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Journal ArticleDOI

The Agile Supply Chain : Competing in Volatile Markets

01 Jan 2000-Industrial Marketing Management (Elsevier)-Vol. 29, Iss: 1, pp 37-44
TL;DR: In this article, a distinction is drawn between the philosophies of "leanness" and "agility" and the appropriate application of these ideas is discussed, and the key to survival in these changed conditions is through ''agility'' in particular by the creation of responsive supply chains.
About: This article is published in Industrial Marketing Management.The article was published on 2000-01-01 and is currently open access. It has received 1736 citations till now. The article focuses on the topics: Supply chain & Supply chain risk management.

Summary (1 min read)

What is Agility?

  • Agility is a business-wide capability that embraces organisational structures, information systems, logistics processes and, in particular, mindsets.
  • Later this idea of manufacturing flexibility was extended into the wider business context (3) and the concept of agility as an organisational orientation was born.
  • Agility should not be confused with ‘leanness’.
  • There are certain conditions where a lean approach makes sense.
  • The problems arise when the authors attempt to implant that philosophy into situations where demand is less predictable, the requirement for variety is high and consequently volume at the individual stock keeping unit (SKU) level is low – a set of characteristics which is more typical of the Western automobile industry.

The routes to agility

  • Firstly, the agile supply chain is market sensitive.
  • This form of co-operation in the supply chain is becoming ever more prevalent as companies focus on managing their core competencies and outsource all other activities.
  • Zara’s manufacturing systems are similar in many ways to those developed and employed so successfully by Benetton in Northern Italy, but refined using ideas developed in conjunction with Toyota.
  • Because supply chains tend to be extended with multiple levels of inventory between the point of production and the final marketplace, they tend to be forecast driven rather than demand driven.
  • The decoupling point should also dictate the form in which inventory is held.

Leveraging supplier relations

  • One of the keys to achieving agile response to fast-changing markets lies upstream of the organisation in the quality of supplier relationships.
  • Still today many companies have not recognised that competitive advantage that can be derived from closer relationships with key suppliers (16).
  • One of the biggest barriers to agility is the way that complexity tends to increase as companies grow and extend their marketing reach.
  • Product complexity includes not only design issues (e.g. the number of non-standard components in a product) but also excessive variety that does not contribute to greater customer or consumer value.
  • Breaking down functional silos and re-grouping around value-creating processes will help reduce organisational complexity.

Conclusions

  • Marketing management has not traditionally recognised the importance of logistics and supply chain management as a key element in gaining advantage in the marketplace.
  • In today’s more challenging business environment, where volatility and unpredictable demand becomes the norm, it is essential that the importance of agility be recognised.
  • Leading companies are already implementing marketing strategies which are underpinned by a supply chain strategy designed with agility in mind.
  • These are the organisations that will be best equipped for survival in the uncertain markets of the 21st century.

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Citations
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Book
01 Jan 1988
TL;DR: In this paper, the evolution of the Toyota production system is discussed, starting from need, further development, Genealogy of the production system, and the true intention of the Ford system.
Abstract: * Starting from Need* Evolution of the Toyota Production System* Further Development* Genealogy of the Toyota Production System* The True Intention of the Ford System* Surviving the Low-Growth Period

1,793 citations

Journal ArticleDOI
TL;DR: In this paper, the authors present an integrated perspective on resilience through an extensive review of the literature in a number of disciplines including developmental psychology and ecosystems, identifying and addressing some of the current theoretical gaps in the existing research.
Abstract: Purpose – In the emerging disciplines of risk management and supply chain management, resilience is a relatively undefined concept. The purpose of this paper is to present an integrated perspective on resilience through an extensive review of the literature in a number of disciplines including developmental psychology and ecosystems. In addition, the paper identifies and addresses some of the current theoretical gaps in the existing research.Design/methodology/approach – Supply chain resilience has been defined by a number of disciplines. An integrative literature review is conducted in an attempt to integrate existing perspectives. This review also serves as the basis for the development of a conceptual model.Findings – The key elements of supply chain resilience and the relationships among them, the links between risks and implications for supply chain management, and the methodologies for managing these key issues are poorly understood. Implications for future research advocate testing the proposed mod...

1,373 citations

Journal ArticleDOI
TL;DR: In this paper, the authors explore ways in which hybrid strategies can be developed to create cost-effective supply chains and propose an integrated manufacture/logistics model for enabling the essential infrastructure.
Abstract: The latter part of the twentieth century saw the lean production paradigm positively impact many market sectors ranging from automotive through to construction. In particular there is much evidence to suggest that level scheduling combined with the elimination of muda has successfully delivered a wide range of products to those markets where cost is the primary order winning criteria. However, there are many other markets where the order winner is availability. This has led to the emergence of the agile paradigm typified by “quick response” and similar initiatives. Nevertheless, “lean” and “agile” are not mutually exclusive paradigms and may be married to advantage in a number of different ways. This paper explores ways in which hybrid strategies can be developed to create cost‐effective supply chains and proposes an integrated manufacture/logistics model for enabling the essential infrastructure.

