Amidst supply chain disruptions, shifting consumer preferences, geopolitical tensions, and technological upheavals, COOs and operations leaders face an increasingly complex question: What is the most effective strategy for achieving operational resilience and growth in a fragmented global marketplace?
To address this, we need to learn how industries such as manufacturing, retailing, e-commerce, and pharma are re-engineering the DNA of their operations to remain nimble, low-cost, and customer-driven.
Table of Contents
Manufacturing: From Just-in-Case to Just-in-Time
Lean manufacturing and JIT-optimised operational excellence for decades. However, pandemic impacts, raw material shortages, and geopolitical concerns exposed risks in highly optimised supply chains.
Toyota, the originator of JIT, was among the first to adopt a hybrid model. By maintaining safety inventories and supplier diversity, it avoided production halts during the 2021 semiconductor shortages. This new blend of Just–in-Time and Just-in-Case preserves efficiency while increasing flexibility.
Another trend is nearshoring or reshoring. For instance, General Motors shifted major battery manufacturing to North America to reduce dependence on Asian suppliers and manage geopolitical risks.
Retail: Omnichannel is not Optional
Brick-and-mortar models, which were most impacted by COVID-19 lockdowns, were most resilient, and retailers that had already invested in omnichannel capabilities were better off. The current retail operations strategy that ensures a victory is an online and offline experience of seamless integration and real-time visibility of inventory and supply chain.
Zara, a Spanish clothing company, pioneered fast fashion by aligning customer data with supply chain responsiveness. Zara has gone digital-first during the pandemic, including online fulfilment by leveraging store inventory. The stores were converted into mini-warehouses, which made the deliveries faster and allowed the management of orders locally.
Target was also able to reap the benefits of operations in the U.S. as it improved curbside pickup, extended same-day delivery, and engaged stores as fulfilment centees. Their investments in last-mile logistics were essential to sustain customer loyalty and profitability.
E-commerce: Pace, Elasticity, and Sustainability
Speed is king in the e-commerce world. However, a growing need to be more sustainable and have their privacy respected has equalised consumer expectations. The winning operations strategies are based on automation, AI, and green logistics.
The operations model of Amazon is based on its extensive fulfilment network, data analytics in real time, and AI-based forecasting. However, even Amazon has been forced to change its ways, as the company has started to concentrate on regionalising its fulfilment network within the U.S., shortening delivery times and lowering its carbon footprint.
New entrants such as Indian Flipkart are spending big on electric delivery networks and sustainable packaging to make their speed of operations match their ESG ambitions. In the same way, Shopify merchants are taking advantage of AI to handle inventories, forecast demand, and optimise deliveries without having to develop infrastructure on the scale of Amazon.
Pharma: Domestic Strength and Regulatory Agility
The pharmaceutical sector was taught a bitter lesson during the pandemic that it was too dependent on the manufacturing operations in one country, particularly the active pharmaceutical ingredients (APIs). The new winning formula is localised manufacturing, high-tech digital equipment, and responsive compliance systems.
The production and worldwide shipment of the COVID-19 vaccine demonstrated the power of agility and cooperation to transform the pharma business. The collaboration between Pfizer and BioNTech relied on modular manufacturing, rapid regulatory coordination, and digital traceability to generate and distribute billions of doses to most countries in the world.
Serum Institute of India, the largest vaccine manufacturer in the world, rapidly increased its manufacturing capacity through distributed manufacturing in geographies. This was not only a continuity but also tackled the regional access and storage issues.
Common Denominators of Winning Strategies across Sectors
- Digital Transformation: Supply chains incorporate digital twins, IoT, and AI analytics to model disruptions, optimise inventory, and predict failures. In manufacturing, predictive maintenance; in retail, real-time demand sensing; data is the key operational asset.
- Agility and Modularity: Successful operations are modular, allowing scaling or quick pivoting. This includes modular production, multi-sourcing, and agile cross-functional teams.
- Local-Global Balance: Companies balance globalisation and localisation by maintaining global sourcing and creating local buffers to counteract regional turbulence.
- Sustainability Integration: Regulatory and consumer demands drive operational sustainability through green logistics, energy-efficient warehousing, and circular manufacturing.
- Resilience in Workforce Models: Flexible workforce strategies like remote work, gig partnerships, and reskilling help companies adjust to demand fluctuations without overstretching.
Operation Strategy as a Competitive Arsenal
The volatile environment does not have a single operational strategy that fits all. Nevertheless, the winning formula is represented by a combination of agility, digital maturity, local responsiveness, and sustainability. It does not matter whether it is the agile logistics of Zara or the predictive infrastructure of Amazon or even the rapid global rollout of Pfizer; every case demonstrates the strength of reimagining operations as a source of competitive advantage rather than a cost element.
The global market that is disrupted is not a phase one should expect to end; it is the new normal. Those leaders who constantly change their operations to this changing environment will not only survive but also dictate future industry trends.
