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Paradigm Shift from Lean Towards Agile Supply Chain Management for Business Performance Enhancement in Indian Manufacturing Industry

DOI : 10.17577/IJERTCONV14IS090003
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Paradigm Shift from Lean Towards Agile Supply Chain Management for Business Performance Enhancement in Indian Manufacturing Industry

Manmeet Singh Soni Research Scholar

Dept of Mechanical Engineering Punjabi University

Patiala

Dr. Kanwarpreet Singh Assistant Professor

Dept of Mechanical Engineering Punjabi University

Patiala

Dr. Inderpreet Singh Ahuja Professor

Dept of Mechanical Engineering Punjabi University

Patiala

Abstract – Post pandemic, the markets have become highly turbulent and volatile due to uncertainty and global economic and competitive pressures. The prolonged and sluggish logistics channels have become unsustainable, thus warranting inevitable changes in the structure and management of supply chains. This research work highlights key vital factors required for survival in these circumstances by providing insights into vital factors required for imbibing agility in an organization. The basic purpose of this paper is to comprehensively review the literature on agile supply chain management (ASCM), keeping in view the objective of a thematic examination of the literature to elucidate the primary factors of ASCM.This work is a novel effort to use various descriptive analysis techniques using pivot charts and tables to analyse the key factors regarding the application of agile ASCM in manufacturing industries.

Keywords Agile Supply Chain Management, Uncertainty in the environment, Operations management, Manufacturing industries, India.

  1. INTRODUCTION

    The coronavirus disease 2019 (COVID-19), first started in China towards the end of 2019 and has spread worldwide, thus causing current pandemic condition (Statista, 2020). This pandemic situation has caused grave economic and social disturbance worldwide leading to a major global downturn (Wheelock, 2020). Since the start of its major outburst in early months of 2020, the unexpected demand for certain products led to complications in handling Supply Chain Management (SCM) for all industries due to limitations of the lockdown (Statista, 2020). As this pandemic was of unprecedented dimension, there were no particular comparisons and past research in this field. SCM is a network of various representatives responsible for accomplishing various critical functions and synchronizing key conclusions with further pertinent representatives. Functional representatives and information representatives are two types of representatives who control activities in the supply chain and support other representatives by giving the relevant information respectively.

  2. SUPPLY CHAIN MANAGEMENT (SCM) AND LOGISTICS

Lambert et al. (1998) stated that various business processes need to be integrated i.e., from end-user to supplier. This includes raw material, finished products, and services by optimally using information available from various sources thus adding value for end-users. Earlier, the products were simple (Fulkerson, 1997; Cao and Zhang, 2011), therefore, companies manufactured them independently (Kumar, 2004; Burgess et al., 2006). However, over the period of time with the advent of globalization, the majority of the components were started being outsourced. Hence the suppliers became key stakeholders in the supply chain process (Chen and Paulraj, 2004; Gripsrud et al., 2006). The schematic diagram on SCM given by Fox et al. (1993) highlights the overall view of the supply chain in the organization (Figure 1). Li (2014) reveals that in the early 1960s, an MIT professor, Jay Forrester, worked on various parameters related to suppliers with customers and realized that the physical separation of the inventories from the customers adversely affected the supply chain leading to excess inventory or orders not completed. By adjusting to the flexibility to cater to market requirements, the supply chain can effectively provide products and services. The business competition globally is organization driven, and key role is played by their supply chains (Kuei et al., 2001; Li et al. 2005).

Logistics

Order Acquisition

Information Agent

Transportation Management

Resource Management

Information Agent

Scheduling

Dispatching

Figure 1 Basic SCM Model (Fox et al. 1993)

3 LEAN SUPPLY CHAIN MANAGEMENT (LSCM) AND TRANSFORMATION FROM LEAN TOWARDS AGILE SCM

Data foundation

Data analysis within the supply chain by creating a digital network Effective Supplier relationship

Change management

Dynamically modifying supply chain as per market requirement.

Lean production acquired a key role by 1994-95 and was used as an overriding strategy by the organizations (Karlsson and Ahlstrom, 1996). Womack et al. (1990) have claimed that the philosophies of lean production can facilitate organizations for enhancing performance proportionately.In the current scenario of post-pandemic, SCM strategy for manufacturing industries is predominantly based on external factors, and accordingly, they had to decide between lean and agile (Abdollahi, 2015; Abdallah and Nabass, 2018). Going lean has the inherent disadvantage of lost opportunities as orders could not be materialized due to a shortage of supplies. However, it is more cost-effective than going agile as the later requires major digital transformation (Shashi et al., 2020). With the right digital transformation, an enterprise can quickly move from lean towards agile and vice versa at short notice. The pandemic has made everyone realize that their SCM needs to be robust to cater to unforeseen eventualities (Koh et al., 2007; Shashi et al., 2020). The major steps for the supply chain network to be more resilient and agile are:

