{"id":15988,"date":"2022-05-24T23:18:10","date_gmt":"2022-05-24T20:18:10","guid":{"rendered":"https:\/\/k-house.in.ua\/lean-chy-agile-supply-chain-yaku-strategiyu-varto-obraty\/"},"modified":"2022-05-24T23:31:53","modified_gmt":"2022-05-24T20:31:53","slug":"lean-chy-agile-supply-chain-yaku-strategiyu-varto-obraty","status":"publish","type":"post","link":"https:\/\/k-house.in.ua\/en\/lean-chy-agile-supply-chain-yaku-strategiyu-varto-obraty\/","title":{"rendered":"Should You Use a Lean or Agile Supply Chain?"},"content":{"rendered":"

Article written on redwoodlogistics.com<\/em><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Supply and demand are no longer the only driving factor of the market. Consumer behaviors and economic movements are changing daily, so manufacturers and shippers alike are forced to find ways to keep up.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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Supply chains need to look at both fluctuating market dynamics. Today\u2019s customers are both digital and global. This means they have access to just about every product and company right at their fingertips. This boosts competition in a way that was never possible in the past. This competition creates a need for companies to innovate with regards to their products as well as how they deliver those products to their consumers quickly and efficiently.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Additionally, the worldwide web has enabled trends to quickly pop up and then dissipate just as fast; consumer preferences are changing at a higher velocity than ever before, and companies need to maintain flexibility and adaptability in response.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

To cater to the changes in the supply chain landscape, companies have two primary models that cater to these market fluctuations, in different ways. These 2 supply chain models are known as the lean supply chain or the agile supply chain.<\/p>\n<\/div><\/div>

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But what is the difference between a lean and agile supply chain? Furthermore, which strategy is better for\u00a0your<\/em>\u00a0business? \u00a0<\/span><\/h2>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>
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What is a Lean Supply Chain?<\/strong><\/span><\/h2>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

The lean supply chain is the traditional \u201cfactory\u201d chain, which focuses on producing\u00a0high volume at low cost<\/strong>. The goal is to add value for customers by reducing the cost of goods and\u00a0lowering waste\u00a0(waste is whatever isn\u2019t valuable to the customer). This sort of supply chain focuses on\u00a0reliability and predictability<\/strong>\u00a0rather than on flexibility and adaptability. Production is planned months or even years in advance rather than adapting to a changing market.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

This pre-planning helps to find the lowest possible cost for large volumes of goods. Generally, the lean supply chain is best for\u00a0products with low market variability<\/strong>.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Demand for these products stays even keel despite the economic situation or changing trends. These tend to be necessary, functional products like\u00a0food\u00a0and toiletries. The lean supply chain has traditionally been the most popular form of production because it focuses on reducing costs\u2014and all consumers like to pay less.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

However, more and more companies are moving away from a strictly lean model since today\u2019s markets can change overnight. Adaptability and\u00a0agility<\/em>\u00a0become crucial factors in responding to these fluctuations.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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What is an Agile Supply Chain?<\/strong><\/span><\/h2>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

The agile supply chain focuses on\u00a0flexibility and receptiveness<\/strong>. It responds quickly to changes in demand, customer preference, and industry. It\u2019s made to handle unpredictability in the market through \u201cpostponement<\/strong>\u201d\u2014 waiting to see what the market will dictate before finishing production. An agile supply chain waits to see how much demand there is\u00a0before<\/em>\u00a0creating the final product, thus responding directly to demand rather than forecasting. Some predicting of the market is still necessary, though, since parts of a product are created ahead of time to make the finalization process fast and efficient.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Agility focuses on balancing up-to-date data with short-term forecasted projections<\/strong>. Agile supply chains are generally used for products with\u00a0short life cycles or customizable elements<\/strong>. Take fast fashion as an example. Fashion changes rapidly in today\u2019s Instagram and blogger culture, so production needs to be prepared to keep up with the emerging and shifting trends. There needs to be both flexibility and efficiency to get the product on the shelves and into the hands of consumers before the next big craze hits.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

Strong partnerships<\/strong>\u00a0and interactions between vendors are crucial to making an agile supply chain work. If there isn\u2019t a collaboration of suppliers with one another and with the market, goods will not be created as quickly and efficiently as an agile chain calls for. An agile supply chain also tends to have less warehousing costs. You aren\u2019t holding significant inventory on hand to\u00a0meet demand. Rather, demand comes and supply is\u00a0then<\/em>\u00a0created to meet the demand. A lean chain, on the other hand, focuses on\u00a0overstocking inventory in order to keep up with potential demand.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>

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Qualities<\/div>
Lean Supply Chain<\/div><\/div>