and supply volatility) and efficient (lowest cost per case) simultaneously. Instead, the response needs to be built with the goal in mind. Leadership matters. There are not industry-standard definitions of these terms. There are many nuances. Left undefined, people move on their own beliefs which are often quite different. As a result, it is imperative that leaders force a definition. As shown in figure 5, the current gap in reported supply chain agility is high across the organization, but the greatest gap is in the supply chain team.
Figure 5. Gap in Agility Importance versus Performance by Organizational Function
While the gap is high, we find few organizations have a clear view of what agility means. Instead, we find a range of definitions like those outlined in figure 6. Approximately one-fifth of respondents define agility as having short cycles and around one-quarter view the requirement to deliver whatever is ordered. However, there is a gap. Neither of these definitions builds capabilities to withstand demand supply volatility and as shown in figure 2, this is the greatest threat to today’s organization. Instead, the goal needs to focus on the building of a supply chain that has the process capabilities to withstand demand and supply volatility. The options are many; but in this study, we have found that the three processes that aided in the improvement of agility were advancements in forecasting, Lean processes and Sales and Operations Planning.
Copyright © 2013
Supply Chain Insights LLC
Page 7
Made with FlippingBook interactive PDF creator