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Reflexive Supply ChainsThe Zenith of Agility
- Rakesh Sinha- WhatsApp : 9820142053
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Availability• Manufacturing far
from POP• Consumer can’t wait• Can be substituted• MTS• Stockout Lost sales
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Freshness• Consumers want
fresh products• Shorter lead time
from prodn. to POP• Stocks at right place• Not a penny more,
not a penny less• Low inventory
Fresh PKD Higher sales
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Volatile demand• σ/µ very high• Demand uncertain• Forecast X• Must smell demand
like ants• Superfast response• Uncertain demand
Fast response Replenishment
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High availability
Volatile demand
Low inventory
Fast response
AGILE SYSTEM
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Forecasting
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Agile Supply Chain
Daily changes in• Finished goods dispatch plan
• Production schedule• RM/PM procurement plan
based on• What consumers bought yesterday
• Each product• Each market
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Agility Benchmarks
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Agility
Speed of response
Unpredictable stimulus
Flexibility to step-up / step-down
Balance & Poise
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Speed of Response
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Reflex Action
The most agile system in nature
Stimulus travels the shortest distance for full response
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Supply Chains - Evolution
Reactive … known demand
Responsive … variable demand
Reflexive … whatever be the demand
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Reflexive Supply Chains
Superfast response
Always from the nearest node
Rush blood + adrenalin to the node ‘in action’
Other nodes get normal supplies
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Traditional Supply Chain
Vendor Factory CFA
Distributor Retailer Consumer
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Reflexive Supply Chain
Consumer
Vendor Factory
CFARetailer
Distributor
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Summing Up
No forecast
Use consumer data from market place
Superfast response
Daily changes
Consumer at the centre
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Real success begins when we set the highest standards for ourselves and reach them …
every time