Smart Warehousing Resource Library

Agile Supply Chain 101: Your Guide to Agile Logistics

Written by Smart Warehousing | Jan 12, 2023 4:35:00 PM

In the world of supply chain and logistics management, “shortage” may be the most recognizable word in recent years. From the unforgettable toilet paper shortage to the baby formula shortage, we’ve faced so many supply shortages in various industries that customers are no longer surprised to encounter them when doing business. 

With product shortages and supply chain disruptions so prevalent in our world today, your supply chain needs to be able to adapt and respond to sudden changes in supply and demand. Not only is agility vital to maintaining happy customers, it’s important to your company's survival. So how can you keep your supply chain faithful and steady in a world of shortages? With an agile supply chain, of course. 

 

 

What is an Agile Supply Chain? 

The hallmarks of supply chain agility are efficiency and decisiveness. Like the meaning of agility itself, agile logistics and supply chains can move quickly and easily in any situation. An agile supply chain is a strategic model for supply chain management that empowers employees to make decisions independently and prioritizes efficient processes at all times.  

With a focus on efficient processes, an agile supply chain allows your company to respond rapidly (and flexibly) to unforeseen changes in your industry’s supply and demand. Rather than slowing down when these changes arise, your supply chain operations can pivot and adapt. This means you can stay relevant and achieve positive results when operational adversity or changes in consumer demand hit your industry. Plus, you’ll be able to rise above your competitors who move more slowly when unexpected logistics changes occur. With agile supply chain strategies in place, your company will not only be more cost-effective, but its operations will also improve as well. 

 

Agility Logistics: What You Need to Create an Agile Supply Chain

While agile logistics may be an aspirational goal for your organization, how can you get there? Here are a few vital components you need to put in place to achieve supply chain agility: 

An Equipped Staff and Streamlined Decision-Making

To achieve agile methodology logistics, everything starts with your employees. Your employees must be equipped to make their own decisions quickly when changes occur. This means you need to provide robust training that empowers your staff and gives them the confidence they need to perform their jobs well. 

 

You must also provide simple, streamlined processes for your team for agile logistics to transform your organization. Processes can’t be cumbersome or time-consuming. In other words, no more multi-step approvals from upper-level management to make decisions. Leave that slow methodology to your competitors, and watch those same competitors fall behind as you surpass them. 

 

Fast, Accurate Information

You can’t empower your staff to make changes without readily accurate information. The ability to obtain fast, reliable data across your organization is vital to achieving an agile supply chain. This means you must develop processes (or utilize technology) that enable departments to share information with each other easily. But the key here is that the information must be relevant to the situation at hand. You can’t have supply chain agility if you’re using outdated information. With accurate data, you’re increasing your chances of predicting trends in consumer demand within your industry. So when changes come, you’ll be ready. 

Fast and reliable data can also give you realistic look at inventory levels and how quickly orders are being fulfilled. Having data available in real time can also allow to forecast accurately as well.

 

The Right Partnerships

Strong relationships with key players in your supply chain are a must for agile logistics. Think about establishing collaborative partnerships with manufacturers, suppliers, logistics providers, and other vendors. This collaboration enables your products to be created quickly and efficiently, a requirement for your organization to maintain an agile supply chain. By partnering with a logistics provider for instance, you can get access to their technologies and processes that can make fulfillment quicker and easier than if you attempted to fulfill your orders on your own. You can also get discounts or lower prices due to cost-sharing with other businesses utilizing the logistics provider. 

Having partnerships with multiple suppliers also allows you to create agile supplier contracts. With a range of suppliers, you can both reduce risk and ensure your products are delivered properly when disruptions occur. And when a supplier doesn’t come through, you can easily pivot to a different supplier to keep your supply chain on track.

 

An Easier Way to Achieve Supply Chain Agility 

With constantly changing markets and disruptions in supply and demand, it’s clear that an agile supply chain is required for your company to stay competitive. And with Smart Warehousing by your side, achieving supply chain agility has never been easier. With our replenishment, logistics, and fulfillment services, plus technology solutions that deliver the fast, accurate data you need, you’ll have the resources and expertise to create an agile supply chain successfully. So when the next shortage happens, your organization will adapt and thrive. Contact us today to get started.