This document summarizes an integrated model for designing agile supply chains. It discusses how lean production paradigms focused on eliminating waste have been effective in cost-driven markets, while agile paradigms emphasizing quick response are better suited to availability-driven markets. The document proposes that lean and agile approaches can be combined advantageously and presents a model integrating manufacturing and logistics to enable both cost-effective and agile supply chains.
The impact of outsourcing on the transaction costs and boundaries of manufact...Ian McCarthy
This paper discusses the concept of outsourcing, along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services. With the practice of outsourcing experiencing exceptional growth, this paper examines the corresponding change (decline) in UK manufacturing as an economic activity, and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sector’s gross domestic product. To assess this issue, an input–output methodology for measuring economic restructuring in UK manufacturing is presented.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
Available online at [www.ijeete.com] IMPLEMENTATION OF SUPPLY CHAIN MANAGEMEN...Ankur Bindal
This paper aims to convey how to do a conceptual work during supply chain design, planning and operation, and how to improve performance. In present work, efforts have been made to analyze techniques like logistic management, quick customer service, vendor base management, inventory management etc. The key effective to supply chain management is supply chain integration, ensuring that all parts of the supply chain work together, rather than cross purpose. The supplier selection is no more based on factor like having low cost or speed of delivery alone. Productivity and quality have become perquisite. Trustworthiness, speed flexibility and responsiveness are main issues. K
The impact of outsourcing on the transaction costs and boundaries of manufact...Ian McCarthy
This paper discusses the concept of outsourcing, along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services. With the practice of outsourcing experiencing exceptional growth, this paper examines the corresponding change (decline) in UK manufacturing as an economic activity, and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sector’s gross domestic product. To assess this issue, an input–output methodology for measuring economic restructuring in UK manufacturing is presented.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
Available online at [www.ijeete.com] IMPLEMENTATION OF SUPPLY CHAIN MANAGEMEN...Ankur Bindal
This paper aims to convey how to do a conceptual work during supply chain design, planning and operation, and how to improve performance. In present work, efforts have been made to analyze techniques like logistic management, quick customer service, vendor base management, inventory management etc. The key effective to supply chain management is supply chain integration, ensuring that all parts of the supply chain work together, rather than cross purpose. The supplier selection is no more based on factor like having low cost or speed of delivery alone. Productivity and quality have become perquisite. Trustworthiness, speed flexibility and responsiveness are main issues. K
Supply chain definition
The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.”
“A supply chain is the alignment of firms that bring products or services to market.”
“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”
“A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.”
“Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.”
There is a difference between the concept of supply chain management and the traditional concept of logistics. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. Also traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service. Supply chain management views the supply chain and the organizations in it as a single entity. It brings a systems approach to understanding and managing the different activities needed to coordinate the flow of products and services to best serve the ultimate customer.
Different supply chain requirements often have conflicting needs. For instance, the requirement of maintaining high levels of customer service calls for maintaining high levels of inventory, but then the requirement to operate efficiently calls for reducing inventory levels. It is only when these requirements are seen together as parts of a larger picture that ways can be found to effectively balance their different demands.
Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. There is a basic pattern to the practice of supply chain management. Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Companies in any supply chain must make decisions indivi
Economics for Managers (VV2)
We Also Provide SYNOPSIS AND PROJECT.
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International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Financial sector reforms have been initiated in several countries including Nepal. For many of them, the financial sector remains at a relatively early stage of development, and continues to display a number of weaknesses. Under the reform program of Nepal, the large state owned commercial banks (SOCBs) are main targets on restructuring that still dominate the banking sector, in terms of total assets. These banks are gradually being restructured and put on a more stable financial footing. The reform also aims at doing away with government ownership and enhancing competitiveness of the financial sector. Accordingly, the re- engineering of the central bank and capacity building programme for the financial sector as a whole are as well incorporated. The efficiency of the financial sector influences the efficiency of the real sector as a whole. The financial sector reform programme introduced in Nepal holds importance additionally given the entire economy facing turmoil on account of political instability brought about by internal conflicts. Whether the reform programme is successful and whether it is heading towards the right direction is, therefore, a major cause for concern to all stakeholders. The study examines the state of implementation, issues at hand and the impacts made on the turnaround of the ailing financial intermediaries and on the competitiveness of the banking sector.
Economic Brief - Innovation and Productivity North Africa 2014Dr Lendy Spires
This article highlights the key determinants of innovation and their impact on the performance of firms in three North African countries (Algeria, Egypt and Morocco) on the basis of World Bank survey data on the investment climate. Initially, our econometric approach consists of estimating the impact of the traditional determinants of innovation by underscoring the critical role played by human capital in technological ownership and absorption. We then estimate the relationship between innovation and productivity taking into account certain characteristics of the investment climate and the quality of infrastructure and public services.
The main results suggest that, in North African countries, innovation is far from being the result of R&D and new technology creating activities alone. It also occurs by the adoption and adaptation of technologies created elsewhere through learning and assimilation-related mechanisms requiring more highly qualified human capital and improvement of the investment climate. We have also shown the weakness of the effect of technological externalities generated by export and foreign investment activities on innovation potential. The rigid structure of comparative advantages and the concentration of exports and FDI in activities with limited value addition which are poorly integrated in the local economy generate few upstream-downstream externalities.
