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Our research shows that ten operating practices are tied to higher service levels
and lower inventory costs.
QWeb
Agile Supply Chains
Exhibit
Exhibit 11 of 2
Defined as those in top quartile in aggregated agility score; all others are laggards.
1
QWeb 2015
Agile Supply Chains
Exhibit
Exhibit 2
2 of 2
Forecasting 70
Defined as those in top quartile in aggregated agility score.
1
portion of their warehouse operations. progress, and finished goods across the supply
chain. For this analysis, we examined more than
When regional demand for a line of new 70 companies distributed across five industry
products surged, the business could groups. Industries such as chemicals and
pharmaceuticals had higher average inventory
easily add low-cost warehouse capacity. levels than consumer products and automotive did.
4 We found statistically significant correlations
By contrast, service and inventory between reported OTIF service levels and agility
performance were less strong at one scores across quartiles. Regression analysis also
revealed a statistically significant relationship
home-products manufacturer, which between reported inventory days and agility
like the consumer-products company quartiles.
above boasted a diverse product line but
The authors wish to thank Klaudia Sidor for
had lower agility scores for operations
her contributions to this article.
planning and risk management. Its
logistics costs are 25 percent higher
Raoul Dubeauclard is a senior expert in
than those of the consumer company,
McKinsey’s Lyon office, Kerstin Kubik is
and it has been hit by persistent a specialist in the Vienna office, and Venu
transport problems that require it to Nagali is an expert in the New Jersey office.
carry twice as much inventory.
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