Scaling up operations and the associated supply chain activities are fundamental decisions; the consequences of getting them wrong are always serious and can be fatal to a firm’s competitive capabilities and survival. Capital employed and costs will increase; can these be offset by increased revenues in time?

Supply chains are complex networks. The flow of relevant Information through the network determines and controls the physical flow of goods. Understanding, quantifying, and managing variability is fundamental to supply chain management. It is the secret to performance that is hidden
in plain sight. Analysing the behaviour of demand, production, and supply yields insights to systemic variability that can guide the transformation of outcomes, never more so than when scaling operations for growth.

We have crystallised our thinking and experience into 7 key dimensions that critically interact when scaling operations to support growth, the 7Cs:

Our approach makes sure that analysis and planning of capacity, costs, capital requirements are combining with critical evaluations of culture (values, norms, ways of working), capability (skills, roles, organisation), collaboration (operating as part of a larger network) and complexity (what variations are truly adding value) to form a structured, coherent plan to scale up an operation and its attendant supply chain.

Supply chain design and management can be an engine of growth. We apply Flow-First design principles:

With clear, fact-based insight and understanding, a tailored Flow-First Transformation Programme can be developed that:

Plans need to adapt, ever more so when scaling up operations, but there are essential elements that need to be included to increase the chances of success and provide guiderails in a journey to supply chain excellence. The 7 C’s are a great starting point.

Evaluating the organisational design and the behaviours it drives in the business, their coherence for managing the supply chain, and the capabilities of individuals and teams, will indicate the changes and developments required in support of any transformation programme.

Creating an environment where supply chain excellence is inevitable is as much about people as it is about process and technology.

The OP2MA Organisation Diagnostic features 3 key elements;

*RACI: R – responsible, A – accountable, C – consulted, I – informed

To be effective, roles and responsibilities, skills and capabilities, and incentives need to be interrelated and mutually reinforcing. To build excellence, clarity on who is doing what in core supply chain processes is essential, necessary skillsets are matched to role requirements and measures of performance are aligned; any gaps or contradictions need to be found.

Opportunities for digital transformation should be grounded in a sound understanding of the benefit to process capability that such a transition can bring. In the midst of much noise around ‘disrupting’ operating models and markets, prioritising actions has never been more critical.

In conjunction with the OP2MA Process Diagnostic of core supply chain processes, OP2MA’s Data Stream Mapping tracks data flows in the enterprise and with customers and suppliers and forms a key part of the OP2MA Digital Diagnostic. It looks at how information is captured and relayed, the frequency of transfer and the availability of essential data for timely decision making.

Each of the process steps defined by value stream mapping is assessed in terms of the data elements needed as inputs and the subsequent outputs. These are then collated to create a systematic analysis of the data elements integral to the management of the supply chain.

Data capture and transfer sets the rhythm of the supply chain; instances of information shortage and surplus need to be identified. Waiting times and re-looping on critical information, any misalignment between inputs for decision making at core process steps, should come under the spotlight for improvement.

Media for communication of data are varied and any switching between methods needs to be validated and checked for impact on efficiency.

With these insights, priorities for digital transformation can be set with confidence.