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

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.