A responsive supply chain is one that is designed to be sensitive to customer requirements, market changes, and other external factors that can impact the demand for a product or service. This type of supply chain is designed to quickly adapt to changes in demand, which allows businesses to better meet the needs of their customers and stay competitive in their industry. To create a responsive supply chain, businesses need to implement several key strategies. These include: Building strong relationships with suppliers: A responsive supply chain relies on a network of reliable suppliers that can quickly adapt to changes in demand. Businesses need to build strong relationships with these suppliers to ensure that they can quickly deliver the materials and products needed to meet customer demand. Using real-time data and analytics: To be responsive, businesses need to have real-time data on customer demand, inventory levels, and other key factors that impact the supply chain. Using analytics tools can help businesses identify patterns and trends that can inform decisions about inventory management, production planning, and other key areas. Emphasizing flexibility and agility: A responsive supply chain needs to be flexible and agile to quickly adapt to changes in demand. This means having the ability to ramp up production when demand is high and scale back when demand is low. Leveraging technology: Technology can play a key role in creating a responsive supply chain. For example, using automation and robotics can help businesses streamline production and reduce lead times, while cloud-based platforms can provide real-time visibility into the supply chain. Overall, a responsive supply chain is critical for businesses that want to stay competitive in today's fast-paced and ever-changing marketplace. By implementing the right strategies and leveraging technology, businesses can create a supply chain that is sensitive to customer requirements and able to quickly adapt to changes in demand.

1. Supply Chain
Supply Chain Analytics
Sensitive to customer requirements
Responsive
Tabassum Rangrej
PRN073
Harender Singh
PRN099
Indrajeet Hulyalkar
PRN100
Ashwani Kumar
PRN088
Yash Shrivastava
PRN061
23
Team

2. Supply Chain Operating Model
According to the nature of the product they are also of 2 types:
Functional Product –
Stable predictable demand and long-life cycle. Ex: Washing
powder, Jam etc.
Innovative Product
Unstable and unpredictable demand and short life cycle. Ex:
Fashion apparels, high end computers etc.
Efficient SC
( COST Focus )
Focus on Cost reduction,
asset utilization , efficiency,
productivity, yield Capacity,
utilization, scale etc.
Responsive SC
( SPEED Focus)
Focus on responding
speedily to changes in
customer delivery
requirement
Striking the
right balance
What are we going to
understand ??
How can we emphasize on Creating
of Demand Responsive Supply Chain
Risk and mitigation factors
Industrial frameworks
Nike application of responsive
supply chain
And the advantages and loopholes
in responsive supply chain model
Functional
Innovation

3. Outcome
Increased speed.
Flexibility, and
Reduced cost
Partnership based on
Core competencies,
Distributed network
of partners,
Integration by IT.
Learning
organization,
Strategic alliances
Strategies, Global
Outsourcing.
Strategic alliances,
Technology, and
Continuous
Improvement
Corporate and Business
Automation and IT
including E-commerce
(B2B. B2C and B2A),
Strategy formulation and
Tactical management.
Training and education.
Learning organization.
Information technology.
Flexible workforce
Knowledge and Information
Technology Management
Metrics
Performance
Measures
Strategic Planning
Virtual Enterprise
Responsive
Supply Chain
Framework for developing responsive supply Chain
Creation of Demand Responsive Supply Chain
Objectives:
To ensure availability of the right
product at right time at right place
To reduce lead time
Lower inventory
To cater to demand uncertainty
Risk Mitigation
Demand
Uncertainity
Building SC by assuming that
demand will change.
Product
Variability
Using Standard parts in
different product.
Forecasting
Using Real Time data for
shorter duration.
Bullwhip Effect
Collaboration with the trading
partner.
Mitigation Plan
Factor essential in the framework of the
Responsive Supply Chain model:
Forecasting Range: Ford
 Aggregate forecast: e.g., Cadillac
 Standardization(product/part variability
reduction)
 Using test batches data for the new product
 Collaboration with partners

4. ERP and application integration systems are of paramount
importance for an RSC. Organizational structure is another
important component of RSC
Responsive Supply Chain Strategies:
 Global Supply chain
 Customer focus
 Low-cost production
 Agile(extensive distribution channel
 Integration with the extended supply chain(collaborative
network)
 Using the IT technologies (ERP, CRM, web-based tools etc.)
 JIT, reduce Inventory
Responsive Supply Chain is combination of AM and SCM
The strategic planning of
an RSC should include
Global
Outsourcing
SCM
Strategic
alliances
IT

