International Logistics - Lean Thinking For an Online Grocery Market
Abstract
The development and implementation of the lean system over the recent years has proved to generate positive effects on the manufacturing sectors both in medium and small sized enterprises. Lean production system transformation necessitates the utilization of both gradual and radical transformation. This mainly involves the reorganization of the system’s purpose, the general system as well as the general culture of an organization. Numerous variables are associated with the impacting of lean implementation. Through the practices of lean implementation, it is thus clear that its application into the online grocery market may be affected by various factors. Lean implementation can be termed as a continuous and a systematic effort and therefore it is crucial to establish and understand the associated smooth transition barriers. Based on recent literature there is a growing need of application of lean production to the online grocery market in the aim of developing operational productivity and efficiency. This paper will, therefore, present an evaluation of the possible lean implementation barriers that are bound to affect its effectiveness in the online grocery market.
Keywords: Implementation, Lean Manufacturing, Online grocery Market, Barriers.
Introduction
Lean manufacturing is also referred as lean production which is described as a systematic approach for the eradication of wastes within the system of manufacturing. In addition lean manufacturing accounts for the created wastes through overload and the wastes that are generated via workload unevenness (Vallespir, & Bordeaux, 2010). Deals with Online grocery markets mainly the selling of food and a grocery is mainly a seller of bulk foods. Online grocery market basically offers foods that are non-perishable which are packed in bottle, cans as well as boxes.
More increasingly, problems in the present international competition have encouraged numerous manufacturing sectors in adopting fresh manufacturing approaches with the aim of enhancing competitiveness and efficiency (Bilgin, & Danis, 2016). For this rationale, lean implementation is presently becoming widely adopted and accepted suitable practices for manufacturing across several industries and nations. The main goal of lean implementation is to generate a smooth role as well as a system that is of high quality which can generate without the creation of wastes and the finished products must, therefore, be characterized by high quality as demanded by the consumers. However, in real life many industries and especially the online grocery market are not fully capable of transforming themselves into lean production organizations.
Lean production is supposed to be implemented holistically and inclusively with regard to both content and scope. Numerous researchers hold the argument that instead of basically manufacturing, addressing technical issues the evolution from being outdated to lean surrounding necessitates cultural transformation in the industry’s radical revolution in the strategy structure as well as the organization’s culture. This, therefore, demonstrates that a more concise and clear understanding are necessary for ensuring that effective lean implementation and transformation is achieved (Wilson, 2010).
Thus, this paper is aimed at examining the potential barriers that may hinder implementation of lean production in the online grocery market. This is mainly because the failure of establishing the potential barriers may lead to negative effects as well as non-beneficial effort. This paper will not be complete without commencing of why lean implementation fails in the online grocery market (Wilson, 2010). Next, the paper will present a summary of the literature as well as solutions that may assist in overcoming the lean implementation hindrances. A general summary of the barriers and the suitable solutions will be the final analysis of the paper.
Literature Review
Lean production is a strategy of manufacturing that is objected at attaining smooth flow of production through the elimination of wastes production. In addition, the strategy also aims at developing manufacturing activities values (Bilgin, & Danis, 2016). The online grocery market can generate a lot of wastes as its production mainly involves food. As pointed out by several researchers any industry is necessitated to utilize lean manufacturing because ignoring the strategy would result in huge wastes creation. This, therefore, implies that the industry may not be successful in the present international competitive market which requires lower production costs, quick delivery as well as high quality. This point is reinforced by a large percentage of the general analysis that has been conducted lately. This study illustrates that lean implementation policies can help in creating high performing industries by decreasing the production costs.
Transforming from outdated system of production to the adoption of lean implementation cannot be an easy task as it requires strategy, knowledge as well as capital (Wilson, 2010). This change necessitates much attention in impacting on both involves individuals as well as processes. Despite the growing benefits awareness documentation that is achieved from lean implementation, in real sense very few companies achieve success (Wilson, 2010). This is related to the fact that numerous issues and challenges are reported to be the key players of the lack of success of lean production strategy implementation.
