DESIGN AND GOVERNANCE


Organisational designs differ from company to company. Certain designs encourage innovation and shorten development cycles whilst some aid quicker decision-making. By synchronising the supply chain with the organisational design, Concargo can create a competitive tool to quickly respond to changing customer needs and demand cycles.

In this global economy supply chain organisation needs to be optimally designed for better business performance and to add value to the overall customer experience. Effective organisation design can be structured by taking the following issues into account:

  1. Identify the core competencies of the firm.
  2. Strictly define the reporting structure across the entire supply chain.
  3. Determine when an activity can be outsourced and the associated risks with it.
  4. Determine whether all the functions needed to perform an activity/ process is in place.
  5. Develop the capability in order to acquire the critical roles internally over a period of time.
  6. Identify the bottlenecks in the proper flow of information, goods etc. from one function to another and determine their respective solutions.
  7. Identify the various non-value adding functions that can be done away with, which will result in a lean organisation which can be better managed.
  8. Determine the roles / ownership associated with each function, thereby assigning the responsibility and doing away with all the non-value-adding roles.
  9. Restructure the supply chain with a view to building support throughout the firm, eliminating unnecessary delays, reducing costs, simplifying complexities.
  10. Identify critical roles and responsibility required to maintain an efficient supply chain and equip employees with appropriate wherewithal to discharge their duties effectively.
  11. Identify if any activity/ process can be decentralised, for eg. determine if having a centralised warehouse system or distributed network and its resulting trade off is viable when taking time, money and quality into account.

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