Achieving operational excellence in supply chain management with a lean six sigma 5.0 project

Purpose – Efficient inventory management is crucial for cost control and operational continuity in modern industrial environments. It reduces waste directly and indirectly and promotes more sustainable inventory use (SDG 12). In addition, it helps reduce carbon footprints through optimised transportation and inventory handling (SDG 13). This paper aims to develop a Lean Six Sigma 5.0 (LSS 5.0) conceptual framework project and document its implementation in a case study focused on reducing inventory pieces by 20% across seven bulk materials. Design/methodology/approach – An LSS 5.0 framework was developed using Operational Excellence (OPEX) principles and Industry 4.0 (I4.0) technologies. Later, this framework was tested in a manufacturing organisation located in Latin America. Findings – Implementing standardised packaging practices (Kanban containers) and an inventory tracking system, as part of inventory management, facilitated more sustainable supply chain processes, reducing inventory by 18.6% without impacting service levels, approaching the 20% target. Research limitations/implications – The LSS 5.0 project was conducted from the supplier to the plant; further research is needed to analyse the internal Plant IMP inventory. Practical implications – This study demonstrates how OPEX 5.0 and I4.0 can be used across different phases of the DMAIC – define, measure, analyse, improve and control – problem-solving methodology to improve inventory management, delivering strategic operational and environmental benefits that contribute directly or indirectly to global sustainability efforts. Originality/value – This continuous improvement project integrated OPEX 5.0 principles (human-centredness, resilience and environmental impact) with I4.0 technologies (e.g. big data, simulation and real-time dashboards).