MGT 322 SEU The Lean Thinking and Agility in The Supply Chain Discussion

The first answer to the first question

The second paragraph is to discuss the first answer, then the second answer, and express your opinion on the answer

Q1: Q1: What are the differences between lean thinking and agility in the supply chain and when to use each type?

Q2 Read the messages of your classmates and post at least two responses:

(((first reply:)))

Lean thinking:

Lean Supply Chain is the traditional “factory” chain, which focuses on mass production at low cost. The goal is to add value to customers by reducing the cost of goods and reducing waste (waste is all that has no value to the customer). This type of supply chain focuses on reliability and predictability rather than flexibility and adaptability. Production is planned months or even years in advance rather than adapting to a changing market.

This advance planning helps to find the lowest possible cost for large quantities of goods. In general, a lean supply chain is best for products with low volatility in the market.

The demand for these products remains constant despite the economic situation or changing trends. These tend to be essential, functional products such as food and toiletries. Lean supply chain has always been the most popular form of production because it focuses on cutting costs – and all consumers like to pay less.

However, more and more companies are moving away from the rigidly flexible model because today’s markets can change overnight. Adaptability and agility have become critical factors in responding to these fluctuations.

Fit:

An agile supply chain focuses on flexibility and responsiveness. Responds quickly to changes in demand, customer and industry preferences. It’s designed to deal with market unpredictability by “postponing” – waiting to see what the market will determine before production is finished. An agile supply chain waits to see how much demand is before creating the final product, thus responding directly to demand rather than forecasting. Some market forecasting is still necessary, since parts of the product are created in advance to make the termination process quick and efficient.

Agility focuses on balancing recent data with projected short-term expectations. Agile supply chains are generally used for products with short life cycles or for customizable items. Take fast fashion as an example. Fashion is changing rapidly in today’s Instagram and blogger culture, so production needs to be prepared to keep up with emerging and changing trends. There needs to be both flexibility and efficiency to get the product off the shelves and into the hands of consumers before the next big craze hits.

Strong partnerships and interactions between vendors are critical to making an agile supply chain work. If there is no cooperation between suppliers with each other and with the market, the goods will not be created with the speed and efficiency that the agile chain requires. An agile supply chain also tends to reduce storage costs. You do not have a large stock on hand to meet the demand. Instead, demand comes in and supply is then created to meet demand. On the other hand, Lean Chain focuses on increasing inventory in order to keep pace with potential demand.

(((((Second response:))))))

Lean thinking is about focusing on adding value to customers by detecting and eliminating waste – anything that doesn’t contribute to that value.

While flexibility means your supply chain can handle the unpredictability and constant flow of new and innovative products – quickly and effectively.

A good time to consider the use of any of these types in the supply chain:

1- Lean thinking

When companies want to increase their productivity, reduce waste, and boost their bottom line. These ideas can be used to efficiently build and grow your organization if you are trying to do so.

2- Fitness

When it’s time to make adjustments.

To restore and install a new feature, developers only need to lose the equivalent of a few days of work, if not only hours.

To put it together, when a product’s vision or characteristics are not clearly defined. Agile allows product owners to change requirements and priorities as the project progresses, allowing them to take advantage of opportunities and ultimately deliver a better product to all project stakeholders.