Reflexive Supply ChainsThe Zenith of Agility

- Rakesh Sinha- WhatsApp : 9820142053

Availability• Manufacturing far

from POP• Consumer can’t wait• Can be substituted• MTS• Stockout Lost sales

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

Volatile demand• σ/µ very high• Demand uncertain• Forecast X• Must smell demand

like ants• Superfast response• Uncertain demand

Fast response Replenishment

High availability

Volatile demand

Low inventory

Fast response

AGILE SYSTEM

Forecasting

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

Agility Benchmarks

Agility

Speed of response

Unpredictable stimulus

Flexibility to step-up / step-down

Balance & Poise

Speed of Response

Reflex Action

The most agile system in nature

Stimulus travels the shortest distance for full response

Supply Chains - Evolution

Reactive … known demand

Responsive … variable demand

Reflexive … whatever be the demand

Reflexive Supply Chains

Superfast response

Always from the nearest node

Rush blood + adrenalin to the node ‘in action’

Other nodes get normal supplies

Traditional Supply Chain

Vendor Factory CFA

Distributor Retailer Consumer

Reflexive Supply Chain

Consumer

Vendor Factory

CFARetailer

Distributor

Summing Up

No forecast

Use consumer data from market place

Superfast response

Daily changes

Consumer at the centre

Real success begins when we set the highest standards for ourselves and reach them …

every time