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Lean, agile and leagile supply chain strategies and supply chain
responsiveness
Research Proposal · December 2020
DOI: 10.13140/RG.2.2.13208.62725
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Issam El-asri
Université Internationale de Rabat
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Lean, agile and leagile supply chain strategies and
supply chain responsiveness
Rabat School of Business, International University of Rabat, Morocco
Student: Issam El-asri
Supervised by: Ph.D Ismail BADRAOUI
1
Table des matières
1
2
Introduction: .............................................................................................................. 5
1.1
Definition of responsiveness: ......................................................................................... 5
1.2
Definition of responsiveness in Supply Schain Management: ......................................... 5
Conceptualization ...................................................................................................... 6
Lean strategy: ............................................................................................................................ 6
Agile strategy: ............................................................................................................................ 6
Leagility strategy:....................................................................................................................... 7
3
Operationalization ..................................................................................................... 8
3.1
3.1.1
3.2
3.2.1
3.3
3.3.1
3.4
4
5
6
Construct 1 - Lean Strategy: ........................................................................................... 8
Items:......................................................................................................................................... 8
Construct 2 - Agile Strategy:........................................................................................... 8
Items:......................................................................................................................................... 8
Construct 3 - Leagile strategy ......................................................................................... 9
Items:......................................................................................................................................... 9
Level of measurement: .................................................................................................. 9
Sampling Process: .................................................................................................... 12
4.1
Unit of analysis: ............................................................................................................12
4.2
Sampling Frame: ...........................................................................................................12
4.3
Sampling technique: .....................................................................................................13
The Questionnaire:................................................................................................... 13
5.1
The common rating scale used in the questionnaire: ....................................................13
5.2
The Link to the questionnaire: ......................................................................................14
Bibliographie ........................................................................................................... 14
Table des tableaux
Table 2 job title of respondents ............................................................................................... 12
Table 3 job function of respondents......................................................................................... 13
Table 4 years in business of respondents ................................................................................. 13
2
Figure 1 Conceptual framework ................................................................................................ 7
3
Abstract:
Purpose: The purpose of this survey is to evaluate and examine the impact of lean,
agile and leagile supply chain strategy on the responsiveness of the supply chain.
Methodology: The study uses survey data based on 30 executives and managers involved in
the supply chain functions from different manufacturing companies in Morocco to measure
the best SC1 strategy for a better SC responsiveness. The levels of measurement used in order
to operationalize the items are nominal and ordinal as well as the common rating scale
applied is Likert scale and binary scale in order to get more finely tuned response.
Key words: Responsiveness, Supply Chain, Lean Strategy, Agile Strategy, Leagile Strategy.
1
SC: Supply Chain
4
1 Introduction:
1.1 Definition of responsiveness:
Responsiveness (to something) the ability to react quickly and in a positive way to something
(Dictionary, s.d.).
1.2 Definition of responsiveness in Supply Schain Management:
1- A responsive supply chain has to deal with two important areas: it has to be
responsive to the needs of the supply chain actors, and it has to be responsive to the
needs of your customers (Aouam, 2020).
2- Supply Chain Responsiveness (SCR) according to Holweg:
Capability of firms to respond persistently, in appropriate time to the demand of
customers or change in marketplace to sustain its competitive advantage is known
as responsiveness (Siddiqui, 2018).
The modern business environment has become more and more borderless as well as the
competition intensity has pushed business actors to make alliances under what is called a
supply chain. Normally this supply chain must have a strategy in order to
achieve a certain level of responsiveness and to satisfy the uncertainty of demand.
Supply chain strategy is defined as a set of approaches utilized to integrate suppliers,
manufacturing, warehouses, and stores so that merchandise is produced and distributed at the
right quantities, to the right location, at the right time, in order to minimize system-wide costs
while satisfying service level requirements (Simchi-Levi, 2008).
Supply chain spans all movement and storage of raw materials, work-in-process inventory,
and finished goods from point of origin to point of consumption. A key objective of supply
chain strategy is to enhance the focal firm’s supply chain responsiveness with respect to its
customers (Hines, 2004).
However, the author observes that not every existing firm has a responsive supply
chain according to its supply chain strategy. For example, many PC manufacturers such as
Compaq and Gateway have been known to fail at on-time product delivery to customers
5
because they failed to respond quickly to delayed shipments of computer components from
suppliers in Taiwan (Lee, 2002).
While enterprises such as Wal-Mart, Dell, and Toyota have benefited from aligning supply
chain practices with the goals and objectives of their supply chains, that is, their supply chain
strategies, others such as Barilla SpA and Hewlett-Packard have failed to achieve positive
results from implementing supply chain practices (Hsu, 2009).
We conclude that there is a gap between the supply chain strategy and the supply chain
responsiveness.
So, to eliminate this gap we are conducting a survey with 20 executives and
managers involved in the supply chain functions from different manufacturing companies in
Morocco, to examine where to integrate lean strategy or agile strategy or leagile strategy for a
better supply chain responsiveness.
