An agile supply chain is flexible, fast, and accurate, allowing suppliers to respond quickly to changing customer needs. However, companies must balance flexibility with policies and procedures to prevent endangering the overall operation and its relationship with customers.
An agile supply chain is a supply chain that is able to respond to changing needs so as to expedite the delivery of ordered goods to customers. In general, supply chain agility is a trait many businesses look for when selecting suppliers, as a retail supply chain that is flexible and able to respond quickly to emergency needs can in turn help the business respond. more efficiently to its customers. Along with flexibility, speed and accuracy are also the hallmarks of this type of supply chain.
To understand the benefits of an agile supply chain, it is first important to understand the components present in any type of supply chain. These include items such as order picking and processing, inventory of materials to create the goods used to fill orders, packaging and transportation of finished goods, and the quality of customer service that is exhibited throughout the process. from point of sale to actual delivery and beyond. For supply chain operations to be considered agile, each of these components must be managed efficiently and organized to allow for adaptation to changing circumstances.
With an agile supply chain, suppliers are able to respond to changing customer needs relatively quickly. For example, if a customer has already placed a sizable order but believes the items are needed a week before the expected delivery date, a supplier with a truly agile supply chain will be able to cope with that change in the customer’s circumstances. , at least in part. Working together, the salesperson and customer develop a strategy to enable as many orders as possible to be delivered within the new required time frame. At times, this may require creative thinking on the part of the supplier, as well as demonstrating some flexibility in terms of scheduling production times, selecting carriers, and generally looking closely at each stage of the order fulfillment process to find ways to minimize the time required to successfully complete those tasks and meet the customer’s request.
It’s important to note that while an agile supply chain is a very attractive feature, attempting to be too flexible can actually hurt a business. For this reason, many companies initiate policies and procedures designed to prevent situations that could endanger the overall operation and its relationship with the entire customer base. This sometimes means invoking order minimums that must be in place to qualify for expedited shipping, assessing additional charges for early delivery, or similar deterrents that keep customers from consistently expecting levels of service beyond what is considered standard.
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