In essence, consumers have become more demanding than ever in the contemporary society thanks to the modern technological advancement. Apparently, consumers require a variety of goods that are produced through ethical business practices to choose from and delivered to them on time. To meet these expectations and demands of deferent customers in the modern world, a firm needs to build a responsive supply chain. For this to happen then digitization has to be in play or else companies are bound to traditional or rather more linear supply chain processes. So what exactly is a flexible and responsive supply chain? A responsive supply chain operates in a collaborative manner with all the stakeholders with an aim of exchanging information in a feedback loop to produce enough goods in satisfying uncertain demands.
Unlike traditional, modern supply chain processes flows in a linear procedure through four main areas in an organization. Apparently, these areas include product development, manufacturing, marketing, and distribution panel.
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Source: https://www.hellosign.com/blog/building-a-responsive-supply-chain
Responsive supply chain looks unique in a way especially when re-tooling its structures. When re-tooling supply chain to increase its flexibility and responsiveness, it is important to consider having a real-time visibility to empower a company to manage its operation in real time situations. This allows a faster detection of the exceptions as well as disasters, responsiveness, and tracking of the limitations and commitments. Unlike the traditional process, responsive process allows a company to quickly pull additional stocks for its supply centers in case there is surplus demand.
Furthermore, a responsive supply chain adheres to a holistic approach to process management. Rather than keeping partners separate in the supply process, responsive supply chain encourages orchestrating them to interconnect in Concord. This is done through the elimination of process latency by creating a community of networked supply. Additionally, the use of information technology is incorporated to facilitate its flexibility and, therefore, reaching diverse demand pool. Creating a networked community allows a responsive supply chain to easily share plans as well as product information to the customers. Unlike the traditional supply method, responsive supply chain enables a firm to monitor a real-time product flow by following each step involved in a supply chain.
