Agile Supply Chain Essay

850 Words 4 Pages
3.1 Agility, flexibility and responsiveness of supply chain

Sustainable competitive advantage is a strength that all businesses strive for. Similar to successful international clothing companies such as Zara, H&M and Mango, all of whom have agile, flexible and responsive supply chain management systems, Linda’s strive to adopt these qualities so that it can emulate its competitors. The Triple an effect by Hau L Lee, speaks to effective supply chains being agile and adaptable, so that their company interests can stay aligned. Moreover, since the goal of supply chain is to deliver goods and services to consumers in the quickest and most expensive way, it is imperative that processes are streamlined and the best talents are recruited to ensure
…show more content…
For example, when the National flour mills (biggest supplier of wheat products in Trinidad and Tobago) witnessed a cultivation of ‘bad wheat’, it resulted in shortages of supplying flour. Linda’s was forced to quickly find a substitute supplier (Pegasus Limited). Though the price was a tad higher, Linda’s was forced to withstand the cost, in an effort to meet its demand from customers, especially since competitors were unable to make such compromise in a timely …show more content…
Risk may be defined as uncertain events that planning cannot controlled, but can be overcome with proactive attempts to recognise and manage internal events and external threats (through a SWOT analysis for example) that can affect the likelihood of a project’s success (Gray and Larson 2006). The three main facets of risk management in supply chain are to discover the risk, recover from the risk and redesign the supply chain system. Assessment of risks can be done using program evaluation and review technique (PERT) or decision trees, both of which will highlight consequences and possible act steps to remedy outcomes. Contingency plans can be developed to respond to risks and change management strategies can control the response to identified risks (Gray and Larson 2006). As seen in the previous example, Linda’s was able to manage its risk of losing sales due to shortage of its main supply – flour and take advantage of situation before competitors. Such a move is classified as a proactive approach, in risk

Related Documents