1,029 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigated the impact of two cultural antecedents, market orientation and learning orientation, and three organizational practices, all aimed at augmenting the supply chain agility of a firm.

978 citations

Journal ArticleDOI
TL;DR: In this article, an attempt has been made to analyze both agile manufacturing and supply chain management with the objective of developing a framework for responsive supply chain (RSC), which can be employed as a competitive strategy in a networked economy in which customized products/services are produced with virtual organizations and exchanged using e-commerce.
Abstract: Supply chain management (SCM) has been considered as the most popular operations strategy for improving organizational competitiveness in the twenty-first century. In the early 1990s, agile manufacturing (AM) gained momentum and received due attention from both researchers and practitioners. In the mid-1990s, SCM began to attract interest. Both AM and SCM appear to differ in philosophical emphasis, but each complements the other in objectives for improving organizational competitiveness. For example, AM relies more on strategic alliances/partnerships (virtual enterprise environment) to achieve speed and flexibility. But the issues of cost and the integration of suppliers and customers have not been given due consideration in AM. By contrast, cost is given a great deal of attention in SCM, which focuses on the integration of suppliers and customers to achieve an integrated value chain with the help of information technologies and systems. Considering the significance of both AM and SCM for firms to improve their performance, an attempt has been made in this paper to analyze both AM and SCM with the objective of developing a framework for responsive supply chain (RSC). We compare their characteristics and objectives, review the selected literature, and analyze some case experiences on AM and SCM, and develop an integrated framework for a RSC. The proposed framework can be employed as a competitive strategy in a networked economy in which customized products/services are produced with virtual organizations and exchanged using e-commerce.

780 citations

References
More filters
Book
01 Jan 1991
TL;DR: A 5-million-dollar 5-year study on the future of the automobile industry was conducted by the Massachusetts Institute of Technology (MIT) as mentioned in this paper, which was based on the International Motor Vehicle Program (IMVP).
Abstract: This book is based on the Massachusetts Institute of Technology (MIT) 5-million-dollar 5-year study on the future of the automobile. Designated the International Motor Vehicle Program (IMVP), the MIT study explored the differences between mass production and lean production in the automobile industry. Lean production, pioneered by Eiji Toyoda and Taiichi Ohno at the Toyota Motor Company in Japan, combines the advantages of craft and mass production, while avoiding the high cost of the former and the rigidity of the latter. Toward this end, lean producers employ teams of multiskilled workers at all levels of the organization and use highly flexible, increasingly automated machines to produce volumes of products in enormous variety. Lean production (a term coined by IMVP researcher John Krafcik) is "lean" because it uses less of everything compared with mass production. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products. Lean production changes how people work. Most will find their jobs more challenging and will become more productive, but, at the same time, they may find their work more stressful. Lean production calls for learning far more professional skills (than in mass production) and applying these creatively in a team setting (rather than a rigid hierarchy). This book is organized in three sections. The first, "The Origins of Lean Production," traces the evolution of lean production. The second, "The Elements of Lean Production," looks at how lean production works in factory operations, product development, supply-system coordination, customer relations and as a total lean enterprise. Finally, in the third section, "Diffusing Lean Production," the authors examine how lean production is spreading across the world and to other industries and, in the process, is revolutionizing how people live and work. Also examined are the barriers that are preventing companies and countries from becoming lean. Creative ways leanness can be achieved are suggested.

6,104 citations

Book
01 Mar 1988
TL;DR: In this paper, Taiichi Ohno shares the genius that sets him apart as one of the most disciplined and creative thinkers of our time, and combines his candid insights with a rigorous analysis of Toyota's attempts at Lean production.
Abstract: In this classic text, Taiichi Ohno--inventor of the Toyota Production System and Lean manufacturing--shares the genius that sets him apart as one of the most disciplined and creative thinkers of our time. Combining his candid insights with a rigorous analysis of Toyota's attempts at Lean production, Ohno's book explains how Lean principles can improve any production endeavor. A historical and philosophical description of just-in-time and Lean manufacturing, this work is a must read for all students of human progress. On a more practical level, it continues to provide inspiration and instruction for those seeking to improve efficiency through the elimination of waste.

3,273 citations

Journal Article

2,665 citations


"The Agile Supply Chain : Competing ..." refers background in this paper

  • ...As Fisher points out [6], it is important that the characteristics of demand are recognized in the design of supply chains....

    [...]

01 Jan 1988

1,235 citations


"The Agile Supply Chain : Competing ..." refers background in this paper

  • ...The importance of time as a competitive weapon has been recognized for some time [1]....

    [...]

