Thursday, 29 May 2014

What is Agile Supply Management?

An agile supply chain requires the use of:
  • Organisational structures
  • Value chain configurations
  • Logistic processes
  • Information systems
Combine these processes with a strong mind-set and you’re on your way to creating your own agile supply chain. However, without flexibility you won’t be successful.

Flexibility is required both inside and outside of the supply chain. You need to be flexible when it comes to your own configurations and the supply chain has to delivery on time the products and the services that are viewed from the perspective of the consumer. This flexibility makes it possible to jump on short profit windows and to become the market leader through innovation.

Customer demands change quickly and it is necessary to be able to adapt to these changes as soon as possible. Organising systems based on the customer rather than focusing on beating the competition is the best route to take.

When you focus on the demands of the customer you need to listen to the market and learn what it wants, not try to force your products or services on a market that isn’t interested. Focus on customer value when using the agile supply chain, be responsive and use systems that will allow you to make changes in a way that won’t harm your bottom line. The initial set up of such processes will require investment, but the gains in the long term far outweigh the initial costs.

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