The pace of businesses has significantly accelerated in the last few years. So, being quick at sensing and responding to changes is the key for companies to gain success in an environment. However, agility is not just about reacting faster than competitors, it is about better preparation as well as faster execution. Supply chains are complex and require companies to develop greater skills in managing a supply base that can meet consumers’ needs. When working to devise agile supply chain strategies, companies must look for ways to ramp up products quickly and launch ahead of their competitors. They should know to divert products from one destination to another and implement changes in them without negatively impacting the inventory. Here are a few tips that will help businesses in developing an agile supply chain management framework.
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Steps to Create an Agile Supply Chain Management Framework
Step 1: Build an agile team
The concept of agility has come from software developers. It is an alternative project management technique that designs a process that is aligned to customers’ needs by regularly testing products and ideas within the development phase. Similarly, building an agile supply chain team will encourage the creation of strategies that can better align supplier output with customer needs. Also, it focuses on achieving better outcomes and create an agile supply chain management framework.
Step 2: Get quicker and more accurate data
Leading consumer goods companies who are exposed to the uncertainties of the retail or consumer markets are investing in newer demand sensing technologies. Such technologies provide them with a more accurate picture of the future demand. Gaining quicker access to data helps companies to respond intelligently, increase product availability, and capture a higher market share while improving agile supply chain management.
Step 3: Be innovative
Most companies choose to rely on processes that are tried and tested. They become reluctant to experiments due to fear of failure. Creating an environment which can encourage staff and suppliers to build effective agile supply chain management strategies will help companies to execute pilot programs and select the best course of action during supply disruptions or unexpected orders.
Step 4: Connect to key people in the supply chain
Connect not only to retailers but also to suppliers, co-packers, contract manufacturers, and logistics providers. This will help you gain an end-to-end picture of the current status of the supply chain and the important happenings in the supply chain. Moreover, better communications will help you understand the supply chain better and devise strategies in case of any unforeseen risks.
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Step 5: Develop agile supplier contracts
Implement ‘multisource’ supplier strategies to reduce risk in the supply chain. This will help you strengthen relationships with a range of suppliers to ensure the delivery of required goods. You can easily switch to other previously identified alternatives if a supplier fails. Similarly, companies can develop buy-back contracts, zero-volume contracts, or improve relationships with suppliers to improve agile supply chain management and meet changing market needs.
How Can SpendEdge Help You in Improving Agile Supply Chain Management?
We understand that an organization needs to move from a product-centric approach to a more customer-centric approach to build an agile supply chain. It requires an accurate analysis of different market conditions and state-of-the-art supply chain strategies. We provide solutions that help companies perform supplier market analysis, forecast consumer demand and price trends, and achieve maximum cost savings by enhancing agile supply chain management.