Key Concept Explanation
Flexibility, in operations supply chain management, is the ability of a supply chain to effect change in respect to the dynamism of the customers' demands. For instance, in a restaurant, if the customers' demand for hot, iced Frappuccino grows higher than the regular Frappuccino that the restaurant sells, the hastiness of switching to iced Frappuccino is what is referred to as flexibility in operations supply chain management. Flexibility in a supply chain works best where there is a diverse range of products that originate from the same production line in a company. The interest in studying flexibility in operations supply chain management revolves majorly around understanding the concept of a chains adaption within the shortest time possible (Laínez-Aguirre & Puigjaner, 2015).
Comparison
Laínez-Aguirre & Puigjaner (2015) defines flexibility in supply chain management as the capability to adapt to recent developments regarding customers' demands. In the today's world, customers have diverse preferences that they hope will be considered by the various companies. The companies have an extra mile in the operational performance and strategize on how to maintain a large customer's base. The need for maintenance of the customer base has led to the need for increased flexibility in supply chain management.
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On the other hand, Tang & Tomlin (2016) defines flexibility regarding its scope, that is, its short term and long term changes. The two articles are also similar in their definition of versatility. Both articles view flexibility as a specific ability to respond to the changes posed by the internal and external environments of a company. Flexibility also reduces the effects of supply chain risks.
According to Sun (2013), flexibility in operations supply chain management has been faced with unstable demand and supply rates due to the rapidly changing market conditions the unexpected rise and drop of the demand require flexibility in the handling of operations that relate to supply chain management. Strategic managers have a huge task in the stabilization of the market conditions to suit the supply chains of their organizations. One of the ways that enable them to do this is to upgrade the supply chain management to a more flexible one that embraces sudden changes in market changes (Blome, Schoenherr & Eckstein, 2014).
Article Summary
According to Stadtler (2014), flexibility is essential to the effectiveness of supply chain management in various companies. For instance, flexibility brings about the need and actualization of advanced planning. This is because the supply chain has been enabled to withstand rapid changes in its operations. Advanced planning saves costs for an organizations supply chain and prepares it for impending difficulties in handling management and finances. Furthermore, flexible production capabilities could be applied to other supply chains. The application to various supply chains saves on costs and time used in the production capabilities. Inflexible capacities are limited to specific supply chains meaning that current functions have to be looking for in case of new production.
Adequate knowledge in supply chain management, according to Stadtler (2014) is necessary to the success of flexible operations. Knowledge can be classified as external and internal. Additionally, certain levels of knowledge influence the complexity of the flexibility. Flexibility has also become a significant contribution to tackling competition from other companies and supply chains dealing in the same products and supplies. In the case of competition, the flexible operations in supply chain management are more appropriate to survive and reap more gains for the company and supply chain. Addedly, the relationship between the transfer of knowledge and supply chain flexibility moderates the implications of complexity in production and supply.
Biblical Integration
"He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness." ESV, 2 Corinthians 9:10. The bible advocates for supply chain in the business. The application of the verse to a Christian context requires truthful and planned supply chain management. "Then the Lord said to Moses, "Behold, I am about to rain bread from heaven for you, and the people shall go out and gather a day's portion every day, that I may test them, whether they will walk in my law or not…." ESV, Exodus 16:4. From the scriptures, the Lord is the source of supply. Christians follow the Lord's rules to get supplies from him. "…which is Christ, in whom are hidden all the treasures of wisdom and knowledge…" ESV, Colossians 2:2-3. This verse affirms Jesus' role in storing and dispensing supplies. Christians have to have deep faith in God and Jesus Christ to have the supplies and manage them.
Application
Flexibility in operations supply chain management has increasingly been applied to real-world businesses in various ways. One of the ways is that flexibility is used to both traditional and modern supply chain management setups. This offers inclusiveness in the supply chain in companies. Another way is to better the efficiency of supply chain management. Most businesses in the United States have embraced flexibility in supply chain management and have attained peak or near peak efficiency in operations related to supplying chain management. Demand and supply have lately been quite unpredictable, and they keep changing from time to time. Flexibility can be applied to the businesses to cater for the sudden changes in both demand and supply.
