Companies prepare “plans” in which they write down the goals they want to achieve, but “planning” that answers to the 5W1H questions, necessary to realize the “plans” and more precisely, to achieve their goals, cannot be implemented correctly.
The plans can only be realized if they are implemented correctly in the field, because it is seen in the field how correct or incorrect the answers given to the 5W1K questions to implement the plans.
In order for the planning made for the realization of the plans to be implemented correctly, all departments of the company should plan their own business by either putting the supply chain and logistics (shortly the operation in this article) to the “center” or “knowing the operation very well” or really “integrating” with the operation and act accordingly.1
The goals can be achieved through a correctly managed operation because of the correct delivery of goods and / or services to the customer (individual, corporate), sustainable growth, sustainable profitability and sustainable competitiveness wich means:
- By responding to changes quickly, effectively and effectively with operations management, both customer satisfaction and competitive advantage can be achieved.
- If the logistical benefits cannot be achieved (to be able to own and use it whenever it wants, where it wants, with the features it wants and as many times as it wants), the customer’s reactions may have more destructive effects than the poor quality of the product.
- Operational processes have a greater impact on sustainable customer satisfaction and sustainable competitiveness than financial or marketing or sales tricks. In fact, logistics flow, logistics competencies, logistics competencies and logistics discipline gain importance as the operation directly affects sales and production and finance.
- Since at least 50% of the costs are incurred in the operation and at least 50% of the human resources are working in the operation, the operation and related (affecting, affected) inventory management dynamics and their costs are very effective in the unit cost of the product.
- The operation touches all the functions of the company (R&D, production, marketing, sales, finance, accounting, human resources), is in constant communication with them and directly affects and is directly affected by them.
Objectives cannot be realized in the field unless companies have a well-managed operational infrastructure, strong in quality and quantity, and parts of the company are truly integrated with the operation.
Thanks to the correctly defined and structured (the quality and quantity of people, lean processes, the quality and quantity of materials and equipment to be used, technologies to be used, operation points, inventory management decisions, etc.) operation being run , the goals of the companies are realized and the companies and companies differenciate themselves as much as their products.
Sales only acts for the better sales; production only acts for better production; finance only acts for better finance. The operation, on the other hand, acts to make the sales, production, finance and the company more accurate in general.
That is why NOW IS THE TIME for the Plans (Strategic, Tactical, Operational) and Planning process to be operation-centered, that is, “supply chain and logistics”, and to be in absolute harmony with the operation.
I recommend you to review Amazon’s “Amazon Prime” and Intel’s “SC @ Intel” applications.
