Introduction and challenges
While cost pressure remains extremely high across all operations, the challenge of agility makes problems even more complex. Indeed, operations have to face ever more demanding customer requirements in terms of lead time and compliance with commitments, with product renewal rates becoming ever higher and with emerging environmental pressure.
Examples of potential levers include: reviewing make or buy strategies throughout the value chain, cost variability, cycle reduction both in terms of production lead times and re-planning frequency, permanent readjustment of production or logistics capacities, reduction of batch sizes, adjustment of stock management parameters, and optimization of transport plans. However, most of these levers can lead to a potential increase in costs. This challenge of agility without increasing costs under increasing environmental constraints is therefore the new challenge already facing operations in the 2020s.
How we can help
The first key phase of ‘framing’ an agility improvement project will be to build the roadmap to be more agile. It will, therefore, be a question of:
- Identifying agility levers across all operations
- Qualifying them as potential gains on cycles, inventory quality, product availability, cost and environmental impact, accessibility and complexity
- Aligning all stakeholders, especially the management committee, with an implementation plan for these levers, incorporating rapid victories and deeper transformations
Appropriate support in the subsequent phases of implementation until the results are obtained, in particular for:
- Putting the organization under tension
- Managing the transformation program and ensuring the follow-up of gains through the implementation and management of agility KPIs
- Providing the necessary expertise on the most advanced subjects (such as batch size optimization, planning, and inventory management)
- Supporting the people aspects of transformation