There are lots of similarities between the lean and agile SCM. If the entire process is appropriately planned and monitored, lean as well as agile systems can simultaneously exist in the organization, and the transition from Lean to Agile is also easy (Aitken, 2000). ASCM has achieved good attention among academicians in the last few years, and significant research in this field has added to the overall knowledge base. However, the major focus has been on case studies and direct surveys (Rahiminezhad and Helmi, 2016). Very little work has been reported on theory verification and transition from LSCM to ASCM. Table 1 describes the detailed review of literature on ASCM depicting the analysis methods and critical factors considered in various studies. 460 research papers published in major peer reviewed journals over a period of last twenty years have been surveyed, and vital few (55 research papers) were then critically reviewed in order to identify the factors critical for successful agile organizations in managing their supply chains and provide insights about vital factors required for the agility in an

organization. The articles were shortlisted from peer-reviewed journals only, as they follow very stringent review process (Karuppusami and Gandhinathan, 2006). As an initial step, all important factors were recorded from the literature directly. Subsequently, grouping of these factors was done depending on their context, giving new name to each group using "descriptive approach". For instance, all factors depicting Organizational Culture i.e., uncertainty, collaborative relationships, responsiveness to Organizational Culture-related issues responsiveness to external change, competency, flexibility, enterprise integration, decentralized decision making, multi-venturing capabilities, inter-organization coordination, adaptability and information visibility were grouped together.

TABLE I

Table I Analysis methods and Critical factors in various ASCM studies

Authors

Country

Industry

Analysis

method

Journal

Database

Factors

Sharp et al. (1999)

UK

Multiple

Descriptive analysis

International Journal Production

Economics

of

Elsevier

Manufacturing agility, Customer related issues, Organization

Responsiveness

Meade and Sarkis (1999)

USA

Multiple

Descriptive analysis

International Journal Production Research

of

Taylor & Francis

Customer related issues, IT and its elements, Human Resource Development (HRD) issues, Organization

Responsiveness

Sharifi and Zhang (1999)

UK

Multiple

Comparative analysis

International Journal Production

Economics

of

Elsevier

Strategic Supplier Alignment, Customer related issues

Breu et al. (2002)

UK

Multiple

Principal

component and correlation

Journal

Information Technology

of

Taylor & Francis

Administrative issues, IT and its elements

Ren et al. (2003)

USA

Multiple

Artificial Neural Network

Integrated Manufacturing systems

Emerald

Resource optimization, Manufacturing agility, Administrative issues, Customer related

issues

Guisinger and Ghorashi (2004)

USA

Chemical industry

Comparative analysis

International Journal Operations Production

Management

of and

Emerald

HRD issues, Manufacturing agility

Devadasan et al. (2005)

India

Pump Industry

Taguchi methods

Journal Manufacturing Technology

Management

of

Emerald

Resource optimization, Flexible/hybrid

engineering

Dowlatshahi and Cao (2006)

USA

Multiple

Structural Equation Modelling

European Journal of Operational Research

Elsevier

Collaborative relationships, Administrative issues, Flexibility, Logistic

integration

Lin et al. (2006)

Taiwan

Casting

Descriptive analysis

International Journal of

Production Economics

Elsevier

Resource optimization, Process integration, Administrative issues, IT and its elements,

Flexibility

Vazquez- Bustelo et al. (2007)

Spain

Multiple

Exploratory factor analysis

International Journal of

Operations and Production

Management

Emerald

Flexibility Responsiveness.IT and its elements

Ramesh and

Devadasan (2007)

India

Pump Industry

Descriptive analysis

International

Journal of Mass Customization

Inderscience

Customer related

issues, Strategic Supplier Alignment

Eshlaghy et al. (2010)

Iran

Multiple

Exploratory factor analysis

International Journal of

Production

Research

Taylor & Francis

IT and its elements, Knowledge optimisation

Zhang (2011)

UK

Multiple

Content and Cross-case analysis

International Journal of

Production

Economics

Elsevier

Administrative issues, Flexibility

Sreenivasa et al. (2012)

India

Pneumatic Products

Descriptive analysis

International Journal of Services and Operations

Management

Inderscience

IT and its elements

AL-Tahat and Batainesh

(2012)

Jordan

Multiple

Structural Equation Modelling

Mathematical Problems in Engineering

Hindawi Publishing Corporation

Flexibility, Operational performance

Mishra et al. (2011)

