Skip to Main Content
Access your saved content
Mastering dynamic operations is crucial for companies that plan to enter emerging markets, while minimizing risks and maximizing returns.
Today, running businesses successfully in emerging markets is a major undertaking. Companies must understand that these regions are diverse and complex, and should not treat them as a single entity. They also need to bear in mind that emerging markets will not remain “emerging” forever and will eventually mature. Added to this is the challenge of addressing the relentless speed and amplitude of economic volatility.
We believe that simply optimizing operations will not work to navigate through various challenges of operating in emerging markets. Companies should look at implementing dynamic operations—group of activities or points in supply chain networks that, in response to changing events, reorient themselves without upending a company’s desired cost-service balance.
In this point of view, we delve into how companies can make their operations more dynamic by weaving innovation, agility and risk mitigation into the fabric of their supply chain strategies.
As organizations set their sights on emerging markets, they confront an environment far more dynamic than that of traditional, developed markets. To excel, companies may need to explore approaches that challenge many principles of traditional lean supply chain strategies.
Most supply chain strategies are quite dated now and hail from earlier times of economic stability. Business cycles that existed earlier were often predictable and management teams could easily navigate through the challenges, while still focusing their supply chain strategies on cost reduction.
This was done, in part, by establishing low-cost manufacturing units in offshore locations, rationalizing the supplier base, reducing inventories by integrating partners into ecosystems and applying lean principles to make processes more efficient.
This one-size-fits-all, cost-driven supply chain cannot help address complexities of the emerging markets and ever-changing economic landscape. So, what’s next?
Companies should consider multiple, agile supply chains customized to specific regions supported by local capability and talent. They need to address certain challenges that are unique to emerging markets. These include:
We believe that dynamic operations can help create a critical balance between the dual needs of responding to economic volatility and building more business value.
There are four capabilities of dynamic operations, which include:
So, when a disruptive situation arises—such as supply interruptions, financial turmoil or market shifts—these capabilities will enable the company to quickly modify its processes.
Craig Rawlings leads Accenture’s Operations Consulting practice in ASEAN. He has developed supply chain and business strategies for some of the leading companies across the Asia Pacific region. Craig has extensive experience in supply chain and business transformation aspects in the consumer goods, telecommunications and resources industries.
Ganesan Ramachandran leads Accenture’s Operations Consulting practice in the India. He has more than 20 years’ experience in supply chain and operations management, spanning vendor development to fulfillment to service management for many global companies. Ganesan has experience of working with companies in the automotive, industrial equipment and consumer goods industries.
Roque Cifu is a senior manager with Accenture’s Operations Consulting Practice. He has a strong background in supply chain strategy, gained while working for leading companies in the consumer packaged goods and retail industries in Latin America.
Aakash Deep is a manager with Accenture’s Operations Consulting practice. He has a strong background in supply chain planning and transformation, network improvement, transportation management and warehouse management. Aakash has worked across the electronics and high tech, retail and consumer goods industries.
December 6, 2013
Skip Footer Links