What is Supply Chain?
A supply chain is the network of all the
individuals, organizations, resources,
activities and technology involved in the
creation and sale of a product, from the
delivery of source materials from the
supplier to the manufacturer, through to
its eventual delivery to the end user.
Components of Supply Chain
How to sustain a competitive advantage?
Through effective and efficient
management of supply chains rather
than individual organizations.
What’s supply chain management?
Supply chain management (SCM) is the
oversight of materials, information, and
finances as they move in a process from
supplier to manufacturer to wholesaler
to retailer to consumer.
Strategies of SCM
What’s Lean SCM?
Lean supply chain management is
about reducing costs and lowering
waste as much as possible.
“Doing more with less”
Less time, inventory, space, labor
and money.
Lean Supply Chain is suitable for:
•Organizations with high volumes of
purchase orders since waste and
costs can accumulate quickly.
•Companies with high volumes of
low
variability
purchase orders, such as
food items.
Example on Lean Supply Chain:
What’s Agile Supply Chain?
•Agile
Supply Chain is built to be
highly flexible for the purpose of
being able to quickly adapt to
changing situations.
•Implementing an agile supply chain
allows organizations to
quickly adjust
their sourcing, logistics, and sales.
Agile Supply Chain is suitable for:
Organizations that have less
predictable environments like
external economic
changes,
changes in technology, or
changes to customer demand.
Example on Agile Supply Chain:
Comparison between Lean & Agile
What’s Leagile Supply Chain?
It is using Lean and Agile in combination.
It is having a hybrid supply chain strategy.
Leagile Supply Chain is suitable for:
A company attempting to
become a "mass customizer“,
producing progressively smaller
batch sizes (sometimes as little as
one item) specific to customers'
sometimes unique needs.
Example on Leagile Supply Chain:
Conclusion
Whether to implement lean,
agile or leagile supply chain
depends on the demand,
market conditions
and field of industry.