---
title: An Agile Supply Chain is needed to survive
description: Increase Agility with a disciplined approach...
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# [An Agile Supply Chain is needed to survive](https://blog.prophetic-technology.com/an-agile-supply-chain-is-needed-to-survive-1)

To continue to exist, enterprises today must incorporate the new kind of management is emerging: the...

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Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on Jan 29, 2020 4:12:02 PM

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To continue to exist, enterprises today *must incorporate* the new kind of management is emerging: **the age of “Agile.”** Are you willing to *take on* the *mastery it implies to transform your company* **SC**?

**Embrace Agile**

The term **Agile** is misunderstood. It is not just to provide for the customer at any cost! It would be "fake agility." If it is your company approach, your better change it because it could take you to go out of business.

To be **Agile** emphasises *searching out opportunities*, *finding solutions* through *rapid experimentation*, and *achieving Agility through determination*. By pulling out the *full capacities* of those *doing the work*, firms generating con*stant new value for customers*, thus creating a *virtuous circle* of value creation, always driven by the *Agile mindset*, as Steve Denning, Senior Contributor, Forbes 2018 describes it.

Surveys by Deloitte and McKinsey bring about that a *vast majority of companies* heads are *looking to be* **Agile,** or they are eager to offer customers to become **Agile**; the reality tells otherwise as only a few managed to be **Agile**. These *misconceptions* have triggered confusion, so changes have to be done *all through your company* to see the benefits.

**Increase Agility with a disciplined approach**

Enterprises need a high degree of *Agility, Flexibility and capability to attune fast* to deal with the *transformation happening* in our marketplace *driven* by the *customer.*

The **SC flexibility** is defined as “*the speed* in which it *responds to changes* in demand and the business environment, to either *create or preserve* a competitive advantage.”

The features of an excellent SC are a *well-operational* start off with suitable *individuals* who *fit the team culture* and *leaders* who help them *to mature*. This employee needs to work on *the maximisation of strategies*, *visibility, time-lines, stability* and the *lowest cost* possible. SCs will require two types of **Flexibility**:

·       **Dynamic Flexibility** - the capability *to act in response to changes* in demand, typified by the *efficient-lean* Agile reactions.

·       **Organisational Flexibility** - the capability *to deeply adapt or transform* the **SC** scheme to adjust to worldwide-supply or demand approaches.

It will lead to a structural *change of direction* on how we approach global **SC** policy and management. But, whatever strategy you decide, keep in mind that *successful corporations* are all operating by the core of **Agile** and **Flexibility**, such as to focus on working out in small teams in short cycles, networked-administrative arrangements, and providing value for customers.

**Flexible** and **Agile** businesses are *designing a world* in which *people, perceptions*, and *money intermingle* fast, simple, and inexpensively, linking everyone, everything, all over, and at all times, whilst providing for *immediate, personal, seamless value* on a significant measure.

**SC flexibility and Agility new approaches**

·       Investigate *local alternatives*, *global sourcing*, and *centralised manufacturing*.  When the product *total **SC** cost* is considered, we see a move from *global manufacture* to more *regional decisions.*

·       A shift to a more-**real-option value** approach through the use of finance. It calls for a **SC** design strategy, that might *not be the lowest cost today*, but *balances it* with the requirements for *Flexibility in the future*.

·       Focus on the **economies of scale** (cost-benefit that companies gain due to their level of operation measured by the amount of *output produced*, with *cost decreasing* with increasing **size**.)

·       **Economies of scope** (the more *different-but-similar goods* you produce, the *lower the total cost* to create each one.

·       Set up *bandwidth-resource sharing* and *expertise* in the manufacturing process to help all the *firms sourcing from them*.

·       Take on a *real option value choice* line towards **SC** decision making.

 

**Final question:** How does your **SC** processes could change? Embrace Agility and Flexibility **SC** approach to be ready for 2020 shifts.

 

**Dave Food**

[Prophetic Technology](https://www.prophetic-technology.com/)

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