Comparison between previous findings Fashion-driven /technology-driven products, manufacturing flexibility Quick supply chain Compete simultaneously on price, novelty, quality and customer service Lean supply chain Commodities with high volume, focused on operation, high efficiency Efficient supply chain Cigolini et al. (2004) Collaborative communications with customers, high value-added products Customer closeness Operational excellence Responsive supply chain Efficient supply chain Findings Minimize cost, eliminate waste, standardized products. Morash (2001) Characteristics Authors Respond quickly to uncertainty, innovative products, supplier selection based on speed & flexibility Cost reduction, functional products, supplier selection based on cost & quality Fisher (1997)
Comparison between previous findings In conclusion, the basic supply chain strategies should include lean supply chain and agile supply chain, although they were described differently in previous literature. Agile supply chain Lean supply chain Findings Characteristics Authors Fashion products, volatile demand, high variety, respond to customer Commodities, predictable demand, low variety, cost reduction Mason-Jones et al. (2000) Christopher (2000) Yusuf et al. (2003)
Forming a value stream from suppliers to final customers to eliminate all kinds of buffering cost in the system and to ensure a level schedule in production in order to maintain the competitive advantage through economic of scale in a stable and predictable marketplace .
Developing a flexible and reconfigurable network with partners to share competences and market knowledge in order to survive and prosper in a fluctuating market environment by responding rapidly and cost-effectively to changes
Distinguished Characteristics of leanness and agility Source: Mason-Jones et al. (2000) Consultative Algorithmic Forecasting mechanism Immediate and volatile Long-term Contractual Stockout penalties Obligatory High desirable Information enrichment Assign capacity Buy materials Purchasing policy Marketability costs Physical costs Dominant cost High Low Profit margin Availability Cost Customer drivers Short Long Product life cycle High Low Product variety Volatile Predictable Marketplace demand Fashion goods Commodities Typical products Agile supply Lean supply Distinguished attributes
The manufacturers are more likely to adopt the differentiation strategies (i.e. innovative differentiation, product differentiation and marketing differentiation) as the environments are more fluctuate.
The manufacturers are more likely to adopt the overall cost leadership strategy as the environments are more stable and predictable.
The manufacturers that focus on lean supply chain strategy will have high degree of adoptions of lean practices, such as JIT, TQM, supplier integration and internal integration.
The manufacturers that focus on agile supply chain strategy will have almost equal degree of adoptions of the lean and agile practices including JIT, TQM, supplier integration, internal integration, customer integration, customer enrichment, organizational change and AMT.