{"id":1904,"date":"2016-12-14T00:00:00","date_gmt":"2016-12-13T22:00:00","guid":{"rendered":"https:\/\/www.leket.org\/supply-chain-flexibility\/"},"modified":"2020-06-23T09:38:46","modified_gmt":"2020-06-23T09:38:46","slug":"supply-chain-flexibility-2","status":"publish","type":"post","link":"https:\/\/dev.leket.org\/en\/supply-chain-flexibility-2\/","title":{"rendered":"Supply Chain Flexibility"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1904\" class=\"elementor elementor-1904 elementor-bc-flex-widget\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-mukwtiz elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"mukwtiz\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-vapemtd\" data-id=\"vapemtd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-wlfyfnp elementor-widget elementor-widget-text-editor\" data-id=\"wlfyfnp\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The supply chain flexibility is defined as the speed in which the supply chain responds to changes in demand and the business environment; this is in order to either create or preserve competitive advantage.<\/p><p>At Leket Israel, our core activity is food rescue and distribution to the needy; managing the flexibility of the supply chain is the key factor in creating an efficient and valuable alignment. Lack of flexibility in the supply chain causes a situation in which the food is thrown out instead of being collected to reach 175,000 supported people throughout Israel.<\/p><p><strong><u>According to the SCOR model, which is a tool to analyze and improve the supply chain, supply chain flexibility metrics are:<\/u><\/strong><\/p><p><strong>Upside Supply Chain Flexibility<\/strong> \u2013 The number of days required to increase quantities in the supply chain by 20%<\/p><p><strong>Upside Supply Chain Adaptability<\/strong> \u2013 The volume growth (in percentage) of quantities, that can be achieved by the supply chain within 30 days<\/p><p><strong>Downside Supply Chain Adaptability<\/strong> \u2013 The volume decrease (in percentage) of quantieis that were ordered from suppliers, that can be achieved within 30 days, with no additional costs or fines<\/p><p><strong><u>Adopting a strategy of a flexible supply chain is required when:<\/u><\/strong><\/p><ul><li>A high uncertainty in demand where customer delivery time is very short<\/li><li>A high uncertainty in demand and production quantities are relatively small and don\u2019t enable the exploitation of economies of scale<\/li><\/ul><p>In Leket Israel, preparing and planning for inceases and decreases in demand is even more complex. In a majority of the cases, calls from farmers to come and collect produce aren\u2019t planned in advance since the preference of every farmer is to actually sell and receive full compensation for their goods. \u201cThe call\u201d to Leket Israel, to come and collect the produce from the field, is the last choice of the farmer.<\/p><p>In order to meet organizational objectives, the organization\u2019s supply chain must be able to reach every farmer immediately, in accordance with the time required by him. Not arriving on time \u201cencourages\u201d the farmer to destroy the crop, and the agricultural produce, which could hae gotten to the needy, will be thrown in the garbage.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2rtykjk elementor-widget elementor-widget-text-editor\" data-id=\"2rtykjk\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong><u><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-2877\" src=\"https:\/\/www.leket.org\/wp-content\/uploads\/2016\/12\/d1-300x208-1.png\" alt=\"\" width=\"300\" height=\"208\" \/> <img decoding=\"async\" class=\"alignnone size-full wp-image-2879\" src=\"https:\/\/www.leket.org\/wp-content\/uploads\/2016\/12\/d2-300x216-1.png\" alt=\"\" width=\"300\" height=\"216\" \/>Leket Israel\u2019s supply chain assesments, to deal with the required operational flexibility, goes in both directions of the supply chain:<\/u><\/strong><\/p><ul><li>Downstream of the supply chain \u2013 Improved flexibility in responding to farmers (suppliers of goods\/produce)<\/li><li>Upstream of the supply chain \u2013 Improved flexibility in responding to non-profit organzations (NPOs), (customers), taking into account the needs of the different NPSs, their storage capacity, their distribution times, and other operational variables<\/li><\/ul><p><strong><u>Ways to improve the supply chain flexibility:<\/u><\/strong><\/p><ul><li>Institutionalizing partnerships with suppliers and subcontractors in order to \u201cstraighten the chain\u201d while dealing with fluctuations and changes in demand<\/li><li>Transfering operations to external sources, i.e. outsourcing (using subcontractors to respond to changes in demand)<\/li><li>Building tools and capabilities to quickly identify changes in demand<\/li><li>Building means of dealing with variable demand and supply chain efficiency (training workers for a number of activities, building manufacturing capacity in a few establishments, formulating agreements with suppliers, subcontractors, etc.)