How do you measure the agility of your supply chain?

Dimensions mentioned here are not exclusive. Supply chain can be flexible, you can have multiple delivery options for your customers, omnichannel retail is a good example (pick-up in the store, door-2-door delivery, out of home delivery to APMs and others), and at the same time it can have different responsivness on each of those options (door-2-door delivery can be relatively fast, next day, meanwhile pick-up in the store might be dependent on store transport schedule every 3rd day). I have had such situation when I managed cosmetics retail supply chain. This lead to various conversion rate for specific delivery options. Learning? Map your agility omnidimensionally, not multidimensionally, this is not 4 purely 4 dimensional analysis.

Lead times, responsiveness to changes in demand, and decision-making speed are some important performance indicators that can help you gauge your supply chain's agility. Take a look at the supply chain's responsiveness to changes in the market and how well the parties involved are able to communicate and work together. Make sure your supply chain is responsive and adaptable by conducting regular evaluations and simulations. Last but not least, consistently increase agility by soliciting input from different departments and partners.

Supply chain agility refers to an organization's ability to quickly adjust its operations, production processes, and inventory management to respond to changes in demand, supply, and to the market overall. Metrics to measure agility of the supply chain: 1) Planning adaptability to changes. 2) Supplier responsiveness to changes. 3) Production flexibility. 4) Supplier performance and flexibility. 5) Order fulfillment cycle time. 6) Delivery lead time 7) Delivery flexibility to changes. 8) Inbound and outbound inventory turnover rate.

Assess agility by evaluating response time to market changes, adaptability to disruptions, and the flexibility in adjusting to demand fluctuations. Metrics like lead time variance, inventory turnover, and supplier responsiveness can help quantify supply chain agility. Remember, agility isn't just about speed; it's the capacity to pivot swiftly while maintaining efficiency and reliability.

Measuring supply chain agility involves several key dimensions: Flexibility: Ability to adapt to changes in demand, supply, and market conditions. Responsiveness: Speed in reacting to disruptions and customer needs. Visibility: Real-time tracking and transparency across the supply chain. Resilience: Capacity to recover quickly from disruptions. Collaboration: Effective communication and coordination with partners. Cost Efficiency: Balancing agility with cost controls. Innovation: Integrating new technologies and processes. Enhancing these dimensions can significantly boost your supply chain's agility and competitive edge. #SupplyChain #Agility #Logistics #BusinessPerformance

Supply Chain Agility Indicators include metrics like lead time reduction, inventory turnover, demand forecast accuracy, supplier performance, and responsiveness to market changes. These KPIs gauge our supply chain's ability to swiftly adapt, optimize operations, and mitigate disruptions while meeting customer needs.

In a simplified model, it is about using "Just in time" (JIT) and "Just in case" (JIC) models. Timeliness of receipt, issue, and milestone updates can be a good start to measure JIT. For JIC, we should be looking at alternatives for the sub-tasks that include in-house support, and pre-qualified outsourced partners. Our partners can be managed in a vendor management program that starts with criteria, audits, training, reports, and regular performance reviews. For key processes, let us look at multiple partners and a robust business continuity plan (BCP) for scenarios like loss of venue, loss of the system, pandemic, and security breaches.

Below are some essential indicators for measuring supply chain agility, and it's crucial to tailor them to specific industry, business models, and strategic goals. Here's a more detailed breakdown of each mentioned indicator: 1. Customer Satisfaction: a)Surveys: b)Feedback and Ratings: c)Loyalty Metrics: 2. Order Fulfilment: a)Fill Rate:. b)On-Time Delivery c)Order Cycle Time d)Order Status Visibility: 3. Inventory Management: a)Inventory Turnover: b)Days of Inventory: c)Stock-Out Rate d)Inventory Obsolescence: 4. Supplier Relationship: a)Supplier Lead Time: b)Supplier Reliability:

Metrics such as lead time, inventory levels, and the speed at which you can fulfill orders are pivotal. Equally important is your ability to anticipate and react to market changes. This involves assessing the efficiency of your supplier network, the robustness of your logistics, and how quickly you can shift strategies in response to unforeseen challenges. By tracking these aspects, you can identify areas for improvement and ensure your supply chain remains competitive in a rapidly evolving marketplace.