The major barrier to lean production success in the online grocery market is objective and actual concept misunderstanding. According to the suggestion made by Bilgin, & Danis, (2016) the rationale behind the misunderstandings cultural distinctions which are developed while interpreting the components of the lean strategy. This type of misunderstanding may result in major problems in the implementation of the strategy which generally includes lean techniques and tool fragmentary adoption, lean tools misapplication and the incapability of developing a lean structure and culture that can provide the necessary support for lean production implementation in the online grocery market.
Another main barrier to the implantation of lean production success in the online grocery industry is the presence of inadequate resources (Myerson, 2012). These resources may involve finances, expertise, knowledge as well as the time required to ensure that success is achieved. This issue, therefore, becomes the center of the implementation failure particularly if the lean manufacturing in the online grocery industry is based on medium or small businesses. Such business is faced with resources and finances trains and therefore the implementation may not be successful. In addition, the business may not have adequate and expertise knowledge as this may tend to be expensive (Myerson, 2012).
According to the study conducted by (Wilson, 2010), small business is less successful in most cases in the implementation of lean production in comparisons to well-developed large corporations. This is mainly because inadequacy of resources and funds hinders the business from training, recruiting and improving the potential employees in their organizations. This, therefore, implies that the organizations cannot implement innovations due to shortages. In other words, the online grocery market inefficiency with the implementation of lean strategy may be hindered by shortages of resources as well as finances. The implementation of lean production into the online grocery market requires support from developed partner’s which tends to be costly for the business.
The online grocery market has now been established in the global industry. In short, the market is faced with high competition as well as cultural differences (Myerson, 2012). Cultural differences are another barrier to the success of lean production implementation. Based on the surrounding of any market the cultural distinctions are bound to affect the success of the strategy. Due to the fact that lean strategy necessitates fresh knowledge application and cultural transformation, it is important to handle the implementation in a suitable way. Concepts awareness, as well as the transformation of attention, is essential for effective lean system transition (Myerson, 2012).
Another barrier to the successful lean strategy implementation into the online grocery market is the lack of support from organization’s top management. This, therefore, results in a lack of concise communication as well as lean production implementation deficiency of concentration. Management role and leadership are essential to the implementation of lean (Vallespir, & Bordeaux, 2010). Even though the initiative of a corporation for the implementation of lean is supposed be generated from all levels of management active top management corporation is necessary to increase the implementation success. Motivation loss, support decline, low focus, low commitment as well as inadequate follow-up from the top management may result in the failure of lean strategy implementation (Vallespir, & Bordeaux, 2010).
Lean manufacturing is presently a wide implemented and debated strategy in various organizations across all grounds (Wilson, 2010). The essential concept of lean strategy is the provision of high-quality product and at the same period ensuring that the production of the product is not linked to the high cost of both the manufacture as well as the market. Most industries in the world today are passing via a location where there is a great need to provide responses to consumers changing needs. In order for the industries to sustain their position in the general market, most of the involved corporations have presently begun to implement lean concepts.
Lean production concept utilizes various techniques as well as tools for achieving success. Tools and techniques choices are identified based on the organization’s market situation (Bilgin, & Danis, 2016). Several actors are therefore linked to the success of the lean approach. Lean approach success does not necessitate the organization to apply all of its concepts in the process of production but the strategy transformation must take place. Those companies that follow lean approach are viewed as flexible and they hold greater market segments because they are able to overcome the production barriers. In additional lean approach generates cultural and operational surrounding that is very conducive for business because they ensure that the generation of wastes during operations is reduced (Bilgin, & Danis, 2016).
