1. Supply management: Lean or Agile Unit Tutor Neil Towers Supply Chain Management N.Towers@manchester.ac.uk

2. Learning Objectives  To recognise a range of supply attributes between a lean and an agile approach  To understand the relationship between product type and supply chain match

3. Demand Characteristics  Functional Products Predictable demand  Innovative Products Unpredictable demand

4. Functional - Predictable  Product life Cycle - more than 2 years  Contribution to ohds - 5 to 20 %  Product Variety - low  Forecasting error - 10%  Mean stockout rate - 1 to 2%  End of sale mark down – Not relevant

5. Innovative - Unpredictable  Product life Cycle – 3 to 12 months  Contribution to ohds - 20 to 60 %  Product Variety - high  Forecasting error – 40 to 100%  Mean stockout rate - 10 to 40%  End of sale mark down – 10 to 25%

6. Attributes of lean and agile 

7. Market winners and qualifiers 

8. Purchasing Cycle  Planning  Sourcing and Selection  Inventory Management  Selling out  Evaluation

9. Planning  Budgetary and Financial  Target setting  Volumes, Value and Margins  Linking to Strategic objectives

10. Sourcing and Selection  Definition of needs  Choosing the Right Supplier  Nature of the product- Branded or Own-Brand  Negotiation process  New Product Development

11. Inventory management  Volumes and Ordering  Frequency of replenishment  Ownership and Logistics concerns Selling Out How products are handled at point of sale Presentations and Displays Geographical separation

12. Evaluation  Review of performance to targets  Identify shortcomings  Develop successes  Plan future targets

13. Matching Supply Chain with Products 

14. Retailer Regional Distribution Centre Consumer Yarns Fabrics Fabrics Yarns Fashion trends info. UK manufacturers Overseas manufacturers Fashion Merchandise Supply Chain

15. Further Reading  Bruce M., Daly L. and Towers N (2004) “Lean or agile – a solution for supply chain management in the textiles and clothing industry?” International Journal of Operations & Production Management, 24 (1) pp 151-170, ISSN 0144-3577