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Operations Management - Supply Chain Transformation

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Operations Management - Supply Chain Transformation

Transformation of the supply chain is the addition and incorporation of technology to

enhance supply chain performance. Although the word can refer to any redesign of supply chain

management (SCM) systems and practices, it is commonly associated with the digitalization of

supply chains. Transformations in the supply chain have two main parts: making digital

investments and managing the transformation. In this transition, it is recommended to make

digital investments, which are purchases of necessary machinery and software. Transformation

management is the utilization and application of digital assets. This paper examines Prysma, Inc.,

global networking, connection, and cabling solutions provider. The company has been operating

for almost 110 years and services several industries, including residential, enterprise, data center,

and broadcast. Prisma's business model has been evolving in recent years to focus on providing

customers with comprehensive solutions rather than individual products. This change was

necessitated by the necessity to handle the problems posed by the dynamic and complicated

supply chain landscape. Recent difficulties in Prisma's order fulfillment procedure have led to

declining sales and client satisfaction. There appears to be an issue with the machinery requiring

more repairs. These repairs have been expensive and have frequently caused delays in order

fulfillment. As a result, Prisma has resorted to outsourcing some of its orders to third-party

suppliers (Tan & Shukla, 2021, p. 101). It has resulted in rising costs, which may erode profit

margins in the near future. Because of this, the company has decided that Supply Chain

transformation is the best method to revitalize its production and boost its sales.

Successful transformation management procedures should begin with: (a) a strategic

vision with measurable long-term objectives. This approach should be adaptable as technological

advancements occur rapidly. (b) Structured governance, ideally with centralized digital
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implementation control. Supply chain management enhances the products, processes, and

operations of the firms involved in producing and distributing goods and services from raw

materials (Anderson et al., 2021). By improving resource utilization, transparency, efficiency

throughout the supply chain, proximity to customer needs, and the caliber of decision-making,

firms can achieve a competitive edge through digital transformation in supply chain

management. In addition, it ensures that the supply chain will soon become more flexible and

have new, efficient business models. Due to high initial investment costs and worries about the

viability of applications, digital transformation is now in the digitalization phase rather than the

transformation phase.

Measurement and Analysis

There are two main effects of performance evaluations, both of which are two-way. In the

first place, you can use them to describe the evolution of the process you're looking at. On the

flip side, they can serve as benchmarks against which progress can be measured. It enables the

establishment of a future-oriented orientation. Establishing a future value or objective for a

performance metric makes it possible to track the measure's progress toward the goal and its

achievement (Sherman, 2012). Organizations use performance metrics to keep an eye on workers

and divisions, guide them in the right direction, provide them feedback on how they are doing as

they work toward their objectives, and evaluate how well they are doing overall regarding their

strategic and improvement targets. Performance evaluations, both short-term and long-term, are

necessary for organizations. Traditional methods of measuring performance place more of an

emphasis on static metrics because these statistics are simpler to track, collect, and quantify.

However, in today's corporate climate, attention has turned away from the here and now and
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toward the future. Thus, dynamic measurements demonstrating a variable's progress toward a

goal ratio are more insightful.

Prisma's cognitive supply chain transformation has made them market leaders, giving

them an edge in a highly competitive business. It was especially true during the last pandemic,

which exacerbated worldwide supply shortages. Prisma focuses on delivering economic value to

enterprises through augmented intelligence, which enables Prisma Supply Chain professionals to

prioritize higher-value events and make more informed decisions. In order to create useful

cognitive applications and maintain a steady stream of advocacy throughout the Prisma Supply

Chain, the company has embraced agile transformation and enterprise design. Significant gains

have resulted from Prisma's efforts to become the first cognitive supply chain. There have been

enhancements in several crucial areas, including inventory cost and financial reporting, customer

satisfaction, supplier management, employee engagement, and the ability to enable revenue.

