In the face of unpredictable markets along with increasingly frequent shocks and disruptions, companies are focusing on improving their resilience. Achieving this requires action that spans traditional functional boundaries, and involves transformation not only of an organization’s operations but its entire operating model.
So how do companies develop resilience in a business world where volatility has become a global constant? The past two years have demonstrated clearly just how quickly and dramatically market conditions can change. Where some businesses saw demand literally collapse overnight, others experienced an unexpected and sustained surge. With many areas still battling pandemic-related issues, others are facing the challenges that come with recovery. Pent-up demand is rampant across many industries, creating even more supply chain issues after months of disruptions. Other factors compounding the challenge include the impact of Brexit, the transition to Industry 4.0 and the increased focus on environmentally and socially sustainable business models. The world is moving faster than ever, and as difficult as it can be to achieve, there was never a greater need for operational resilience.
That said, true resilience is very difficult to develop using a fragmented, bottom-up approach. Research shows that using a holistic, cross-functional approach can improve a company’s overall resilience 30 to 40 percent more than traditional optimization does. While these changes can be quite diverse, depending on each organization’s circumstances, the following are five strategies that can generally be applied by many businesses.
Reassess Make or Buy Decisions
Organizations should consistently review their operational footprint, determining whether certain activities are better maintained in-house, or whether they can be managed more efficiently through outsourcing or external suppliers. The organization in question needs to answer the question: is the current footprint optimal?
Rethink Asset Strategy
It’s important to carefully analyze the existing asset base and determine where to focus improvement efforts. This type of overview might be based on four dimensions: the level of operational excellence at a site; its cost factors including labor, energy, materials and transport; the scope of its output (taking into account its size and degree of automation); and the distinctiveness of a site which would allow for market access and specialized capabilities.
Transform for Agility
At this stage, a business should be focusing on frontline actions that can bolster its operations against shocks. All levels of operation need to be able to react effectively to changes in supply and demand. For example, in manufacturing industries, lean ideas such as small batch sizes, quick changeovers, and just-in-time production can make the difference. Careful analysis of how and where to invest in agility is the key to success in this function.
Build a Robust Supply-Chain Risk-Management Process
Successful businesses now identify vulnerabilities in their supply chain through multiple tiers, targeting weak spots and building in functions to mitigate slow-downs, should challenges emerge.
Digitize Channels to Market
In the new-normal business world, digital technology has set the bar for success. Digital delivery of products and services is the wave of the future, allowing for the transformation of the way companies design, develop, market, deliver and support their offerings.
Ultimately, every facet of resilience can be supported by the involvement of BPO outsourcing companies. Anexa, an award-winning industry leader, can supply a carefully selected, experienced pool of human resources. Our agents are highly trained to assist with both the technical component of your digital activities, as well as the customer-centric focus that is so critical to meeting today’s consumer expectations. Across all industries, Anexa can assume management of a wide spectrum of your organization’s activities, leaving you to lead the way and supercharge your company’s resilience.
Want to learn more? We’re Anexa – reach out today.