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by Hallie Forcinio, Contributing Editor   | Abstract: | The cornerstone of an agile supply chain is accurate and timely information -- and an infrastructure that can act on it. |
In today's manufacturing environment, supply chain practitioners are managing more items through more complex supply chains with fewer people, shorter lead times, and lower inventory levels. At the same time, transportation costs are rising and cycle times are increasing as manufacturers move production offshore to focus on core competencies in product development and marketing. With longer supply chains and a smaller protective buffer due to condensed lead times and lower inventory levels, today's version of supply chain agility involves managing by exception and proactively responding to changing conditions, both routine and cataclysmic. An agile supply chain provides timely warnings about potential problems and helps control costs without reducing service levels. It also helps manufacturers ratchet up competitiveness. With all the business processes it affects, a supply chain can strongly influence whether the ink on the bottom line is black or red. As this realization sinks in, manufacturers are making optimization a primary goal. In fact, AMR Research's "Supply Chain Management Spending Report, 2005-2006" postulates that supply chain solution purchases increasingly are viewed as an enabler for reengineering of critical business processes rather than a technology investment. [Click to continue] |