Improving value chain flexibility and adaptability in build-to-order environments

Abstract

Purpose – Given volatile markets, the ability to quickly act is fundamental for companies – in regard to the internal production and to external supply flows in the value network. Related flexibility and adaptability concepts are vague and contradictory. Managerial methods either imply a generic application level or a narrow focus. Thus, the purpose of this paper is to develop a three-step approach to facilitate a well-directed flexibility and adaptability design within a build-to-order context: context-specific operationalization, thorough segmentation using advanced logistic criteria and purposeful deduction of improvement means. Design/methodology/approach – Based on a thorough literature review, a procedural approach is developed and applied within two rigorously conducted company-cases. A triangulation setting is used within the empirical analysis. Findings – A company's capability to act appropriately, quickly and economically in the face of volatility can be remarkably advanced through context-specific analysis and well-reasoned segmentation. A respective approach to enhance flexibility and adaptability has to regard rational, emotional and cultural aspects. Research limitations/implications – The literature review is selective, not exhaustive. Two case studies cannot cover all thinkable aspects. Practical implications – The findings illustrate how flexibility and adaptability measures can be designed purposefully within a company-specific approach. Two potential directions of impact – uncertainty reduction and flexibility/adaptability improvement – are consolidated into significant criteria and applied to thoroughly classified areas in a feasible way. Originality/value – Current approaches do not apply a company-specific operationalization approach and are not based on segmentation or are using limited criteria. Besides, most approaches are neither designed for quick operationalization nor continuous application.