The agile supply chain: Marketplace if the 21 century are often characterised by proliferation(увеличение) of products and services, shorter product life-cycle and increased rates of product innovation. There it is not enough today to simply response at the right time in different customers’ needs of such marketplace. The main aim of logistics today is to ensure that it is the right product that is delivered in the right place at the right time. And different tools of agile supply chain are really suitable in such situation because they help to increase speed capabilities in the SC. Moreover it is important to admit that in such market environment is impossible to use lean principles because these principles can be applied only for the …show more content…
This point includes the idea of being close to the market, be more sensitive to the customers’ demand and react on it as soon as possible. But in order to achieve market sensitivity company should realize several activities: * Company should identify and monitor market and competitor trends(курс) * Should looking for market opportunities * Use postponement system in order to decrease the probability of producing wrong goods. * Monitor sales and be always ready to respond * Use short trial runs in order to monitor the reaction of potential customers on new products 2) Network based supply – it means that company should have access to wide supplier network * company should provide quite a wide range of products * moreover company required new suppliers for new products that is why access to wide supplier base is vital 3) Virtual and process integration. It requires easy access to shared information that can be achieved by * Sharing information across the SC * Using electronic data interchange * Using real time demand information system * Supplier shares demand information Characteristics of Agile organization Basing on information described above it is possible to highlight the characteristics of agile organization: 1) Agile organization is basically demand driven rather than forecast driven 2) Substitute information for
The lean supply chain helps to imrprove efforts focusing waste, improve manufacturing schedule and economically produce small quantities. It is also flexible to react to changes in the market. Hence, BMW has this facility of allowing a customer to change its order within a week of placing and still maintain the original delivery time and high quality. Similarly, agile supply chain helps in carrying a generic inventory. The best part is that it helps in reducing risk of keeping too much stock as well as being out of stock. Mass-customization can be easily pursued through an agile supply chain which offers variety at a lower total
Many business use the agile organizational methodology. As they require the ability to remain flexible, enduring ever-changing requirements. The agile organization develops more mission-critical, high-profile systems. Sharing responsibility within small teams (of 15 or less) is also a main principle of an agile organization. Never is a hierarchy design operational in the agile organization, as the group possess the ability to over ride decisions made by management. The agile type of organization displayed itself over time as an entrepreneurial type of organization providing the high-speed changing rather than the standardization of a bureaucratic organization (Johnson, Jackson, & Burrows, 2011).
The lean and agile paradigms, while particularly different, can be and have been joint within effectively designed and operated total supply chains. In the Wings and Legs case, cost is an important market winner and this is reduced by leanness. In the case of agility the key point is that Wings and Legs operate in an extremely volatile marketplace. Therefore the solution is to develop a hybrid supply chain.
Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand
Implementing an agile supply chain process would be beneficial for Riordan’s China plant. Agile supply chain strategy is to be responsible and flexible to customer needs. They are considered agile because they are responsive to change and irregularity in demands of customers while reducing risk supply disorder on back-end. The agile supply chain combines the strengths of hedged and responsive supply
The suppliers are in huge number for a single category and they have huge competition
One of the initial steps in researching a problem is to know exactly what the problem is and compose a problem statement that unambiguously identifies and defines the problem to research. Sekaran (2003) said, “No amount of good research can find solutions to the situation, if the critical issue or the problem to be studied is not clearly pinpointed” (p. 69). The area of research for this paper focuses on software development, in particular, the study of agile software development methodologies and if these methodologies are successful in delivering software on time, within budget, and includes the requested features.
2. Integration: This will allow compatible and secure connected within a system-wide network to support productive collaboration across the system.
Through this process, the company has found accessible ways to enter new markets with little to no risk and gain a large chunk of these respective markets. Their supply chain is managed from a global and regional perspective, and necessary adjustments are changing in accordance with global demand and production.
Agile techniques should be used to solve the current issues faced by the company as agile techniques normally being used by the software industry help the business to act in response under the unpredictable situations faced. In Agile methodologies opportunities are been provided to evaluate whether the project is under the direction all through its development cycle. All this is being accomplished with the help of regular tempo kept in work, and the teams must show a product which is having the desired potential.
This paper describes Agile development methodologies and their benefits. Section II presents key elements of Agile. Section III presents benefits of Agile development methodologies over traditional waterfall methodologies.
There are capacity balancing problems. The way that you carried your supplier manufacturer relation previously gets disturbed and therefore working with the same supplier under the same environment gets a little difficult.
University of Tampere, Finland {nicholas.mavengere, marko.makipaa, mikko.j.ruohonen}@uta.fi Abstract. The prevalent competitive business environment has forced companies to devise strategies to survive. Strategic agility is one such business imperative companies require in the dynamic environment. Strategic agility is comprised of strategic sensitivity, strategic response and collective capabilities. Moreover, companies are collaborating in order to gain competitive advantage. This led to formation of supply chain to work collectively in response to the environment pressures. In addition,
Industries in the new era tend to concentrate on linking with other corporations on a geographic level, to bring in all their forces together to create a highly technical & cost effective collaboration. This collaboration also involves joining forces with the suppliers across the product development cycle for easy access & faster processing of the products. This also ensures quick access to markets, lower product cost & better quality. Attaining successful suppliers results in success of the company & enhances its overall performance. It isn’t easy for a company to recognize if the suppliers they choose are capable of supporting their new product development or hinder their growth & effect the company’s performance. Companies need to be able to identify if the supplier integration during the product development phase has negative or positive effects on the technological risks & uncertainty. They need to choose the right decision for their company. Suppliers provide materials & services to an organization based on the new product requirements. The product or services provided by the suppliers may not be of a greater quality, determining this is the major job of a company. Since there might be chances that the supplier will have a better knowledge about the products than the companies, companies need to be cautious about it. Compromise on cost can be done but
The Supply Chain required the cooperation of all the company 's internal departments with external parties, for example, the supplier to get a product that meets market needs in a timely manner. And that there is integration of all parties in terms of the information involved at the right time to get the right product for the right quantities in the right place at the right time for the client to meet the requirement of the