Lean Thinking - Research Paper Example

Its adoption of this strategy seems to be the reason why this business organization has survived in a competitive business environment. Supply chain management is a strategy that is used to streamline all business operations to ensure that they occur at the least cost possible and in the most efficient manner. In a competitive market environment, the cost of a product dictates the attractiveness of a business and consequently the inflow of customers (Taylor and Brunt, 2001). The development of products right from the time when raw materials are acquired to the time the final product reaches the customer has a cumulative impact on the cost of the products delivered in market.

Harrison and Hoek (2011) point out that understanding consumer behaviour is important for a business that intends to survive in a competitive market. This is the reason why the Starbucks Corporation has decided to develop its lean thinking strategy to model an effective supply chain. One lean strategy of the Starbucks was to reduce the employee motion by bringing products closer to the customers. The company has a team of lean thinking implementers who have engaged in developing strategies that will define an effective supply chain.

Ms Jordan, a developer in the lean team noted “…. how much my partners were moving for things that were never at the same place …” and notes the much that was wasted while preparing a single cup of coffee (Jordan, 2009). In response, she advised the employees to place goods on top so that they can avoid the time wasted while bending. Also, she suggested that some essential ingredients be placed closer to the customer to ensure that every customer has access to the product without having the need for employees to supply them every time.

Saving time was part of developing an effective supply chain that reduces wastage of time, an important resource in an organization. The strategy employed by Starbuck Corporation can be regarded as minimization of waste of unnecessary motions. Harrison and Hoek (2011, P. 195) point out that if employees have to move, bend or stretch unnecessarily, this is a waste of time that would have been utilized in the productivity. The activities of the company benefited this organization in two dimensions.

First, the organization was able to increase the amount of sales which directly contributes to the financial performance of the organization. Secondly, customers attach value to organizations that provide timely services without due wastage of time. In fast food companies where time is a factor, responding to customer orders in time assures an organization of loyalty from the customers. This is the idea that Scott Heydon when he engaged a strategy to minimize motion wastage in the organization.

Jargon (Para. 15) points out that there was an increase in customer loyalty in Starbucks after the motion in this organization was minimized. In 2008, the customer loyalty changed from 56% to 76% between April and June and the number of transactions increased by 9% during this time. Harrison and Hoek (2011, p. 60) provides that satisfying the customer value is a key business aspect that garners loyal customers and pulls new buyers. This kind of business trends is important for an