Key Messages
• In North Africa, especially in Morocco and Egypt, the impact of qualified human resources on innovation incentives and productivity levels is insignificant. This points to the under-utilization and inefficient allocation of capital in these countries. • The impact of exports on innovation is insignificant, mainly as a result of the rigid structure of comparative advantages in these countries and the concentration of exports in sectors with little value addition and limited technological potential, particularly in the case of Morocco.
• To foster innovation and stimulate productivity, special attention should be paid to certain aspects of the national innovation system. The recommendations of this note are as follows: • Strengthen governance of the national innovation system;
• Stimulate the research and corporate environment with a view to decompartmentalizing the two spheres and ensuring more efficient and effective interfacing;
• Build support for the higher education system and vocational training in order to enhance human resource competencies to obtain a better contribution to the production and innovation processes;
• Create more advantageous incentive programmes for innovative FDI with higher value-addition, which is sufficiently well integrated upstream and downstream of the local economy; and
• Establish mechanisms for contractualization, supported by the State in the area of science and technology between the research centres, universities, potentially innovative local firms and foreign companies wishing to relocat
Supply chain definition
The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.”
“A supply chain is the alignment of firms that bring products or services to market.”
“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”
“A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.”
“Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.”
There is a difference between the concept of supply chain management and the traditional concept of logistics. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. Also traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service. Supply chain management views the supply chain and the organizations in it as a single entity. It brings a systems approach to understanding and managing the different activities needed to coordinate the flow of products and services to best serve the ultimate customer.
Different supply chain requirements often have conflicting needs. For instance, the requirement of maintaining high levels of customer service calls for maintaining high levels of inventory, but then the requirement to operate efficiently calls for reducing inventory levels. It is only when these requirements are seen together as parts of a larger picture that ways can be found to effectively balance their different demands.
Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. There is a basic pattern to the practice of supply chain management. Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Companies in any supply chain must make decisions indivi
Economics for Managers (VV2)
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Email: amitymbaassignment@gmail.com
Call: 9971223030
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
Financial sector reforms have been initiated in several countries including Nepal. For many of them, the financial sector remains at a relatively early stage of development, and continues to display a number of weaknesses. Under the reform program of Nepal, the large state owned commercial banks (SOCBs) are main targets on restructuring that still dominate the banking sector, in terms of total assets. These banks are gradually being restructured and put on a more stable financial footing. The reform also aims at doing away with government ownership and enhancing competitiveness of the financial sector. Accordingly, the re- engineering of the central bank and capacity building programme for the financial sector as a whole are as well incorporated. The efficiency of the financial sector influences the efficiency of the real sector as a whole. The financial sector reform programme introduced in Nepal holds importance additionally given the entire economy facing turmoil on account of political instability brought about by internal conflicts. Whether the reform programme is successful and whether it is heading towards the right direction is, therefore, a major cause for concern to all stakeholders. The study examines the state of implementation, issues at hand and the impacts made on the turnaround of the ailing financial intermediaries and on the competitiveness of the banking sector.
Economic Brief - Innovation and Productivity North Africa 2014Dr Lendy Spires
This article highlights the key determinants of innovation and their impact on the performance of firms in three North African countries (Algeria, Egypt and Morocco) on the basis of World Bank survey data on the investment climate. Initially, our econometric approach consists of estimating the impact of the traditional determinants of innovation by underscoring the critical role played by human capital in technological ownership and absorption. We then estimate the relationship between innovation and productivity taking into account certain characteristics of the investment climate and the quality of infrastructure and public services.
The main results suggest that, in North African countries, innovation is far from being the result of R&D and new technology creating activities alone. It also occurs by the adoption and adaptation of technologies created elsewhere through learning and assimilation-related mechanisms requiring more highly qualified human capital and improvement of the investment climate. We have also shown the weakness of the effect of technological externalities generated by export and foreign investment activities on innovation potential. The rigid structure of comparative advantages and the concentration of exports and FDI in activities with limited value addition which are poorly integrated in the local economy generate few upstream-downstream externalities.
Key Messages
• In North Africa, especially in Morocco and Egypt, the impact of qualified human resources on innovation incentives and productivity levels is insignificant. This points to the under-utilization and inefficient allocation of capital in these countries. • The impact of exports on innovation is insignificant, mainly as a result of the rigid structure of comparative advantages in these countries and the concentration of exports in sectors with little value addition and limited technological potential, particularly in the case of Morocco.
