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Critical Review On Agile Supply Chain Management

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Critical Review on Agile Supply Chain Management

When considering about supply chain management strategies there are mainly two types of strategies in order to successfully manage supply chain for a particular organization. These are namely,
1. Lean Supply chain
2. Agile Supply chain

What is Lean Supply chain?
Lean supply chain management is all about the reduction of cost and waste as much as possible. The aim of this method is to focus on efficient, streamlined operations. In this approach, anything in the process that doesn’t add value for customers is eliminated. When implementing a lean supply chain, you’re constantly looking for ways to remove layers of waste and only take steps that add value to a product or service. One characteristic of a lean supply chain is that products are made on an as-needed basis so there’s no unnecessary inventory or overproduction. Additionally, companies with high volumes of low variability purchase orders, such as food items, benefit their efficiency greatly by utilizing the lean supply chain methodology.
Adopting Lean Supply chain
To implement lean supply chain management to a process, business or an organization, the firm should observe all the areas of the process. …show more content…

Unlike lean supply chain this system is rather new to many organizations as most of the organizations focus on minimizing waste and cost. This method is for organizations that want to quickly adapt to changing situations. This method makes it easier to adjust sourcing, logistics, and sales in response to factors including economic fluctuations, technology changes, and customer demand. This approach typically results in shorter ordering lead times. It’s also quick to respond to customers. And when something unexpected happens, such as a regular supplier not being able to fill an order, the system enables flexibility. You can also respond more quickly to new market opportunities with an agile supply

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