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"TADS" Approach In Supply Chain Agility
« on: December 13, 2011, 09:04:57 am »
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Author : Dr.G.Karuppusami, M. Balaji, R. Sudhakaran, A. Chobiya Ashwini
International Journal of Scientific & Engineering Research Volume 2, Issue 11, November-2011
ISSN 2229-5518
Download Full Paper : PDF

Abstract— In the continuously changing and demanding market environment, the product capabilities alone are insufficient to retain the market hold. Rather, the supply chain must also keep changing accordingly. This may in turn help the firm sustain the market with the old products. It is certain that when the innovation in the product is quite infeasible or not cost effective, the firms should concentrate on their supply chain and its enablers and try to make existing chains flexible. To quantify the efficiency of the chain, a model called “TADS” is proposed. This paper discusses the functions of TADS, the prior works carried on it and enumerates the desirable effects of adapting TADS in the firms to make their supply chains more responsive in order to survive in the contemporary market scenario.

Index Terms— TADS, Supply chain agility, supply chain enablers. 

1   INTRODUCTION                                                                      
THE present scenario of the market demands both the manufacturing organizations and service organizations to become more flexible and adaptive to the ever changing customer needs. Customer satisfaction is the driver that has the greater impact. They not only focus on the products but also the way it reaches their hands. For this purpose the firm needs to be most effective in managing its supply chain. Thus the supply chain management is defined as “Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.” Not just managing the supply chain will bring about the best result, the supply chain also needs to be more adaptive to the changing market and customer demands. Such flexibility in supply chain is called the supply chain agility.

It is defined as, “SCA is an operational strategy focused on inducing velocity and flexibility in the supply chain”. Supply chain agility involves both management and technology. Even though ample number of works on supply chain agility has been done so far, the work on TADS is much limited. This paper deals with the impacts of the total agile design system. To find the level of agility in the firm’s SC a parameter called the “Agility Index” is to be computed. It can be calculated through number of techniques. Quite often by the responses from the employees of the organization for a set of questionnaires or simple computational techniques.

2 AGILE SUPPLY CHAIN
An agile supply chain is an integration of the business part-ners to enable new competencies in order to respond to rapidly changing, continually fragmenting markets. The key enablers of the agile supply chain are dynamics of structure and relationships configuration, the end – to-end visibility of information, and the event-driven and event-based manage-ment. An agile supply chain is a key enabler for enterprise agility.
The agile supply chain is market sensitive. By market sensitive it is meant that the supply chain is capable of reading and responding to real demand. Most organizations are forecast-driven rather than demand-driven. In other words because they have little direct feed-forward from the marketplace by way of data on actual customer requirements they are forced to make forecasts based upon past sales or shipments and convert these forecasts into in-ventory.

The breakthroughs of the last decade in the form of Efficient Consumer Response (ECR) and the use of information tech-nology to capture data on demand direct from the point-of-sale or point-of-use are now transforming the organization’s ability to hear the voice of the market and to respond directly to it.
Specifically, the agile supply chain should possess the following characteristics:
2.1 Market Sensitiveness
Market sensitivity incorporates demand for individualized products and services with quicker delivery time and fast response to sudden changes in order quantity and specifica-tion.
2.2   Virtual Integration
Virtual supply chains are information-based rather than inventory based with a focus on instantaneous demand capture, interpretation and response.
2.3   Network Integration
This requires better structuring, coordination and management of the relationships with the partners in a network committed to better, closer and more agile relationships with their final customers.

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