Accenture recently released a short paper on how to build a successful global operations model in which they described six key capabilities that are required for a winning global operations strategy that is worth a quick review.
The article notes that bringing together the worlds of product, market growth, and operations strategy is a prerequisite to success in both new and existing markets because it ensures that operating models meet both needs. … A holistic approach to a global operations model, one that addresses and integrates all aspects of global operations, is crucial.
Although there is no one-size-fits-all approach, six key capabilities serve as a foundation for every successful operations model.
- a globally integrated sales and operating planning process
- a procurement, manufacturing, distribution, and R&D network
- tight links with customers and suppliers that achieve visibility
- logistics partnerships to ensure efficient and time-effective market sourcing and penetration
- effective supplier recruitment, certification, and alignment programs
- a go-to-market strategy for emerging markets
The article also notes that the strategy can be different for different markets and different products. It points out Zara as an example which primarily uses on-shore manufacturers for the production of its fashion lines that change rapidly and off-shore manufacturers for basic products, like T-shirts and underwear, where fashion trends are stable and change rarely.
Furthermore, defining the operations model initially requires a careful consideration of the trade-offs as well as the identification of gaps that a new model will need to address.
In short, success isn’t just picking a single buzz-word, strategy, or discipline, but taking a holistic view of your supply chain and insuring that each core function is appropriately addressed.