Development of a retail supply chain process reference model incorporating Lean Six Sigma initiatives

Abstract

Purpose The purpose of this paper is the development of a reference model contributing to the identification of the retail supply chain activities that can be improved by the implementation of Lean Six Sigma (LSS) initiatives, following DMAIC steps and using proposed tools, based on contemporary technologies and best practices. Design/methodology/approach The reference model was developed combining the existing literature knowledge about the areas of supply chain that LSS can improve and the data collected by two big retailers in Greece about their supply chain operation. The integration of two sources of information led to the modeling of the retail supply chain processes and the proposal of appropriate LSS initiatives for their improvement. Findings This paper aimed to detect the pain points of a retail supply chain, which can be achieved by following the steps of DMAIC and applying specific LSS initiatives as described in the reference model, to introduce the trends of the sector in terms of logistics and supply chain. Practical implications The reference model of this paper can be used as a comprehensive guide of LSS implementation in the retail supply chain and help the companies of such a significant sector for the economy. Originality/value The literature review revealed that there is a lack of publications concerning LSS implementation in retail supply chain and in the retail sector in general. The development of this model contributes to the filling of this gap by providing a complete reference model, which strives to overcome the barriers of LSS adoption in retail supply chain.