Book
01 Mar 1990
TL;DR: In this paper, Isabel Der Millionenseller is described as "the schnellste Frau des 19. Jahrhunderts" and "the most influential woman in the world in 72 days".
Abstract: Warum ich nicht länger mit Weißen über Hautfarbe sprecheU.S. Geological Survey Professional PaperDebatesAround the World in 72 Days : die schnellste Frau des 19. JahrhundertsDer neue Minuten ManagerThrone of Glass 4 Königin der FinsternisRace Against TimeZero to OneUnd jeden Tag ein neues LebenRace against the machineShining GirlsDas ZielLance ArmstrongIdea ManFrag immer erst: warumCompeting Against TimeCan you help me find you?Stone Fox. 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Daniel James Brown schildert das Schicksal von Joe Rantz, einem Jungen ohne Perspektive, der rudert, um den Dämonen seiner Vergangenheit zu entkommen und seinen Platz in der Welt zu finden. Wie er und seine Freunde vor den laufenden Kameras Leni Riefenstahls den Nazis ihre Propagandashow stehlen, ist ein atemberaubendes Abenteuer und zugleich das eindringliche Porträt einer Ära. Eine unvergessliche wahre Geschichte von Entschlossenheit, Überleben und Mut.Die Vermittlung der Kunst, bei Managern und Mitarbeitern Selbständigkeit und Eigenverantwortung zu entwickeln, hat den Minuten Manager zu einem Welterfolg gemacht. Hier ist der neue Minuten Manager, die überarbeitete Neuausgabe für den Manager von heute. Kenneth Blanchard und Spencer Johnson, jeder für sich eine Legende der UnternehmerBeratung, haben die bewährten Rezepte, wie man sich sinnvoll Ziele setzt und die Arbeit der Mitarbeiter erfolgreich begleitet, um neue und zusätzliche Erfahrungen und Geheimrezepte modernen Managements bereichert und in ein zeitgemäßes Gewand gekleidet.Frederick Septimus Kelly, pianist, composer, Olympic gold medallist, World War I officer, diarist and Australian, was killed during the final battle of the Somme on 13 November 1916. He was 35. An expatriate long forgotten in his own country, he lived an extraordinary life in the company of some of Europe's most influential people. His diaries, covering the period 1907-1915, are held in the National Library of Australia.Wir leben in einer technologischen Sackgasse. Zwar suggeriert die Globalisierung technischen Fortschritt, doch das vermeintlich Neue, sind vor allem Kopien des Bestehenden. 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Sechs Jahre und geschätzte 300 Frauen später gibt der selbstbewusste Womanizer die verrücktesten, heißesten, aber auch fiesesten Geschichten aus seinem bewegten Leben zum Besten. Für die einen ein Held, für die anderen eine Hassfigur Tucker Max provoziert und lässt sich weder von Journalisten noch von Verflossenen, die juristisch gegen ihn vorgehen, ans Bein pinkeln: "Ich bin ein Arschloch. Ich betrinke mich bei völlig unpassenden Gelegenheiten, missachte soziale Normen, schlafe mit mehr Frauen, als vernünftig ist, und verhalte mich stets wie ein verrückt gewordener Schwachkopf. Aber ich leiste auf eine sehr wichtige Art und Weise doch meinen Beitrag zum Wohle der Menschheit: Ich teile meine Abenteuer mit dem Rest der Welt."Paul Allens Ideen begründeten einen Weltkonzern. Gemeinsam mit Bill Gates schuf er 1975 Microsoft. Der Erfolg des Softwarekonzerns beruht vor allem auf Allens einmaligem Gespür für technologische Trends. In seiner Autobiografie erzählt er zum ersten Mal die faszinierende Geschichte der Unternehmensgründung und seiner schwierigen Freundschaft mit Bill Gates. Ungeschminkt berichtet er von seinen Kämpfen mit Gates und seinem Abgang Anfang der achtziger Jahre, nachdem Gates mehrfach sein Vertrauen gebrochen hatte. Doch auch nach seinem Abschied von Microsoft blieb Allen als erfolgreicher Investor und technologischer Pionier aktiv. Es ist das faszinierende Porträt eines der reichsten Männer der Welt, eines technologischen Genies und begnadeten Geschäftsmanns.Ein Mörder aus der Vergangenheit. Das Mädchen, das ihm entkam. Eine Jagd, die längst vorbei ist. Und doch erst beginnt Chicago zur Zeit der Großen Depression. Lee Harper lebt auf der Straße. Er ist kaltblütig, hochgefährlich, von Wahnvorstellungen getrieben. Seit er die strahlend schöne Tänzerin Jeanette sah, träumt er von seinen «Shining Girls». Er will nur eines: ihr Licht für immer auslöschen. Eines Tages fällt ihm der Schlüssel zu einem alten Haus in die Hände ein Portal. Von nun an reist Harper durch die Zeit, um zu töten. Niemand kann ihn stoppen, keiner vermag die Spuren zu deuten, die er am Tatort hinterlässt. Dinge, die noch nicht oder nicht mehr existieren. Doch dann überlebt eines von Harpers Opfern. Der jungen Kirby gelingt es, die unmöglichen Puzzleteile zusammenzusetzen. Und sie beginnt, den Killer durch die Zeit zu jagen. «Ich komme nicht davon los.» (Gillian Flynn, Autorin von «Gone Girl») «‹Shining Girls› ist originell, brillant erzählt, und ehrlich gesagt habe ich mich zu Tode gegruselt. Dieses Buch ist etwas Besonderes.» (Tana French) «Clevere Geschichte, klasse geschrieben.» (Stephen King, The Times: Meine persönliche Ferienlektüre) «Eine Idee wie aus der Feder Stephen Kings, aber so vielschichtig und stilsicher

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