Agile and lean supply chain

GROUP MEMBERS
management
• ANAS RAZA (LEADER)
• MUHAMMAD ABDULLAH
• HASSAN SAJJAD
• QAISER ABBAS
• SAYED ALI SHER GARDEZI
 Asslamolaikum
My name is Anas
Raza
Introduction
Agile means flexibility, speed and rapid respond against change or ability to handle the change.
A lean supply chain focuses on cutting costs by producing high volumes of products with low
variability.
An agile supply chain focuses on responding to the market demand with smaller, customizable
batches of items.
AGILE SUPPLY CHAIN FOCUS
AREA
A) SPEED
B) FLEXIBILITY
C) COST
D) EFFICIENCY
E) RESPONSIVE-NESS
F) PRODUCTIVITY
My name is Abdullah
Components
Dependence on real time data
Agile Supply Chain depends upon real time data. For Agile Supply Chain Implementation
Strategy you should be on High Alert
1. You should know Changing Market Norms
2. You should know Changing Customer Request
3. There should be Accurate Forecasting
4. You need Strong Collaboration
5. You need Strong Communication
6. You need Strong Coordination
Steps to Create an Agile Supply Chain Management Framework

Step 1: Build an agile team

Step 2: Get quicker and more accurate data
Step 3: Be innovative
Step 4: Connect to key people in the supply chain
Step 5: Develop agile supplier contracts
Example
1. Clothing and accessory retailer Zara uses an agile supply chain in its business model. The
company focuses on taking runway concepts, designing them in house, producing them, and
then delivering them to stores within a few short weeks.
2. H&M, Mango
My name is Hassan Sajjad
Lean
Lean approach or lean thinking provides a way to do more and more with less and less (less
human effort, less equipment, less time, less space, less finance) while coming closer and closer
to that product and service which customer exactly want.
Benefits of lean supply chain

1. Boost profits
2. Reduce waste
3. Manufacturing
4. Streamline your processes
5. Customer satisfaction
What actually is waste
All those activities which absorb resources but create “no value” is waste. Any resource or
activity more than the optimum requirement is “waste”

Below are few waste:

a) Mistakes which require rectification.
b) Production of items which no one want and become part of dead inventories.
c) Processing steps which aren’t needed.
d) Unnecessary movement of people or goods without any reason.
e) All those products and services which do not fulfill the requirement of the customer
My Name is Qaiser
Abbas
Elements of Lean Supply Chain Management:

1. Lean Production,( a production methodology focused on

eliminating waste)
2. Lean Procurement,( an approach to procurement that focuses on
maximizing value by improving efficiency and limiting waste)
3. Lean Inventory, is the process of increasing the value of a company's stock
4. Lean Logistics. improving operations at all levels and optimising the supply
chain by reducing waste
AGILE SUPPLY CHAIN FUNCTION
AREA
A) FORECASTING
B) PRODUCTION
C) PROCUREMENT
D) WAREHOUSING
E) DISTRIBUTION
F) PRODUCT DEVELOPMENT
Seven Steps for Building Lean Supply
Chains
1) Develop Systems Thinking
2)Understand Customer Value
3)Value Stream Mapping
4) Benchmark Best Practices
5)Design to Manage Demand Volatility
6)Create Flow
7)Performance Metrics
Example
an automobile manufacturer that has implemented a just-in-time inventory system to reduce
waste and improve efficiency.
a business that has automated its procurement process to reduce costs and improve supplier
communication.
Some well-known companies that use lean include Toyota, Intel, John Deere and Nike
My Name is Ali sher
Difference between lean and agile supply
chain
1. Lean supply chain management is focused on maximizing efficiency by eliminating waste
and reducing costs. In contrast, agile supply chain management is focused on flexibility and
the ability to quickly respond to changes in demand or supply.
2. Lean supply chain management typically has a longer planning horizon as it is focused on
reducing waste and maximizing efficiency over the long term. Agile supply chain
management, on the other hand, has a shorter planning horizon as it is focused on responding
quickly to changes in demand or supply.
3. Lean supply chain management emphasizes minimizing inventory levels to reduce waste and
costs. Agile supply chain management may maintain higher inventory levels to respond
quickly to changes in demand.
What should we choose
Both agile and lean supply chain management have their benefits. In today’s fast-paced, global
market many organizations are choosing agile supply chains to keep up with ever-changing
demand. However, whether you choose agile or lean supply chain management will depend on
your type of business and your goals.