Annotated Bibliography
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Flexibility in supply chain management is advantageous to a company's operations. Firstly, flexibility places a business in a better competitive position with other companies in the same industry. A company with a more flexible supply chain management can survive the competition. Secondly, flexibility in operations brings about their effectiveness. The effectiveness is brought about by the act of advanced planning by the companies. This saves time and money in the case of unstable market conditions. Flexible supply chains are versatile and can be applied to several forms of production. This again saves a company’s monetary resources that would otherwise be used for the output in all the supply chains.
Blome, C., Schoenherr, T., & Eckstein, D. (2014). The impact of knowledge transfer and
Complexity on supply chain flexibility: A knowledge-based view. International Journal of Production Economics, 147, 307-316.
Performance of operations in supply chain management is measurable. Several metrics can be used to gauge the production, which is usually as a result of flexibility. Often, supply chain managers have an uphill task in identifying the most appropriate ways to estimate the operational performance of the supply chain. It is normally a challenge to get the managers understand the best metrics to apply to the supply chain management operations. In case of usage of the wrong parameters, a supply chain manager is likely to hamper the efficiency of the processes and make them inflexible. However, with the relevant knowledge in supply chain management, the managers can overcome the complexity of operations.
Laínez-Aguirre, J. M., & Puigjaner, L. (2015). Flexible Design—Planning of Supply Chain Networks. In Advances in integrated and sustainable supply chain planning (pp. 109- 132). Springer International Publishing.
Flexible operations supply chain management has been defined as the supply chain systems that quickly respond to rapid changes in the factors such as demand and supply without having to affect a company's operations negatively. Leaders involved in supply chain management have to optimize their designs to accommodate flexibility in the planning and operability of the supply chain networks. Notably, the advent of technology has positively impacted flexibility in supply chain management operations. Thus, traditional supply chain networks have been rendered inappropriate for the new ventures due to the evolution of supply chain management. Besides, flexibility in operations is known to work best where the companies over a diverse range of products to the customers.
Tang, C., & Tomlin, B. (2016). The Power of Flexibility for Mitigating Supply Chain Risks. In Developments in Logistics and Supply Chain Management , 80-89.
Flexibility in supply chain management can be viewed based on the scope of the effects of operations and changes. Therefore, the range can be short term or long term changes. An efficient supply chain needs to cater for the sudden changes in both the long-term and the short-term changes in the business environment. Also, the changes could pose different extents of risk to an inflexible supply chain management. For example, a sudden and unexpected drop in demand in a company that manufactures sugar could lead to massive losses owing to the retention of the stock. The flexibility of the operations supply chain management mitigates the likelihood of risks.
Sun, A. (2013, April 5). How a Flexible Supply Chain Delivers Value . Retrieved from http://www.industryweek.com/procurement/how-flexible-supply-chain-delivers-value
A flexible supply chain is supposed to deliver value for a business venture. Due to the cost of an adjustable supply chain, companies in the current world of business are spending days and nights researching on the best strategies to transform their supply chain management to the flexible forms. The transformation is expected to pay off, for example by shielding and stabilizing a company against all possibilities of loss resulting from unstable market conditions and forces. Economies all over the world are burgeoning. A new venture requires a supply chain that can adapt to the fast rate of growth without collapse or incurrence of losses.
References
Blome, C., Schoenherr, T., & Eckstein, D. (2014). The impact of knowledge transfer and Complexity on supply chain flexibility: A knowledge-based view. International Journal of Production Economics, 147, 307-316.
Laínez-Aguirre, J. M., & Puigjaner, L. (2015). Flexible Design—Planning of Supply Chain Networks. In Advances in integrated and sustainable supply chain planning (pp. 109- 132). Springer International Publishing.
Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Sun, A. (2013, April 5). How a Flexible Supply Chain Delivers Value. Retrieved from http://www.industryweek.com/procurement/how-flexible-supply-chain-delivers-value
Tang, C., & Tomlin, B. (2016). The Power of Flexibility for Mitigating Supply Chain Risks. Developments in Logistics and Supply Chain Management , 80-89.
