INTRODUCTION

Strategic Supply chain Management

Agile Supply chain Management
Group Members
Anul Abdin (MS Management Sem I)
Haseeb Dar (MS Management Sem I)
 AGILE
ABLE TO MOVE
Q U I C K LY A N D E A S I LY
SUPPLY CHAIN MANAGEMENT

Management of all elements of Supply chain - From Customer to

Customer
Idea generation, production, product development, logistics, suppliers,
Human resource, administrative and support functions, distribution,
customer feedback etc.
 AGILITY

The concept of agility was given by (Goldman et al.1995).

It means readiness to change,
Agility is defined as a strategy that is more responsive in a volatile
market place
 AGILE SUPPLY CHAIN

Ability of Supply chain

To anticipate and adapt to changing business situations
Through product, process and people.

Capability to embraces organizational structures, Value chain configurations,

information system, logistics processes and in particular mind-sets and cultures.
 CHARACTERISTICS OF AGILE
SUPPLY CHAIN
Flexibility Both Internal and External with the ability to modify its range of tactics and
operations to the extent needed
Responsiveness - in volatile marketplace where trends are changing quickly.
Alertness The ability to quickly detect changes, opportunities and threats
Accessibility The ability to quickly access relevant data
Decisiveness The ability to make decisions quickly and effectively
Swiftness The ability to implement decisions quickly
 LEAN SUPPLY CHAIN
Lean supply chain management
For companies who want to streamline their processes by eliminating waste and
non-value added activities.
Number of areas in their supply chain where waste can be identified as time, costs,
or inventory.
Toyota Motors is the best example.
VOLUME AND VARIETY
OBSERVATION
DEMAND CHARACTERISTICS
OBSERVATION
COMPARISON OF LEAN SUPPLY
WITH AGILE SUPPLY
Distinguishing Attributes Lean Supply Agile Supply
Typical products Commodities Fashion goods
Market place demand Predictable Volatile
Product variety Low High
Product life cycle Long Short
Customer drivers Cost Availability
Profit margin Low High
Dominant cost Physical cost Marketability cost
Stock-out penalties Long-term contractual Immediate and volatile
 AGILE SUPPLY CHAIN FRAMEWORK

END-to-END VISIBILITY The aim of end-to-end supply chain visibility is providing controlled access and
transparency to accurate, timely, and complete events and data information within and across
organizations and services operating supply chains.
ZARA CASE STUDY
 KEY POINTS OF THE ZARA
BUSINESS STRATEGY
Limit Outsource in order to maintain quality
Do not innovate but make carbon copies of most famous designs of fashion elites
Labor from Poor EU Countries
New design Every 3 weeks Competitors 6 months
Normal 4 Seasons Zara 104 seasons
Global Distribution channel in Spain 2.5 millions items are moved
72 hours maximum in warehouse
Clothes are already ironed with security tags on them Reduced Prime Selling time
Customers Visit Zara 6 time more then competitors
Customers are happy but not designers
Zara -0 Advertising CEO considers it pointless distraction
 ZARA

FAST, AFFORDABLE AND PRE

PACKAGED PRODUCT
BUSINESS BUILT ON SPEED,
DESIGN FOR ADDICTION
NOKIA RISE TO FALL
HOW TO KILL THE COMPETITION
USING AGILE SC?
FUTURE WITH SAMSUNG
 CONCLUSION AGILE CHAIN
MANAGEMENT
Its all about change
How quickly and effectively you change in the best interest of
your market.
Success lies in continuous scanning of your environment and
aligning yourself accordingly
Provided you are already prepared well in advance with internal
and external factors.
Contingency planning, Proactive and quick.
MORE TO EXPLORE

LEAGILE
QUESTIONS???