A flexible supply chain organization requires not only a strategic leader, but also input from managers who represent the traditional supply chain functions of planning, sourcing, manufacturing, logistics, and also sales and marketing, among others.
Taking the First Steps toward Flexibility
Any manager seeking to create a more flexible supply chain will have a full agenda. It will be necessary to integrate strategy, processes, metrics and technology—across the business and among suppliers.
A holistic approach to supply chain flexibility involves a tangle of questions that must be asked of internal stakeholders as well as key suppliers (see table below for some of the issues supply chain managers may face).
Above all, the manager must identify ways that supply chain flexibility can be assimilated into the business culture. Doing so will require that the company can elastically respond to demand shifts, build collaborative relationships with suppliers, and collect and analyze data for timely and accurate inventory decisions. Supply chain managers must also assess the capabilities and flexibility of key suppliers, and ensure that these strategic partners are in sound financial health.
In the rough and tumble of today’s competitive—and still uncertain—business environment, an agile, responsive supply chain is a necessity. It enables companies to effectively work with suppliers and efficiently serve customers, no matter the market conditions.
