & Industrial Lead
Atlanta, United States


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Jason Tolliver Indianapolis Industrial Strategic Accounts
Jason Tolliver

President Americas Logistics & Industrial Investor
Indianapolis, United States


+1 (317) 639-0549

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Ben Harris (image)
Benjamin Harris

Senior Managing Director, Client Solutioning & Strategy
Atlanta, United States


+1 (912) 4142129

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Timothy Stuart Crighton - London
Tim Crighton

International Partner
London, United Kingdom


+44 (0) 7740 424 792

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Sally Bruer
Sally Bruer

Head of EMEA Logistics & Industrial and Retail Research
London, United Kingdom


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Jason-Price-2022-Headshot
Jason Price

Senior Director, Americas Head of Logistics & Industrial Research, Global Research
Iselin, United States


+1 (201) 508-5208 x355208

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