• To foster innovation and stimulate productivity, special attention should be paid to certain aspects of the national innovation system. The recommendations of this note are as follows: • Strengthen governance of the national innovation system;
• Stimulate the research and corporate environment with a view to decompartmentalizing the two spheres and ensuring more efficient and effective interfacing;
• Build support for the higher education system and vocational training in order to enhance human resource competencies to obtain a better contribution to the production and innovation processes;
• Create more advantageous incentive programmes for innovative FDI with higher value-addition, which is sufficiently well integrated upstream and downstream of the local economy; and
• Establish mechanisms for contractualization, supported by the State in the area of science and technology between the research centres, universities, potentially innovative local firms and foreign companies wishing to relocat
South Africa is coordinating and integrating its aid and development cooperation activities in establishing the South African Development Partnership Agency (SADPA). With a projected annual budget of R500 million (approximately US$ 50 million) South Africa has the resources to achieve measurable impact on the African continent, although the size of its budget and its technical resources are smaller than those of many traditional donors.
If South Africa is to be comparatively effective, SADPA will need to deliberate on how to position itself in relation to traditional donors, emerging development partners, as well as the national structures set up to co-ordinate incoming aid at country level (hereafter referred to as national aid architectures). These institutions increasingly dominate the aid decision-making and negotiation (dialogue) space. South Africa’s vantage point (as an African country with common experiences and a common African agenda that affords it legitimacy and, therefore, access to the region) enables it to have a partnership-based approach.
This allows it to intervene in what are often sensitive areas, including peace support operations and mediation. South Africa’s success as a development partner will depend on SADPA capitalising on peacebuilding activities and post-conflict development interventions in a strategic manner that differentiates it from other players in this arena. South Africa has already engaged in peacebuilding and development activities in many African countries. In 2013, Cheryl Hendricks and Amanda Lucey, on behalf of the Institute for Security Studies (ISS), reviewed the impact of South Africa’s programming in the Democratic Republic of Congo (DRC), Burundi and South Sudan in a study called ‘Enhancing South Africa’s post-conflict development and peacebuilding activity in Africa’.
The results show that South Africa has a number of comparative advantages, as well as notable successes. However, South Africa also faces implementation and policy challenges, some of which are shared by other development partners and donors. This paper contends that South Africa is yet to comprehensively engage with national aid architectures and is thus only tangentially part of the aid effectiveness debates and policy dialogue – especially at partner country level. There are evident opportunities to improve programming in coordination with and complementary to traditional and other emerging donors and development partners.
As an emerging development partner, South Africa has interesting opportunities to develop its own capacities by gathering lessons learnt and best practices from other international actors in similar situations. South Africa can also benefit from engaging in aid architectures as a means of sharing best practices, gaining influence and visibility and improving its capacity.
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxlillie234567
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th.
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxjessiehampson
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th ...
Reading Assignment Report-IIPlease thoroughly go through the R.docxcatheryncouper
Reading Assignment Report-II
Please thoroughly go through the Reading Assignment posted under Chapter 8 on Moodle (Vanteddu et al., 2006, Research Publication) at least twice.
Please make a summary of the research article in your own words that is at least two pages in length, clearly identifying the purpose, research contribution and conclusions of the research. Provide appropriate citations of the works referred to in your summary. Your summary must be typed. Please use appropriate font and 1.5 line spacing.
The material posted on our course website;
Understanding the concepts;
Want to have a one-to-one demonstration of solving a given problem;
Questions about your grade and where you stand at a given point of time in the semester etc.
Supply chain focus dependent safety stock placement
Gangaraju Vanteddu Æ Ratna Babu Chinnam Æ
Kai Yang Æ Oleg Gushikin
Published online: 18 April 2008
� Springer Science+Business Media, LLC 2008
Abstract Increasing globalization, growing product range diversity, and rising
consumer awareness are making markets highly competitive, forcing supply chains
to adapt constantly to different stimuli. Growing competition between supply chains
(as well as players within them) is also warranting a priority for overall supply chain
performance over the goals of individual players. It is now well established in the
literature that, among the many order winners, both overall supply chain cost and
responsiveness (i.e., supply chain lead time) are the most significant determinants of
supply chain competitiveness. The literature, however, mostly focuses on supply
chain cost minimization with rather simplistic treatment of responsiveness. By
introducing the concept of a coefficient of inverse responsiveness (CIR), we facil-
itate efficient introduction of responsiveness related costs into the scheme of supply
chain (SC) performance evaluation and/or optimization. Thus, our model aids
supply chain managers in achieving better strategic fit between individual business
unit strategies and overall supply chain requirements in terms of cost efficiency and
responsiveness. In particular, it aids in strategic placement of safety stocks at dif-
ferent stages in the supply chain. Our model also offers managerial insights that help
improve our intuitions into supply chain dynamics. The model is more suited for
G. Vanteddu � R. B. Chinnam (&) � K. Yang
Department of Industrial & Manufacturing Engineering, Wayne State University,
4815 Fourth Street, Detroit, MI 48202, USA
e-mail: [email protected]
G. Vanteddu
e-mail: [email protected]
K. Yang
e-mail: [email protected]
O. Gushikin
Ford Research and Advanced Engineering, 2101 Village Road, Dearborn, MI 48121, USA
e-mail: [email protected]
123
Int J Flex Manuf Syst (2007) 19:463–485
DOI 10.1007/s10696-008-9050-z
strategic SC alignment, for example, when dealing with product changeovers or
introduction of new product, rather than for operational control ...
