Discuss the key strategic decisions supply chain managers must make when designing their companies' supply chains. Based on the firm's goals, the markets it competes in, and the availability of supply, firms will adopt a lean, agile, or combination (Leagile) strategy for supply chain management. Lean firms focus on improving profitability through the removal of waste from the supply chain system.
Alternatively, agile firms are concerned primarily with customer responsiveness and service, and seek to provide the highest levels of responsiveness possible, even if the costs of doing so are higher. Leagile firms adopt a position somewhere between lean and agile, with main components made and shipped using lean principles, but with agility gained late in the process through the postponement of final production.
Firms should also learn to map their supply chains so that they can understand the linkages between firms in the network that are all seeking to achieve the common goal of customer satisfaction.
1. When should firms pursue lean, agile, and/or Leagile supply chain strategies?
2. What are the expected benefits that may come from supply chain mapping?