<\/li><li><strong>Forumulation of organizational structure and work support processes<\/strong><\/li><\/ul><p><strong><u>Barriers for greater flexibility in the supply chain:<\/u><\/strong><\/p><ul><li>Integration capability between the various information systems throughout the supply chain, which would allow visibility and faster response time to changes in demand<\/li><li><strong>Organizational structure and processes that don\u2019t support supply chain flexibility<\/strong><\/li><li>Management requests to lower costs at the expense of flexibilty<\/li><li>Harnessing the management process due to the difficulty in quantifying the economic value of \u201cupgrading\u201d the flexibility in the supply chain<\/li><\/ul><p>Leket Israel\u2019s supply chain requires a high level of flexibility and quick preparedness to changes. These are due to the nature of the activities of the NPOs (customers), the nature of the acitivies of the suppliers, and the nature of the chain\u2019s activities.<\/p><p><strong><u>A typical example of supply chain flexibility in Leket Israel is as follows:<\/u><\/strong><\/p><ul><li>Receive a call to collect a donation of refrigerated food that expires in 2 days<\/li><li>Leket Israel\u2019s supply chain is required to reach the supplier as quickly as possible in order to collect the donation\/good and to distribute the goods as quickly as possible to the NPO, before the expiration date<\/li><\/ul><p>The complexity is even greater since not every NPO can accept the refrigerated food due to lack of infrastructure.<\/p><p><strong><u>The flexibility of Leket Israel\u2019s supply chain, in response to the above challenges, occurring on a daily basis, requires:<\/u><\/strong><\/p><ul><li>Bulding an organizational structure and supporting work processes in the nature of the aforementioned activities that aren\u2019t \u201cpressured\u201d from daily \u201cmalfunctions\u201d<\/li><li>Capacity building to respond quickly and to reach suppliers in a short amount of time.<\/li><li>Quick identification of NPOs that can receive the merchanidise (i.e. the rescued food) in terms of both infrastructure and their individual constraints.<\/li><li>Capacity building in the sorting center to handle the goods when they arrive, sort them, and quickly prepare them to be sent.<\/li><li>Capacity building to change vehicular distribution lines (trucks) using organic trucks or subcontractors.<\/li><li>Long-term agreements with subcontractors in order to deal with the challenges faced by Leket Israel.<\/li><li>Ensuring that all the aforementioned activites are carried out efficiently and at the lowest economic cost to Leket Israel.<\/li><\/ul><p>Shai Rise is the owner and CEO of consulting firm RISE which specializes in implementing solutions in the supply chain. You can reach Shai by email: <a href=\"mailto:shair@rise.co.il\">shair@rise.co.il<\/a>.<\/p><p><div id='wufoo-pah6exj1kd5wu6'>\nFill out my <a href='https:\/\/leket.wufoo.com\/forms\/pah6exj1kd5wu6'>online form<\/a>.\n<\/div>\n<script type='text\/javascript'>var pah6exj1kd5wu6;(function(d, t) {\nvar s = d.createElement(t), options = {\n'userName'      : 'leket',    \n'formHash'      : 'pah6exj1kd5wu6',    \n'autoResize'    :  true,   \n'height'        : '259',      \n'async'         :  true,          \n'header'        : 'show',      \n'host'          : 'wufoo.com',    \n'entSource'     : 'wordpress',   \n'defaultValues' : ''     \n,'ssl'          :  1           };\ns.src = ('https:' == d.location.protocol ? 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At Leket Israel, our core activity is food rescue and distribution to the needy; managing the flexibility of the supply chain [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":2875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-1904","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food-rescue"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The supply chain flexibility<\/title>\n<meta name=\"description\" content=\"The supply chain flexibility is defined as the speed in which the supply chain responds to changes in demand and the business environment\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta 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