Quick response

Quick Response (English .; dt .: about Rapid response ) is a strategy with the goal more quickly to the market development to respond. It is based on a cooperation between retailers , distributors and producers and is intended to accelerate both the flow of information and the flow of goods.

Quick Response leads to a minimization of the response time to unforeseen changes in demand , as well as to a reduction in stocks in the entire supply chain. The permanent exchange of information is achieved by linking the information systems . An EDI standard is usually used for this .

concept

Quick Response is particularly suitable for companies whose products have fluctuating demand, are technically complex or are new to the market.

Food manufacturer Nestlé and textile company Levi Strauss are just two examples of organizations that have implemented Quick Response to improve their efficiency.

The concept was developed by the management consultancy Kurt Salmon Associates in the USA. In the textile industry, individual sub-processes worked efficiently, but the overall system was extremely inefficient because there was little communication between the individual stages of the value chain. The main elements of the model are:

The introduction of barcodes and scanner registers
electronic data interchange (EDI)
changing internal processes, especially through automation
joint management of the supply chain with a view to consumer satisfaction
Cooperation in the areas of marketing, research and development

With the help of the data obtained at the point of sale and the passing on of this information to all chain members, improved sales forecasts are to be created. As a result, delivery processes can be planned more efficiently.

Due to the great success of the concept in the textile industry, many companies from various branches of industry have further developed the concept and adapted it to individual needs.

Critical appraisal

advantages

A company that has implemented Quick Response benefits from the following advantages, among others:

Reduction of throughput times by 80 to 95%
Reduction of production costs by 15 to 30%
Improvement of on-time delivery performance from 60% to 99%
Reduction of waste and rework by 80% and more

Further advantages by comparing Quick Response with Lean Production or JiT processes:

The basic distinction is the time-based mindset. While traditional policies try to reduce waste, all principles and strategies of Quick Response Manufacturing are geared towards reducing lead times.
This enables management to communicate a single goal across the organization to which all policies are to be oriented.
Quick Response is a company-wide strategy, while JIT and Lean Manufacturing focus primarily on procurement and manufacturing.
The positive aspects of push and pull strategies are combined depending on the situation.
The reaction to fluctuations is seen in certain markets as an opportunity to realize competitive advantages. On the other hand, JIT and lean processes only try to eliminate fluctuations. Quick Response thus creates an effective organizational structure to deal with given situations and to supply markets.

disadvantage

Despite the obvious advantages in use, some managers face problems implementing the quick response strategy.

Implementation of quick response

There must be a company-wide understanding of the fundamentals, which means that every member of the organization must know what quick response means, why it is necessary and how it works. Furthermore, the policy must be introduced in all areas and at all levels.

The implementation should not take place through a sudden reorganization of the entire company, but step by step. It is recommended to focus on a market segment in which there is a chance that a small part of the organization can supply the market during the reorganization. In this way, risks and investments can be minimized while the learning process takes place across the company. The reduction of lead times cannot be carried out as a tactic, but must be guided by the management as a quick response strategy.

In order to achieve the desired goals, companies have to change traditional approaches and redefine organizational structures.

literature

Rajan Suri: Quick Response Manufacturing - A Company Wide Approach to reducing Lead Time , ISBN 1-56327-201-6
D. Ahlert, J. Becker, R. Olbrich: Information systems for trade management , ISBN 3-540-63584-X
Thomas Rümenapp: Strategic configuration of logistics companies , ISBN 3-8244-7757-2

Web links

Quick Response Author: Kai Riemer, In: Enzyklopädie der Wirtschaftsinformatik. Retrieved January 26, 2015