SUPPLY CHAIN AGILITY - MANAGING THE CONSEQUENCES OF INCREASED VULNERABILITY

New supply chain initiatives and technologies promise the means to achieve major savings. Leading exponents of supply chain agility claim to have achieved a 50% reduction in inventory carrying costs, mainly down to reduced inventory holdings achieved through "just in time" systems and processes. However, reducing inventory and focusing on agility can have unforeseen consequences as supply chains become increasingly vulnerable to disruption. With supply chain networks becoming ever more global and complex, risk and contingency planning is not simple. Consequently, the issues of vulnerability and resilience planning should be at the top of every business agenda - especially those that are focusing on agility as a competitive differentiator. This paper will explore the following key issues: 1) How does achieving greater agility fit with the need for a robust supply chain? 2) How can organisations ensure that their current strategies for improvement are not exposing the network to unnecessary threat? 3) What approaches can organisations use to improve supply chain resilience?