SEE FARTHER, MOVE FASTER

BUILDING TRULY AGILE SUPPLY CHAINS

- DAMIEN MARTIN

Consumers want what they want, when they want it. That’s no secret, and it’s nothing new. But what they want, and how much of it, can change quickly. The status quo in a global economy can change quickly. If the last few years have taught us anything, it’s that change is constant, and it is everywhere. To stay on top of trends and be one step ahead of the competition, organizations need to build truly agile supply chains. These are chains that can respond quickly to sudden changes in supply and demand, reduce waste, and are flexible without forsaking cost-effectiveness and productivity. They figure out what customers want almost as quickly as the customers themselves do, and they have backup plans in case some problem rears up to disrupt them. Most importantly, they learn and adapt over time, knowing that the next big change is always right around the corner.

AGILE SUPPLY CHAIN BENEFITS

There are myriad benefits for businesses forging agile supply chains. For starters, they can boost operational efficiency and productivity while lowering inventory carrying costs and waste. They help build better relationships with suppliers by involving them in decisions and aligning goals throughout an entire network. They build better relationships with customers by delivering consistently without long lead times or unexpected delays. Getting the right goods to market fast engenders brand loyalty from customers. All that adds up to increased margins since companies with agile supply chains can take advantage of short profit windows and constantly evolve to changing customer tastes without having to dump excess and unwanted inventory.

Agile supply chains give companies visibility into every link in the chain, from raw materials to the finished product. Knowing where components are, in what quantity, and how long they’ll take to arrive empowers organizations to make adjustments on the fly.