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No matter how big or small, all markets are ruled by many factors and rules that are impossible to predict perfectly. In an age where conditions change by the second, it is difficult, if not impossible, to predict trends and events without the help of a framework that allows versatility and helps you to stay ahead of the game. Today, the market is defined by VUCA - Volatility, Uncertainty, Complexity, and Ambiguity. To survive and thrive in the next normal requires a transformation not to be blindsided at any point. A vital element of this transformation is agility, and the agile supply chain is one part of this epoch. What is an Agile Supply Chain?Agility refers to the ability of a system to have a high level of responsiveness, adaptability, and swiftness when interacting with its environment. The same properties go for an agile supply chain, meaning it can be equally defined based on the following properties:
An agile supply chain also ensures that your inventory does not suffer from either stockouts or surplus, both of which cause immense losses. It keeps track of demand, supply, and product cycles to efficiently maintain the inventory at optimum size. What Frameworks are there for agility in the Supply Chain?Being agile is not to be pinned down on one specific process. Instead, it is a way of working based on particular principles and practices that allow for agility. Incorporating agility in your existing supply chain requires an overhaul of the way systems were operating previously. There are numerous approaches that a company can take to do so. For instance, you can try a balanced approach by integrating existing systems, modifying them to shift them towards agility, or prioritizing a certain property or variable you think is most important to build the agile supply chain. In any case, it is vital to have correct data-based insights that allow you to learn what works for your company and what does not. With today’s data analytics tools, you can have constant, real-time, 360-degree visibility of the supply chain. This allows for a first-hand view that helps you understand whether modification took the system closer to agility or if two different components interact and affect the system. Data-based insights can help you with intelligent decision-making, which allows you to react to new learnings faster through quick execution of decisions. Speedy, data-based decisions and their execution both are vital to achieving agility. On top of these practices, agility is based on certain principles that must be considered in the framework being used to redesign your supply chain. These frameworks look different across organizations, as what works for some may not work for others. However, no matter the approach or the framework, some properties as given below must be a constituent of that framework if the supply chain is to achieve agility. So, when designing your agile supply chain framework, think about the following:
Benefits Of Agility and Agile Supply ChainAgility is a vital characteristic of the supply chain of the future, and its most significant benefit is that it allows you to respond way better and faster – a necessity to stay competitive in today’s volatile market environment. Moreover, when applying principles of agility, there are many direct and indirect benefits to agility in your supply chain, for instance:
Lean versus Agile Supply Chain, what is the difference?The lean versus agile supply chain debate is an old one. In fact, in many instances, the state of lean and agile supply chains and the process of their transformations may seem very similar. However, they are fundamentally different because the concepts driving them are different. A lean supply chain operates to remove any unnecessary expenditure by optimizing the supply chain to its maximum. It does not contribute to the ability of the supply chain to react to the market in time at present and future times. That is where agility comes in. An agile supply chain stays ready for any market change through constant information feeding, analysis, and implementation. Nonetheless, cost optimization can be thought of as a valuable by-product of that process. What’s next?The future of all systems and organizations is agility. Thus, an agile supply chain is the natural next step for any supply chain that is still traditionally operated. Moreover, it is agility only that can place real control in the hands of supply chain managers and allow them to run it perfectly in a real-time environment.
What does agility mean in supply chain?Supply chain agility refers to a company's ability to quickly adjust its strategy, particularly in procurement, inventory management and delivery to meet rapidly changing supply chain requirements.
Why is agility important in supply chain management?One of the biggest benefits of having an agile supply chain is that it enables you to consistently meet customer demand around fast, affordable shipping, despite fluctuations in order volume. However, to meet ever-changing market demands takes deliberate supply chain planning and execution.
What are the characteristics of agile supply chain?The key characteristics of an agile supply chain are its flexibility and resiliency.. Demand Management and Forecasting. ... . End-to-end Collaboration. ... . Responsive Systems and Analytics. ... . Resilience and Risk Management. ... . Design for Agility. ... . Process Ownership.. How can supply chain agility be improved?To build an agile supply chain, an ecommerce business must have the resources to: Optimise and improve logistics operations efficiently. Easily implement the latest technology and automation. Gain visibility into operations and access real-time data.
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