Managing Inflexible Supply Chains

Logistics managers are faced with greater customer volatility, higher customer service expectations and pressure to reduce costs. If these conflicting pressures are to be reconciled, increased supply chain flexibility is vital. Enhanced flexibility is achieved through two types of changes to the supply chain: structural changes, including processes, physical resources and linkages/relationships; and, system changes, including how information is used and decisions taken. Structural changes include reducing lead‐times from suppliers, JIT manufacture, and holding stocks at customers' sites. System changes may include speeding information flow and deploying information technology to improve planning and control of the supply chain.