Optimization of Food Commodity Supply Chain in Logistics Service Provider Business by Implementing Lean Management

Abstract

According to recent studies, the increasing demand and productivity in food commodity business has been able to enlighten the importance of outsourcing. Food industry has been found most prominent in outsourcing corresponding to the largest percentage of goods as compared to other industries, which results in creating a more complex and substantial supply chain structure. Due to the complexity of supply chain operations, the Logistics service provider business is facing a decline in demand fulfilment consequently increasing lead times and wastage which cost them a fortune. One approach in reducing complexity and maintaining flexibility is lean management. Essential features of lean management include maintenance of low inventories, better flow of goods, reduce wastage, low lead times and reduce unnecessary movement involved in food commodity supply chain. One of the major factor in food commodity supply chain is ageing of food products. With lean management, a continuous flow of products can be achieved and will helps in lowering the risk of ageing. An increasing number of experts and professionals are storming to make the lean management implementable to different businesses to increase the profitability of the businesses. Consequently, lean tools have been developed and modified to simplify logistics service provider businesses. Significant research remains to shows the implementation map of lean management in food commodity supply chain at Logistics Service Provider business. This research will focus on the methods, principles and tools for implementing lean management in LSP business. This will provide methodology for applying lean in different LSP businesses, which will assist to regulate wastage and lead times in food commodity supply chain. The paper concludes that Lean management is applicable to optimize the Logistics Service Provider business in food commodity supply chain. Furthermore, combination of two or more different lean management tools is provided useful in finding problem, on the contrary helps to resolve it with a continuous upbringing approach.