One way to mitigate risks in a supply chain is by increasing flexibility. Flexibility and agility allow your supply chain to respond to changes quickly. Flexibility can be treated like an insurance policy, so you decide how much risk you are willing to accept and how much you are willing to invest in order to protect yourself from a risk. You can often choose between different approaches that can give you flexibility for different costs.
- If we knew exactly what would happen in the future,…then supply chain management would be a lot easier.…But the world is in a constant state of change,…so our supply chains need to be flexible.…Let's look at what supply chain flexibility really means…and how you can build flexibility into your supply chain.…MIT professor David Simchi-Levi describes…supply chain flexibility…as the ability to respond to change…without increasing operational and supply chain costs,…and with little or no delay in response time.…
In other words, flexibility…has to do with both time and money.…It's how easy it is for your supply chain…to scale up or to scale down…to respond to changes both in upstream supply…and in downstream demand.…Upside flexibility is important for taking advantage…of sales opportunities.…Let's say a customer wants to place a big order.…Upside flexibility could come from having extra capacity…and inventory on hand.…
It could also come from having multiple suppliers…and the ability to outsource some of your work…
- Explore the fundamentals of source inputs within a supply chain.
- Examine the role of returning products in a supply chain.
- Determine how to calculate total costs.
- Explore the role of investing in flexibility when managing a supply chain.
- Discover how to increase visibility with a control tower.
- Identify the role innovation plays in supply chain management.
- Examine how artificial intelligence and machine learning help to monitor supply chain trends.
- Break down the fundamentals of selecting the right technology when implementing a supply chain agenda.
- Determine the best ways to collaborate externally when implementing a supply chain agenda.