What does VSM stand for in a business context?

Value Stream Mapping (VSM) is a visual tool used in lean management that allows businesses to analyze and improve the flow of materials and information required to bring a product or service to the consumer. It involves documenting and examining the current state of a process to identify waste, inefficiencies, and areas for improvement. Organizations utilize VSM to streamline operations, eliminate non-value-adding activities, and enhance overall efficiency.

By creating a visual map of the process, businesses can gain insights into their value chains, facilitating better decision-making and strategic improvements. VSM aligns well with ethical procurement and supply practices by promoting a transparent and efficient supply chain, which benefits both the organization and its stakeholders. This facilitates a more responsible approach to procurement while ensuring higher quality and quicker delivery of products.