5. Determinants for Supply Chain Responsiveness
Supply Chain Responsiveness: conceptual framework
Manufacturing flexibility
 Can directly reduce the production lead-times and changeover times for
products in supply chains
Inventory
Product architecture / postponement
Information integration
Coordination and resource sharing
Organizational integration:
 Often used as buffer against uncertainty
 Closely linked to the decoupling point, which is a common criterion for
classifying supply chain strategies.
 Determines to a large extent where the decoupling point can be placed
and thus how responsiveness can be achieved
 Determines manufacturability & internal product variety / complexity
 Can help reduce internal demand amplification and eliminate delays due
to slow information flows
 Eliminating unnecessary demand uncertainty and variability facilitates a
better focus on end customer demand
 Removes delays activities in supply chains and leverages synergies
 Reduces demand variability and uncertainty
 Particularly important impact on trust, which is required for a variety of
interactions between supply chain members
Spatial integration and logistics
 A reduction in transport lead-times directly increases the responsiveness of
supply chains

6.  In 2017 Nike announced a range of responsive and agile
strategies
 While the focus on cheap production was a key to the brand’s
early success, Nike looking for other ways to distinguish itself
 constant investment in innovation.
 Sustained investment in shoe design and mfg. techniques
Nike’s Supply chain evolution
Nike’s supply chain over the years
Specific Market challenges
Desired item is not in stock, most customers have no qualms
about choosing a competitor brand.
Purchases are increasingly shifting to digital channels,
making competition more robust
Purchasers typically make decisions at the point of sale
Consumer is presenting an immediate and short-term
demand
Trends are a significant influence in buying decisions and
these are often connected to recent sporting events.
Nike’s original supply model, “Futures Order
Model” was based on low-cost production and
long lead times
Long lead times started to become a problem
One major downside of outsourcing is the
extreme distances involved
Company was exposed to import tariff and
transport cost risk
Time used to transport goods from one
continent to another was a huge chunk of the
lead time.

7. A Change of Direction
Growth in Revenue
In FY 2019, annual revenue
saw an increase of 7.5%
from previous year.
Annual Revenues
In FY 2019, Nike Inc.
achieved record annual
revenues of $39.1 billion
Global Footwear
Revenue
In FY 2019, footwear
revenue grew by 14.9%.
Nike announced a “Direct to Consumer Offensive” (D2C) powerful new digital assets that would
be used to drive sales and deliver products directly to the consumer
A key to this strategy was a supply chain transformation that would see the adoption of a more agile and
responsive supply model
$39.1
Bn
7.5%
14.9%
Reduction in Inventory
In FY 2019, all the revenue
growth figures were achieved
with 2% reduction in inventory
2%
Footwear Revenue-
EMEA Region
Nike saw a 21% increase in
footwear revenue.
21%

8. Learnings
Challenges in Implementing RSC in NIKE
Collaboration & Partnership: Collaboration with
the extended supply chain
Flexible Production: Ability to meet the flexible
production due to variable demand
Integration: Co-ordination between the different
teams in the organization
Systems and Tool: Focus on IT and implementation
of the virtual enterprise
Mindset Shift: abandoning old KPIs and overcoming
ingrained routines
Size of the organization is a challenge in
responsive supply Chain Other firms that are
implementing RSC

9. Learnings
Responsive supply chain features
Responds quickly to unpredictable
demand
Invests in lead-time reduction &
Prioritizes speed, flexibility, quality
Has a lower utilization rate (maintains
flexibility)
Will minimize stock-outs & minimize
overstock
Focused on being adaptable to customer
needs.
Utilizes an excess buffer capacity &
buffer stocks as needed
Uses fast and responsive transport and
logistics options
Market/Industries RSC Good for ?
The RSC is always an advantage, but
Product when it is inherently novel
or innovative
Items where trend affect their
demand
Apt for items where competition is
very strong
Well adapted to face uncertain
market conditions
Products that are affected by
weather or geopolitical influence

10. CREDITS: This presentation template was
created by Slidesgo, including icons by
Flaticon, infographics & images by Freepik
Thanks
Do you have any questions?
harender.singh@siom.in
+91 9812969049