How are You Measuring Your Supply Chain Agility?

The ability to be agile in the supply chain has become an increasingly important factor in achieving and maintaining business performance. Agility is not simply about speed but rather the ability to respond cost-effectively to unexpected changes that occur more frequently and widely than ever before. As such, it is critical for CSCOs and heads of supply chain strategy to measure the impact of agility on their business. 

To do so, they should use a combination of metrics such as total cost to serve, order fulfillment cycle time, upside supply chain flexibility, and perfect order fulfillment - comparing baseline performance with current performance. Additionally, a dashboard can provide a snapshot in time of supply chain performance and help determine if the current level of agility is sufficient for desired outcomes. Furthermore, analyzing supply chain performance over time can reveal any variations that may have been caused by unanticipated disruptions or events and indicate which agility capabilities could be activated or deactivated to improve business performance. In this sense, agile supply chains enable businesses to remain competitive in today’s rapidly changing environment.

The ability to be agile in the supply chain is a key factor that businesses must consider when evaluating their performance. Companies need to measure their supply chain agility using metrics such as total cost to serve, order fulfillment cycle time, upside supply chain flexibility, and perfect order fulfillment. By analyzing these metrics, companies can identify whether they have sufficient agility capabilities to meet their desired outcomes. However, an effective way to ensure that all important performance metrics are tracked is by creating an agile supply chain dashboard that provides a snapshot of current performance over time.

In addition to tracking these metrics, there are several other ways businesses can improve the agility of their supply chains. These include considering digital transformation initiatives, which can help automate processes and provide real-time visibility into operations. Additionally, companies should invest in technologies that allow for more responsive operational models so that the effects of unanticipated events can be quickly identified and addressed. 

These improvements and advances in technology will ensure that your business remains competitive in today’s rapidly changing environment. To learn more about how you can measure your supply chain agility and maximize its potential, contact Critical Risk Solutions today. With decades of experience helping clients with enterprise risk management solutions, we are uniquely positioned to tailor a solution specific to your enterprise’s needs and goals.

Joel Chakkalakal

Having worked with some of the biggest names of our time, like Amazon and Meta, Joel Chakkalakal has had his fair share of incredible life experiences. And as a lean six sigma master black belt, he also knows how to mitigate and remove risk from any situation. When you put those together, you get an industry expert passionate about helping companies streamline their risk-elimination protocols. So what are you waiting for? Ask Joel!

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Supply Chain Hub vs. Control Tower: The Differences, Similarities, and how to Make them Work for You

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