Leagility in a triad with multiple decoupling points

Abstract

Leagility is a strategic concept that represents a combination of lean and agile. Lean is assumed to be a cost-based strategy that is appropriate in a forecast-driven context upstream of the customer order decoupling point (CODP). Agile is the corresponding flexibility-based strategy in a customerorder- driven context downstream of the CODP. Competitive advantage is based on that the position of the CODP is aligned with the market requirements. In a dyad setting this alignment can be realized with relative ease but in a triad setting it becomes more complicated if both supply actors pursue a leagile strategy. If lean based purchasing faces an agile based delivery strategy or the opposite, where agile based purchasing faces a lean based delivery strategy, the interface is misaligned. In this paper, four interface configurations are identified and empirical examples of each are given based on a case study.