India

Automobile

Fuzzy logic

International Journal of Logistics Systems and

Management

Inderscience

Flexibility, Customer related issues, Administrative issues

Aravindraj and Vinodh (2014)

India

Relays Manufacturin g Industry

Fuzzy logic

Journal of

Engineering, Design and

Technology

Emerald

Customer related issues, IT and its elements, Knowledge

optimisation

Samantra et al. (2015)

India

Automobile

Fuzzy logic

International Journal of

Industrial and

Systems Engineering

Inderscience

IT and its elements, Organization Responsiveness, Cost efficiency

Dubey and Gunasekaran (2015)

India

Multiple

Confirmatory factor analysis

International Journal of

Advanced

Manufacturing Technology

Springer

Administrative issues, Customer related issues

Routroy et al. (2015)

India

Boiler manufacturing

industry

Fuzzy logic

Measuring Business

Excellence

Emerald

Cost management, IT and its elements

Dev and

Kumar (2016)

India

Equipment

manufacturing industry

Analytical

Hierarchy Process (AHP)

Chinese Journal of

Mechanical Engineering

Springer

HRD issues, Business process reengineering

Leite and Braz (2016)

Portugal

Multiple

Content analysis

Journal of

Manufacturing

Technology Management

Emerald

Flexible/hybrid engineering

Sindhwani and Malhotra

(2016)

India

Multiple

Descriptive analysis

Process Management and

Benchmarking

Inderscience

IT and its elements, Network efficiency

Kumar et al. (2017)

India

Automobile

Interpretive structural modelling

International Journal of System Assurance Engineering and

Management

Springer

HRD issues, Cost efficiency

Sindhwani and Malhotra (2017)

India

Multiple

Total interpretive structural modelling (TISM) and MICMAC

analysis

Benchmarking: An International Journal

Emerald

Flexibility, IT and its elements

Mittal et al. (2017)

India

Multiple

MOORA

method and VIKOR

analysis

Procedia CIRP

Science Direct

IT and its elements, Knowledge optimisation

Patel et al. (2017)

India

Multiple

Fuzzy logic

Journal of

Manufacturing Technology Management

Emerald

Quality management, Manufacturing agility, IT and its elements, Strategic Supplier Alignment, Manufacturing

management

Goswami and Kumar (2018)

India

Automobile

Structural Equation Modelling

Measuring Business Excellence

Emerald

Manufacturing management, Flexible/hybrid engineering, Product

complexity

Khatri et al. (2018)

India

Multiple

Correlation analysis, regression analysis, principal component

analysis

International Journal of Business Information Systems

Inderscience

Collaborative relationships. Administrative issues. Flexibility

Nejatian et al. (2018)

Iran

Food industry

Fuzzy logic

Benchmarking: An

International Journal

Emerald

IT and its elements,

Organization Responsiveness

Christopher (2000)

UK

Multiple

Descriptive analysis

Industrial Marketing

Management

Elsevier

IT and its elements, Network efficiency

Yusuf et al. (1999)

UK

Manufacturin g Industry

Descriptive analysis

International Journal of

Production

Economics

Elsevier

Organization Responsiveness, Manufacturing

management

Agarwal et al. (2006)

India

Multiple

Descriptive analysis

European Journal

of Operational Research

Elsevier

HRD issues

Braunscheide l and Suresh

(2009)

USA

Multiple

Structural Equation

Modelling

Journal of

Operations Management

Elsevier

HRD issues, Flexibility

Overby et al. (2006)

USA

IT

Exploratory factor analysis

European Journal

of Information Systems

Springer

Process integration, IT and its elements

Swafford et al. (2006)

USA

Multiple

empirical study/modellin g

International Journal of

Production

Economics

Elsevier

Customer related issues, Organization Responsiveness

van Hoek, Harrison, and Christopher (2001)

UK

IT

Descriptive analysis

International Journal of

Operations and Production

Management

Emerald

Quality management, HRD issues,

Flexibility, Cost efficiency

Power, Sohal, and Rahman (2001)

Australia

Manufacturin g Industry

empirical study/modellin g

International Journal of Physical Distribution & Logistics Management

Emerald

Market sensitivity, Administrative issues, Flexibility, Cost efficiency, Operational

performance

Swafford, Ghosh, and Murthy (2008)

USA

IT

Descriptive analysis

International Journal of

Production Economics

Elsevier

Business process reengineering, Organization Responsiveness, IT

and its elements

Mason-Jones and Towill (1997)

UK

Fashion Industry

Simulation

International Journal of

Production

Economics

Elsevier

Flexible/hybrid engineering

Inman, Sale, Jr, and

Whitten

(2011)

