It is defined as a company ability to profitably manufacture and deliver the product, by adjusting their strategy, especially in purchase, inventory management and delivery to meet rapidly changing supply chain requirements. Companies with a high degree of supply chain agility can navigate change with ease, adapt to changing market conditions and take advantage of new business opportunities.
To achieve agility in today’s world, the following strategic questions need to be answered:
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- How fast can the supply chain respond to demand or supply changes?
- How much change in demand or supply can the supply chain absorb and within what time period, addressing both short-term and long-term opportunities?
- How quickly can a new product be designed, produced and distributed?