Navigating Supply Chain Agility Metrics
Estimated reading time: 3 minutes, 45 seconds
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By Carolyn Mathas for Mouser Electronics
Published April 30, 2025
In the fast-paced world of electronics, supply chain agility is not just an advantage; it's a necessity. Companies in this industry face a complex landscape characterized by rapid technological advancements, shifting consumer demands, and unpredictable global events. Partnering with supply chain experts like Mouser Electronics helps organizations determine solutions that enhance responsiveness and efficiency.
What Does an Agile Supply Chain Look Like?
Supply chain agility refers to an organization’s ability to rapidly adapt to market changes, manage fluctuating demands, and recover from disruptions. For electronics manufacturers, this agility translates to faster product development, reduced lead times, and ultimately, better customer satisfaction.
However, a rapid response without sufficient planning and information is likely an expensive choice that offers no financial sustainability or quality consistency.
According to Gartner's 2020 Supply Chain Signature Series Risk Survey, supply chain leaders observed, on average, a 4 percent rise in the cost to serve customers following unexpected disruptions.[1] Respondents also encountered approximately five unfamiliar disruptions annually, which contributed to an overall 20 percent annual increase in the total cost to serve.
In the 2024 Gartner Globalization Trends in Designing Supply Chain Networks Survey, respondents indicated that risk management factors, including boosting resilience and enhancing flexibility and agility, have overtaken cost-efficiency as the primary drivers of network changes, with agility ranking second (Figure 1).[2]
Figure 1: Leading causes for supply chain network changes from 2022-2024. (Source: Gartner)
Agility for Procurement Professionals
To facilitate agility in procurement, buyers need the following:
- Partnerships, tools, and forecasting abilities to identify changes in supply, demand, risks, and opportunities
- Informed decision-making capabilities using real-time data to help adjust to rapid changes
- Diverse manufacturer and transportation options to maintain consistent production flows, even amid supply disruptions
- Strategic scenario planning using dedicated software systems
- Technology solutions such as advanced inventory management systems, application programming interfaces (APIs), and services and tools from trusted suppliers and distributors
While agility does not necessarily translate to rapid speed, it does mean the ability to quickly realign procurement, inventory flow, and capacity usage. In order to be agile, automation and seamless data flows are necessary. Investing in supply planning and demand forecasting tools, implementing warehouse automation, and collaborating with multiple suppliers are essential to remain informed and flexible in the face of volatility.
Agility Metrics Used in Electronics Procurement
The electronics industry is driven by rapid technological advances, requiring buyers to respond to new designs and changing specifications consistently. Many examples of recent disruptions, including semiconductor shortages, have affected the industry. During these times, supply chain pros must focus on keeping production on track, adjusting order quantities, and sourcing from alternative manufacturers when prices spike.
It's challenging to measure agility in any industry. However, it shows up in performance results that can be measured. For example, when there is a disruption, companies can measure the impact of agility on business performance.
According to Gartner, the following are among the most-used agility metrics across supply chains (Figure 2):[3]
- Order fulfillment cycle timegauges how quickly a company can deliver to customers. The aim is to maintain normal cycle time performance and fulfill orders at the usual speed, even during disruptions.
- Total cost to serveassesses the profitability of serving a customer. Such assessments balance various factors to enable cost-efficient procurement, since enhancing customer service speed, reliability, and quality all affect costs.
- Upside supply chain flexibilityevaluates speed and reliability related to supply performance. Combining upside flexibility with order fulfillment cycle time illustrates the speed and reliability of the entire supply chain.
- Perfect order fulfillmentmeasures the supply chain's ability to meet customer expectations for on-time delivery, complete accurate documentation, and delivery without damage or defects.
Figure 2: Supply chain metrics whose measurements best reflect the impact and performance of agility. (Source: Gartner)
Conclusion
Successful implementation of agility includes flexibility, responsiveness, and foresight, as well as establishing and maintaining long-term collaborative partnerships with trusted suppliers. It is also based on investing in and supporting technology that allows real-time metrics to be the center of a buyer’s agility arsenal.
With the support of supply chain experts like Mouser Electronics, organizations can integrate ability into their procurement through diversified sourcing, innovative technologies, and strong relationships. By aligning with a distributor that understands the unique challenges of the sector, electronics companies can thrive amidst the demands and fluctuations of today’s volatile market.
Sources
[1]https://emt.gartnerweb.com/ngw/globalassets/en/supply-chain/documents/trends/measuring-supply-chain-agility.pdf
[2]https://www.gartner.com/en/newsroom/press-releases/2024-08-14-gartner-survey-shows-73-percent-of-companies-have-made-supply-chain-network-changes-in-the-past-two-years
[3]https://emt.gartnerweb.com/ngw/globalassets/en/supply-chain/documents/trends/measuring-supply-chain-agility.pdf