Currently, the word ‘Agile’ resonates throughout the IT sector across the globe. Not only in the IT sector but also in various sectors across industry verticals such as Supply Chain has found immense benefits through the implementation of Agility.
Agile in the broad spectrum is defined as responsiveness to changes in demand and the ability to adapt to unplanned disruptions with minimal impact on business. In this way, enterprises can save money, resources, and more importantly time. Agile will also help the enterprise to position itself to cater to its services in the face of complex market demands.
Agile has found widespread acceptance in the supply chain industry because of its flexibility. Traditional supply chains are usually hardwired. Because of its inability to adapt, they are not flexible and are prone to regular breakdowns and cause disruption in the supply chain process. Compared to traditional methods, Agile is the benchmark from which the supply chain industry can expand the scope of its delivery.
A recent McKinsey study with regards to Agile practices shows how it affects the company’s bottom line. Some of the results in this study were eye-catching. The survey was conducted by assessing ten supply chain capabilities in 250 enterprises across five major industries.
The result was unanimous, enterprises that had Agile supply chains outperformed enterprises that did not have Agile in various ways.
85% of companies have suppliers or customers across the globe.
In that 85%, 2/3 struggle with the increasing complexity of global supply chains.
But enterprises with Agile supply chains have outperformed their peers in various ways.
Improved Delivery Efficiency: Agile supply chain helps 94% of deliveries arrive on time and in full. There is a 7% increase in on-time deliveries over less agile supply chains.
Decrease in Inventory Holding Time: With Agile supply chain processes, inventory holding days is drastically cut from 108 days to 85 days, with 23-day savings.
Unparalleled Performance: Agile project managers outperform their uncertified counterparts in key operational areas.
Inventory Placement – 75%
Integrated Planning – 73%
Forecasting – 70%
Labor and Asset Flexibility – 76%
Risk Management – 75%
