Operations

How are you balancing local execution with global capabilities?

Being able to execute on a local growth strategy requires developing local capabilities across functions like manufacturing, R&D, and distribution, while maintaining the advantages of scale and consistency in operations around the world. Half of US CEOs wish they could devote more time to developing their overseas operations.

Those successfully balancing their global capabilities with local opportunities are showing a distinct shift in mindset and approach. Consider recent US-China cross-border deals: they combine US experience and expertise with attributes only local Chinese partners can offer, such as relationships to secure government support and distribution networks that penetrate inland regions.

 


Featured operations insights

 

Overcoming network logistic complexities in emerging markets

When carrying out supply chain network modelling projects in emerging markets, there are a number of challenges to be considered and managed. This paper describes how a sample of these can be overcome.

 

10Minutes on organizational DNA

Ever wonder why some companies consistently deliver while others disappoint? Faced with the same market, stocked with similar talent, one organization flourishes, while the other flounders. By understanding what makes your organization tick and where there might be breakdowns to address, you and your employees can truly deliver on your strategic intent.

 

Service supply chain as a source of competitive advantage

After recent years of focus on reducing product and supply chain costs, high performing product manufacturing companies are now taking a structured look at service supply chain operations. Traditionally, the service supply chain for these original equipment manufacturers has been perceived by company officers as hard to manage: a “cost of doing business” and a “second tier driver of business value”. Often, these operations have been an afterthought for creating competitive advantage since spending often exceeds reserves, inventory write-offs are common and customer experience ratings of post-sale services are traditionally weak.
But it doesn’t have to be that way.

 

Sustainable Supply Chains: Making value the priority

Sustainability has been on the executive agenda for years and it’s now one of the fastest-growing supply chain management trends. More than two-thirds of 500 supply chain executives say it will play an important role in how they manage their supply chains through 2015. When PwC and APICS Foundation decided to explore what the people responsible for executing on these strategies would say about the topic, an interesting picture emerged. Thirty-nine percent of APICS members, the leading association for supply chain and operations, say company leadership is not providing the mandate, incentives, and resources to turn supply chain sustainability into action. Read this report to find out more.

 

M&A Integration: Looking beyond the here and now. PwC’s 2014 M&A Integration Survey Report

In 2008 and 2011, our tri-annual M&A Integration survey reports underscored the need for early planning and an accelerated transition as critical factors for successful integration.
This 2014 survey report confirms these factors remain in today’s deals, and offers additional insights – showing that while early planning and rapid transition remain important, the commitment to integration completion over the long-term can be the deciding factor for deal success.

 

10Minutes on service provider transparency

Businesses depend on service providers to handle confidential data, run essential business processes, and manage critical technology. This can leave businesses vulnerable to service provider breakdowns. The result can be the providers’ clients violating regulations and even losing customer trust. Yet many businesses may know less than they realize about their service providers’ controls. This 10Minutes discusses how SOC 2 and SOC 3 reports can give businesses the picture they need to have solid confidence in their service providers.

 

10Minutes on transforming the tax function

It’s an opportunity hidden in plain sight. In 10Minutes on transforming the tax function, we discuss how the tax function is often overlooked as an area for improvement, unlike more obvious choices such as supply chain or business services. However, shining a light on the tax group can reveal untapped opportunities where changes in technology, process, people, and data can lead to benefits for the broader business.

 

Strategic supply chain management

New research shows that high-performing supply chains can achieve sales and revenue growth while managing costs. That sounds like a tall order, but there are things you can do now to manage your supply chain as a strategic asset to boost performance and profitability. This 10Minutes highlights how the supply chain can move your business strategy forward and set you apart from the competition.

 

10Minutes on lease accounting

After three years of outreach and deliberation, the IASB and FASB recently issued a revised proposal to overhaul the rules on accounting for leases, a move that could significantly boost US companies' reported debt.