2 Conceptualization
The author has validated empirically an approach proposing 3 constructs, that are developed
and related to the concept which they directly impact the supply chain responsiveness and defined
as:
Lean strategy: lean thinking is built upon adding value by eliminating unnecessary waste
(Japanese „muda‟) from processes (Womack, 1990). As lean thinking implies enhancing
supply chain efficiency by eliminating unnecessary waste, designing processes to achieve
responsiveness, it relates to the process dimension of responsiveness (Vinke, 2010).
Agile strategy: agility is about being nimble, quickly moving about; the ability to respond
rapidly to changes in some environment (Vinke, 2010). Agility is concerned with high
variety, low predictability and low volume. He depicts an agile supply chain as being marketsensitive, able of reading -and responding quickly to- real-time demand (Naylor, 1999).
Leanness and agility are applicable to different situations. Lean was found to be of better use
in environments with relatively high volumes of stable demand, whereas agility is better
6
capable of dealing with low-volume, unpredictable demand. As a result, lean is better
applicable in controllable situations, where companies are able to forecast demand on some
time scale (mostly two weeks). Agility on the other hand is more useful in demand driven
situations, where demand is not known in advance (Vinke, 2010).
Leagility strategy: leagility as a hybrid strategy, consisting of lean and agile parts, lean
and agile are complementary to each other and that neither one is better than the other; which
one to implement is dependent of the specific situation (Naylor, 1999). Leagile strategy
should be seen as complementary to each other, applicable to specific situations, rather than
being mutually exclusive strategies (Cristoper, 2001).
Lean strategy
Supply Chain
Responsiveness
Agile strategy
Lean
+
Agile
= Leagile strategy
Figure 1 Conceptual framework
7
3 Operationalization
Studies say that a company’s supply chain effectiveness is a result of the applied supply chain
strategy, so, in order to achieve better performance and to have a reliable responsiveness in
the supply chain, the strategy should exist and fit the market need and requirements.
The research model as presented in Figure 1, is an attempt to link these three important
strategies. We suggest that supply chain strategies impact directly the supply chain
responsiveness, which those strategies were selected empirically as constructs.
In order to verify the content validity of the developed items, the author has conducted a pretest with the participants (3 Supply Chain Management Professors) to give a feedback of how
appropriate and valid the items are. Based on their feedback we will validate the items to
develop the questions, from three constructs (Lean Strategy, Agile Strategy and Leagile
Strategy).
3.1 Construct 1 - Lean Strategy:
3.1.1
Items:
LS2 helps in managing inventory by delivering the right quantity needed.
LS helps in managing inventory by delivering the right quantity at the right time.
LS helps in managing inventory by delivering the right quantity in the right place.
LS helps in adopting quality practices according to the SC requirements.
LS helps in managing quality according to the SC requirements.
LS helps in inspecting products frequently.
LS helps in reducing the waste.
3.2 Construct 2 - Agile Strategy:
3.2.1
Items:
AS3 helps in reacting quickly to the changes occurring to the delivery time.
AS helps in reacting effectively to the changes of the costs.
2
3
LS: Lean Strategy
AS: Agile Strategy
8
AS helps in reacting effectively to the changes of the design.
AS supports possible changes in product design.
AS corresponds possible customization requirements.
AS supports adding features to the product.
AS supports market volatility.
AS supports volatile demand.
3.3 Construct 3 - Leagile strategy
3.3.1
Items:
LAS4 is supplying accurately the right products.
LAS provides variety and quality on time
LAS helps reducing unnecessary waste
LAS supports real-time demand data
LAS enable access to real-time demand information
LAS has a reactive response in meeting customer demand
LAS adopts a holistic supply chain approach
LAS performs better when inventories are as low as possible
LAS able to meet exactly the customers need
3.4
Level of measurement:
The author has chosen Likert scale for measurement to validate to items, because it provides
more tuned response, and suitable for respondent (3 Supply Chain Management Professors):
Items of construct 1- Lean Strategy
Weak
Acceptable
Validity
Validity
LS helps in managing inventory by
Neutral
Good
Strong
Validity
Validity
X
delivering the right quantity needed
LS helps in managing inventory by
X
delivering the right quantity at the right time
4
LAS: Leagile Strategy
9
LS helps in managing inventory by
X
delivering the right quantity in the right place
LS helps in adopting quality practices
X
according to the SC requirements
LS helps in inspecting products frequently
X
LS helps in reducing the waste
Items of construct 1- Agile Strategy
X
Weak
Acceptable
Validity
Validity
AS helps in reacting quickly
X
Neutral
Good
Strong
Validity
Validity
X
to the changes occurring to the delivery time
AS helps in reacting effectively to the changes
X
of the costs
AS helps in reacting effectively to the
X
changes of the design
AS supports possible changes in product
X
design
AS corresponds possible customization
X
requirements
AS supports adding features to the product
X
10
AS supports market volatility
X
AS supports volatile demand
Items of construct 1- Lean Strategy
X
Weak
Acceptable
Validity
Validity
LAS is supplying accurately the right products.