Please go through the Review Article and submit a summary of.pdfkitty811
Please go through the Review Article and submit a summary of 500-800 words to include.
a. Focal points discussed regarding SCM.
b. Important issues and challenges concerning supply chain management.
c. Important conclusion drawn for improving overall supply chain performance.
plz solve asap I want this with in 2 hours
Abstract India is becoming a global manufacturing hub. Increasing demand in domestic and
international markets is opening a new world of opportunities for the Indian Industry. Increasing
competition, due to globalization is making inevitable for the Indian industries to provide cost
effective quality output with stringent delivery schedules. Issues in supply of inferior quality,
delayed supply, unwarranted cost escalation, etc. would adversely impact the credibility and
business potential of the Indian industry. Amongst many difficulties faced by Indian manufacturers,
supply chain disruption management is a major issue, which can result in large tangible and non-
tangible losses. In current study lot of research has been done to understand what the Supply
Chain Management is and how it is affecting organizations, what are different challenges and it
can be proved as a tool for improving overall performance in today's global competitive
environment. Keywords: Supply chain management. 1. Introduction his suppliers and through his
suppliers' suppliers and so on back. By having the program driven by the customer, it is In the
current competitive scenario supply chain hoped that inventories, caused by uncertainties and
slow management assumes a significant importance and calls response, will be significantly
eliminated. While there are for serious research attention, as companies are challenged sales
incentives to major suppliers with the carrot of with finding ways to meet ever-rising customer
category management or similar programs, the success of expectations at a manageable cost. To
do so, businesses supply chain management rests with logistics. must search out which parts of
their supply-chain process are not competitive, understand which customer needs are Functional
areas of Logistics: not being met, establish improvement goals, and rapidly 1. Network Design
implementnecessaryimprovements.2.InformationTechnology The term 'supply chain management'
has not only 3. Transportation been used to explain the logistics activities and the 4. Inventory and
Storage planning and control of materials and information flows 5. Warehousing internally within a
company or externally between 6. Materials Handling, Loading and unloading companies
(Christopher 1992, Cooper et al.,1997 and 7. Packaging and Re-packaging Fisher, 1997).
Researchers have also used it to describe strategic, inter organizational issues (Cox, 1997,
Harland It should be noted that supply chain management has both et al., 1999), to discuss an
alternative organizational form "hard" (i.e., technical) and "soft" (i.e., people) aspects, to vertical
integration (Thorelli ,1986 H.
An integrated model_for_ the_design_of_agile_supply_chains
1. 1
An Integrated Model for the Design of Agile Supply Chains
Professor Martin Christopher
Cranfield Centre for Logistics & Transportation
School of Management, Cranfield University
Professor Denis Towill
Logistics Systems Dynamics Group
Cardiff University
Summary
The latter part of the 20th Century saw the lean production paradigm positively impact
many market sectors ranging from automotive through to construction. In particular
there is much evidence to suggest that level scheduling combined with the elimination
of muda has successfully delivered a wide range of products to those markets where
cost is the primary order winning criteria. However, there are many other markets
where the order winner is availability. This has led to the emergence of the agile
paradigm typified by ‘quick response’ and similar initiatives. Nevertheless, ‘lean’ and
‘agile’ are not mutually exclusive paradigms and may be married to advantage in a
number of different ways. This paper explores ways in which hybrid strategies can be
developed to create cost-effective supply chains and proposes an integrated
manufacture/logistics model for enabling the essential infrastructure.
Introduction
A key feature of present day business is the idea that it is supply chains that compete,
not companies (Christopher, 1992), and the success or failure of supply chains is
ultimately determined in the marketplace by the end consumer. Getting the right
product, at the right price, at the right time to the consumer is not only the lynch pin to
competitive success but also the key to survival. Hence, customer satisfaction and
marketplace understanding are crucial elements for consideration when attempting to
establish a new supply chain strategy. Only when the requirements and constraints of
the marketplace are understood can an enterprise attempt to develop a strategy that will
meet the needs of both the supply chain and the end customer.
Supply chain performance improvement initiatives strive to match supply to demand
thereby driving down costs simultaneously with improving customer satisfaction. This
invariably requires uncertainty within the supply chain to be reduced as much as
2. 2
practicable so as to facilitate a more predictable upstream demand (Mason-Jones et al.,
1999). Sometimes however, uncertainty is impossible to remove from the supply
chain due to the type of product involved. For example, if a product is highly
fashionable then by its intrinsic nature its demand will be unpredictable. Hence,
specific supply chains are faced with the situation where they have to accept
uncertainty but need to develop a strategy that enables them to still match supply and
demand.
Significant interest has been shown in recent years in the idea of ‘lean manufacturing’
(Womack, Jones & Roos, 1990), and the wider concepts of the ‘lean enterprise’
(Womack, & Jones, 1996). The focus of the lean approach has essentially been on the
elimination of waste or muda. The upsurge of interest in lean manufacturing can be
traced to the Toyota Production Systems (TPS) with its focus on the reduction and
elimination of waste (Ohno, 1988). However, the origins of lean manufacture are
certainly visible in Spitfire aircraft production in the UK in World War II, and
Keiretsu dates back to the US automotive industry in 1915 (Towill, et al., 2000). In
the context of the present paper, it has been argued elsewhere (Christopher, 2000) that
lean concepts work well where demand is relatively stable and hence predictable and
where variety is low. Conversely, in those contexts where demand is volatile and the
customer requirement for variety is high, a much higher level of agility is required.
