the Triple A supply chain
different ways to produce alignment (3 As)
- alignment of info - align identities (manufacturer defines role and responsibilities of every person) - align incentives
three design-for-supply principle
- commonality: ensure products share components - postponement: delays step when product become different - standardization: ensure components and process for diff products are same
methods to build alignment
- exchange info freely w vendors and customers - make responsibilities clear for suppliers and customers - share risks, costs, gains of improvement initiatives
methods to build adaptability
- monitor economies all over the world to spot new supply bases/mark - use intermediaries to to develop fresh suppliers and logistics - evaluate needs of ultimate consumers - create flexible product designs - determine where companies' products stand in terms of tech cycles and product life cycles
Methods to build agility
- promote flow of info with suppliers and customers - develop collaborative relationships with suppliers - design for postponement - build inventory buffers (keep a stock of inexpensive but key components) - have dependable logistics system - draw up contingency plans/backup teams
3 components of Triple A SC
1. Agility 2. Adaptability 3. Alignment
2 key components for adaptability
1. ability to spot trends 2. capability to change supply networks
adaptability
ability to adjust SC's design to meet structural shifts in market (similar to alignment, but more long term) - modify strategies, products, and technologies
What do intermediaries do?
act as a mediator between diff segments of supply chain
adaptability
adjust supply chain's design to meet structural shifts in market
alignment
be in unity with others in supply chain
bullwhip effect
occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain
agility
quick reaction to change in demand or supply
ultimate consumer
the person who actually uses the good (AKA end/final consumer)