A agilidade na tratativa de problemas pode conduzir um fluxo de valor a ser mais responsivo e aumentar sua velocidade. Essa, por sua vez, pode ser capturada por um indicador de tempo de atravessamento (lead time), que pode vir a servir de meta e KPI para aferir performance do fluxo de valor em quest?o.

Sales and operations planning (S&OP)—also referred to Integrated Business Planning (IBP) in its most advanced phase—is a highly cross-functional process that greatly helps with agility. The scenario-based simulations that take place in S&OP/ IBP are very helpful to understand the operational and financial impact of changes.

Improving Supply Chain Agility involves continuous enhancement of processes, fostering innovation, embracing technology, nurturing a culture of adaptability, and ongoing skill development. It's a journey of refining strategies, reducing response times, enhancing collaboration, and staying attuned to market dynamics for sustained excellence.

Antes de mejorar la agilidad, debemos tener la capacidad de anticiparnos, tener escenarios futuros para poder ser agiles en ellos y no enfocarnos en la agilidad de los problemas.

Agility Improvement in Supply Chain involves enhancing the ability to quickly adapt to changes and disruptions. Achieve this by: Data Analytics: Use real-time data for demand forecasting and inventory management. Flexible Partnerships: Develop relationships with multiple suppliers. Technology Integration: Implement IoT and AI for real-time monitoring. Cross-functional Teams: Promote collaboration across departments. Continuous Improvement: Regularly review and optimize processes. Measuring agility involves tracking KPIs like lead time, order fulfillment speed, and response to disruptions. #SupplyChain #Agility #DataAnalytics #IoT #AI #ContinuousImprovement #Efficiency

Key words: demand sensing & forecasting Risk management Resilience Mitigation plans. Bull whip effect management and mitigation measures. Basically this is called supply chain management whereby accurate data provides for the best decision making. managing stock holding ( EOQ) and ensuring continuity, maximizing on sales.

A essência do ágil n?o é entregar mais rápido, mas, sim, errar e aprender com maior velocidade. E em um mundo com constantes mudan?as, muita incerteza e baixa previsibilidade, adaptar-se de forma rápida nunca foi t?o necessário. Neste sentido, é importante conhecer e dominar os conceitos de agilidade de forma prática, permitindo potencializar a transforma??o digital nas empresas através do pensamento Lean. Ou seja, utilizando agilidade com propósito por meio de frameworks e métodos como, por exemplo, o Scrum e o Kanban.

With a humorous touch, we're like agile acrobats: Practice: Similar to acrobats, we nurture strength, flexibility, and focus through unrelenting practice. Our supply chain constantly strives for excellence, setting goals, tracking performance, and adapting. Risk Management: Just as acrobats predict surprises, we excel in risk management, evaluating and averting risks daily with magician-like finesse. Mastery Integration: Acrobats learn from mentors; we learn from experienced experts and forums. This pooled wisdom is our safety net. We cultivate an agile culture, emphasizing improvement, transforming our Supply Chain into a captivating Supply Circus! ?? #SupplyChainAgility #ContinuousImprovement #RiskManagement #Mentorship #SupplyCircus

When measuring supply chain agility one should always also consider related costs and risks related to not achieving agility targets on those dimensions. When rethinking your supply chain ask yourself for example: 1?? Responsivness: how much it costs to decrease our delivery time by one day, and how much market share we will gain? It's really worth to be responsive? 2?? Flexibility: how much needs to be invested to have parallel transport routes, and how much will this reduce our operations risk? 3?? Adaptability: what would be our resources utilization if we keep free processing powers, and what opportunities we may loose if we don't keep them? 4?? Robustness: how much it costs to have BCP and how much might be lost if we don't have it?

From my experience, I will consider 3 KPIs to measure Supply chain agility: - On time delivery - Logistics cost / unit - Inventory cost

Costs! When creating flexible supply chain we cannot forget about ?? spend per unit or order. I have once led transformation for construction materials company. The commercial strategy was to win market through agile approach regarding delivery times, order quantities, and openess for order changes regardless of fulfillment status. Needless to say costs were ?? and my first challenge was to implement activity based costing to the operations. We were able to decrease ops cost by roughly 8% simply by making visible for commercial & finance colleagues what/when making changes per customer request impacted margin and when not or not as much.