CREATING A COMPETITIVE SUPPLY CHAIN: : EVALUATING THE IMPACT OF LEAN & AGILE SUPPLY CHAIN

Abstract: Market globalization and steep competition are increasing the need for more efficient and effective strategies in meeting evolving market demands. Adopting a more integrated approach to supply chain relationship management has been increasingly viewed as a way of meeting changing customer needs. This thesis work explores lean and agility frameworks as tools for achieving supply chain integration. Different aspects of the concepts of lean and agility and their applications in the supply chain are presented based on theoretical literature. Thus, this thesis seeks to point out the impact that the concepts of lean and agility can have on the supply chain as a whole. Four companies have been investigated in connection to the level of awareness, perception, and practical application of these tools in their supply chain. To this end, information was collected in a survey questionnaire from these four companies and supported by an interview. The results show that lean and agility are important tools to achieve supply chain integration, but respondents are yet to fully achieve the transition to lean/agile enterprise. It could be said that lean/agile supply chain is still more in theory than in practice. The level of awareness to market changes is high but there seem to be no specific way in achieving integration in the supply as there is wide variation in the way one company achieves it with respect to another. Generally, respondents are implementing lean/agile principles in cooperation and collaboration with suppliers and customers, demand pull system, and using combination of strategies. However, it is clear that adequate market information is required when trying to fit lean/agile principles into supply chain strategy. Furthermore, all respondent recognise the need for change to satisfy customer need, but the respond to change vary from one company to another. Also, there is a gradual shift from traditional focus solely on cost and profit to customer relation relationship management and customer satisfaction. Consequently, companies are organizing themselves around the customer who pulls goods and value from the producer of the goods.