Lean vs Agile Vs Leagile Supply chain

Lean Vs Agile Vs Leagile

• Leanness means developing a value
stream to eliminate waste (MUDA), The Supply Chain Can be
inefficient due to 8 waste
including time, and to ensure a level (MUDA)- For Lean systems
schedule.

• Agility can be “ability to sense

environmental change and respond The four key components
of the framework
quickly by providing the appropriate
capabilities to exploit profitable
opportunities in a volatile market place.
 Lean Vs Agile Vs Leagile
Leagile is the combination of the lean and agile
paradigms within a total supply chain strategy
separated by a decoupling point which is also
termed as postponement strategy.

An agile strategy uses a wait-and-see approach

to market demand until accurate demand is
known. A suitable inventory of the subassembly
of final products is hold at decoupling point
(DP) with a lower-cost assembly process close
to the point of demand in order to localize the
product.
Lean Vs Agile Vs Leagile
-Supply vs Demand-

Recall risk based production sequencing:

Speculative capacity vs reactive capacity
 Lean Vs Agile Vs Leagile
-Sourcing flexibility vs Vendor flexibility

Agile Leagile with Agile

Vendor Flexibility

Vendor
Vendor
Flexibility

Lean Vendor Leagile with

Lean Sourcing
Flexibility
Lean Sourcing Agile Sourcing
(limited) (multiple)

Sourcing Flexibility
 Lean Vs Agile Vs Leagile
-Variety vs Volume-

ESI : Early Supplier involvement

EBI: Early Buyer involvement

JIC: Just in Case

JIT: Just in Time

JIP: Just in Process

JII: Just in Information

Different structures of Leagile supply chain

Which is best?
 The Supply Chain Can be
inefficient due to 8 waste (MUDA)-
For Lean systems
 Collaborative Planning, Forecasting and
Replenishment (CPFR)

Kumar, M., Garg, D., & Agarwal, A. (2019). Cause and effect analysis of inventory management in leagile supply
chain. Journal of Management Information and Decision Sciences, 22(2), 67-100.