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The most important supply chain improvements are rooted in agility.
The holy grail of supply chain is to synchronize demand with supplies on an ongoing basis. It prevents stockouts. It prevents surplus inventory. Lead times are protected. OTIF goes up.
Agility lights up the path on this improvement journey.
Agility on the demand side is rooted in Demand Sensing. Identify evolving demand patterns. Decipher demand shifts. Get early signals of demand disruption. It helps in speeding up the supply response.
Agility on the supply side is rooted in flexibility and responsiveness. Use demand signals to tweak supply plan. Minimize the lag in executing the updated plan. Develop flexibility in scheduling. Minimize frozen period. Reduce batch sizes. Improve frequency of supply.
Agility helps in adjusting supplies to the predicted demand. The synchronisation gets better and better. It gives us an ongoing improvement path. The leverage is tremendous.