The agile supply chain utilizes the idea of “speed to market” in order to get the product to the end-consumer as quickly as possible as we often see happen when new technology becomes available (i.e. cell phones, flat screen TV’s, etc). How might both the manufacturer and the end-consumer be harmed utilizing this concept? Document your sources. Respond to at least two of your fellow classmates’ postings.
One way to achieve this streamlined system is utilizing a time-based approach. Time-based competition and “speed to market” can be a powerful competitive advantage. However, as Harrison & van Hoek (2011) stated “speed for the sake of speed can create unnecessary costs, and can cut corners, leading to poor quality” (p. 183). When implementing time-based competition, it should be implemented using the customer’s perception. In many circumstance, companies might not need to change their speed because their P-time is less than their D-time. However, if a change is needed, it is important to analyze your current process by constructing a flow chart of the actual process and activity times. Then, eliminate non-value adding activities.
As Erb (2013) stated “while a configurable system offers faster speed to market, lower cost and eliminates maintenance headaches, it must be managed correctly. Otherwise, you might be replacing old problems with new ones” (para. 1). Brown & Karagozoglu (1993) stated “the key question is, just how does management “get it right,” without cutting corners and jeopardizing the total [improvement] process?” (para. 19). If companies begin speed to market initiatives they need to do so in a structured and coordinated way. Otherwise, companies might produce designs that do not meet the customer’s needs, build products that are too complex to manufacturer reliably, increase defects, spend unnecessary money expediting parts that are not needed yet, and the entire supply chain system can promote more non-value add time.
Harrison, A. & van Hoek, R. (2011). Logistics management and strategy: Competing through the supply chain (4th ed). London, England: Prentice Hall Financial Times. ISBN: 978-0-273-73022-4
Brown, W. B., & Karagozoglu, N. (1993). Leading the way to faster new product development. The Executive, 7(1), 36. Retrieved from http://search.proquest.com/docview/210524568?accountid=32521
Erb, L. (2013). An ongoing evolution. Best’s Review, (11), 74. Retrieved from http://search.proquest.com/docview/1318927795?accountid=32521