USA

Manufacturin g Industry

Structural Equation Modelling

Journal of

Operations Management

Elsevier

Strategic Supplier Alignment, Customer related issues

Tsourveloudi s and

Valavanis (2002)

Greece

Multiple

Correlation analysis, regression analysis, principal component

analysis

Journal of

Intelligent and Robotic Systems

Springer

Customer related issues, HRD issues

Elnagar et al. (2018)

UK

Manufacturin g Industry

Triangulation research approach

Journal of Open Innovation: Technology, Market, and

Complexity

MDPI

Flexibility, Organization Responsiveness, Market sensitivity

De Vass et al. (2021)

Australia

IT

IOT

Australian Journal of Information

Systems

Springer

Process integration, IT and its elements

Geng et al. (2020)

China

Marine Industry

QFD, Fuzzy and Evaluation Laboratory

(DEMATEL)

Journal of Marine Science and Engineering

MDPI

Knowledge optimisation issues, Flexibility

Kumar et al. (2017),

India

Multiple

Descriptive analysis

Journal of

Management Information and Decision Sciences

Elsevier

Supply chain optimisation, Flexible/hybrid

engineering

Sahu, et.al, (2016)

India

Multiple

Analytical Hierarchy Process (AHP)

International Journal of Decision Support System Technology

Emerald

Organization Responsiveness, Flexibility

Masson et al. (2007)

UK

Fashion Industry

Descriptive analysis

International Journal of Logistics

Management

Emerald

IT and its elements

Stefanelli et al. (2019)

Italy

Multiple

Descriptive analysis

Journal of Supply Chain Management

Emerald

Supply chain optimisation, Customer related issues, Organization

Responsiveness

Lotfi and Sag hiri (2018)

UK

Multiple

Structural Equation Modelling

Journal of

Manufacturing Technology

Management,

Emerald

Customer related issues

Moradi et al. (2020)

Iran

Multiple

Integrated FQFD

approach

International

Journal of Lean Six Sigma,

Emerald

IT and its elements, Administrative issues

Tse et al. (2016)

UK

Electronics

Structural Equation Modelling

Journal of Supply Chain Management

Emerald

Supply chain optimisation, IT and its elements, Organization

Responsiveness

Mwangola

(2018)

USA

Multiple

Descriptive

analysis

American Journal

of Management

Emerald

Organization

Responsiveness

Abdelilah et al. (2018)

Morocco

Multiple

Descriptive analysis

Journal of

Manufacturing Technology

Management

Emerald

Flexibility, Customer related issues, IT and its elements issues

Kannan et al. (2025)

India

Multiple

Descriptive Analysis

IOSR Journal of

Business and Management

Emerald

Operational

Efficiency, Market Responsiveness

Riska and Munjiati Munawaroh( 2024)

Indonasia

Multiple

Descriptive Analysis

(International Research Journal of Multidisciplinary Scope (IRJMS)

Emerald

Supply Chain Strategy Trends,Lean, Agile, Leagile

The research publications critically scrutinized for the study have been depicted in Figure 2.

Figure 2 Research publications critically scrutinized for the study

There are various analysis method used by the researchers, however most of them are either descriptive analysis or simulation technique. The details of the analysis done in these papers is given in Figure 3.

Figure 3 Analysis method used by the researchers in ASCM

The reseach papers were analysed pan world which have been published in english language only. As the supply chain modalities are affected by the region, hence maximum papers are from India. However, as developed nations have already been working on agility of the supply chain, enough importance was given to the research which has been done in USA and UK. Figure 4 shows the region wise description of counties regarding ASCM applications.

Figure 4 shows the region wise description of counties regarding ASCM applications

35

30

25

20

15

10

5

0

Industry

32

4

4

1

1

1

1

1

2

4

1

1

1

2

1

The research papers for analysis were selected in such a manner that all verticles of the industry are comprehensivily coverd which include automobile, manufacturing, food and also generic papers covering multiple industries. Figure 5 reveals the implementation of ASCM initiatives in various industrial domains.

Figure 5 Sector wise description of ASCM implementation

4. DISCUSSION AND CONCLUSIONS

Though the present research extensively covers the past literature, however, there is need to carry out qualitative analysis to empirically examine the validity and reliability of key vital factors which are necessary prerequisites for the desired transition. However, the KVFs which will be extracted in the study are not generic as they are influenced by the terrestrial factors and type of business and economic conditions. Second, the factors drawn from this work will not be universal and may vary depending on the nature of business, geographical areas and many others. There are various industries that have transitioned from lean to agile SCM, this transition is limited based on overall industry requirements. The further analysis of various KVFs will differentiate between the individual requirements of these industries and based on that their overall level of the transition from lean to agile SCM.

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