Professional Documents
Culture Documents
Content
1. The concept of agility
2. Agile practices
Key issue
1
Market sensitive
Supply chain is
capable of reading
and responding to
real demand
Virtual
Information-based
supply chain, rather
than inventory-based.
Agile supply chain
Network based
Process integration
Collaborative working
between buyers and
suppliers, joint product
development, common
systems and shared
information
endcustomers
become
more
knowledgeab
le about
product
Focus
1990sResponsiveness
Agile supply chain
Lean supply
Commodities
Agile supply
Fashion goods
Volatile
Product variety
Low
High
Long
Short
Customer drivers
Cost
Availability
Profit margin
Low
High
Dominant costs
Physical costs
Marketability costs
Stockout penalties
Long-term
contractual
Immediate and
volatile
Purchasing policy
Buy materials
Assign capacity
Information
enrichment
Highly desirable
Obligatory
Eliminate waste
Customers and
markets
Partnerships
Long-term, stable
Fluid clusters
Key measure
Process focus
Logistics
planning
Instantaneous
response
Plan
and
control
JIT: pull
schedulin
g
Predictabl
e market
Hold inventory:
hedge and
deploy
React and
execute:
agile
Demand
capabilities
characteristi
Unpredicta
cs
ble markets
Content
1. The concept of agility
2. Agile practices
Agile practices
Key issue
1
Agile practices
Agile practices
Demand variance
Seasonality
Time
Agile practices
Seasonality
Product life cycles
Organize
Adjust
Start up
Micro-markets
Volume
End-customer demand
Agile
capability is
needed
variety
Agile practices
Speed of replenishment
Upstream time sensitivity
Information dissemination and alignment
Agile practices
Changeover flexibility
Modularity at the network level
Service-based and information-based solutions
Agile practices
Variety
decrease
Mass production
Flexibility
Modular supply network
Craft production
Volume
decrease