Agile supply chain transformation matrix: an integrated tool for creating an agile enterprise
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Supply Chain Management: An International JournalAgile supply chain transformation matrix: an integrated tool for creating an agile enterpriseManisra Baramichai Emory W. Zimmers Jr Charalambos A. Marangos
Article information:To cite this document:Manisra Baramichai Emory W. Zimmers Jr Charalambos A. Marangos, (2007),"Agile supply chain transformation matrix: anintegrated tool for creating an agile enterprise", Supply Chain Management: An International Journal, Vol. 12 Iss 5 pp. 334 - 348Permanent link to this document:http://dx.doi.org/10.1108/13598540710776917
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Users who downloaded this article also downloaded:Remko I. van Hoek, Alan Harrison, Martin Christopher, (2001),"Measuring agile capabilities in the supplychain", International Journal of Operations & Production Management, Vol. 21 Iss 1/2 pp. 126-148 http://dx.doi.org/10.1108/01443570110358495Damien J. Power, Amrik S. Sohal, Shams#Ur Rahman, (2001),"Critical success factors in agile supply chain management # Anempirical study", International Journal of Physical Distribution & Logistics Management, Vol. 31 Iss 4 pp. 247-265 http://dx.doi.org/10.1108/09600030110394923Martin Christopher, Denis Towill, (2001),"An integrated model for the design of agile supply chains", International Journal ofPhysical Distribution & Logistics Management, Vol. 31 Iss 4 pp. 235-246 http://dx.doi.org/10.1108/09600030110394914
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Agile supply chain transformation matrix:an integrated tool for creating an
agile enterpriseManisra Baramichai, Emory W. Zimmers Jr and Charalambos A. Marangos
The Center for Engineering Logistics and Distribution (CELDI), Lehigh University, Bethlehem, Pennsylvania, USA
AbstractPurpose The purpose of this paper is to propose a tool, the Agile Supply Chain Transformation Matrix (ASCTM), and the implementationmethodology for a systematic approach to achieve agility in the supplier-buyer supply chain.Design/methodology/approach The conceptual framework for agile capability creation is developed based on literatures in the supply chainmanagement and manufacturing agility field and the ASCTM tool is constructed using the quality function deployment (QFD) and the analytic hierarchyprocess (AHP) technique. The implementation methodology including the tools to support the implementation of the ASCTM tool are developed basedon the QFD/AHP approach and the agility concepts established through the Agility Program at Lehigh University. A practical case study is used toillustrate the applicability of the ASCTM tool.Findings This tool can help companies create and improve their agility by relating the business changes with the appropriate approaches forsupplier-buyer supply chain configuration and supplier-buyer relationship establishment and determine the business processes and the infrastructuresneeded to support the creation of agile capability.Research limitations/implications The ASCTM tool constitutes an important effort to bridge the gap between theory and practice as it is used toachieve supply chain agility in practice. Additional case studies need to be conducted to validate the practicability of the ASCTM tool.Originality/value The ASCTM tool is developed with the aim to help companies identify the most appropriate way to improve their supply chainagility by contrasting the environmental dynamics and changes to the companys ability to keep pace using the systematic approach. This tool isnecessary because different companies experience different sets of changes and require different degree of agility and combination of strategies andpractices to achieve agility. For practitioners, the ASCTM tool provides a basis for assessing their business situations and a guideline for identifyingcapability required for creating/improving supply chain agility.
Keywords Agile production, Supply chain management, Quality function deployment, Supplier relations
Paper type Research paper
Introduction the need for agility tools
Over the last two decades, globalization has resulted in a
highly competitive business environment. The turbulent
market condition in the twenty-first century has heightened
the need for more competitive enterprise strategies. Speed,
quality, flexibility and responsiveness, which are the key
components of agile capabilities, are necessary to meet the
unique needs of customers and markets. Enterprises benefit
from having such agile characteristics by anticipating
uncertainties and enabling rapid changes to achieve greater
responsiveness to the variability in their business (Jackson and
Johansson, 2003).The fundamental drivers for agility include ever-shorter
response cycles, representing a change from static systems
with significant time allowances, batched information flows
and periodic decision making, to dynamic systems where
change, information flow and decision making are
continuous. In addition, the fundamental challenge indesigning agile systems at each operating level is to find theoptimal balance in the agility space between the extremes ofideal lean and instant response (Preiss, 2005). Managing inthis new framework depends on the availability of somespecial infrastructure components, especially improved dataand information systems (Preiss and Ray, 2000).Today, companies have moved beyond their own walls to
create relationships and integrate parts of their businesseswith their partners. This means that the achievements of thecompanies depend not only on how well their internalprocesses are performed but also on how well they integrateand manage the relationships with all their business partners(Mentzer et al., 2001; Lambert, 2004). To survive andprosper under the ever-changing business environment,companies need to enhance their supply chain agility byimplementing the right approach in configuring the supplychain structure and establishing the relationship with theirpartners (Christopher and Towill, 2000). The focus of thispaper will be on supply chain agile capabilities improvement.
The current issue and full text archive of this journal is available at
Supply Chain Management: An International Journal
12/5 (2007) 334348
q Emerald Group Publishing Limited [ISSN 1359-8546]
This material is (in part) based upon work supported by the NationalScience Foundation under Grant no. EEC-0434210 as well as thePennsylvania Department of Community and Economic Development(DCED). Any opinions, findings, and conclusions or recommendationsexpressed in this material are those of the author(s) and do not necessarilyreflect the views of the sponsoring entities.
Literature review supply chain agility
The meaning and the benefit of agility in supply chains are
generally acknowledged. The concept of agility as a business
strategy was presented by Dove (1996) as the enterprises
ability to thrive in a continuously changing and unpredictable
business environment. An agile enterprise has designed its
organization, processes and products in such a way that it can
respond to changes appropriately within a useful time frame.
This concept was refined by Naylor et al. (1999) with a majorfocus on agility in supply chains. They provided the
distinction between lean and agile supply chains by defining
agility as using market knowledge and a virtual corporation
to explore profitable opportunities in a volatile marketplace
and lean as developing a value stream that eliminates all
waste within the supply chain. Christopher (2000) and Hoek
(2001) extended the definition of agility into a wider business
context by relating agility in supply chains to both the
enterprises processes and the interfaces between those
processes and the market. Companies that focus on agility
are market-sensitive and will profit by exploiting their supply
chains to rapidly and cost effectively respond to unpredictable