Skip to main content

Lean Supply Chain 5.0 Management (LSCM 5.0): Lean and Value Reconceptualized

  • Reference work entry
  • First Online:
The Palgrave Handbook of Supply Chain Management

Abstract

Lean supply chain management (LSCM) has long been an approach to increase firm competitiveness. However, with rapidly changing, competitive markets, there is no guarantee on whether previously defined LSCM principles are enough to overcome today’s challenges. The cyber-physical systems introduced by industry 4.0 have already transformed into talks of industry 5.0 with a focus on human centricity, sustainability, and resilience. In this chapter, we define LSCM through an industry 5.0 context via a two-dimensional matrix incorporating core values of industry 5.0 with LSCM pillars including stakeholder management, technologies, just-in-time (JIT) production, logistics management, and continuous improvement. Using this matrix, 15 lean supply chain management 5.0 (LSCM 5.0) principles and practices are defined in this chapter. We assert that a narrow focus on value in LSCM ought to be adjusted to reflect the broader nature of value as it is defined through the emerging industry 5.0 context. In an industry 5.0 environment, all stakeholders such as workers, managers, shareholders, and customers should be considered in decisions and valued. In addition, a broader perspective of valuation through waste reduction ought to be reconsidered through a more inclusive stakeholder approach.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 649.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 649.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • ASCM. Digital capabilities model for supply networks. Accessed March 11, 2022. From https://dcm.ascm.org/

  • Bai, C., Dallasega, P., Orzes, G., & Sarkis, J. (2020). Industry 4.0 technologies assessment: A sustainability perspective. International Journal of Production Economics, 229, 107776.

    Article  Google Scholar 

  • Bhamra, R., Nand, A., Yang, L., Albregard, P., Azevedo, G., Corraini, D., & Emiliasiq, M. (2021). Is leagile still relevant? A review and research opportunities. Total Quality Management & Business Excellence, 32(13–14), 1569–1593.

    Google Scholar 

  • Boonsthonsatit, K., & Jungthawan, S. (2015, May). Lean supply chain management-based value stream mapping in a case of Thailand automotive industry. In 2015 4th international conference on advanced logistics and transport (ICALT) (pp. 65–69). IEEE. 28(9), 676–686.

    Google Scholar 

  • Breque M, De Nul L, Petridis A. (2015) Industry 5.0: Towards a sustainable, human-centric and resilient European industry. European Commission, Directorate-General for Research and Innovation. 68(4), 676–686.

    Google Scholar 

  • Browning, T. R., & de Treville, S. (2021). A lean view of lean. Journal of Operations Management, 67(5), 640–652.

    Article  Google Scholar 

  • Browning, T. R., Schonberger, R. J., Wemmerlov, U., & Shah, R. (2021). PANEL-is there a future for lean? Decision Sciences Institute Meeting 2021. From https://2021dsiannualconference.pathable.co/meetings/virtual/7x9CP7Zw9vLFrxFY3.

  • Chen, Y., & Ni, J. Z. (2020). Product positioning and pricing decisions in a two-attribute disruptive new market. IISE Transactions, 28(1), 285–297.

    Google Scholar 

  • Christopher, M., & Peck, H. (2004). Building the resilient supply chain. International Journal of Logistics Management, 15(2), 1–14.

    Google Scholar 

  • Cusumano, M. A., Holweg, M., Howell, J., Netland, T., Shah, R., Shook, J., & Womack, J. (2021). Commentaries on “the lenses of lean”. Journal of Operations Management, 20(1), 787–797.

    Google Scholar 

  • Davies, R. (2015). Industry 4.0 digitalisation for productivity and growth. European Parliamentary Research Service, 10, 2018.

    Google Scholar 

  • Demir, K. A., Döven, G., & Sezen, B. (2019). Industry 5.0 and human-robot co-working. Procedia Computer Science, 158, 688–695.

    Article  Google Scholar 

  • Dol, Q. (2021). 22 companies spearheading digital innovation in their industries in 2021. From https://builtin.com/corporate-innovation/corporate-digital-innovation-transformation-2021

  • Edirisuriya, A., Weerabahu, S., & Wickramarachchi, R. (2018). Applicability of lean and green concepts in Logistics 4.0: a systematic review of literature. In 2018 International Conference on Production and Operations Management Society (POMS) (pp. 1–8). IEEE.

    Google Scholar 

  • El Jaouhari, A., Arif, J., Fellaki, S., Amejwal, M., & Azzouz, K. (2022). Lean supply chain management and industry 4.0 interrelationships: The status quo and future perspectives. International Journal of Lean Six Sigma. (ahead-of-print). https://doi.org/10.1108/IJLSS-11-2021-0192

  • European Union. (2022). Why a new paradigm for the industrial transformation? Interreg Europe. From https://www.interregeurope.eu/news-and-events/news/industry-50-a-transformative-vision-for-europe

  • Fadaki, M., Rahman, S., & Chan, C. (2019). Quantifying the degree of supply chain leagility and assessing its impact on firm performance. Asia Pacific Journal of Marketing and Logistics.

