Article 4 - Adaptability and Alignment of common goals This...

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Article 4 The Triple-A Supply Chain Key Take Always: The most important thing that is stressed in this article is the flexibility of the supply chain design “ Ceteris Paribus”, it says high speed, low cost supply chain cannot deliver to the ever changing market. Companies need to have an Agile Supply chain. Agility should make the supply chain capable to handle external disruptions smoothly using various methods. Adaptability should make the supply chain capable to meet structural shifts to modify supply networks, products and technologies. Alignment should make the supply chain capable to create incentives for better performance. Key SCM Principles: This article highlights the collaboration of aspect of an effective SCM. It also stresses that the SC must not only stress on Efficiencies and cost savings but also the Agility,
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Unformatted text preview: Adaptability and Alignment of common goals. This article identifies key principals of agility in SC- sharing of data upfront, development of collaborative relations with your SC partners ( back and front end) , design of products to suit SCM, effective inventory management, strength of SC and a strong team which can come up with Plan B. CAT: Caterpillar uses VMI of the parts that come to CAT- North American plant from China, India, Japan other Asian suppliers. CAT Engineers are focusing on designing parts so that Supply chain can handle these parts in a better and cost effective manner. CAT Supplier are rates monthly on delivery performance some thing similar to Seven Eleven Japan....
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