Neutral
Good
Strong
Validity
Validity
X
LAS provides variety and quality on time
X
LAS enable access to real-time demand
X
information
LAS helps reducing unnecessary waste
LAS has a reactive response in meeting
X
X
customer demand
LAS adopts a holistic supply chain approach
X
LAS performs better when inventories are as
X
low as possible
LAS able to meet exactly the customers need
X
LAS supports real-time demand data
X
So, after the measurement the author selected the strongest ratings the show a reliable validity
(Good Validity) and (Strong Validity), so the result considered as valid are:
Construct 1- Lean Strategy:
11
LS helps in inspecting products frequently
LS helps in reducing the waste
LS helps in managing inventory by delivering the right quantity in the right place
Construct 2- Agile Strategy:
AS helps in reacting effectively to the changes of the costs
AS helps in reacting effectively to the changes of the design
AS supports adding features to the product
AS supports market volatility
Construct 3- Leagile Strategy:
LAS is supplying accurately the right products.
LAS provides variety and quality on time
LAS performs better when inventories are as low as possible
LAS able to meet exactly the customers need
LAS supports real-time demand data
4 Sampling Process:
4.1 Unit of analysis:
30 executives and managers involved in the supply chain functions from different
manufacturing companies in Morocco.
4.2 Sampling Frame:
The following table represents job title of respondents:
Job title
Number of respondents
Percentages
Middle Managers
15
50%
Directors and VPs
11
37%
CEO/President
4
13%
Table 1 job title of respondents
12
The following table represents job function of respondents:
Job function
Number of respondents
Percentages
Sales
3
10%
Transportation
7
23%
Distribution
2
6%
Manufacturing
9
30%
Purchasing/Procurement
5
17%
Corporate executive
4
13%
Table 2 job function of respondents
The following table represents years in business of respondents:
Years in business
Number of respondents
Percentages
3years or less
0
0%
3-7 yeas
14
46%
7-11years
11
37%
Above 11 years
5
17%
Table 3 years in business of respondents
4.3 Sampling technique:
The sampling technique used in this survey is Non-profitability Sampling, where some actors
in the same industry did not have a chance to take part of the survey.
5 The Questionnaire:
5.1 The common rating scale used in the questionnaire:
Likert scale : the power of linkert scale is a scale that make option in order according to the
respondent view. It is more precise and practical in evaluating the perception of the
respondent to a certain topic.
Binary scale: It’s a great way to make the assessment easier for the researcher and the
respondent which limits the responses to two separate options.
13
5.2 The Link to the questionnaire:
https://forms.office.com/Pages/ResponsePage.aspx?id=hirXO-qopkSomfPMy3wJ6m3_jiP6KlErbfjzSpnxQpUMzcxR0Y0SE05MFY4NjdTQzhLQURUTUtWNS4u
6 Bibliographie
(https://www.oxfordlearnersdictionaries.com/definitOion/english/responsiveness?q=responsi
veness), D. o. (s.d.).
14
Dictionary, O. l. (s.d.). Definition of Responsiveness according Oxford Dictionary. (O. U.
Press, Producteur) Consulté le Dec 2020, sur
https://www.oxfordlearnersdictionaries.com:
(https://www.oxfordlearnersdictionaries.com/definition/english/responsiveness?q=res
ponsiveness)
Aouam, P. T. (2020). Supply Chain Management course materials, UIR. Dans P. T. Aouam.
Rabat, Université Internationale de Rabat, Maroc.
Siddiqui, D. A. (2018). Supply Chain Responsiveness and Supply Chain Performance: The
Role of Supply Chain Risk Management. Available from:
https://www.researchgate.net/publication/329595990_Supply_Chain_Responsiveness
_and_Supply_Chain_Performance_The_Role_of_Supply_Chain_. Academic
Publication, Research Gate, Karachi.
Simchi-Levi, D. K.-L. (2008). Designing and Managing the Supply Chain: Concepts,
Strategies, and Case Studies. Irwin/McGraw-Hill, Boston, MA.
Hines, T. (2004). Supply Chain Strategies: Customer-driven and Customer-focused.
Routledge, London. .
Lee, H. L. (2002). “Aligning supply chain strategies with product uncertainties”, California
Management Review,.
Womack, J. J. (1990). The Machine That Changed the World. New York: Macmillan. .
Naylor, B. N. (1999). Leagility: Integrating the lean and agile manufacturing paradigms in
the total supply chain. 62, 107-18. International Journal of Production Economics.
Vinke, L. (2010). Responsiveness in the Supply Chain: Achieving a Competitive Advantage.
Cristoper, M. a. (2001). An integrated model for the design of agile supply chains.
International Journal of Physical Distribution and Logistics Management.
Hsu, C. T. (2009). “Supply chain management practices as a mediator of the relationship
between operations capability and firm performance”, International Journal of
Production Research (Vol. Vol. 47 No. 3,).
15
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