AGILITY: KEY TO SURVIVAL IN A COMPLEX, VOLATILE WORLD
Big  data techniques - Risik identification and – evaluation - Interpretation  of Trends  Customer/ Supplier Integration - Process integration for planning purposes - IT - Integration  for planning purposes Sales &Operations  Planning - Implementation  of decisions - Focus on  Agility and Adaptation A dvanced planning systems - Masterplanning - Integrative Demand - Planning and Demand  Sensing Flexibility strategies - Standardised IT - Interfaces - Modularised structure of the supply chain Time - to - Market - Integrative,  holistic product lifecycle management - Synchronisation  of Activities Segmentation  sophistication - Product life cycle - Risk based segmentations Inventory management - Multi - dimension  segmentation - Transparency  Readiness for change - High  eagerness and qualification of operational  staff - Supporting and leading role ,  skills ,  capabilities of top management Priorities - Increase of flexibility - Integrative SCM - Reduction of complexity - Risik management Decision authority - Interdisziplinary Steering committees and self - empowered teams - Aligned objectives and targets ,  and consistent value system throughout the organization Adaptability - Scenarios  regarding roles and responsibilities for target state as well as for transition - Modular  operating model with high    global  effectivity
Source: Bölzing, D., Erfolgsfaktoren SCM - Agilität und Organisation, Logistik-Heute 11 + 12, 2015
Operational  Supply Chain  Excellence Long  term ,  sustainable high  Performance in  Supply Chain  Management Levers  of operational  supply chain performance ► Customer  orientation - Customer  centricity of supply chain design - Strict customer focus in all  operations - Integrative  forecasting and demand management ► Collaboration,  integration ,  and alignment - Mutual  collaboration across all  supply chain functions - Internal  process integration - Internal IT  integration - External process integration - External IT  integration ► Technology  and efficiency - Application of lean principles - Use of Advanced Planning Systems - Investment in  integrated IT  systems ► High - impact  distribution - Balanced distribution networks - Integrated  transport management systems - High  performance logistics ► Supply Chain Organisation - Dedicated , integrative  supply chain organization - Central  governance of decentral SC  functions ► Performance  orientation - Integrated  performance management and KPI - Transparency  of operations and order progress - Improvement oriented company culture - High  investment in  people‘s capabilities Agility Excellence Operational  Supply  Chain  Excellence Long  term ,  sustainable high  Performance in  Supply Chain  Management Levers  to achieve agility excellence ► Alertness :  Early  recognition of changes ,  chances and risks in  the external environment : Market  screening ,  competitor analysis ,  benchmarking ,  risk management ,  regulations ► Accessibility :  Access  to relevant  data ,  and the capability to analyze data for relevant  information to drive reasoned decisions :  Planning and IT  integration with customers and suppliers ,  big data activities and tools ,  trend recognition ,  sales information systems ,  internal collaboration ,  management alignment ► Decisiveness : Information  based decision making processes ,  with clear rules of participation ,  escalation ,  and involvement :  Maturity of S&OP  processes ,  use of APS  systems ,  decision support for inventory management ► Swiftness : Fast  implementation of decisions ,  and flawless , fast  execution of change and improvement projects : Time - to - Market,  preparedness for change ,  duration of transformation processes ,  ownership and decision authority in  projects ,  people enablement in  operations and projects ► Flexibility : The  higher the structural and operational  flexibility ,  the easier is the adaptation to exteral changes in a  cost efficient and value adding manner :  leverage from outsourcing ,  integration of SCM  with sales and product management ,  segmentation techniques in  the supply chain ,  global  presence ► Focus: Orientation  of management priorities on  enabling the supply chain , integratively  embedded into the value chain ,  to support strategic ambitions and targets Agility Excellence
Leaders strive for operational excellence and agility excellence Today’s volatile business world requires a different approach than the efficiency- oriented decades of the past. Agility in the value chain, and in the supply chain, has become a key requirement to cope with slow as well as sudden changes. Typically, there are two types of agility: On an overall organizational level, it addresses the capability of the organization to adapt quickly to new general business challenges. Examples for this are channel volume shifts, emergence of new business models, new types of customer interaction, or major regional shifts. On an operational level, it stands for the capability of the organization to adjust the supply chain to shifts in demand, supply, and in its product portfolio. This requires a specific kind of flexibility in production, distribution, and sourcing. What we have seen in our market research is that successful companies who are nimble and agile, always have already mastered the challenges of implementing operational excellence in their operations. These techniques build the foundation to have a fast, customer centric, cost-effective and high perfoming supply chain.  
Operational supply chain excellence is based on six areas of using advanced practices
Agility excellence in supply chains is based on six areas of using practices based on early insights, and speed to implement
Leaders build agility excellence into their organizations In order to cope with the constant and ever increasing challenges from today’s volatile business world, companies have started to establish mechanisms which help them to have systematic insights into the nature of changes in their relevant business environment. This requires a new focus on what is really important for the company. Second main area to achieve is to systematically build enablers for fast response to changes, and consequent adaptation into all areas of the organization.  
Leaders build key enablers for agility excellence into their operations In our studies and observations, we have identified some key methods and operational practices leading companies apply. These refer to a “hard tools area”, but predominantly they are from a “soft foundation” of leadership principles.  
Enablers for agility excellence in supply chains consist of 8 areas of integrative methods and tools across the company, and 4 leadership and organizational practices
Source: EY SCM Study 2015; EY Agility Study 2013
Source: EY SCM Study 2012, 2015