The foundations of agility

It will be apparent that agility is not a single company concept but rather it extends from one end of the supply chain to the other. The concept of agility has significant implications for how organisations within the supply/demand network relate to each other and how they can best work together on the basis of shared information. 

To bring these ideas together, a number of basic principles can be identified as the starting point for the creation of the agile supply chain. 

Synchronisation implies that all parties in the supply chain are marching to the same drumbeat . In other words, through shared information and process alignment there is in effect one set of numbers and a single schedule for the entire supply chain. This somewhat Utopian vision is increasingly becoming reality as web-based technology enables different entities in a network to share information on real demand, inventory and capacity in a collaborative context. 

In the automobile industry most of the volume car manufacturers have established seamless processes with their first tier suppliers based upon providing immediate access to production plans and schedules. This enables just-in-time deliveries to be achieved without the need for major buffers of inventory at the first tier level, 

In the US the quick response initiative in the apparel industry has linked retailers to garment manufacturers and also to the fabric producers through shared information. The impact of this collaboration has been a significant improvement in the competitiveness of that industry. 

---