Agility In Supply Chain
In business, the term ‘agility’ is used to describe an organization’s ability to rapidly respond to change. In the context of supply chain management, agility refers to a company’s ability to quickly adapt its supply chain network in response to changes in customer demand. A company that is agile can quickly adjust its production levels, inventory levels, and distribution plans to meet changing customer needs.
There are three key components of agility in supply chain: flexibility, responsiveness, and adaptability. Flexibility refers to a company’s ability to quickly make changes to its manufacturing process or product mix. Responsiveness refers to a company’s ability to quickly adjust its inventory levels in response to changes in customer demand. Adaptability refers to a company’s ability to quickly change its distribution plans or supplier relationships in response to changes in the marketplace.
A company that is agile has a competitive advantage over its rivals because it can more easily respond to changes in the marketplace and better meet customer needs. An agile supply chain is also more efficient and less costly than a traditional supply chain because it eliminates the need for excess inventory and excessive lead times.
