Supply Chain Agility: A Strategic Approach to Balance Costs and Risk

Supply Chain Agility: A Strategic Approach to Balance Costs and Risk

This IDC Perspective discusses where companies are focused in their efforts, as well as a possible method for assessing opportunities to improve agility while managing supply chain efficiency. While many companies have identified agility as their top area of strategic focus and concern for future risk management, there will be cost-versus-reward trade-offs. "Two things can be true simultaneously, and in supply chain, this is clearer than ever. Companies that lack agility risk significant loss in sales and/or inventory imbalances in the case of demand swings or supply disruptions. At the same time, companies that solely focus on agility may find their supply chain costs climbing sharply. Those that strategically focus on a balance between continued efforts to maintain a lean supply chain and layering in new agile capabilities may find the sweet spot and take the lead in their industries." — Eric Thompson, research director, Supply Chain Planning at IDC

Please Note: Extended description available upon request.