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Supply management: Lean or Agile

Supply management: Lean or Agile. Unit Tutor Neil Towers Supply Chain Management N.Towers@manchester.ac.uk. Learning Objectives. To recognise a range of supply attributes between a lean and an agile approach To understand the relationship between product type and supply chain match.

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Supply management: Lean or Agile

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  1. Supply management:Lean or Agile Unit Tutor Neil Towers Supply Chain Management N.Towers@manchester.ac.uk

  2. Learning Objectives • To recognise a range of supply attributes between a lean and an agile approach • To understand the relationship between product type and supply chain match

  3. Demand Characteristics • Functional Products • Predictable demand • Innovative Products • Unpredictable demand

  4. Functional - Predictable • Product life Cycle - more than 2 years • Contribution to ohds - 5 to 20 % • Product Variety - low • Forecasting error - 10% • Mean stockout rate - 1 to 2% • End of sale mark down – Not relevant

  5. Innovative - Unpredictable • Product life Cycle – 3 to 12 months • Contribution to ohds - 20 to 60 % • Product Variety - high • Forecasting error – 40 to 100% • Mean stockout rate - 10 to 40% • End of sale mark down – 10 to 25%

  6. Attributes of lean and agile

  7. Market winners and qualifiers

  8. Purchasing Cycle • Planning • Sourcing and Selection • Inventory Management • Selling out • Evaluation

  9. Planning • Budgetary and Financial • Target setting • Volumes, Value and Margins • Linking to Strategic objectives

  10. Sourcing and Selection • Definition of needs • Choosing the Right Supplier • Nature of the product- Branded or Own-Brand • Negotiation process • New Product Development

  11. Inventory management • Volumes and Ordering • Frequency of replenishment • Ownership and Logistics concerns Selling Out • How products are handled at point of sale • Presentations and Displays • Geographical separation

  12. Evaluation • Review of performance to targets • Identify shortcomings • Develop successes • Plan future targets

  13. Matching Supply Chain with Products

  14. Fashion Merchandise Supply Chain Fashion trends info. Fabrics Yarns UK manufacturers Consumer Regional Distribution Centre Retailer Fabrics Overseas manufacturers Yarns

  15. Further Reading • Bruce M. , Daly L. and Towers N (2004) “Lean or agile – a solution for supply chain management in the textiles and clothing industry?” International Journal of Operations & Production Management, 24 (1) pp 151-170, ISSN 0144-3577

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