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The Impact of Agile Manufacturing on Supply Chain Dynamics

The Impact of Agile Manufacturing on Supply Chain Dynamics Traditional supply chains can greatly amplify changes in end‐customer demand and thereby produce their own internally generated boom‐and‐bust scenarios. Improvement in supply chain performance is often greatly separated by time (many months) and distance (many miles) from the action taken to trigger better customer service coupled with lower stockholdings. A global long‐term view must therefore be taken if we are to be sure that enhancement is real and permanent. This paper outlines the problem areas associated with supply chain dynamics and reviews a set of Supply Chain Material Flow Principles originally based on established results from simulation models and observation of good industrial practice. The paper further shows that these Principles were embedded in an Agile Manufacturing Program undertaken in order to re‐engineer a real‐world mechanical precision products global supply chain. Subsequent improvements in supply chain dynamics recorded include a 45 per cent reduction in global inventory and the damping of supply chain amplification patterns by up to 58 per cent. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

The Impact of Agile Manufacturing on Supply Chain Dynamics

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Publisher
Emerald Publishing
Copyright
Copyright © 1999 MCB UP Ltd. All rights reserved.
ISSN
0957-4093
DOI
10.1108/09574099910805879
Publisher site
See Article on Publisher Site

Abstract

Traditional supply chains can greatly amplify changes in end‐customer demand and thereby produce their own internally generated boom‐and‐bust scenarios. Improvement in supply chain performance is often greatly separated by time (many months) and distance (many miles) from the action taken to trigger better customer service coupled with lower stockholdings. A global long‐term view must therefore be taken if we are to be sure that enhancement is real and permanent. This paper outlines the problem areas associated with supply chain dynamics and reviews a set of Supply Chain Material Flow Principles originally based on established results from simulation models and observation of good industrial practice. The paper further shows that these Principles were embedded in an Agile Manufacturing Program undertaken in order to re‐engineer a real‐world mechanical precision products global supply chain. Subsequent improvements in supply chain dynamics recorded include a 45 per cent reduction in global inventory and the damping of supply chain amplification patterns by up to 58 per cent.

Journal

The International Journal of Logistics ManagementEmerald Publishing

Published: Jan 1, 1999

Keywords: Supply chain; Improvement; Performance; Customer service; Material requirement planning

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