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Report
Agile Demand-Supply Alignment—Part One: ADSA Elements and Examples

This is the first in our three-part research series on Agile Demand-Supply Alignment. The capability to effectively realign supply and demand, during execution, in the face of demand volatility and supply disruptions, has become critical for survival and success. The global pandemic put a giant exclamation point on the uncertainty that retailers, distributors, and manufacturers have always had to contend with. Part One of this report series defines Agile Demand-Supply Alignment, presenting a framework of its elements.


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Part One of this report series defines Agile Demand-Supply Alignment, presenting a framework of its elements entailing:

• How a company becomes aware of supply disruptions or demand volatility
• How they gain an understanding of the current situation, prioritize and decide on a set of actions, execute those actions, and monitor progress
• Specific capabilities that help companies excel at demand-supply alignment
• Examples such as In-Season Re-ordering, Agile Compliance with Customer Mandates, Channel and Market Flexibility, and Leadtime Reduction.

Table of Contents

  • Aligning Demand and Supply When ‘Stuff Happens’2
  • The Need for Agile Demand-Supply Alignment 2
  • Phases of Planning and Execution 2
  • Early Awareness of Issues Enables Broader Choice of Resolutions, Lowering Costs 3
  • Accelerated Planning Cycles … Evolving to Continuous Planning4
  • Tactical vs. Strategic Adjustments 4
  • Systemic Agility and a Culture of Agility5
  • Undersupply vs. Oversupply5
  • Elements of Agile Demand-Supply Alignment (ADSA)6
  • Detect7
  • Detecting Production Delays7
  • Detecting Logistics Delays7
  • Detecting Demand Volatility6
  • Challenges for Suppliers7
  • From Manual to Automated Detection7
  • Understand8
  • Types of Information Needed8
  • Prioritize10
  • Focusing Resources on the Most Consequential Disruptions and Deviations10
  • Decide10
  • Identifying Potential Solutions to the Disruption or Deviation10
  • Solution Impact Analysis10
  • Act11
  • Executing the Selected ‘Best’ Solution11
  • Monitor11
  • Evaluating Potential Solutions11
  • ADSA Maturity Progression11
  • Examples of Specific ADSA Capabilities12
  • In-Season Re-ordering13
  • Agile Compliance with Customer Mandates14
  • Channel and Market Flexibility15
  • Opposite Hemispheres Strategy16
  • Leadtime Reduction16
  • Cultivating Agile Demand-Supply Alignment Capabilities16

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