Lean thinking, a concept developed by the Japanese car industry in the 1970s when companies needed a way to get more out of what they had to compete with Detroit, is applicable to retail’s supply chain and to sustainable practices within that supply chain, former Tesco CEO Sir Terry Leahy says. He says that lean thinking improves efficiency in retailers’ supply chains and allows companies to increase consumption while decreasing their use of natural resources including energy and water
Leahy notes that a company that works more sustainably is executing a good business practice because it forces the company to pay more attention to wasting less and conserving more, which increases profits in the end. “When you conserve things, when you don’t waste things, when you’re frugal with the use of resources, actually you find that you can produce more for less cost, and that’s more profitable,” he says. “It’s good business sense.”
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