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Feature did a study of its supply chain, I found that there was a complete absence of this trust between functional areas. The supply chain department was insensitive to the demand of the sales force for a product and went on feeding wrong information about the availability of the product. The sales force went ahead promoting the product. When its supply was outsourced from a European country it was clear that there was shortThese practices of business excellence have created invisible age of this chemical worldwide. walls within the political boundaThe net result was wastage of ries. Each department tries to money, time, and loss of marcompete with the other -- the ket. What was surprising here internal competition leads to a was that this very chemical was situation of one-upmanship. This available in another region where affects the flow of information demand for the product had deand material through the organi- clined the previous season. The sation. In a volatile and dynamic trust and sharing of information environment, the need of the would have increased the velocity hour is to manage demand by of product movement, and would planning supply to reduce inven- have reduced inventory in one tory, both inbound and outbound. place and shortages in another. biggest hurdle for the firms to move to more advanced levels of supply chain gains. Functional excellence was all right when demand was certain and the customer lived in the sellers ‘ market. As markets became dynamic, characterised by demand uncertainty, significant seasonality, short product life cycles, or high competitive intensity, functional excellence was a hurdle. There is a need to share the information that each department has. For instance, the marketing and sales department needs to pass on its knowledge to purchase and manufacturing as well as the supply chain. This will only happen if each department has the overall business objectives of the company in mind, rather than its own performance. Which means that cross-functional trust and faith are necessary. But often, there is a lack of trust among these departments. Finally, even though departments do better individually, business suffers. Here is a case in point: In an agro-chemical firm for which I Therefore, companies that organise for functional integration will almost certainly outperform those that organise for functional excellence. But how should a company bring about this functional integration? There is no silver bullet answer for ways to achieve functional integration. Rather, one must address all aspect of a company’s operations, as follows: 1. Manage the process, not the function. 2. Align measurement systems with overall goals. 3. Use integrating mechanisms such as the sales and operations planning meeting, cross-functional teams and the team problem solving approaches. Work to develop a culture that encourages teaming and crossfunctional collaboration. This can be accomplished through a variety of initiatives including mission/value statements, recognition of teaming efforts, and designing career paths to involve multi-functional assignments. All these will lead to creating a useful information technology architecture. Firms, which have done this first, have been successful in integrating information technology with their organisational design and hence reap value and dictate the industry structure. Aviation X JETS CALLS FOR STREAMLINING OF TRAFFIC IN REGION’S UPPER AIRSPACE TO BOOST REGION’S AVIATION SECTOR Such a move could yield an estimated $16.3 billion in economic benefits to the region X Jets, a joint venture between Private Jet Charter and Jet Connections, the newly established regional company based in Dubai, has said that streamlining the traffic in the Middle East’s upper airspace would be a powerful catalyst to the region’s aviation sector. February 2016 43