The Benefits of Flexible Supply Chain

Supply chain flexibility is becoming increasingly crucial, since it allows leaders and businesses to manage their costs and resources better, while also meeting consumer demand. Flexible supply chains are versatile and agile. It's demand-driven and responsive to short-term changes in the market. Also it can develop and improve over time to meet ever-changing conditions.

Macro flexibility and micro flexibility are two forms of supply chain flexibility. Macro flexibility is a company's overall strategies, programs, and policies. A corporation with a macro flexible supply chain system can simply modify current supply chains or create new ones to meet changing consumer demand.

On the other hand, micro flexibility is about how quickly a supply chain can respond to any kind of short-term issues. A company with this flexible supply chain can respond quickly and effectively to unexpected issues, such as a customer's complaints or request for special treatments. It means agility and adaptability are important. So, both macro and micro flexibility are very essential. Let’s see the benefits of a flexible supply chain system.

Combat increased market volatility

Today’s markets are increasingly volatile. A flexible supply chain can help a company to pull out from potentially damaging market changes. The more flexible, the more businesses are able to protect themselves. 

Adjust to complex patterns of consumer demand. 

Because the markets are more volatile, determining markets’ demand isn’t as simple as it was. The company can’t just look at the historical patterns of the demands. In order to adapt to this scale of shifts, it’s hard to predict what consumer’s demand will look like five or ten years from now.

Boost company value

Flexible supply chains allow businesses to flexibly adjust production levels, raw material purchases, and transport capacity to maximize profits. When demand is high, the company boosts supply; when demand is low, the company can scale it back. With a flexible supply chain making changes to the overall system are simply not as costly.

So, how can the leaders achieve better supply chain flexibility to ensure the company is still running well in these volatile markets? To make it happen, Telkomsel IoT Control Tower can increase the company’s supply chain flexibility. Telkomsel IoT Control Tower can automate operations so that everything is effective.