Prisma needs to establish its objectives and needs before developing its supply chain

strategy. Monitoring supply chain performance in its whole and setting goals based on data

rather than guesswork are essential components of efficient supply chains (Anderson et al.,

2021). Companies that are doing well in the supply chain are those whose operations are in sync

with those of their customers, suppliers, and any other supply chain participants. A supply

chain's performance measurement system should account for the whole supply chain and align

with the company's actual performance assessment processes. There should be a fair mix of

financial and non-financial KPIs in this system, as well as a focus on business processes rather

than individual departments. Simple, clear, and meaningful performance measurements that are

limited in number are essential. To be effective, a system for measuring performance must be

flexible, allowing measurements to be modified as needed to best suit the objectives being
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pursued (Sherman, 2012). The performance measuring system should include historical data and

have a structure capable of covering anticipated future advancements.

Generally speaking, conventional performance indicators are financial and quantify the

return on investment, efficiency, and cash return. Absolute and objective data are presented.

However, these indicators have been challenged for displaying a narrow perspective of the

company, for being retrospective, and for their inability to provide accurate future projections.

According to Tan and Shukla (2004, p. 101), production operations should be driven by strategy

for a performance measurement system to be effective, and the performance measurement

system's objectives should be determined by strategy. It is important for management to focus on

areas that need strategic improvements. Performance assessment can be a useful tool in this

regard if it is used as a feed-forward rather than feedback. Successful businesses have

competitive and supply chain strategies that correspond to industry standards. When constructing

supply chains, it is recommended to strike a balance between responsiveness and efficiency to

provide the most competitive strategy (Shaposhnikov & Veselova, 2022, p. 34). There are four

aspects of the supply chain that have an impact on its responsiveness as well as its overall

efficiency: the inventory, the transportation, the facilities, and the information. These four

factors, in the meantime, are what determine whether or not the strategy for strategic planning

and the strategy for the supply chain are conformable.

Recommendations

Intelligent workflows make use of a data platforms and AI-driven consultants to make it

possible for major transformation programs to implement risky process improvements.Without

requiring manual handoffs, they induce greater cultural and organizational shifts. Collaboration

is essential, but it must be digitized to be utilized efficiently across the enterprise. Intelligent
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workflows make operations flexible and responsive, rather than moving from left to right.

Essential data pieces support them to facilitate swift decision-making (Shaposhnikov &

Veselova, 2022, p. 34). Prisma are empowering supply chain professionals to transition from

doing repetitive operations to managing workflows with the help of AI-driven workflows by

delegating them to digital workers. Decisions may be made more quickly when supply chain

experts are in charge of orchestration, and a digital worker aids in automation (Chakravarty,

2014, p. 55). Workflows need to be flexible rather than set in stone if the supply chain is to be

resilient and adaptive. Intelligent operations can best be planned and executed with Continuous

Intelligent Planning. Building continuous collaborative workflows that integrate supply and

demand planning and fulfillment allows for faster reactions to changes in the supply situation. In

order to gain a fresh perspective on demand sensing and conditioning, intelligent workflows

digitize existing supply chain links (Selladurai, 2018, p. 99).The electronic sector is witnessing

longer lead times and increased supply limitations compared to the past. Faster information

exchange between supply chain "ends" is made possible by intelligent processes.

People development

Our greatest strength is on our expert supply chain staff. We are dedicated to creating an

environment where employees are free to think creatively and take chances, allowing them to

come up with new ideas whenever and wherever they are. Success in adapting to the needs of a

digital future depends on making use of our current workforce through upskilling. Our data

scientist, citizen programmer, and workflow manager are responsible for our team's capacity to

learn new technologies, create and train AI and automation, and construct intelligent workflows.

The rapid evolution of technology and business issues necessitates the evolution of Prisma

Supply Chain responsibilities and our management strategy (Chakravarty, 2014, p. 45). We are
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dedicated to supporting our cross-functional teams with an environment that encourages and

rewards creative problem-solving, rapid iteration, and a spirit of openness and curiosity.

Incorporating Prisma Enterprise Design into our modern methods, we have been able to better

cater to our users' wants and needs while bolstering bottom-up transformation with top-down

oversight and direction.