Agility is a business-wide capability that embraces organisational structures,
information systems, logistics processes and in particular, mindsets. A key
characteristic of an agile organisation is flexibility. In that respect, the origins of
agility as a business concept lie partially in flexible manufacturing systems (FMS).
Initially it was thought that the route to manufacturing flexibility was through
automation to enable rapid changeovers (i.e. reduced set-up times) and thus enable a
greater responsiveness to changes in product mix or volume. Later this idea of
manufacturing flexibility was extended into the wider business context (Nagel and
Dove, 1991) and the concept of agility as an organisational orientation was born.
Naylor et al. (1999) provide a useful definition of the two paradigms we are
considering as follows:
3. 3
“Agility means using market knowledge and a virtual corporation to exploit
profitable opportunities in a volatile marketplace.”
“Leanness means developing a value stream to eliminate all waste including
time, and to enable a level schedule.”
It is the purpose of the present paper to show the various ways in which these
paradigms may be combined to enable highly competitive supply chains capable of
winning in a volatile and cost-conscious environment. In doing so we shall emphasise
the important differences between the two paradigms, and also how one may benefit
from the implementation of the other. As Warnecke and Huser (1995) forcefully point
out, there is a need in all change management programmes to consider the intellectual
as well as the operational needs of the supply chain. Hence, the development and
description of our Integrated Model for enabling the agile enterprise based upon the
concept of a seamless connection between manufacture and logistics.
The Cyclical Nature of Market Winners and Market Qualifiers
Hill (1993) has earlier developed the concept of ‘order qualifiers’ and ‘order winners’
against which it is advocated that manufacturing strategy should be determined. As
these labels suggest, it is important for every business to understand what the baseline
is for entering into a competitive arena – these are the ‘order qualifiers’. To actually
win the order requires specific capabilities and these Hill termed the ‘order winners’.
The definition of order qualifiers and order winners then logically leads to the
specification of the appropriate manufacturing strategy. We can borrow from these
important ideas to develop a wider supply chain oriented concept of ‘market qualifiers’
and ‘market winners’. The notion here is that to be truly competitive requires not just
the appropriate manufacturing strategy, but rather an appropriate holistic supply chain
strategy.
The connection between these ideas of ‘qualifiers’ and ‘winners’ and ‘lean’ and ‘agile’
is critical. At its simplest the lean paradigm is most powerful when the winning
criteria is cost; however, when service and customer value enhancement are prime
requirements for market winning then the likelihood is that agility will become the
critical dimension. Figure 1 illustrates the crucial differences in focus between the
4. 4
lean and agile paradigm depending upon the market qualifiers and the market winners
based upon the work of Mason-Jones et. al. (2000).
Agile
Supply
Lean
Supply
1. Quality
2. Cost
3. Lead Time
1. Service Level
1. Quality
2. Lead Time
3. Service Level
1. Cost
Market Market
Qualifiers Winners
Fig 1
Market Winners - Market Qualifiers Matrix for Agile Versus Lean Supply
[Source: Mason-Jones, Naylor, and Towill (2000)]
It is in the nature of competition that last year’s market winner will be replaced this
year by a former market qualifier (Johannson et. al., 1993). This can be illustrated in
the context of the lean and agile paradigms by studying the migration of the operation
of the Personal Computer supply chain. Thus Table I describes the transition over a
15-20 year period from product driven to market orientated to market driven and
finally through to individual customer driven enterprise (Christopher and Towill,
2000). During that change the market winner has rotated between quality, cost,
availability and lead-time. But at any one point in time the other performance metrics
remain market qualifiers which cannot be prejudiced if business is to continue to be
won.
Attributes of Lean and Agile Supply
Whereas quality, service level, and lead-time are market qualifiers for lean supply,
with the market winner then being cost, the latter benchmark is merely an important
qualifier in agile supply (Christopher and Towill, 2000). Fisher (1997) makes a
similar point which is that where the risk of obsolescence and/or the cost of a stock-out
is high relative to the cost of production and distribution, then a different supply chain
solution is required. This leads to the conclusion that the total costs for the Product
Delivery Process (PDP) are :-
5. 5
Supply Chain Total PDP Costs = Physical PDP Costs + Marketability Costs
Where
• Physical Costs includes all production, distribution, and storage costs.
• Marketability Costs includes all obsolescence and stockout costs.
