Back to the classics: What is a triple A supply chain?

Filed in archive General on December 24, 2007

It's good sometimes to look back and review some of the valuable insights available in the classic supply chain literature. One of the most popular classic articles in supply chain is the Triple A supply chain by Hau Lee which was published couple of years ago in Harvard Business Review.

Hau Lee believes that a best practice supply chain is not only fast or low-cost but also has three main capabilities which start by A:

• Agile: They respond quickly to sudden changes in supply or demand. They handle unexpected external disruptions smoothly and cost-efficiently. And they recover promptly from shocks such as natural disasters, epidemics, and computer viruses.

• Adaptable: They evolve over time as economic progress, political shifts, demographic trends, and technological advances reshape markets.

• Aligned: They align the interests of all participating firms in the supply chain with their own. As each player maximizes its own interests, it optimizes the chain's performance as well.