Strategies for Increased Supply Chain Flexibility: How to Meet Uncertainty in Demand From a Supply Chain Perspective
Abstract: An increase in the uncertainty of customer demand has led to that industries and firms are realizing the need of being responsive, and are therefore incorporating flexibility as a core strategy. ABB Robotics is also realizing the need of flexibility and therefore, strategies should be developed in order to be able to meet the volatile demand. This study aims to analyze the Supply Chain Flexibility of ABB Robotics and to give recommendations of how ABB Robotics should incorporate and use strategies and ways to work with the concept in order to be more responsive in their supply chain. This is a qualitative study on ABB Robotics’ supply department, ABB Robotics suppliers and with benchmarking studies of three firms; Volvo Cars, Volvo Trucks and Bombardier. The authors have developed a model of Supply Chain Flexibility that fits ABB Robotics’ supply chain. The model includes the dimensions Volume Flexibility, Product Mix Flexibility, Delivery Flexibility, Sourcing Flexibility and Information System Flexibility. The conclusions are that the following four strategies increases Supply Chain Flexibility for ABB Robotics: using local supply/hubs and developing separate supply chains, using module suppliers, empowerment of suppliers and connectivity in the supply chain network. Supply Chain Flexibility has to be created and invested in, in order for firms to realize it. Implementing strategies for Supply Chain Flexibility is a way of working proactively to have the ability to be reactive.
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