SUPPLY CHAIN
EVOLUTION
PHASE
I II III IV
SUPPLY CHAIN
TIME
MARKER
early 1980s late 1980s early 1990s late 1990s
SUPPLY CHAIN
PHILOSOPHY
Product
Driven
Market
Orientated
Market
Driven
Customer
Driven
SC
TYPE
Lean
Functional
Silos
Lean
Supply
Chain
Leagile
Supply
Chain
Customised
Leagile
Supply Chain
MARKET
WINNER
Quality Cost Availability Lead Time
MARKET
QUALIFIERS
(a) Cost
(b) Availability
(c) Lead Time
(a) Availability
(b) Lead Time
(c) Quality
(a) Lead Time
(b) Quality
(c) Cost
(a) Quality
(b) Cost
(c) Availability
PERFORMANCE
METRICS
(a) Stock Turns
(b) Production
Cost
(a) Throughput
Time
(b) Physical
Cost
(a) Market Share
(b) Total Cost
(a) Customer
Satisfaction
(b) Value Added
Table I
Summary of the Transition in the Personal Computer supply Chain from Product
Driven to Customer Driven Operations
[Christopher and Towill, 2000]
The first cost source (PDP) dominates lean supply whereas the second cost source
(marketability costs) dominates agile supply. Note that lost sales are gone forever in
the agile supply chain whether the cause is due to stockouts or to obsolescence. This is
because it is an extremely harsh and competitive marketplace with little brand loyalty.
As we shall see later, the requirement is for the product to be both affordable and
available. We shall now undertake a detailed comparison of lean and agile supply by
comparing specific attributes which highlight the specific problems to be overcome in
enabling the appropriate business strategy to be adopted.
Both agility and leanness demand high levels of product quality. They also require
minimisation of total lead-times defined as the time taken from a customer raising a
6. 6
request for a product or service until it is delivered. Total lead-time has to be
minimised to enable agility, as demand is highly volatile and thus difficult to forecast.
If a supply chain has long end-to-end lead-time then it will not be able to respond
quickly enough to exploit marketplace demand. Furthermore effective engineering of
cycle time reduction always leads to significant bottom line improvements in
manufacturing costs and productivity Towill (1996).
Lead-time needs to be reduced in lean manufacturing as by definition excess time is
waste and leanness calls for the elimination of all waste. The essence of the difference
between leanness and agility in terms of the total value provided to the customer is that
service level (availability) is the critical factor calling for agility whilst cost, and hence
the sales price, is clearly linked to leanness. However, whereas the Total Cycle Time
Compression Paradigm (Towill, 1996), when effectively implemented, is a sufficient
condition for achieving lean production, it is only one necessary condition for enabling
agile supply.
DISTINGUISHING
ATTRIBUTES
LEAN SUPPLY AGILE SUPPLY
Typical Products Commodities Fashion Goods
Marketplace Demand Predictable Volatile
Product Variety Low High
Product Life Cycle Long Short
Customer Drivers Cost Availability
Profit Margin Low High
Dominant Costs Physical Costs Marketability Costs
Stockout Penalties Long Term Contractual Immediate and Volatile
Purchasing Policy Buy Materials Assign Capacity
Information Enrichment Highly Desirable Obligatory
Forecasting Mechanism Algorithmic Consultative
Table II
7. 7
Comparison of Lean Supply with Agile Supply : The Distinguishing Attributes
[Source: Mason-Jones, Naylor and Towill (2000)]
Table II illustrates the comparison of attributes between lean and agile supply. In the
volatile unpredictable marketplace for “fashion” goods, both stockout and
obsolescence costs are punitive. Consequently the purchasing policy moves from
placing orders upstream for products moving in a regular flow to that of assigning
capacity to finalise products in rapid response mode. As Fisher et al (1994) have
indicated this means forecasting via “intelligent” consultation so as to maximise inputs
from “rich” marketplace insider sources.
Practical Ways of Marrying the Lean and Agile Paradigms
As we have indicated, there are a number of common elements between the lean and
agile paradigms. Provided the whole concept is fully thought through and properly
managed, lean and agile businesses can co-exist, even when on the same site and with
some limited rotation of personnel (Aitken, 2001). Here are three proven ways in
which the paradigms have been brought together to provide available and affordable
products for the end customer.
The Pareto Curve Approach
Many companies manufacturing or distributing a range of products will find that the
Pareto Law will apply and can be exploited to determine supply strategy. Typically an
analysis of the business will show that the 80/20 (or similar) rule holds (Koch, 1997).
In other words, 80% of total volume will be generated from just 20% of the total
product line. The way in which these 20% are managed should probably be quite
different from the way the remaining 80% are managed. For example it could be
argued that the top 20% of products by volume are likely to be more predictable and
hence they lend themselves to lean principles of manufacturing and distribution. The
slow moving 80% on the other hand will typically be less predictable and will require
a more agile mode of management. Figure 2 suggests one generic way in which
supply chain strategies may be devised for the predictable 20% and the more volatile
80% of products.
