Supply chain is both a network and a process. Firstly, it is a network between an organization and its suppliers for the production and distribution of a product or service, secondly, it is a process that involves various stages to get the product to its ultimate goal, the end-user. Today, organizations are establishing global supply chains which are highly complex in nature. As a result, any fault in this network can harm the reputation of the organization in the global market. Thus, we have already established the importance of an efficient supply chain and the wonders it can do for an organization in terms of cost savings, and reducing lead and delivery time. In order to function well, an organization’s supply chain needs to have agility. What is agility you ask? Read on to know more.
Agile or agility can be defined as something that is able to move quickly and easily, nimble or lithe. Therefore, an agile supply chain is nothing but it’s capability to respond to ever changing trends of supply and demand in a way that accelerates the product delivery to its customers. This is one of the important strategies for those organizations that are continuously seeking to adapt their internal environment to unforeseen changes in the external environment. It also leverages real-time data to measure and forecast the demand and thereby, improve overall efficiency and productivity.
Where does agility begin and advantages of agile supply chain?
In order to adopt the concept of an agile supply chain, organizations must first understand the processes of its own supply chain and its components. A supply chain assists in various activities right from sourcing, procuring, inventory, delivering, storage, packaging and transporting the raw materials, goods and final products. An agile supply chain manages each of these components efficiently and adapts its process as and when required. Today, consumer demands are on the rise with everyone wanting a personalized yet excellent customer service. There are a wide-range of products and services available in the global market but their life-cycle and shelf-lives are limited. These incessant and evolving market demands need quick response on the part of the manufacturer and as a result, make-to-order or personalized services are the best options for them. This ensures that the stock produced is sold avoiding a backlog of unwanted goods.
How SpendEdge Makes Your Supply Chain Agile?
In order to be agile, an organization’s supply chain needs to be responsive and flexible to meet the consumer demands and move from a product-centric approach to a more customer-centric approach. This requires closely monitoring the market conditions in order to improve the chain and devise strategies for the same. We provide various solutions that help in forecasting consumer demand and price trends in order to help the procurement function gain maximum cost savings, while also employing supplier market analysis to profile suppliers and conduct an in-depth market evaluation.
As market trends are changing at a breakneck speed, organizations will eventually move to agile supply chains. Through this, one can retain the market as well as compete with the competitors thereby creating a competitive advantage.
To know more about advantages of agile supply chain, lean supply chain, agile manufacturing, and key elements of agile manufacturing: