Life Cycle Management

Click below to share this post

Table of Contents

Life Cycle Management (LCM) is an integrated approach to managing the total life cycle of products and services for sustainable consumption and production.

LCM takes the concept of life cycle engineering (LCE) further as the focus is not only on a particular product, but uses the activities of all those partners in the supply chain who actually manufacture and service the products.

Life Cycle Management need not be expensive or complex to implement and also LCM helps companies to ensure that their choices are ecologically sound.

In addition, it helps to identify opportunities to design better products, make cost reductions, gain a stronger competitive advantage, have superior strategic decision-making,

Identify new business opportunities and markets, improve relationships with key stakeholders and can even manage any inherent risks in the end-to-end supply chain.

We will examine these aspects below

Competitive Advantage Life Cycle Management

Improved and holistic information is available to all decision makers and therefore by capitalizing on this information, companies can improve revenues, strengthen their market position and increase shareholder returns

Cost Reduction Life Cycle Management

LCM instills innovative thinking that can lead to reduced energy and raw material consumption, and reduced waste and emissions.

Since LCM triggers improved communication and collaboration between partners in the entire supply chain, as supply chain partners get involved early in the product/service life cycle,

Therefore even better cost efficiencies can be made in the overall supply chain functions for example, in procurement, design, manufacture, distribution, sale, use and disposal.

Having lower quantities and reduced toxicity of emissions and wastes will also mean less risk of fines and penalties for any non compliance with health and environmental regulations and give a better image of the organization.

Superior Strategic Decision Making Life Cycle Management

Now that the implications of capital investments, operating expenses and future liabilities can be assessed all together and earlier,

LCM leads to superior decision making across the whole organization and even the supply chains. More investment options can also become available as a more complete financial assessment is now feasible.

Service Design And Value Life Cycle Management

LCM can trigger innovative product and service design that help to produce improved products with more value to the consumer.

Holistic product designs often do result in eco-friendly products and services that will consume less energy, water or resources and produce less waste during its service.

LCM therefore encourages designers and suppliers to think outside of the box to discover opportunities for improvements and to identify new ways of doing things that will provide both economic and environmental gains.

New Business Opportunities And Markets with Life Cycle Management

These improvements on product and service design can also lead to new ideas for providing the same products or services, but with reduced environmental impacts.

Companies can offer the existing products and services to new markets and therefore expand and differentiate on the basis of reduced environmental impacts.

The result is new business opportunities and new markets for existing products and services.

In addition, LCM assists in the development of new or improved services, techniques or technology that will decrease or eliminate environmental impacts.

Indeed, life cycle information is becoming a requirement to do business in some markets

Improved Workplace Culture Life Cycle Management

A commitment to LCM helps organizations to attract and retain their quality workforce. It presents them as socially and environmentally responsible progressive entity working for the betterment of the future generations.

Businesses can secure productive employees in an increasingly competitive labor market, and reduce their costs associated with recruitment, training and discontinuity.

Better Risk Life Cycle Management

LCM can help businesses reduce their risk of future liabilities by assisting to minimize the environmental, safety and health problems associated with the production, consumption, maintenance and disposal of products.

It also helps in future scenario analysis and assists businesses to adapt in advance, manage the risks and capitalize on the opportunities that it presents.

CGoals Of Life Cycle Management(LMC)

  • The main goals of LCM that lead to sustainable development are:
  • Minimize toxic waste
  • Minimize raw material used in producing goods and services
  • Promote recycling and reuse
  • Increase process efficiency
  • Minimize energy intake
  • Increase the use of renewable resources
  • Increase the durability or lifetime of the product
  • Reduce obsolescence

We will now look at these goals in detail using the Life Cycle Engineering (LCE) approach; LCE being directly related to the product, whereas Life Cycle Management is focused not just on a particular product, but on the activities of all the partners in the supply chain.

Source : Emmet & Sood – Green Supply Chains : An Action Manifesto. This book was awarded certificate as “The Most innovative Supply Chain book in the last decade (2000-2010)

Life Cycle Management, Better Life Cycle Engineering On Supply Chain
Life Cycle Management

Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on www.linkedin.com/in/vivek  and more information on Global Supply Chain Group is available on www.globalscgroup.com

Related Posts

Click below to see related posts.

gET INTO TOUCH