Building the Triple-A Supply Chain
Agility
Objectives:
Respond to short term changes in demand or supply quickly handle external
disruptions smoothly
Methods:
• Promote flow of information with suppliers and customers
• Develop collaborative relationships with suppliers
• Design for postponement
• Build inventory buffers by maintaining a stockpile of inexpensive but key
components
• Have a dependable logistics system or partner
• Draw up contingency plans and develop crisis management teams
Adaptability
Objectives:
Adjust supply chain’s design to meet structural shifts in markets, modify supply
network to strategies, products, and technologies.
Methods:
• Monitor economies all over the world to spot new supply bases and markets
• Use intermediaries to develop fresh suppliers and logistics infrastructure
• Evaluate needs of ultimate consumers-not just immediate customers
• Create flexible product designs
• Determine where companies’ product stand in terms of technology cycles and
product life cycles
Alignment
Objectives:
Create incentives for better performance
Methods:
• Exchange information and knowledge freely with vendors and customers
• Lay down roles, tasks and responsibilities clearly for suppliers and customers
• Equitably share risks, costs and gains of improvement initiatives