How to ensure business as usual during a downturn
A downturn provides an opportunity to enhance operational efficiencies and improve business performance, according to Infosys experts, in a series of blogs, suggest approaches to operational excellence:
- Identify and eliminate inefficiencies in the supply chain such as inventory, overproduction, rework, product proliferation, lack of real-time information, duplication or inaccuracy of data in the ERP system
- Reduce the bullwhip effect, a change in forecasted end-customer demand that gets amplified as one moves up the supply chain. Adopt multi-tiered forecasting or collaborative forecasting techniques such as Vendor Managed Inventory (VMI), use of Point-of-Sales (POS) or consumption data by upstream channel partners and sharing of promotion information
- Enhance operational efficiency on the shop floor by eliminating waste as much as possible. Manage rework and scrap to reduce cost and minimize interruption in work
- Revisit operational processes to eliminate efficiencies, increase cost savings and profit margins
- Review metrics of availability, productivity and quality to enable informed decision-making
- Define operational excellence metrics to measure the benefits of Enterprise Resource Planning implementation
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Redefine your measurements to stimulate operational excellence
Do accounting and costing techniques ensure operational excellence?
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Operational excellence metrics – Implementation considerations
Companies can realize the benefits of an ERP implementation by defining the metrics for operational excellence at the outset.
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