The Effects of Application of Lean Concept in Retail

Lean principles and techniques can be successfully applied in the retail sector. In the retail sector, lean approach improves operational flows. Lean retail encourages manufacturers to produce standard products in accordance with the created (placed) orders from retailers pursuant to the demand of their consumers. Characteristics of the retail market are: strong competition, shorter product life cycle, longer product development time and high sensitivity of demand. In order to be more competitive and profitable today's retailers operate strategically oriented to lower prices and gain exemption from holding unnecessary stocks. Lean retail is an example of best practices of successful operational strategies which management need to accept - to maximize the operating efficiency of the retail process.