Lean and agile metrics. Literature review and framework for measuring leagile supply chain

Abstract

Purpose: The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy. Design/methodology/approach: This work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain. Findings: Findings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment. Practical implications: The framework could be used by practitioners as a starting point for performance system design. Originality/value: There is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.