Driving Business Model Agility Through Your Supply Chain

Introduction

In most companies, the Supply Chain function is considered the workhorse of the enterprise; the function that is mandated to deliver what Marketing has conceived and Sales is selling. At best, it is ignored when things go right (“they’ve just done their jobs”) and given a patronizing pat on their backs, and at worst, it is blamed for everything that goes wrong (“product didn’t reach market fast enough; no product on shelf; didn’t have the mix that the customer wanted”), like the recent Whole Foods nightmare. Yet, the Supply Chain function can be the driving force of the firm’s dynamic capabilities, which are “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments” (David J. Teece, Gary Pisano, and Amy Shuen). These dynamic capabilities are essentially the manifestation of business model agility.

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