The Triple-A Supply Sequence: Agility, Flexibility and Alignment Essay



The Triple-A Supply String revisited

Hau Lee's remarkably acclaimed seminal article2 on " The Triple-A Supply Chain” has been out in the site for several years, during which time our knowledge of how source chains job has increased significantly. So high period we re-visited the tips in that article and added some refinements

By Dr John Gattorna, author and supply chain thought leader1

ee gives a large number of interesting good examples to support his de nitions of each ‘A'Agility, Adaptability, and Alignment, while quite descriptive, there remain Supply Sequence Asia November/December 2008


some ongoing questions in readers' brain about just what is going in under the surface. Indeed, he admits all the in the last section of the document when he muses

that, " …what they (firms) require is a fresh frame of mind and a culture to get their supply chains to offer triple–A performance”3. He is proper of course , in addition to this file format to



Lee's content I will effort to bring in that added ingredient — the ethnical perspective. Without it Now i am afraid the story remains strictly descriptive and lacks informative power. By better being aware of what is going in inside the human dimension of source chains, it is possible to advance to a more predictive level. In other words, in the event you know what sub-cultures are in position and supporting various source chain approaches, you will be able to predict what the likely result is in terms of execution. Unfortunately, in my experience, over 40% of tactics written in business programs fail to become implemented, and it's really all as a result of a ‘misalignment' between individuals strategies as well as the ‘values' with the people inside organisation, plus the partner organisations in the string. Lee posits4 that " … just those firms that build agile, flexible, and lined up supply stores get ahead in the competition”. I agree with him. But I do think we need to check out and re ne his de nitions of these 3 ‘As'. Re-de ning three key homes Agility is starting to become increasingly important in today's unpredictable markets. However, you pay a price for it. Weight loss be acuto and cost-e cient co-incidentally – something has to give. In truth, you will see customers in your markets that are looking for one or the other or perhaps at times, both. If the second option, you have to make an effort to understand that they can want even more. To give an agile response at cheapest cost-to-serve is within e ect rewarding consumers behaving poorly. I produced the concept of ‘supply chain alignment, ' which approaches this issue of supply chain design and style and operation from the client's dominant ordering behaviour perspective5. By segmenting markets for any wide range of product/service categories I observed habits which can be used to reverse-engineer the equivalent supply string con gurations. Speci cally, I hardly ever found more than three or four major buying behaviors present in virtually any market, meaning that a small number of supply chain types is capable of covering about 80% with the market, no longer, no less. And although clients had a recommended way of working (based issues values), scenarios sometimes arise that cause them to change this kind of preferred conduct (but not really their values) for brief periods, which then require dalam erent source chain solutions. See

my own broader concept depicted in Figure 1 . To ‘align' with the 4 main behavioural segments you will find four types of supply chain que contiene gurations: Ongoing Replenishment, Trim, Agile, and Fully Adaptable. 1 . Snello and Lean For those buyers who truly seek cheapest product (and ful llment), Lean is the solution for them. By sobre nition we could generally dealing with a relatively predictable market environment; a risk-averse customer which has a transactional mindset, so we have a

lot of focus on making and ful lling to outlook; creating level; and using process improvement techniques including Six Sigma to lower cost....