The agile supply chain Christopher

The agile supply chain Christopher - Supply Management The...

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Unformatted text preview: Supply Management The agile supply chain- (Christopher) In todays time the company needs to have: the ability to be able to meet the demands of customers for ever-shorter delivery times, and to ensure that supply can be synchronized to meet the peaks and troughs of demand, is clearly of critical importance in the era of time based competition.- A key characteristic of an agile organisation is flexibility. The origins of agility as a business concept lies in flexible manufacturing systems (FMS).- Lean is doing more with less- Lean can be defined as containing little fat whereas agile is defined nimble. - Lean: the problems arise when we attempt to implement that philosophy into situations where demand is less predictable Lean- the market winner is cost Agile- the market winner is availability Naylor et al 1999 defines the two as follows: a) Agility using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace b) Leanness developing a value stream to eliminate all waste, including time The lean paradigm is most powerful when the winning criterion is cost however, when service and customer value enhancement are prime requirements for market winning then the likelihood is that agility will become the critical dimension. Def of agility: the ability of an organisation to respond rapidly to changes in demand, both in terms of volume and variety Characteristics of an agile chain 1) Market sensitive the supply chain is capable to reading and responding to the real demand. Most organisations are forecast drives, they are forced to make forecast based on past sales or shipments and convert those forecasts into inventory. The use of technology Efficient Consumer Response (ECR), capturing data on demand directly from the point of sale or point of use. 2) Virtual the use of IT to share data between buyers and suppliers is, in effect, creating a virtual supply chain. Electronic Data Interchange (EDI), have enabled partners in the supply chain to act upon the same data, i.e. real demand, rather than be dependent upon distorted and noisy picture that emerges when orders are transmitted one step to another in an extended chain. 3) Process integration collaborative working between buyers and suppliers, joint product development, common systems and shared information. This form of cooperation focuses the organisation on their core competences and outsources all other activities. Along with process integration, comes joint strategy determination, buyer-supplier teams, transparency of information and even open-book accounting 4) Network an idea of a supply chain, as a confederation of partners linked together as a network, no longer as stand-alone entities, but rather as supply chains....
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This note was uploaded on 02/25/2012 for the course MGMT 4375 taught by Professor Eixmann during the Fall '11 term at Texas State.

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The agile supply chain Christopher - Supply Management The...

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