08-01-2014, 12:46 PM
AGILE SUPPLY CHAINS
AGILE SUPPLY.pptx (Size: 55.6 KB / Downloads: 12)
INTRODUCTION
For a firm to do well and keep up with the demands of the changing business environment, it is necessary that the supply chain configuration is aligned with its business strategy and is also robust enough to handle demand and supply uncertainties.
Those supply chains that are capable of handling demand and supply uncertainties are termed as agile supply chains.
Low levels of demand and supply uncertainties can be handled by having appropriate amount of safety stock.
But where the uncertainties are of high level, agile supply chains are required.
Supply chains that are capable of handling high level of demand uncertainties are called responsive supply chains.
But supply chains that are capable of handling high levels of demand uncertainties and also high levels of supply chain disruptions are known as agile supply chains.
Supply Chain for high demand uncertainty Environment :
For high demand uncertainty environment like the fashion industry, firms usually work with inaccurate forecasts and end up with high obsolescence and lost sales costs.
There are three concepts that are important for these type of supply chains:
Sources of Supply Chain disruptions and its impact on the Business
With the advent of globalization, the supply chains of companies these days have become lengthy, resulting in more opportunities for disruptions.
Such disruptions may be caused due to natural disasters or industrial unrest.
The occurrence of such disruptions means that companies must keep their supply chains flexible and integrate disruption risk management in the supply chains.