Fortalezas

The Lean approach applied to the supply chain

As for the strengths that the company should have, it is to improve the level of service since it
is very important in the quality that will be provided to customers, however, in order to have a
good level of service it is necessary to have the final product very close to the end customer,
avoiding an increase in storage costs, that's where the concept of Lean Thinking comes into
play.

What is sought is to reduce the time for distribution produced by the agglomeration of large
quantities of batches, uniting the user (demand) with manufacturing (kanban), by improving
the flow of material and its handling, in addition to improving quality; excellent results will be
achieved.(Alvim, 2020).

(As quoted in Zylstra, 2005), we can better observe this process in the following table:

Figure 1 - MRP driven distribution planning by (Alvim, 2020)

Source: (As quoted in Zylstra, 2005).

Figure 2 shows a summary schedule of distribution requirements (DRP).

Figure 3 shows the Material Requirements Planning (MRP) flow.

Figure 2 - Flow DRP planning process by (Alvim, 2020)

Source: (As quoted in Zylstra, 2005).

 Figure 3 - MRP flow by (Alvim, 2020)

Source: (As quoted in Zylstra, 2005).

Inventory management is represented in Figure 4.

Figure 4 - Inventory management by (Alvim, 2020)

Source: (As quoted in Zylstra, 2005).

According to (Alvim, 2020), sales forecasts are accurate when formulated in aggregate and for
longer periods of time, and it also reveals that inventory costs are usually underestimated and
re-planning requires time and Effort however, warehouse and DC managers prioritize
protecting the service level and do not practice re-planning. Additionally, customer policies are
well parameterized to incur lower costs, but having a warehouse stock close to the customer
and in large volumes is considered adequate to achieve a good level of service and for this
reason, such companies do not follow the policies.

Debilidades

The Lean approach applied to the supply chain

In addition, we can find a weakness in the company regarding the level of service in the
distribution of the supply chain, we know that distribution is a very important part of the
supply chain. It is the part that connects companies with customers, so it is important to know
the risk factors that could cause a problem in this link in the Supply Chain.

Another problem in the distribution of the supply chain is the level of service, we know that
distribution is a very important part of the supply chain. It is the part that connects companies
with customers, so it is important to know the risk factors that could cause a problem in this
link of the Supply Chain.

The distribution variable is the one that will define the success of the services provided to the
end user or consumer. In addition to operating under pressure to minimize costs and
inventory, maintaining a high level of service. (Alvim, 2020)

An inventory that does not keep the right balance, in addition to frequently changing, are
notorious in a distribution center where the lack or excess is normally attributed to
inaccuracies in the forecast. For a forecast to be successful, measurable factors such as service
level, assigned resources, etc. can be taken. For all of the above indicators to be successful,
there must be a close relationship with the planning process. (As quoted in Zylstra, 2005).
Alvim, S. L. (2020). Lean Supply Chain Management : a lean approach applied to distribution - a
literature review of the concepts , challenges and trends. 5(March), 85–103.