Are lean supply chains a myth? Examining resilience amidst disruptions
22 Jan 20258 min read
Summary
- Lean supply chains have long been valued for efficiency, cost reduction, and waste elimination, but recent disruptions have exposed their limits. Global events such as the pandemic and geopolitical tensions have revealed that operating with minimal inventory can amplify vulnerabilities and delay production.
- Companies like TSMC, Samsung, and Toyota continue to apply lean principles but now combine them with strategies that increase resilience. These include real-time data sharing, predictive analytics, and strategic inventory buffers that protect against shocks while maintaining efficiency and sustainability goals.
- To remain competitive, firms are adopting hybrid models that balance lean operations with flexibility through diversified suppliers, nearshoring, and safety stock. The shift marks an evolution from pure efficiency to a focus on resilience, positioning supply chains as engines of both stability and sustainable growth in an unpredictable world.
Lean supply chains have been the default for companies seeking to lower costs through managing minimum inventories and manufacturing only-in-time, yet the recent years with constant unplanned disruptions and shifting supply chains seem to suggest this may not be optimal from a management of cost versus ensuring demand from customers are met.Can lean supply chains truly withstand a turbulent market?
A new beginning amid global challenges
The pandemic and other black swan events have caused shipping disruptions. This caused undeniable revision to free trade practices that exposed vulnerabilities in relying on minimal inventory and a narrow supplier base. The lesson learnt is clear. Resilience must become the cornerstone of modern supply chains. Lean principles remain valuable but require transformation. This doesn’t mean leaving the approach entirely.Instead, it calls for an evolution—pairing efficiency with foresight, agility and adaptability. Strategies like supplier diversification, strategic inventory management and nearshoring are no longer optional—they are essential lifelines in an unpredictable global landscape. Supply chain professionals now face an important decision. The challenge is not just technical. It’s about delivering stability, sustainability, and trust to businesses and the communities they serve.
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