    Google Scholar 

  • Fadaki, M., Rahman, S., & Chan, C. (2020). Leagile supply chain: design drivers and business performance implications. International Journal of Production Research, 58(18), 5601–5623.

    Google Scholar 

  • Finantial times. (2021). What is the path to net zero infrastructure? From https://www.ft.com/partnercontent/global-infrastructure-hub/what-is-the-path-to-net-zero-infrastructure.html?utm_source=TW&utm_medium=sustainability&utm_content=paid

  • Frederico, G. F. (2021). From supply chain 4.0 to supply chain 5.0: Findings from a systematic literature review and research directions. Logistics, 5(3), 49.

    Article  Google Scholar 

  • Garcia-Buendia, N., Moyano-Fuentes, J., Maqueira-Marín, J. M., & Cobo, M. J. (2021). 22 years of lean supply chain management: A science mapping-based bibliometric analysis. International Journal of Production Research, 59(6), 1901–1921.

    Article  Google Scholar 

  • Gargalo, C. L., Pereda Pons, E., Barbosa-Povoa, A. P., & Carvalho, A. (2021). A lean approach to developing sustainable supply chains. Sustainability, 13(7), 3714.

    Article  Google Scholar 

  • Gilchrist, A. (2016). Introducing Industry 4.0. In Industry 4.0 (pp. 195–215). Apress.

    Google Scholar 

  • Hoseini, A. R., Ghannadpour, S. F., & Ghamari, R. (2020). Sustainable supplier selection by a new possibilistic hierarchical model in the context of Z-information. Journal of Ambient Intelligence and Humanized Computing, 11(11), 4827–4853.

    Article  Google Scholar 

  • Jasti, N. V. K., & Kodali, R. (2015). A critical review of lean supply chain management frameworks: Proposed framework. Production Planning and Control, 26(13), 1051–1068.

    Article  Google Scholar 

  • Jeong, J. S., & Hong, P. (2007). Customer orientation and performance outcomes in supply chain management. Journal of Enterprise Information Management, 20, 578–594.

    Google Scholar 

  • Kadarova, J., & Demecko, M. (2016). New approaches in lean management. Procedia Economics and Finance, 39, 11–16.

    Article  Google Scholar 

  • Kamalahmadi, M., & Parast, M. M. (2016). A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research. International Journal of Production Economics, 171, 116–133.

    Article  Google Scholar 

  • Kumar Singh, R., & Modgil, S. (2020). Assessment of lean supply chain practices in Indian automotive industry. Global Business Review, 28(1), 489–499.

    Google Scholar 

  • Lukic, R. (2012). The effects of application of lean concept in retail. Economia. Seria Management, 15(1), 88–98.

    Google Scholar 

  • Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2014). Lean management, supply chain management and sustainability: A literature review. Journal of Cleaner Production, 85, 134–150.

    Article  Google Scholar 

  • Moyano-Fuentes, J., Bruque-Cámara, S., & Maqueira-Marín, J. M. (2019). Development and validation of a lean supply chain management measurement instrument. Production Planning and Control, 30(1), 20–32.

    Article  Google Scholar 

  • Myerson, P. (2012). Lean supply chain and logistics management. McGraw-Hill Education.

    Google Scholar 

  • Nahavandi, S. (2019). Industry 5.0—A human-centric solution. Sustainability, 11(16), 4371.

    Article  Google Scholar 

  • Naim, M. M., & Gosling, J. (2011). On leanness, agility and leagile supply chains. International Journal of Production Economics, 131(1), 342–354.

    Article  Google Scholar 

  • Nayak, R., & Choudhary, S. (2022). Operational excellence in humanitarian logistics and supply chain management through leagile framework: A case study from a non-mature economy. Production Planning & Control, 33(6–7), 606–621.

    Google Scholar 

  • Naylor, J. B., Naim, M. M., & Berry, D. (1999). Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain. International Journal of production economics, 62(1–2), 107–118.

    Google Scholar 

  • Nimeh, H. A., Abdallah, A. B., & Sweis, R. (2018). Lean supply chain management practices and performance: Empirical evidence from manufacturing companies. International Journal of Supply Chain Management, 7(1), 1–15.

    Google Scholar 

  • Núñez-Merino, M., Maqueira-Marín, J. M., Moyano-Fuentes, J., & Martínez-Jurado, P. J. (2020). Information and digital technologies of Industry 4.0 and lean supply chain management: A systematic literature review. International Journal of Production Research, 58(16), 5034–5061.

    Article  Google Scholar 

  • Oláh, J., Aburumman, N., Popp, J., Khan, M. A., Haddad, H., & Kitukutha, N. (2020). Impact of Industry 4.0 on environmental sustainability. Sustainability, 12(11), 4674.

    Article  Google Scholar 

  • Ozpolat, K., Rilling, J., Altay, N., & Chavez, E. (2015). Engaging donors in smart compassion: USAID CIDI’s greatest good donation calculator. Journal of Humanitarian Logistics and Supply Chain Management, 5(1), 95–112.

    Article  Google Scholar 

  • Parajuli, M., Harper, C. M., Senior, B., & Grigg, N. (2022). Benefits and challenges associated with the implementation of lean in transportation agencies. Transportation Research Record, 2676(2), 186–196.

