The concept of Agility Key issueKey issue 11 What are the dimensions of the agile supply chain? It has established an agile supply chain which still incorporates ‘lean’ characteristics. Agile supply chain practices can significantly improve performance in industries compared to lean supply chain where the market is volatile and unpredictable, the customer demand is ever-changing, or if there is a high level of innovation. Lin et al. This philosophy is the baseline of what is known as a multiple supplier strategy. The gaps identified and challenges made will serve as a foundation upon which future researchers can build. This is especially true for companies that produce manufactured goods. This methodology is considered important for organizations that want to be able to adapt to unanticipated external economic changes, such as economic swings, changes in technology, or changes to customer demand. By Professor Martin Christopher. First, there are channel shifts due to new consumer habits, the speed of orders and customers’ expectations of delivery standards. Agile supply chains are designed to be highly flexible so that they can quickly adapt to changing situations. Chapter 7 The agile supply chain 2. Agile supply chain processes such as product postponement and decoupling allow such flexibility, which is especially important in industries with short lead times, such as consumer electronics. This concept has been recognized, as a … There are solid advantages to lean supply chain management practices. An agile supply chain is a supply chain that is a competitive advantage for the company driving it. Agile supply chains. 4. C hange and disruption are attacking the supply chain from multiple directions:. Keywords Supply chain management, Agile supply chain, Zara case study analysis An agile supply chain focuses on responding to the market demand with smaller, customizable batches of items. Tweet; Turbulence and volatility are the prevailing characteristics of today’s business environment. Synchronization implies that all parties in the supply chain are marching to the same drumbeat. Creating an Agile Supply Chain. Zara, the Spanish apparel retailer, is an excellent example of leagile supply chain strategy (Christopher 2000, pp. The Importance of Being Agile Most companies overlook the idea that supply chains should be agile. Wharton LIVE Programming. An agile supply chain can potentially give you the ability to: Ramp up products quickly; Launch ahead of your competition; Divert products from one destination to another; Zara is one of Spain’s most successful and dynamic apparel companies, producing In other words, Agile requires you to avoid putting all your eggs into one basket. 40). The agile supply chain model is more information-centric than inventory-centric, where business decisions of tomorrow are made based on fresh data from today’s consumer transactions. When you digitize the supply chain, you have the foundation for a much more flexible and responsible supply chain. To be able to implement this change in supply chains, the company needs to be aware of a few important points: 1. A lean supply chain focuses on cutting costs by producing high volumes of products with low variability. Build an agile team; Agile thinking has come from software developers. Define agile according to your reality: Being clear about what agile means for your supply chain reality is crucial. An agile supply chain must its market information to keep inventory at the most efficient level. Markets are volatile; adaptability and agility become crucial factors in responding to these fluctuations. However, it is no guarantee that a company will always have the right product in the right quantity at the right location when the actual demand comes in.
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