Southeast University

Assignment No: 01
Course Title: Operation Management
Course Code: MGT 517

Topic: Can Your Supply Chain Deliver What Your Consumer Wants?

Submitted To:
Engr. Sajjadul Mawla
Faculty of Southeast University

Submitted By:
Md.Saddam Hossain
ID: 2021010004031
Section: 1
Batch: 38
Program: MBA (1 Year)

Date of Submission: 11.08.2021

 Question: Can your supply chain deliver what your consumer wants?

Introduction:

In this competitive business environment consumer companies are constantly facing problems
and to maintain the consumer demand for the products . In the article we see that consumer
companies always face the challenge of material (individual) taste, as measured by utilities,
bundles of different products. Many consumer organizations have to operate on the Covid-1
pandemic epidemic because consumers reshape their consumption patterns, uncertainty about
how long the crisis will last and whether its effects will be tolerated. Before the onset of the
epidemic, macro trends were already reshaping consumers ’landscapes and changing customer
expectations so that they could overcome all aspects of the growing challenge. Today, consumers
prefer not only products but also an attractive Omni channel shopping experience.

Different industries faced different problems, so without the right operating model, they could
only accelerate and exacerbate existing problems, such as unorganized processes, power gaps, or
technological inconsistencies. Also consumer-package-products (CPGs) will probably need new
approaches to overcome these challenges and become more competitive. For a new operating
model design, we believe that most organizations will constantly adjust their operating models,
incorporating new practices that will help them better capture their internal coordination and
respond to external events. Any consumer company can select the best operating model
archeology so that they can meet the needs of their consumers.

Description:

In order for any company to grow in some cases, the acquisition costs were so high that the
thesis initially supported it. Even when the consumer company is reasonably consolidated, one of
its frequent legacies is the integration of the supply chain which is difficult to manage and
efficient and difficult to coordinate. As a result, supply chains are under pressure to be much
more resilient and agile under one operating model:
  Enabled by new technology and talent
 More Responsiveness
 Faster and more flexible
 Integrated seamlessly
 Standardization
 Granular and segmented
 Integrated seamlessly
 Cost- and resource-efficient

Simply put, a new operating model is designed to change the design, set clear priorities based on
the company’s overall aspirations, and be expected to face that unique pain across its supply
chain. Flexibility baking in business models means balancing different levels together:
responsiveness, scalability, efficiency and standards.

The dynamics and implementation elements of different industries will continuously lead to
different north with different levels of concentration. Nevertheless, three common operating-
model archeology are emerging within the consumer business. These operating-models are
described based on this article:

 Centralized operating model

 Decentralized operating model
 Hybrid operating model

Centralized operating model:

The centralized approach puts only the decision-making authority at the top, usually its chief
executive officer (CEO), president, general manager or owner. Operational decisions are made at
the top of the organization with no or no authority delegated to its lower level. Supply-chain
organization at the first management level; has partial or full responsibility for strategies and
controls operative decisions for all units. This method is most applicable when all business units
have a similar product or customer, which provides a high level of control and significant scale
efficiency. While this may limit responsiveness to new trends, the structure allows organizations
to respond to disruptions in an integrated manner.
For example, a global food manufacturing company has launched an operating-model redesign
as part of a wider transformation. In reconstruction, all manufacturing and supply-chain
responsibilities were centralized in the global share-service model. The results saved hundreds of
millions of dollars in costs despite a mature business.

Decentralized operating model:

Business decentralization is when the day-to-day operations and decision-making power are
delegated to top management middle and lower level managers and sometimes even team
members. We can add under a decentralized operating model, an organization creates a separate
supply-chain network for each business unit or geography. Within each business unit, operational
leaders have the latitude to run their appropriate supply chain, with complete autonomy over
decision-making.

An example of a decentralized organization is a fast-food franchise chain. Each franchise

restaurant in the chain is responsible for its own management. Generally speaking, companies
start out as centralized entities and then move on to decentralization as they mature.

Hybrid operating model:

A hybrid operating model is one where selected aspects of the operating model are centrally
controlled and others are managed by individual business units. Organizations typically choose a
hybrid operating model when they have highly outstanding manufacturing technology or a
regionalized portfolio or customer base. Because companies can choose which aspects are
centralized and which are delivered, they can balance the basic dimensions for their needs:
business units can make their own decisions about production, increase their agility, while
capitalizing scale economies through centralized purchases.
Redesigning a Successful Operating Model. The most effective operating models take into
account the company-specific nuances when choosing a design, keeping in mind two important
requirements.
Evaluate trade-offs against design principles:
Leaders begin by determining the most important design policy for their supply chain and plan
their operating models accordingly.
Set long-term business aspirations:
First, instead of focusing on the next round of cost optimization or subsequent acquisitions, the
leadership teams identify a long-term objective, such as increasing new segments or increasing
market share. These objectives will determine the boundaries of future operating models and
capabilities required for delivery.
Thus, each company does not need a complete overhaul of its operating model. Although a
preliminary assessment should be thorough, the changes implemented may vary from minor
changes to full scale conversions.

Finding:

Every company faces many problems to run any business. Consumer companies also face many
problems which are given below:

 In order to survive the COVID pandemic epidemic COVID should follow the consumer
company Omni channel in this uncertainty crisis and direct-to-consumer models are
growing, creating new demand for the operation team.
 Large consumer companies are constantly facing challenges and supply chain problems
to meet the demands of consumers. To address these issues, companies should redesign
their operating models.
 Company designing a new operating model when companies encounter problems they
should maintain a balance of different dimensions.
 Consumer organizations should rethink their supply chain operating models to be more
resilient, responsive and agile.

Conclusion:

Companies are facing and struggling based on the business environment and the uncertain
epidemic situation around the world. So they have to modify and reshape the operation models
there.

This article mainly highlights or highlights the supply chain operating model. And I'm trying to
summarize this article. Different types of operating models are included here, when consumer
companies run their business what kind of problems they face and how they can solve their
problems. It also depends on their business which supply chain operating models can be applied
and whether they are met by applying the models that their consumer wants.