    Article  Google Scholar 

  • Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 31(3), 282–292.

    Google Scholar 

  • Prado-Prado, J. C., García-Arca, J., & Fernández-González, A. J. (2020). People as the key factor in competitiveness: A framework for success in supply chain management. Total Quality Management & Business Excellence, 31(3–4), 297–311.

    Article  Google Scholar 

  • Raut, R., Kharat, M., Kamble, S., & Kumar, C. S. (2018). Sustainable evaluation and selection of potential third-party logistics (3PL) providers: An integrated MCDM approach. Benchmarking: An International Journal, 28(6), 787–797.

    Google Scholar 

  • Rosin, F., Forget, P., Lamouri, S., & Pellerin, R. (2020). Impacts of Industry 4.0 technologies on lean principles. International Journal of Production Research, 58(6), 1644–1661.

    Article  Google Scholar 

  • Rossini, M., Powell, D. J., & Kundu, K. (2022). Lean supply chain management and Industry 4.0: A systematic literature review. International Journal of Lean Six Sigma. (ahead-of-print). https://doi.org/10.1108/IJLSS-05-2021-0092

  • Samuel, D., Found, P., & Williams, S. J. (2015). How did the publication of the book the machine that changed the world change management thinking? Exploring 25 years of lean literature. International Journal of Operations & Production Management, 35, 1386–1407.

    Google Scholar 

  • Sarkis, J., Kouhizadeh, M., & Zhu, Q. S. (2020). Digitalization and the greening of supply chains. Industrial Management & Data Systems, 121(1), 65–85.

    Article  Google Scholar 

  • Schniederjans, M. J., Schniederjans, D. G., Cao, R. Q., & Gu, V. C. (2018). Topics in lean supply chain management. World Scientific.

    Book  Google Scholar 

  • Shaikh, M. R., Asim, D. M., & Manzoor, S. (2020). Effective warehouse management using lean concepts and its effects on Pakistan’s FMCG industry. CenRaPS Journal of Social Sciences, 2(1), 167–177.

    Article  Google Scholar 

  • Sinha, N., & Matharu, M. (2019). A comprehensive insight into lean management: Literature review and trends. Journal of Industrial Engineering and Management, 12(2), 302–317.

    Article  Google Scholar 

  • Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). Processes of technological innovation. Lexington books.

    Google Scholar 

  • Tortorella, G. L., Miorando, R., & Marodin, G. (2017). Lean supply chain management: Empirical research on practices, contexts and performance. International Journal of Production Economics, 193, 98–112.

    Article  Google Scholar 

  • Tortorella, G., Giglio, R., Fettermmann, D. C., & Tlapa, D. (2018). Lean supply chain practices: An exploratory study on their relationship. The International Journal of Logistics Management, 12(4), 565–575.

    Google Scholar 

  • Ugarte, G. M., Golden, J. S., & Dooley, K. J. (2016). Lean versus green: The impact of lean logistics on greenhouse gas emissions in consumer goods supply chains. Journal of Purchasing and Supply Management, 22(2), 98–109.

    Article  Google Scholar 

  • Vinitha, K., Prabhu, R. A., Bhaskar, R., & Hariharan, R. (2020). Review on industrial mathematics and materials at Industry 1.0 to Industry 4.0. Materials Today: Proceedings, 33, 3956–3960.

    Google Scholar 

  • Vitasek, K., Manrodt, K., & Abbott, J. (2005). What makes a lean supply chain. Supply Chain Management Review, 9(7), 39–45.

    Google Scholar 

  • Wieland, A., & Wallenburg, C. M. (2013). The influence of relational competencies on supply chain resilience: A relational view. International Journal of Physical Distribution and Logistics Management, 28(2), 787–797.

    Google Scholar 

  • Womack, J. P., & Jones, D. T. (1997). Lean thinking—Banish waste and create wealth in your corporation. Journal of the Operational Research Society, 48(11), 1148–1148.

    Article  Google Scholar 

  • Xu, X., Lu, Y., Vogel-Heuser, B., & Wang, L. (2021). Industry 4.0 and Industry 5.0—Inception, conception and perception. Journal of Manufacturing Systems, 61, 530–535.

    Article  Google Scholar 

  • Yun, G., Yalcin, M. G., Hales, D. N., & Kwon, H. Y. (2019). Interactions in sustainable supply chain management: A framework review. International Journal of Logistics Management, 30(1), 140–173.

    Google Scholar 

Download references

Acknowledgments

The authors would like to acknowledge Dr. Joseph Sarkis (editor) as well as the work of the authors presented in the reference section. The authors would also like to acknowledge the foundational work of the late professor Marc Schniederjans.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dara Schniederjans .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2024 This is a U.S. Government work and not under copyright protection in the U.S.; foreign copyright protection may apply

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Vaezinejad, S., Schniederjans, D. (2024). Lean Supply Chain 5.0 Management (LSCM 5.0): Lean and Value Reconceptualized. In: Sarkis, J. (eds) The Palgrave Handbook of Supply Chain Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-19884-7_22

Download citation

Publish with us

Policies and ethics