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Fast Feedback Loops are at the heart of an agile Supply Chain design.
Agile supply chains require capabilities of sharp demand sensing, operational flexibility and responsiveness. I have seen supply chain teams working on developing these capabilities, however, the impact is quite small on the final customer-facing measures of availability and freshness. What could be the reason?
Higher levels of these capabilities can be exploited to improve the supply chain performance only if we establish a fast feedback loop in the first place. Design of an agile supply chain must start with establishing this fast feedback loop, which exposes the areas where we need to sharpen the demand sensing capabilities, improve flexibility in operations and respond faster.
Typical S&OP process has the feedback loop operating monthly, some companies have it weekly, whereas an agile supply chain requires it daily, that too at the granular level. Some retailers, especially the Quick Commerce ones, have it running on an hourly basis!
Would love to hear your comments on how well it is operating in your supply chain…