The food we eat, the clothes we wear, the screens we look at all come from various departments and individuals linked together in a chain. This is called a supply chain; it contains all of the contributors, from the raw material providers to the production of the actual product. Basic supply chains are of two types agile and lean.
Let’s go and have a look at what these supply chains are.
The definitional difference
1- Lean supply chain:
The supply chain claimed as a lean supply chain is a blueprint that dictates how a good and optimized supply chain should work. From the products reaching in exact form promised and quickly to the customer with minimum waste. This supply chain offers an easy-going, easy, and guaranteed way to a successful journey. When creating a lean supply chain, keep these in mind;
- Putting the needs of the customer as a priority and making sure they get what they ask for.
- Responding more efficiently and quickly to customer demands
- Accurate prediction of customer desire, wish and needs.
- Creating a vicious circle
- Easy and straightforward help
2- Agile supply chain:
Agile supply chains are required on paper data to make decisions daily; the recorder data is projected as the supply forecast. When added to a company’s supply chain regime, it accelerates success, saves money for the business and consumers. It works to
- Eliminate waste of excess inventory
- Foresees potential shortages quickly and productively
- Is flexible.
An agile supply chain is focused on;
- Cost efficiency
How to choose among the agile/lean supply chain
- What types of goods is your company producing? How is the output of these product sales throughout the market and in the industry?
- What is your niche, and who do you target as your niche? And what is the feedback of customers?
- Can you assume the level of demand for your product on the market? What are the fluctuations of these demands assumed?
- How quickly do your market strategies and trends on the market?
- How will change in the economy affect your product’s sale, on your consumers’ demands, and on the expenditure of people who do, in real words, spend money?
- What is the blueprint of your designed supply chain regime?
- How does your made supply chain operate at this moment, and what changes do you want?
Are they different?
The two supply chains being Agile and Lean are very different in dynamics, character, mode of work, targets, and practicality. These are used for specific demands and issues when faced by an organization. There is also a hybrid supply chain; it is a bridging of agile and lean supply chains.
The striking difference between these two supply chains at hand, lean and agile, is mainly the direct relations with the output that can be seen physically. A lean supply chain focuses mainly on cutting costs. The agile supply chain’s basic aim is mainly on the output to the niche demand with compact, more personalized offers of the product. The differences are bigger but cover the requirements of all the issues one specific type of organization foresees.