8. 8
80%
Lean
20%
% of
total
demand
• Make to forecast
• Low priority in
production schedule
• Manage inventory
centrally
• Seek economies of
scale
Figure 2 – The pareto distribution
Agile
% of products
• Make to order
• High priority in
production schedule
• Utilise quick response and
continuous replenishment
concepts
• Forecast for capacity,
execute to demand
The De-coupling Point Approach
A further marrying of the lean and agile paradigms can be achieved through the
creation of a ‘de-coupling point’ using what may be termed strategic inventory. Here
the idea is to hold inventory in some generic or modular form and only complete the
final assembly or configuration when the precise customer requirement is known. An
example is the customised PC (Christopher and Towill, 2000). This concept of
‘postponement’ is now increasingly widely employed by organisations in a range of
industries (van Hoek, 1998). As shown in Figure 3, by utilising the concept of
postponement, companies may utilise lean methods up to the de-coupling point and
agile methods beyond it. Companies such as Hewlett Packard have successfully
employed such strategies to enable products to be localised much closer in time to
actual demand (Feitzinger and Lee, 1997). However, as Pagh and Cooper (1998) have
pointed out, satisfying customer demand may require particular combinations of
postponed manufacture and postponed logistics
A parallel concept to the ‘material’ de-coupling point described above is that of the
‘information’ de-coupling point (Mason Jones and Towill, 1999). This represents the
furthest point upstream to which information on ‘real’ demand flows i.e. information
which has not been distorted by inventory policies such as re-order points and re-order
9. 9
quantities. The ability to base replenishment decisions on real demand clearly
contributes to supply chain agility.
Lean Agile
• Forecast at generic
level
• Economic batch
quantities
• Maximise efficiencies
Figure 3 – The decoupling point
• Demand driven
• Localised
Configuration
• Maximise
Strategic effectiveness
Inventory
Separation of “Base” and “Surge” Demands
Other hybrid strategies that have been employed with success are based upon
separating demand patterns into ‘base’ and ‘surge’ elements (Gattorna and Walters,
1996). Figure 4 highlights this distinction together with one possible level scheduling
solution where capacity demands are smoothed by intelligent switching of ‘base’
production. Base demand can be forecast on the basis of past history whereby surge
demand typically cannot. Base demand can be met through classic lean procedures to
achieve economies of scale whereas surge demand is provided for through more
flexible, and probably higher cost, processes. Strategies such as these are increasingly
being employed in the fashion industry where the base demand can be sourced in low
cost countries and the surge demand ‘topped up’ locally nearer to the market. Even
though the unit cost of manufacture in local markets will be higher than sourcing in
low cost locations, the supply chain advantage can be considerable. Alternatively,
arrangements can be made for dealing with both “base” and “surge” demands either by
separation in space (via separate production lines) or in time (by using slack periods to
produce base stock). This contrasts with the lean concept of ‘level scheduling’.
10. 10
Smooth
scheduling of
Figure 4 – Responding to Combinations of ‘Base’ and ‘Surge’ Demands
Well documented companies employing such strategies include Zara (Christopher,
1998), Benetton (Zuccaro, 1998), and National Bicycle (Fisher et. al, 1994). What is
particularly important is to relate the strategy throughout the whole supply chain to the
needs of the end customer in terms of both affordability and availability.
Whilst these three strategies are complementary rather than mutually exclusive, it is
likely that each may work better in certain conditions. A suggested set of appropriate
conditions for the application of the three hybrid strategies is presented in Table III
below :-
De
m
a
n
d
Ca
pac
i
t
y
Us
a
ge
Time Time
(a) Total (b) Level Scheduling
Solution
“Surge”
“Base”
For
“Base”
For “Surge”
11. 11
Hybrid strategies
Appropriate market conditions and
operating environment
Pareto/80:20 Using lean methods for the
volume lines, agile methods for the slow
movers.
High levels of variety; demand is non-proportionate
across the range.
De-coupling point The aim is to be lean
up to the de-coupling point and agile
beyond it.
Possibility of modular production or
intermediate inventory; delayed final
configuration or distribution.
Surge/base demand separation
Managing the forecastable element of
demand using lean principles; using agile
principles for the less predictable element.
Where base level of demand can
confidently be predicted from past
experience and where local
manufacturing, small batch capacity is
available.
Table III
A Contingency Approach to Supply Chain Strategy Choice
The three lean/agile hybrid strategies described above confirm that the real focus of
supply chain re-engineering should be on seeking ways in which the appropriate
combination of lean and agile strategies can be achieved. Our proposed Integrated
Model described below provides the essential infrastructure.
An Integrated Approach to Supply Chain Design.
Our contention is that lean methodologies can be a powerful contributor to the
creation of agile enterprises. In particular where product ranges can be separated
according to volume and variability and/or where the de-coupling concept can be
applied, a real opportunity exists for employing hybrid lean/agile strategies. There is
also one important sense in which lean precedes agile, and which has been advanced
12. 12
by Victor and Boynton (1998) in the context of moving towards mass customisation.
This is because real and effective change requires the mapping and understanding of
all the relevant business processes. Thus, in an industrial engineering scenario the lean
knowledge base is there to be exploited in enabling further performance improvements
including building in agility (Childerhouse et al, 2000).
