To surf the wave, the important thing is the balance
How to be protagonists today in the continuity of the Business
8 pillars to recompose and enhance operations
1. SUPPLY CHAIN STRATEGY
Review the integral strategy of the value chain to face the challenges of the business in the new context.
The context poses new restrictions that the business must face, considering the ideal positioning of each link in the value chain. It also requires us to rethink our strategy to ensure the survival of the company in the medium and long term
2. TRANSFORMATION – SUPPLY AND INVENTORY MANAGEMENT
Generate alternatives that guarantee availability and continuity of materials and services.
Having alternatives that ensure the supply, maximizing the level of service, minimizing the risk, acquiring in time and form, represents an extra challenge when you also seek to maintain the operation without losing competitiveness.
Understanding the process of the entire value chain, the interactions with other departments and suppliers, the supporting technology, and the quality of management; is key to identify the improvements that allow to achieve a performance “best in class”.
3. TRANSFORMATION – INDUSTRIAL OPERATION
Develop a flexible operation with an integral vision that follows the variations in demand.
To ensure the sustainability of the business, it is essential to maintain an adequate and dynamic balance between operating costs, the level of compliance/service to customers, the new Health and Safety requirements, and the flexibility to variations in demand or availability of resources, without sacrificing the quality of the goods produced.
Understanding and adapting the processes of the production chain, the interdependencies with suppliers and other departments, the technology support and the quality of management, is key to achieve efficiencies that allow a world class performance.
4. TRANSFORMATION – MAINTENANCE
Minimize risks and ensure prevention and protection of workers, optimizing remote maintenance.
Maximizing the level of service to ensure the availability and lifetime of assets represents the main challenge for Maintenance areas.
The key to being competitive is to achieve the right balance between maintenance costs, intervention time on assets, and the right mix of on-site/remote intervention, in order to maximize productivity.
5. TRANSFORMATION – LOGISTICS AND DISTRIBUTION
Adaptation and evolution to maximize the responsiveness, visibility and versatility of logistics
Optimizing the use of resources to manage in the most efficient way and with the highest speed of reaction is one of the main pillars of the logistics and distribution functions.
To do so, it is essential to manage the logistic capacities and to ensure the planning of massive resources for the transport of raw and semi-processed materials, as well as for the distribution of finished products, in such a way that they can be traced. Likewise, it is necessary to consolidate the programming of equipment and infrastructure for the provision of support services to the operational areas.
The proactive management of distribution services, whether owned or outsourced, allows a monitoring that guarantees flows and process control in terms of efficiency and costs.
6. INFORMATION TECHNOLOGY
Hyper-accelerate process transformation and adoption of Industry 4.0 solutions
Information Technology (IT) is a powerful resource to enable remote execution of tasks and has become a means of business development and a source of competitive advantage.
In the management of the supply chain, IT is an essential tool, since it contributes to the reduction of costs, the improvement in the flow of information, the synchronization and integration of processes, the collaboration between parties and the access to reliable information for decision making.
7. HUMAN CAPITAL AND ORGANIZATIONAL EFFECTIVENESS
Reorganize effective teams, working remotely and securely
The new panorama is pushing us to rethink and adapt. For the correct functioning of the supply chain, it is required that the organizational model responds to the business processes involved, in terms of its dimensioning, structure, roles and responsibilities, development plans, alignment towards organizational results and expected performance levels.
The organizational design of the operational areas and the production planning process must be aligned in order to achieve greater efficiency, taking into account factors such as the capacity required in time and the flexibility of the shift patterns.
8. OPERATING MARGIN AND WORKING CAPITAL
Defend the Operating Margin under a “Zero Based Business” concept
The association of costs and potential revenues with all activities in the supply chain allows us to explore initiatives with an economic impact without neglecting the efficiency of the processes involved. Zero Based Business” style techniques facilitate a structured approach to work.
The challenges of the new context demand a greater care of the working capital (reduction of inventories and/or increase of the productivity of the assets) to guarantee the sustainability of the company.
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