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Lean sourcing: creating sustainable purchasing savings.(SELECTED TOPIC)

Business Credit

| January 01, 2006 | Reisman, Lisa; Burns, Stuart | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

In the past decade the concepts of "lean" and "strategic sourcing" both made it onto the corporate main stage, separately capturing the executive and media spotlight. Outsiders viewed lean as an art practiced by operational wizards or "Six Sigma Black Belts," adept at reducing waste and improving performance and efficiency. Lean achieved its magic by introducing new production and operational processes that improved organizational productivity. In the case of manufacturing, this resulted in reduced inventory, increased throughput and improved customer service levels. Lean also stressed lasting, collaborative relationships with suppliers and business partners.

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