Agile Supply Chain Definition
An agile supply chain is a network of organizations that collectively move goods, information, and money from supplier to customer. The term “agile” refers to the ability to rapidly respond to changes in demand. An agile supply chain is thus able to quickly adapt to changes in the market, providing a competitive advantage for businesses that are able to utilize this type of supply chain.
There are several benefits that can be gained from an agile supply chain. First, businesses are able to respond quickly to changes in demand, which can result in increased sales and market share. Second, an agile supply chain can lead to reduced inventory levels and costs, as well as improved customer service levels. Third, businesses that implement an agile supply chain can improve their overall competitiveness by being able to better meet customer needs.
There are a few key components that are necessary for an agile supply chain. First, there must be close collaboration between suppliers and customers. This collaboration allows for a rapid response to changes in demand. Second, there must be visibility into the entire supply chain so that potential problems can be identified and addressed quickly. Finally, there must be flexibility built into the system so that it can easily adapt to changing conditions.
