Friday, 30 May 2014

What are the 4 Key Components of the Framework in Agile Supply Chain?

  1. Agile supply chain requires virtual integration - It is necessary to leverage all the skills and resources across all the divisions in order to create an agile supply chain. The communication across these divisions and throughout the various sectors involved in the supply chain need to be seamless and instant and shared goals must be created
  2. Agile supply chains depend on the sensitivity of the market - Market sensitivity means that the internal measures are sources from the external market, not internally. When measuring data the results are often focused too highly on the internal operations, but it is necessary to ensure consumers are taken into account. Measure how quickly you’re able to get your goods or services to market and how quickly you’re able to react to changes in demand if you want to benefit from the agile supply chain process.
  3. Agile supply chains require improvements in the process integration - Internal operational processes including sales, sourcing, delivery, production and forecasting need to be integrated when creating an agile supply chain. With close integration it is easier to spot trends or problems early on so the supply chain is able to change accordingly for the good of the consumer and the organisation.
  4. Agile supply chain benefits from a dynamic network base - Managers must be better connected throughout the agile supply chain. There are two types of networks, the stable network and the dynamic network. The stable networking is the typical supply chain configuration where suppliers and buyers are formed into tiers along the chain. Suppliers have a fixed role, operational guidelines are formalised and the positioning in predetermined. The dynamic network is what is more suited to the agile supply chain as it is far more flexible. The tiers are less set in stone, independent organisations can come on board for short periods, virtual relations are increased and the different parties are bonded together rather than working on a separate playing field. It is necessary to have excellent information systems when using dynamic networking.

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