Presented by :

Gurpreet Rait
Alibha Mandal
Amitava Panda
Chiranjeev Sahoo
Mitul Kirtania

(15202018)
(15202071)
(15202072)
(15202206)
(15202215)

CONTENTS OF PRESENTATION

INTRODUCTION
DIMENSIONS OF AGILE SUPPLY CHAIN
BALANCING AGILITY MEASURES
MEASUREMENT OF AGILE SUPPLY CHAIN
CONCLUSION

INTRODUCTION

Author

: Debra Hofman (Service Director, AMR Research)

Lora Cecere (Research Director, AMR Research)
Year of Publication : Nov 2005
Name of Publication : Supply Chain Management Review
Agile Meaning

: Quick moving, Active (Latin_Agilis)

SCC
SCOR Model
SCOR Processes

: 1996 by 69 Organisations
: Performance Metrics, Processes, Practices & People
: Plan, Source, Make, Deliver and Return

OBJECTIVE

TO KNOW ABOUT AGILE SUPPLY CHAIN

TO UNDERSTAND THE MEASUREMENT METRICS OF AGILE SUPPLY CHAIN

TO KNOW ABOUT COMPANIES THAT FOLLOW AGILE SUPPLY CHAIN.

AGILE SUPPLY CHAIN

Problem faced in defining an agile supply chain:
The definition of Agility vary considerabily
Definitions are confusing and contradictory
Not tied to definitive measurements

Refers to the use of responsiveness, competency, flexibility, and

quickness.
Responds to changes in demand quickly, easily, predictability, and
with high quality.
Companies still struggle with how to measure it efficiently.
Is characterized by quickness, lightness, and ease of movement thus helps companies to change with demand.

DIMENSIONS OF AGILE SUPPLY CHAIN

Dimensions

Speed

Ease

Predictability

Quality

SPEED AND PREDICTABILITY

Sensing routine and unanticipated demand
Its a measure of the end-to-end cycle time made up of the sequential
sourcing,
manufacturing,
order/demand
processing,
and
delivery/distribution cycle times.
The company that can respond quickly and easily in three days
everytime is more desirable company to do business with than the one
that sometimes responds in one day but other times takes six days.
Example : Comparison between Company X & Y

EASE
To sense the change and move in response with change.
Three possibilities:

Measure the constraints at each point in supply chain. For example, the
number of labor, material, or capacity constraints in the master
production schedule, the amount of fixed planning time, and the extent
to which the product and manufacturing process design
Measure the result of a hard process (Mainly cost related)
Combination of the above two points (Ratio of variable to fixed cost).

QUALITY
A supply chain that senses and responds quickly, easily,
and predictably but with poor quality doesnot qualify as
agile.
Checkpoints of quality: - Supplier quality, manufacturing
quality, and quality of the order (and product) delivered to
the customer.
If a company can respond with a small variance (that is, a
tight deviation) to a forecast that has variability, its supply
chain is responding quickly and predictability in the face of
variable demand.

BALANCING SUPPLY CHAIN AGILITY MEASURES

SPEED
SPEED

QUALITY

PREDICTABILITY

EASE

QUALITY

PREDICTABILITY

EASE

SCOR METRICS
Reliabili Responsivene
ty
ss
RL.1.1

RS.1.1

Agility
AG.1.1-Upside Supply Chain
Flexibility
AG.2.1-Upside flexibility (Source)
AG.2.2-Upside flexibility (Make)
AG.2.3-Upside flexibility (Deliver)
AG.2.4-Upside return flexibility (Source)
AG.2.5-Upside return flexibility (Deliver)
AG.1.2-Upside Supply Chain
Adaptibility
AG.2.6-Upside adaptibility (Source)
AG.2.6-Upside adaptibility (Make)

Costs
CO1.1

Asset
Management
AM.1.1

HOW ZARA IMPLEMENTS AGILE

15 Days from idea to customer

Very low quantities in each store
Strict order deadline (twice a week)
Treating fashion industry like the grocery industry

CONCLUSION

We can't define a supply chain as agile depending on any one

constraint. It is an amalgamation of all the four constraints i.e.
Speed, Predictabiity, Ease and Quality.
The competitiveness of each company depends not only on its
own agility but also on the agility of the partners on which it
depends.
The winners of tomorrow will be those who belong to the most
agile networks.

09/09/16