Agile and Lean Supply Chain Management - 1719 Words

Leanness means developing a value stream to eliminate all waste, including time, and to ensure a level schedule. Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace. Leagile is the combination of the lean and agile paradigms within a total supply chain strategy by positioning the decoupling point so as to best suit the need for responding to a volatile demand downstream yet providing level scheduling upstream from the marketplace. The decoupling point separates the part of the organisation (supply chain) oriented towards customer orders from the part of the organisation (supply chain) based on planning. In this report, I attempt to prepare the literature review of†¦show more content†¦However, to deal with intensification of competition and dynamic demands, the company was proactive in forming business alliance to pull product into the marketplace quickly. In this way, the company was exhibiting an agil e approach. Company 4, premium brand manufacturer/retailer, also concentrated on building relationships, again to achieve leagility in the supply chain. This was mandatory as the company was dealing with a high quality fashion product with small batch quantities. In summary, they concluded companies in textiles and clothing needed to be able to respond quickly to changing markets and be able to provide quick replenishment. However, they were not able to store large quantities as products had a very short life cycle and fashion markets were seasonal. Therefore, the textiles and clothing industry did not neatly fit into either a lean or agile supply chain paradigm, but instead it was a combination of the two paradigms, leagile. Agarwal et al. (2006) presented a framework for modelling and assessing the performance of lean, agile and leagile supply chain on the basis interdependent variables. Considering the performance of supply chain which implies how much the supply chain is respons ive to the needs of the markets, they implemented and utilized the framework for modelling performance of lean, agile and leagile supply chain. By using the framework, they could analyse theShow MoreRelatedLeagility Defined for the Supply Chain1004 Words   |  5 PagesLeagility Defined for the Supply Chain Two words, lean and agile, combine to make the word leagility. Supply chain managers need lean supply lines to eliminate waste and keep costs low. They also require agile supply chains to get the right amount of the product to the right place in order to satisfy the ever-changing nature of the marketplace. Traditional management recommended a lean supply chain for products with a stable demand, yet low profit margin. Conversely, products with a high profitRead MoreWeek 1 Assignment:Intangible Qualities Of Public Transit,1455 Words   |  6 PagesIntangible Qualities of Public Transit, Supply Chain Management and Time-Based Competition, and the Leagile Supply Chain Cara E. Pascarella TLMT502 – Dr. Wyatt â€Æ' Abstract This paper seeks to answer multiple questions regarding logistics and transportation. The first response provides some intangible qualities of public transportation systems that allow them to flourish in large cities. Secondly, the paper discussed the formation of supply chain management and how it has been affected by time-basedRead MoreWhat does Leagility mean in reference to supply chain design?1088 Words   |  5 Pageswork-in-process and finished goods inventories. The term Leagility was introduced in the supply chain design to avoid or minimize inflexibility and overage in the supply chain by making it lean and agile. This will keep production cost down and allow the supply chain to be flexible enough to keep up with the uncertainties and rapid changes on product demand. The term Leagility is based on two paradigms: Lean and Agility operations, not only by the combination of the two words, but also by theRead MoreBeer Simulation773 Words   |  3 PagesI had a significant surplus in inventory. Therefore, rather than minimizing the bullwhip of supply and demand, I exacerbated the problem by limiting my supply well below the number of orders coming in, much less below what I could fill with the backlog and incoming orders. This error on my part certainly led to increasing instability, not only in my own incoming orders, but also in the entire supply chain. The simulation also kept auto-filling my initial order, which was only 10,000 cases, desp iteRead MoreBenefits Of Supply Chain Management1677 Words   |  7 Pageswhich allow companies to capture their customers’ voice. 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Lean Manufacturing Japan (2008), also stated that â€Å"ECR reduces the opportunity loss, inventory level, and entire cost, increases monetary profitability by sharingRead MoreDistribution Network Design And How They Are Managing Their Logistics1487 Words   |  6 Pagespackaging and distribution in its global markets (Goransson, 2007). With HM operating in operating in 53 countries and having their main headquarters in Stockholm Sweden (HM, 2014). It is clear that HM uses a more centralized approach where key management activities take place at the company headquarters in Stockholm (Dickson, 2009). HM made the shift to a more global standardized strategy because it believed by doing so, the company can gain significant economies of scale (Dickson, 2009). The useRead MoreGeneral Electric Medical Systems, 2002.2891 Words   |  12 PagesThe agile supply chain: Marketplace if the 21 century are often characterised by proliferation(Ã'Æ'Ð ²Ã µÃ »Ã ¸Ã'‡Ð µÃ ½Ã ¸Ã µ) of products and services, shorter product life-cycle and increased rates of product innovation. There it is not enough today to simply response at the right time in different customers’ needs of such marketplace. The main aim of logistics today is to ensure that it is the right product that is delivered in the right place at the right time. And different tools of agile supply chain are reallyRead MoreLean and Agile Supply Chain Strategies4934 Words   |  20 Pages| Lean and Agile Supply Chain Strategies | Seminar in Business Economics | | 30-03-2012 | Table of Contents Introduction 2 Subject 2 Purpose 3 Problem Formulation 3 Definition of Concepts 4 Theory and Methodology 5 Limitations 6 Structure 6 Exploratory Analysis 7 Lean Supply Chain: Toyota Motor Corporation 7 Agile Supply Chain: Dell 9 Comparison of the Two Strategies 10 Leagile Supply Chain: Hennes Mauritz 12 Discussion 15 Summary and Conclusion 17 ListRead MoreAnalyzing The Total Quality Management And Control Techniques Used By The Famous Fashion Retailer1960 Words   |  8 PagesTQM were applied to their overall supply chain and product development, and they began enhancing and spreading their business worldwide. The term total quality management is a comprehensive and structured approach that helps organizations make improvements in the quality of its products and services. These improvements are done by making necessary amendments based on customer feedback. The purpose of writing the report is to analyze the total quality management and control techniques used by the