3 Models of Supply Chain

3 Models of Supply Chain

There are three models of supply chain

-Traditional

-Lean

-Agile 

The traditional supply chain is known for 

-Protection of market aims for leadership 

-Being forecast driven 

-Higher emphasis on customer service than cost 

-Inventory held to buffer fluctuations in demand and lead times 

Lean supply chain characteristics are

-Integration upstream with suppliers 

-Integration downstream with customers 

-High emphasis on efficiency 

-Aiming for minimum stock holding 

-Suitable for high volume, low variety products 

Agile  characteristics are noted for flexibility and speed coping with innovative products and unpredictable demand 

-Suitable for low volume, high variety products 

-Rapid response to market demand  

With additional challenges of globalization and competitiveness global organization are now more focused on lean and agile supply chain principals.