 

10Minutes on conflict minerals

10Minutes on conflict minerals provides insight into the strategic benefits and risks companies will want to focus on as they comply with the SEC's conflict minerals rule. The rule is effective for 2013 calendar year operations, so regardless of whether companies view conflict minerals as a supply chain opportunity, risk to their brand or another regulatory to-do, they should act now to prepare.

 

10Minutes on harnessing customer demand to drive growth

Consumer-packaged goods (CPG) companies, retailers, and their business partners often tout the ways they put customers at the center of their strategies. But while many companies do a good job of understanding their customers, perhaps not as many create demand by coordinating across marketing, sales, and innovation—functions and activities that now encompass the demand chain. This 10Minutes explores ways companies can capitalize on knowing their customer with demand functions pulling in the same direction.

 

CIO leadership in post-transaction relationships: IT’s role in customer engagement

By evolving IT to focus on the end customer, CIOs have the opportunity to be key partners in helping their businesses break new ground.

 

Aligning customer and enterprise goals

Fred Cripe shares how Internet of things will shift the insurance business from loss compensation to loss control by helping customers achieve their goals.

 

Digitizing product use

Jim Ingrassia of Konica-Minolta shares how digitizing the use of its products was a source of competitive advantage.

 

Using technology to help customers achieve their goals

Businesses that embed capabilities to understand usage in their products in service of customers’ goals stand to reap unparalleled value.

 

Internet of Things

This issue of the Technology Forecast examines the impact of Internet of Things trends on businesses and the IT organization. It analyzes how businesses now have the ability to continue the relationship with customers after the sales transaction by helping them achieve the goals for which they buy the products.

 

10Minutes on building the customer-centered organization

What does a customer-centered organization look like? What investments are needed to take you there, and what might that journey look like? This 10Minutes discusses these questions and how companies who focus on creating a customer-centered organization may reap real dividends.

 

10Minutes on supply chain flexibility

Volatility has become a fact of life in today’s business landscape. Yet, after years of global expansion, many companies’ supply chains are brittle, unable to respond to frequent fluctuations in demand and supply. This 10Minutes explores strategies companies can deploy to make their supply chains more agile and adaptable.

 

10Minutes on creating value from Global Business Services

In 2013, company leaders are looking for value creation from their operations. To achieve this goal, organizations are moving beyond shared services and outsourcing to a Global Business Services (GBS) model. GBS helps provide those intangibles by focusing on customer needs and business strategy first and foremost.

 

Washington National Tax Services Insight: IRS examines whether manufacture of packaging qualifies for section 199 deduction

Section 199 domestic manufacturing deduction does not apply to a taxpayer that repackages and labels pills that it did not manufacture

 

Washington National Tax Services Insight: Tax issues and opportunities in technology litigation judgements and settlements

An increasing number of lawsuits are being filed by technology companies surrounding patent infringement, unfair competition, fraud, and breach of contract.

 

Next generation supply chains: Efficient, fast, and tailored

Our Global supply chain survey shows how supply chain leaders are moving ahead of the pack. Read the report and see how PwC can help you compete more effectively.

 

10Minutes on business continuity management

The best disaster survival manual may be obsolete if it doesn’t anticipate major disruptions to the supply chain or at outsourced operations. As a result, business continuity management programs are being designed to continually assess— as well as counter—risks stemming from the interdependencies integral to running a business.

 

Elevating tax function productivity with an "efficiency dividend"

PwC's latest thinking about how companies can leverage technology already embedded in the broader finance organization to transform a high-pressure environment into an integrated ecosystem that drives improvements in productivity, quality and risk.

 

How credible is your sustainable reporting?

CEOs and boards know the benefits of corporate responsibility reporting included increasing profitability, reducing supply chain risks and costs, and garnering sustainability ratings and recognitions. Overall, companies need this information to drive operational efficiencies and facilitate innovation. Ultimately though, to win stakeholders’ trust, companies need to be credible with respect to sustainability. How do they achieve it?