Lean strategy implementation was established for the purpose of maximizing the utilization of resources via minimizing wastes generation and also as a responsive strategy to the high competitive environment (Eaton, 2013). Due the recent global business changes, most organizations are necessitated to existence market complexity as well as challenges. Whether a corporation is a manufacturing one or service based market survival highly requires systematic capabilities. This, therefore, implies that strategies that are bound to add value to the business are necessary for achieving success. Therefore lean strategy implementation in the online grocery market is a core capability for the industry’s market to be sustainable (Eaton, 2013).
Recommendation and Conclusion
Open top management is required in the online grocery market to ensure that the implementation is successful. These will additional help in identifying issues as well as providing solutions in the early stages (Myerson, 2012). The top management is additionally required to ensure that there is no involvement of project conflicts since every project is characterized by different approaches which may hinder the success of lean production strategy. Communication throughout the organization should be effected. In order for the lean strategy to be effective in the online grocery market which is associated with high demand and competition effective communication is necessary (Lee, 2016). The top management is required to understand the entire surrounding lean concept because if the lack of concepts understanding is present in the top management this implies that the junior individuals are bound to experience various issues. Training should be done to everyone in the organization to ensure that concepts understanding are evenly distributed.
The online grocery market operation requires attention and commitment and so does the lean strategy. Without a full commitment to its implementation, the strategy may prove to be unsuccessful. Ineffective teams while implementing lean strategy may lead to the failure of lean strategy. For an efficient lean strategy transition in the online grocery market, a capable team with a capable leader is necessary for influencing changes. The major objective of these teams is to ensure that they inspire motorization for the development of change as well as ensuring that lean strategy translation procedure is well accepted (Myerson, 2012).
Online grocery industry can ensure that adequate training is provided to the company of effective communication. Effective communication is significant in ensuring that misunderstanding does not occur which affects the running of lean strategy (Lee, 2016). The implementation of lean basically involves the following dimensions effectiveness, developed understanding of lean methodology and thinking as well as behavioral experience. The online grocery market can also change the attitude of employees in order to achieve success. The success of lean approach needs attitudes and perceptions changes. The lean system needs all the employees to voluntary capabilities in order to solve issues adequately.
Conclusion
The implementation of a lean approach system is difficult since it requires attention, commitment, expertise knowledge as well as resources. These challenges are very strong in affecting the failure of the lean approach strategy. For any transformation in organizations to take success and hold the barriers and the hindrances forces must be established and understood properly. The failure of evaluating the readiness of the online grocery market and person readiness for transformation may result in the organization administration to waste important effort and time.
Given the evaluation of lean strategy literature, it shows that the barriers to lean approach implementation are effective in weakening the success of its implementation. The literature identified various barriers to the effectiveness of lean approach implementation in the online grocery market. The barriers identified barriers involve inadequate communication and employees training, employee’s perception, ineffective supervision teams, lack of adequate management support and challenges in acquiring lean approach concepts knowledge. Since the lean implementation is basically an organized effort it is, therefore, significant to establish as well as understand the hindrances to a successful transition. This means that not every corporation will achieve success in the first implementation of the approach. However essential factors for the effectiveness of lean strategy implementation are management support, strong teaming as well operational communication. In order to overcome the challenges that are posed by the implementation of the lean strategy, attention is required to effect on both the involved individuals as well as the processes. Through developing barriers understanding to the implementation of the lean strategy is helpful in eradicating the effects of the probable barriers.
References
Bilgin, M. H., & Danis, H. (2016). Entrepreneurship, business and economics. S.l.: Springer.
Eaton, M. (2013). The lean practitioner's handbook. London: Kogan Page.
Lee, I. (2016). Encyclopedia of e-commerce development, implementation, and management. Hershey: Business Science Reference.
Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw Hill Professional.
Vallespir, B., APMS <2009, Bordeaux>, & International Federation for Information Processing. (2010). Advances in production management systems: New challenges, new approaches ; IFIP WG 5.7 international conference ; revised selected papers. Berlin: Springer.
Wilson, L. (2010). How to implement lean manufacturing. New York: McGraw-Hill.
