OPERATIONS
Umar continues : “ Overall , the agile supply chain approach is about creating a dynamic and responsive ecosystem that can thrive in an unpredictable and fast-paced market environment .”
Two different approaches to SCM Clearly , both lean and agile approaches to supply chain management have their benefits .
Those pursuing the former can rightly hope for and even expect increased efficiency , cost reductions , improved quality control and streamlined operations .
By streamlining operations , companies can easily simplify various processes , reducing issues such as lead times while driving benefits such as increasing throughput .
But it can ’ t all be plain sailing , as Umar notes : “ The lean approach does have its downsides , such as causing issues with adapting to sudden changes in demand and potential supply chain disruptions , as well as having a high dependency on accurate demand forecasting .”
As one might imagine , taking an agile approach means greater flexibility , enhanced responsiveness to market changes and better customer satisfaction , meaning supply chains are better equipped to handle disruptions whether they stem from supplier issues , natural disasters or geopolitical events .
However , Umar warns that with increased agility comes higher operational costs . supplychaindigital . com 137