“Good day, everyone! I’m Dr. Julius Velasco. Before I begin, let me share a short verse from the Bible that connects with our topic. In Proverbs 21:20, it says: ‘The wise store up choice food and olive oil, but fools gulp theirs down.’ This verse reminds us of the importance of wisdom and discipline in managing resources. Just like in Lean Supply Chain Design, it’s not about having more—it’s about using what we have efficiently, avoiding waste, and delivering value. Lean systems focus on storing only what’s needed, responding to actual demand, and making every process purposeful. When we apply this kind of wisdom in operations, we reduce excess, improve flow, and ultimately serve customers better.” “So today I’ll be discussing Lean Supply Chain Design. Basically, this approach applies the lean philosophy sa buong proseso ng goods, services, and information — mula sa suppliers hanggang sa customers. Ang main goal nito is to maximize customer value habang minimi-minimize ang waste. Unlike traditional supply chains na naka-base sa excess inventory at push system, lean supply chain emphasizes responsiveness, transparency, and synchronization with actual customer demand.” 1. Lean Philosophy and Its Relevance “Ang lean philosophy ay rooted sa Toyota Production System. Ang focus niya: maximize value and minimize waste. Sa supply chain, ibig sabihin nito, dapat mabilis, reliable, at efficient ang delivery ng products and services. Strategic ito kasi nakakatulong sa competitiveness, lower costs, and better customer satisfaction.” 2. Value Stream Mapping “Isa sa pinaka-important tools ay Value Stream Mapping or VSM. Dito minamap lahat ng processes sa supply chain — makikita kung alin ang value-adding at alin ang waste. Dahil dito, mas madaling makita ang bottlenecks at inefficiencies, kaya mas transparent at mas streamlined ang operations.” --- 3. Pull-Based Systems “Next, pull-based system. Kung dati push system, ngayon, naka-base na sa actual demand ang production. So hindi tayo gumagawa ng sobra-sobra, hindi rin kulang. This demand synchronization makes supply chains cost-efficient at responsive.” 4. Eliminating Wastes “Sa lean, may seven wastes: overproduction, waiting, transport, over-processing, inventory, motion, and defects. Sa supply chain, halimbawa, sobra-sobrang inventory ay nagti-tie up ng capital, o kaya naman poor logistics na nagdudulot ng transport waste. Eliminating these wastes leads to shorter lead times and better service quality.” 5. Supplier Partnerships “Importante rin ang strong partnerships with suppliers. With trust and collaboration, mas possible ang just-in-time deliveries, consistent quality, at shared forecasting. Kapag aligned ang suppliers sa lean practices, mas mabilis at reliable ang buong supply chain.” 6. Lean Warehousing and Distribution “Sa warehousing, lean means efficient space utilization, less handling, at standardized processes. Halimbawa, gamit ng cross-docking at automation. Sa distribution naman, ang focus ay fast, accurate, and cost-effective delivery.” 7. Lean Production Synchronization “Kasama rin dito ang lean production and assembly line synchronization. Dapat naka-align ang processes with takt time or demand rate. This minimizes downtime, avoids bottlenecks, and improves productivity.” 8. Metrics and Monitoring Systems “Para ma-sustain ang improvements, kailangan ng performance metrics. Examples: lead time, inventory turnover, and order accuracy. Through dashboards at Kanban boards, nagiging real-time ang monitoring at mas madaling mag-adjust.” 9. Sustainability in Lean “Lean is not only about efficiency, but also sustainability. Kapag binawasan ang waste, automatic na mas eco-friendly ang processes. Kaya practices like green logistics, eco-packaging, at recycling ay aligned sa lean philosophy.” 10. Philippine Context “Dito sa Pilipinas, malaki ang potential ng lean supply chain. Totoo na may challenges tayo tulad ng logistics inefficiencies at natural disasters, pero with lean practices, businesses — especially SMEs — can be more competitive. Plus, culturally, may bayanihan spirit tayo which supports collaboration with suppliers and partners.” Conclusion “So in conclusion, lean supply chain design is not just about saving costs — it’s a holistic approach. It integrates efficiency, collaboration, sustainability, and resilience. Sa ganitong paraan, businesses can respond faster to market demands, strengthen partnerships, and create long-term socio-economic growth.”