Prisma teams make use of AI to speed up the process of gaining insights from end-to-end

supply chain data in order to promote quicker collaboration and decision-making. With the

assistance of intelligent workflows, our professionals who work in supply chain management are

able to shift their focus from completing activities to managing the integration of data, events,

and collaboration in order to improve supply chain performance. We made the decision to

digitize and openly share our knowledge in this area as a response to the growing complexity of

the global supply chain. By doing so, we were able to maintain the tacit understanding of our

most experienced specialists while also making our knowledge more accessible to both

newcomers and experienced experts alike (Selladurai, 2018, p. 99). Prisma employees have

access to a variety of options to pursue their development roadmap as a result of our commitment

to consistent communication and emphasis on recommended learning in the form of role-based

skill paths, skills, engagement teams, and learning opportunities in collaborative partnerships

with educational institutions. The ways in which our team overcomes day-to-day challenges and

adopts unique methods of operation greatly contribute to the enhancement of Prisma's robustness

and adaptability.

Implementation Challenges

Although there is no question that the logistics of supply chains are always being

improved, it is reasonable to suppose that the majority of companies that deal in consumer goods
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were not accustomed to the disruptions that took place in the year 2020. Prisma will have to

overcome additional challenges in 2022 if it wants to continue to be successful in the cutthroat

eCommerce sector (Dittmann, 2012, p. 120). As a consequence of this, the shift toward online

retail, the increase in customer confidence, the pent-up demand, and the accrued savings

represent a great opportunity for digitally native businesses.

Material deficiency

Since the onset of the pandemic, insufficient inputs have been a worry due to the unusual

surge in the demand from customers. This is because of the virus. Even at this late stage, retailers

and suppliers are having difficulty satisfying this demand as a result of the limited accessibility

of certain components and parts (Schonsleben, 2018, p. 34). When speaking with various

growth-stage companies that are part of our network, we have learned a wide range of

information, from the fact that manufacturers of furniture are facing foam shortages to the fact

that manufacturers of bicycles are losing payment terms due to component suppliers reaching

capacity (Sabri & Verma, 2015, p. 78). Due to the limited availability of these inputs, a

company's ability to sustain expansion is dependent on its working capital, which allows it to

weather slow periods and ramp up production in preparation for busy times.

Escalating freight costs

The pandemic has had the opposite effect of expectedly increasing container shipping

demand. Import demand for raw materials and manufactured consumer goods has surged as a

result of global lockdown measures driving an increase in internet sales. Furthermore, because

this demand was so much higher than expected, limited shipping capacity and an unusual dearth

of empty or available containers were faced.

Forecasting demand is challenging.

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In the midst of a global epidemic, the management of supply chains for many companies

has been given an additional layer of complexity as a result of demand forecasts. Because of the

outbreak of COVID-19, the predictions of many firms have been severely harmed, and as a

result, these enterprises do not know how much stock they should keep on hand or how many

units they should create. The challenge has been to improve client demand estimates while

depending largely on gut instinct rather than data-driven study. This has been a source of

difficulties (Dittmann, 2012, p. 111). In this kind of scenario, supply chain managers are strongly

encouraged to give up their preconceived notions, look for new data sets on which to base their

forecasting models, and consistently improve the accuracy of the results they provide.

Alterations in consumer attitudes

A dramatic shift has occurred in the attitudes and behaviors of consumers as a result of

the epidemic. For example, the threshold for acceptable delivery times has decreased, but the

criteria for providing an exceptional customer experience have increased. The challenge is in

constructing a flexible supply chain that is able to harness the power of automation to the

greatest extent possible, in order to maximize fulfillment and readily handle fluctuating demand

(Sabri & Verma, 2015, p. 78). The availability of multichannel customer order services, as well

as software for inventory management, is a great illustration of the adaptability of the supply

chain.

Transformation to the digital domain

Supply chain operations may experience both positive and negative effects as a result of

digital transformation and the Internet of Things. The way in which we currently manage the

traditional supply chain has the potential to be improved through the implementation of a number

of different technologies. These include artificial intelligence, robotics and drones, electric
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vehicles, and on-demand delivery. It can be challenging to implement these systems and services

throughout all of a company's supply chain operations, despite the fact that they are designed to

make eCommerce more efficient and cost-effective over the long term (Sabri & Verma, 2015, p.

