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Operating Model

Operating model consist of three (3) elements:

  • organization/people,
  • business process, and
  • system/technology.

People element is the essence of the operating model, organization is developed effectively where functions are run by competent personnel.

Business process is continually reviewed for improvement and adding value, i.e. shorter cycle time and efficient process to maintain high service level to the customers.

Utilization and advancement of system & technology are the enabler to high performing supply chain.

In the center is performance management to measure and manage supply chain achievement toward the goals by using the tools such as balanced scorecard and Key Performance Indicators.

Finally, collaboration is encouraged to synergize our resources to make the best results; this be done internally within the organization by forming cross functional team and also externally with other related parties to achieve common goals in a better way or in order to gain cost saving and added value.

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The evolution of supply chain from a state of multiple dysfunction toward total integration, the synchronized supply chain, requires the key success factors resembled:

  • Right organization; process-oriented, integrated partnerships focused on its core competencies
  • Right people; through hiring, training, and restructuring to develop the skills and understanding of supply chain goals and processes.
  • Right processes; streamlined through approaches such as lean, JIT, 5S and collective efforts for simplifications with business partners.
  • Right technology; the Internet and other technologies utilization to take full advantage in running the supply chain transparently, rapidly and reliably.
  • Right measures; appropriate performance measures in place for continuous improvement, identification of progress achievement toward goals.

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