Improvement of Used Shoes Supply Chain by Lean Concept

Abstract

               This research focused on reviewing used shoes supply chain. Preliminary reviews of used shoes supply chain were identified from secondary databases and documents. A survey of the chain and interviews with stakeholders in the chain were then performed. In addition, value chain of this business was analyzed to identify value added. As a result, many activities were found to increase value to the chain, especially operation activities before remarketing. Those activities could create tremendous value to used shoes depending on the value chain activity.

               Furthermore, value changes in each stage of the used shoes supply chain were clarified. Supply chain stakeholders achieved different margins. The highest margin appeared among middlemen producing 520.17%, and the lowest margin was in merchants group 1 at 25.71%.

               Subsequently, Value Stream Mapping (VSM) was used to define and analyze processes. This step enabled researcher to find wastes in these processes. Finally, some suggestions and recommendations were provided to each stakeholder to improve the process. Value Stream Mapping (VSM) showed the highest activities in used shoes supply chain occupied 52.38% of Value Added Activities (VA). Recommendations from researcher included attempting to eliminate, combine, simplify, and re-arrange processes. As a result, NVA, NNVA and shortening process times of VA diminished 21.75 hours of total operating time.