78). Time and organizational reorganization are necessary for the successful implementation of

these technologies, which is especially true when dealing with a large number of warehouses or

omnichannel sales. However, in order for supply chains to maintain their level of

competitiveness, they need to undergo constant modification.

Restructuring

Restructuring is, without a doubt generating waves among modern retail brands. This

process can take numerous forms, including reshoring, switching suppliers, and establishing

contracts with new carriers (Kaykc, 2020, p. 12). The issue of restructuring is determining when

a change is appropriate and how to implement it as smoothly as feasible.

Inflation

There is a good likelihood that 2022 will be known as the year of inflation, although it is

too early to say for certain. While much has been made about inflation, the reality is that several

nations are currently seeing the highest inflation in decades. As inflation continues, firms must

anticipate rising costs associated with purchasing raw materials, completed goods, and more

(Vipin et al., 2021, p. 101). The effects of these escalating expenses are frequently excess or

surplus inventory, rising storage fees, decreased margins and decreased income for Prisma-based

brands.

Conclusion

The digital transformation of supply chains is at the top of the agenda for many

businesses. It is one of the leading trends to observe. Practitioners investigate the linked benefits.
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Even though recent world events have shaken up the entire Prisma® Supply Chain, we are

confident in our ability to emerge victorious because of the exponential technologies built into

our supply chains and our enhanced agility, robustness, and transparency. Prisma is now in a

position to quickly and successfully manage these upheavals and course-correct using cognitive

innovation as a result of the company's decade-long commitment to building smarter supply

chains. Therefore, workers at Prisma Supply Chain were able to produce outstanding outcomes

without negatively impacting the experience of the company's customers. In addition, this

pervasive effect inspired the development of a variety of innovative solutions, some of which

include exponential technologies, which better prepare Prisma for upcoming upheavals in the

market. Our company comes up with original concepts; implements digitalized business

procedures, and advocates on the customer's behalf to have already existing products enhanced

as a result of interactions with the customer.

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References

Anderson, M. A., Anderson, E. J., & Parker, G. (2021). Operations management for dummies.

John Wiley & Sons.

Chakravarty, A. K. (2014). Supply chain transformation: Evolving with emerging business

paradigms. Springer.

Dittmann, J. P. (2012). Supply chain transformation: Building and executing an integrated

supply chain strategy. McGraw Hill Professional.

Kayιkcι, Y. (2020). Blockchain-driven supply chain management. Logistics 4.0, pp. 146–155.

https://doi.org/10.1201/9780429327636-16

Sabri, E., & Verma, L. (2015). Mastering change management for successful supply chain

transformation. Optimization of Supply Chain Management in Contemporary

Organizations, pp. 117–147. https://doi.org/10.4018/978-1-4666-8228-3.ch005

Schönsleben, P. (2018). Logistics, operations, and supply chain management. Integral Logistics

Management, 3-59. https://doi.org/10.4324/9781315368320-2

Selladurai, R. (2018). Network marketing and supply chain management for effective operations

management. Managing Global Supply Chain Relationships, 322-

335. https://doi.org/10.4018/978-1-61692-862-9.ch014

Shaposhnikov, S., & Veselova, A. (2022). Supply chain and digital transformation in

Japan. Increasing Supply Chain Performance in Digital Society, 44-

58. https://doi.org/10.4018/978-1-7998-9715-6.ch003

Sherman, R. J. (2012). Supply chain transformation: Practical roadmap to best practice results.

John Wiley & Sons.

Tan, A. W., & Shukkla, S. (2021). Digital transformation of the supply chain: A practical guide

for executives. Longhorn Pub.

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Vipin, B., Rajendran, C., Janakiraman, G., & Philip, D. (2021). Emerging frontiers in

operations and supply chain management: Theory and applications. Springer Nature.