Impact of
Agile
Manufacture
Impact of
Agile
Logistics
Agile
Supply Chain
Level 1
Principles
Level 2
Programmes
Level 3
Actions
Standardisation/
Modularisation
Waste
Reduction
Lean
Production
Postponed
fulfillment
Rapid
Vendor
Managed
Inventory
replenishment
Synchronised
operations
Organisational
Agility
Economies
of Scale
Flexible
Response
Agile
Supply
Process
Management
Cross
Functional
Teams
Demand
Driven
Visibility of
Real Demand
Continuous
Replenishment
Programmes
Set-up
Time Reduction
Quick
Response
Pipeline
Time
Reduction
Figure 5 : An Integrated Model for Enabling the Agile Supply Chain
Figure 5 suggests a three level framework summarising our view of the agile supply
chain. The concept of such a framework was first advocated by Werr et al. (1997). We
have found it extremely useful in bringing together the various strands which
contribute to the agile enterprise. In this integrative model, Level 1 represents the key
principles that underpin the agile supply chain; rapid replenishment; and postponed
fulfilment. Level 2 identifies the individual programmes such as lean production,
organisational agility, and quick response which must be implemented in order for the
Level 1 principles to be achieved. Level 3 specifies individual actions to be taken to
support Level 2 programmes, for example, time compression, information
enrichment, and waste elimination. Not all the characteristics shown in Figure 5 may
be necessary in any one specific market/manufacturing context, but it is likely that the
13. 13
agile supply chain will embody many of these elements. What is certain is that much
of the conventional wisdom concerning manufacturing strategy, supplier relations and
distribution will have to be challenged if real agility is to be achieved from within the
supply chain.
Rapid replenishment, for example, requires agile suppliers, organisational agility, and
a demand driven supply chain (Lowson et.al. 1999). Similarly, postponed fulfilment
enables the adoption of lean production principles up to the de-coupling point
supported by agile capabilities beyond that point (Harrison et. al.1999). Nor must the
cultural side be forgotten, since it may be the single biggest barrier to effective
change. For example, in moving towards an agile structure in one company in the
pharmaceuticals sector, it was found that the anticipated IT problems did not arise.
Instead, the real stumbling blocks were the difficulty of creating an understanding of
the new system, and the creation of a customer focused culture ~ in other words people
problems (Belk and Steels, 1998). Such reasons could also help explain why
successful industrial implementation of quick response programmes is more patchy
than expected, (Kohzab, 2000). This is just supporting evidence for the view
previously expressed by Andraski (1994) in commenting on the ineffectiveness of
many real-world supply chains. He suggested that this is because ‘80% of problems
that arise are due to people, not technology’.
Creating an agile supply clearly requires a number of significant changes to the status
quo. Supply chain managers today need also to be change managers – not just
managing change within the organisation, but managing change in the way that
relationships between organisations are structured. The trend towards the creation of
the ‘virtual’ organisation, whilst likely to help achieve agility (Preiss et.al., 1995), also
requires a high level of co-ordination and management. One way to achieve this co-ordination
is to make use of a ‘pipeline integrator’ or, as they have sometimes been
termed, a Fourth Party Logistics Service provider (4PL). These organisations make
use of their expertise and knowledge of managing global supply chains to ensure that
even in complex networks a more agile response can be achieved. An example of one
company that is taking up this role on behalf of global clients is the Hong Kong based
company Li and Fung (Magretta, 1995). Li and Fung were originally a trading
company sourcing and distributing products on behalf of their principals. Over the
14. 14
years they have developed specific expertise and skills that enable them to manage and
co-ordinate supply chains. For example, Li and Fung, on behalf of the US retailers,
the Limited, will order un-dyed yarn from the yarn supplier, book weaving and dying
capacity at fabric manufacturers’ facilities and manufacturing capacity at the garment
factories; all in advance of the actual requirement being known. As the Limited gets a
clearer view of what the requirement is for actual styles, colours and sizes then Li and
Fung will issue precise orders and manage the entire supply chain. In the words of the
Chairman, Victor Fung :-
“It would be easier to let the factories worry about securing their own fabric
and trim. But then the order would take three months, not five weeks. So to
shrink the delivery cycle, I go upstream to organise production. And the
shorter production time lets the retailer hold off before having to commit to
fashion trend. It’s all about flexibility, response time, small production runs,
small minimum order quantities, and the ability to shift direction as the trends
move”. (Magretta, 1995).
Conclusion
It is becoming increasingly apparent that competitive advantage derives from the
combined capabilities of the network of linked organisations that today we call ‘the
supply chain’. This is a fundamental shift in the traditionally held view of a business
model based upon a single firm. It has also become apparent that markets today are
increasingly volatile and hence less predictable and so the need for a more agile
response has grown.
Putting these two ideas together leads us to the conclusion that a pre-requisite for
success in these markets will be an agile supply chain.
What we have proposed in this paper is a framework for agility that is contingent upon
the context in which the business operates. Thus we have sought to bring together the
lean and agile philosophies to highlight the differences in their approach but also to
show how they might be combined for greater effect. Increasingly, managers need to
15. 15
understand how market conditions and the wider operating environment will demand
not a single off-the-shelf solution, but hybrid strategies which are context specific.
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