LEAGILE SUPPLY CHAIN PDF

Both management strategies have their advantages and disadvantages, and the question is, is it possible for them to exist side by side, or even fuse? In their article A taxonomy for selecting global supply chain strategies, Christopher, Peck and Towill describe a fusion of Lean and Agile, termed LeAgile. Where did leagile come from? Already in , Naylor et al. What does leagile mean? Copyright note: The figure above is taken from the article.

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Both management strategies have their advantages and disadvantages, and the question is, is it possible for them to exist side by side, or even fuse? In their article A taxonomy for selecting global supply chain strategies, Christopher, Peck and Towill describe a fusion of Lean and Agile, termed LeAgile. Where did leagile come from? Already in , Naylor et al. What does leagile mean? Copyright note: The figure above is taken from the article.

Leagile has emerged as an answer to the problem of reconciling long lead times with unpredictable demand. However, when demand is uncertain, a company must retain its responsiveness vis-a-vis its customers. This is only possible if the supply chain is agile. That is were leagile has a mission. What does leagile have to do with supply chain risk? Lean is often seen as one of the reasons why supply chains have become increasingly vulnerable, but that is only part of the story.

Agility, on the other hand, is seen as a way to deal with, or rather, prepare for, supply chain disruptions. Agility is often mistaken for flexibility, but it is not. As I wrote in my post on robustness, resilience, flexibility and agility , using the definition in Goranson The Agile Virtual Enterprise : flexibility is scheduled or planned adaption to unforeseen yet expected external circumstances.

So, is a lean supply chain more exposed to supply chain risk than an agile supply chain? Reference Christopher, M. Towill, D. Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain International Journal of Production Economics, 62 , DOI:

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What is an Agile Supply Chain?

The debate continues over the decision to develop a lean supply chain, an agile supply chain, or a hybrid model: leagile. The ultimate goal of lean thinking is to eliminate waste. Muda is work that absorbs resources but adds no value. Mura is the waste of unevenness or inconsistency leading to an erratic flow.

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Lean + Agile = LeAgile: a happy marriage?

The Difference Between Agile vs. Lean supply chain management is about reducing costs and lowering waste as much as possible. Additionally, companies with high volumes of low variability purchase orders, such as food items, benefit their efficiency greatly by utilizing the lean supply chain methodology. What is Agile Supply Chain? Richard Wilding, professor of Supply Chain Strategy at the Cranfield School of Management in the UK, says if you have low volumes but high variability you need agility. He uses Kimberly Clark, owners of such brands as Kleenex and Huggies, as an example.

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What to Develop: A Lean Supply Chain, Agile or Leagile?

Top 10 facts about the world An agile supply chain is a chain of supply that is capable of responding to changing needs in a manner that expedites delivery of ordered goods to customers. In general, supply chain agility is a trait that many companies look for when selecting vendors, since a retail supply chain that is flexible and able to quickly respond to emergency needs can in turn help the business respond more efficiently to its customers. Along with flexibility, speed and accuracy are also hallmarks of this type of supply chain. In order to understand the benefits of an agile supply chain, it is first important to understand the components found in any type of chain of supply. These include elements such as order collection and processing, inventory of materials to create the goods used to fill orders, packaging and transport of finished goods, and the quality of customer service that is exhibited throughout the process from the point of sale to the actual delivery and beyond. In order for the supply chain operations to be considered agile, each one of these components must be managed efficiently, and organized in a manner that makes it possible to adapt to changing circumstances.

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The Difference Between Agile vs. Lean Supply Chain Management

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