Lean Bigot and Proud.

September 24, 2010
11:18 pm

I am bigot. Yes, a bigot. A person that is intolerant and can exhibit animosity towards those with differing opinions. That can be me. When I hear the term LEAN in client interaction, I bristle. My face is easy to read. I would be a BAD poker player. I find that so many companies have attempted LEAN programs with the best of intentions; but have moved backwards. Here I share my two disconnects:

My Two Disconnects

Muda needs Mura. Lean principles spring from supply chain excellence in the Japanese manufacturing industry. The approach of Toyota Production Systems (TPS), one of the most popular approaches, is to focus on the elimination of three types of waste: Muda (non-value added work), Muri (overburden) and Mura (unevenness). I find most companies focus on Muda, sometimes work on Muri, but seldom get to Mura. This is the root of my disconnect. I find that we have the supply chain team designing lean systems assuming that Mura will happen; while sales teams incented to induce more unevenness into the supply chain through sales incentives, price management, promotions, marketing, and trade deals. The issue is that 99% of companies have no demand visibility. They cannot see. Orders are not a good reflection of demand. So the supply-centered processes of source, make and deliver focus on lean, while the sales and marketing processes induce more variability. I find that it spins the organization out of control. What to do? Focus on the design of value
Greater value from Demand Driven. I have experienced many types of lean. So, while I believe in reducing Muda, I have also witnessed magic happen in many very SUCCESSFUL Kaizen events. I value the benefits from value stream mapping, continuous improvement and poka-yoke (error-proofing). So, you might ask, why does Lora bristle when she hears the word LEAN? Lean is frequently applied in manufacturing companies to reduce all the waste that we can see. But what if we cannot see? What if demand volatility is high, and sales processes have done anything but created Mura? In these cases, I believe that we must design for demand variability, improve demand sensing (the time to sense true channel demand), and shape demand based on market conditions. This is my second disconnect. Many clients confuse lean principles as being demand driven. Lean is an enabler of demand-driven; but can only be successful if you first build demand sensing and shaping capabilities FIRST that are market-driven. I find that most companies have sales-driven or marketing-driven programs that are anything BUT market-driven.

Why it Matters

It happens often on one of my typical days. Recently, I visited a major retailer. He asked me “Why can my relationships with my suppliers not be like Toyota Production Systems?” To which I replied, “As long as you incent your suppliers to stuff your warehouse with inventory, take promotional dollars, and forward-buy products to get a lower discount, you will never be able to move a Toyota Production Systems relationship.” He said, “hmmm, I had never thought about it this way.” He implemented a lean program anyway, and I laugh each time that I pass by the out-of-stocks at the shelf.
So, without Mura, we must better manage demand and until we do this, we are not ready for lean. Yes, you may argue that we can apply lean on high volume predictable products. To this, I would agree. However, we cannot broad brush the concepts widely across the supply chain.

TGIF

Sorry, good analysts are opinionated. We are paid for opinions, and as I sit at the Miami airport after two missed flights on a Friday afternoon, I am full of them. Thanks heavens that it is Friday!
What do you think? Do you also see companies incorrectly applying lean principles? I will be at CSCMP next week in San Diego. Look me up; I look forward to your stories. Until then, I am the supply chain shaman, combing the world of supply chain to find the best stories for you.

Lead Time: A Broken Gossamer

July 16, 2026 6:38 pm

If you are struggling with supply chain planning, dancing in the light of shiny objects, and scratching your head, please read on. My goal is to help you.

Please do not AI Stupid. What do I mean? AI Stupid is putting agents and agentics on top of existing architectures believing that making them faster and hands free add value. To me, this is fools play.

I love AI. I am excited about new technologies. To this end, I want to shine a light on how new technologies can help address the black holes and inconsistencies in today’s supply chain, which largely stem from the limitations of the first generation of supply chain planning and execution technologies. In this blog, I give you three places to start.

Do You Need a Supply Chain Coach?

July 9, 2026 5:27 pm

Supply chain is where the rubber hits the road. For a public company, over 40% of market capitalization is tied to the trade-offs between growth, operating margin, inventory management, and Return on Capital Employed.

The road for supply chain improvement is fraught with issues. Here we share some and offer some advice.

Is your Supply Chain AI Ready?

June 11, 2026 2:39 pm

A simple quiz to assess an organization’s AI readiness.

The pace of change is fast and furious. Every day, technology advances faster than we can digest. A great challenge to have.

Determining whether a supply chain is “AI-ready” is less about technology and more about the gray matter between the ears of supply chain leaders. Leadership, alignment, and clarity of goals matter.

Too few companies are clear on the definition of supply chain excellence. Measuring and rewarding functional metrics reduces the firm’s value. Putting agentics on top of today’s processes can make bad practices run faster, reducing value.

The toughest job for the supply chain leader is challenging existing supply chain paradigms that were defined by the limitations of decades of supply chain technologies. As the curtain lifts on the potential of new forms of technology, process redefinition is our opportunity, but only if we are clear on what drives value. (Here, I link to the Supply Chains to Admire reports to help you define value. The next report will be published on June 23rd, along with my Dynamic Benchmarking Product, to help you define value in the face of your AI readiness. More information about the launch is at the bottom of this blog.)

Case Study: A Scrappy Demand Management Approach

June 9, 2026 5:37 pm

This study of Franklin Sports shines a light on the work that needs to be done at the sales account level to challenge a retail forecast, and also highlights the importance of a new technique for a forecast engine — reinforcement learning.

Artificial intelligence comes in many forms — large language models, generative AI, machine learning, unstructured text mining, deep learning, neural networks, reinforcement learning, agents, and agentics. While the industry is wigging out about agentics, I think reinforcement learning is a great step forward in the journey of Artificial Intelligence.

Can We Side-Step the AI Spin Cycle?

June 7, 2026 3:44 pm

When it comes to combining tech, 1+1+1 should equal more than 1. The impact should be exponential. Unfortunately, today, the answer is 0.

What do I mean? Let me explain.

I find that the supply chain technology market moves slowly along traditional technology lines. Conferences are usually focused on the use of technology, not on redefining work. This bothers me. I want it to bother you as well.

Here I share some insights to drive change.

Supply Chain Health Check: The Power of an Orbit Chart

May 27, 2026 9:49 pm

An orbit chart is a powerful tool for understanding the “health” of a supply chain and its potential for improvement. The supply chain is a complex, non-linear system with limited trade-offs. The relationship between trade-offs varies by industry, region, and size. The orbit chart is a diagnostic we use in the Supply Chains to Admire work. Here I explain the use case.

Supply Chain Shaman