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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
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.
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.
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.
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.
Browning, T. R., & de Treville, S. (2021). A lean view of lean. Journal of Operations Management, 67(5), 640–652.
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.
Christopher, M., & Peck, H. (2004). Building the resilient supply chain. International Journal of Logistics Management, 15(2), 1–14.
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.
Davies, R. (2015). Industry 4.0 digitalisation for productivity and growth. European Parliamentary Research Service, 10, 2018.
Demir, K. A., Döven, G., & Sezen, B. (2019). Industry 5.0 and human-robot co-working. Procedia Computer Science, 158, 688–695.
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.
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.
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.
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.
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.
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.
Gilchrist, A. (2016). Introducing Industry 4.0. In Industry 4.0 (pp. 195–215). Apress.
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.
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.
Jeong, J. S., & Hong, P. (2007). Customer orientation and performance outcomes in supply chain management. Journal of Enterprise Information Management, 20, 578–594.
Kadarova, J., & Demecko, M. (2016). New approaches in lean management. Procedia Economics and Finance, 39, 11–16.
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.
Kumar Singh, R., & Modgil, S. (2020). Assessment of lean supply chain practices in Indian automotive industry. Global Business Review, 28(1), 489–499.
Lukic, R. (2012). The effects of application of lean concept in retail. Economia. Seria Management, 15(1), 88–98.
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.
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.
Myerson, P. (2012). Lean supply chain and logistics management. McGraw-Hill Education.
Nahavandi, S. (2019). Industry 5.0—A human-centric solution. Sustainability, 11(16), 4371.
Naim, M. M., & Gosling, J. (2011). On leanness, agility and leagile supply chains. International Journal of Production Economics, 131(1), 342–354.
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.
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.
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.
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.
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.
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.
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.
Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 31(3), 282–292.
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.
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.
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.
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.
Sarkis, J., Kouhizadeh, M., & Zhu, Q. S. (2020). Digitalization and the greening of supply chains. Industrial Management & Data Systems, 121(1), 65–85.
Schniederjans, M. J., Schniederjans, D. G., Cao, R. Q., & Gu, V. C. (2018). Topics in lean supply chain management. World Scientific.
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.
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.
Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). Processes of technological innovation. Lexington books.
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.
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.
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.
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.
Vitasek, K., Manrodt, K., & Abbott, J. (2005). What makes a lean supply chain. Supply Chain Management Review, 9(7), 39–45.
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.
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.
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.
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.
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
Corresponding author
Editor information
Editors and Affiliations
Rights 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
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
DOI: https://doi.org/10.1007/978-3-031-19884-7_22
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-19883-0
Online ISBN: 978-3-031-19884-7
eBook Packages: Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences