This document discusses how to build advantaged operations through restructuring internal resources to meet market needs. It explains that translating business strategy into effective operations execution is key to business success. The document outlines four main operational areas - source, plan, make, and deliver - and how properly configuring these internal resources and operations structures can create sustained value for companies. It provides examples of typical projects involving operations strategy, integrated planning, procurement and sourcing, production strategy, logistics and inventory management. Integrated operations management is shown to typically yield reductions in costs and improvements in other key metrics. The document promotes PwC consulting services that address all operational aspects to improve financial performance and address challenges.

1. Building Advantaged
Operations
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PwC Consulting
Vietnam

2. Building Advantaged Operations requires restructuring
of internal resources to meet market needs
Significant growth in the Vietnamese
economy has led to challenging
operational issues for businesses in
Vietnam. Translating business strategy
into on the ground operations execution
is the key to a successful business.
We typically ask our clients two key
questions to understand their current
situation;
a) Does your operational strategy link to
your business strategy?
b) How well are you executing the
operations strategy?
“Executing the strategy” involves
identifying the competencies needed by
the company to succeed and embedding
those competencies into an operational
plan which will not just lead to
efficiencies (cost reduction) but also
create sustained value for the company
and the market.
Make Deliver
SourcePlan
Strategy
Plan and align all supply chain/operations
(source, make & deliver) activities over
specified time periods to proactively
satisfy market demand and achieve
organisational goals
Identification and deployment of
manufacturing resources to help
meet business needs
Translation of business needs
into an execution plan and the
seamless deployment of that plan
Identification and deployment of
resources associated with performing
customer facing order management or
order fulfilment activities
Identification and deployment of
resources associated with ordering,
delivery, receipt and transfer of raw
materials, products or services
The right configuration of these internal resources/ operations
structures will create sustained value for the company
Business
Strategy
Where and why
we’ll win
Operational
Strategy
How we’ll win?
Operations
Executing to win
What is our
value
proposition to
our customer?
Which
competencies
must
operations
develop?
How should
operations
processes be
structured to
develop
competencies
that support
strategy?
QualityTime
Cost Variety
Trade-off
Make Deliver
SourcePlan
Strategy
BuildingAdvantagedOperations
Operations structures
“Good strategy
is not just about
what we want to
be, but more
importantly
about how we
get there”

3. PLANMAKEDELIVER
STRATEGY
Our services
We provide an inclusive range of services that addresses all operational aspects and delivers direct impact to the
bottom-line of an organisation.
Our services improve financial performance, increase governance and accountability and helps address known
and unforeseen challenges.
Our services Examples of typical projects we have completed
Operations
Strategy
• Overall Network Design &
Optimisation
• Overall Performance Improvement
• Value Chain Analysis (Make vs.
Buy)
• Redesigned national logistics network to deliver
improved network design, route optimisation, load
planning and asset planning.
• Executed make vs. buy review of production components
leading to reduction in product cost and increased focus
on value-add activities.
Integrated
Planning • Sales & Operations Planning
• Forecasting & Demand Planning
• Product Development Process
• Implemented integrated sales and operations planning
to reduce time to market and optimise inventory levels.
• Designed product development process to reduce project
cycle time and cost.
Procurement
& Sourcing
• Commodity Strategy
• Strategic Sourcing
• Supplier Management
• Procurement Transformation
• Diagnostic assessment of external expenditure to
identify areas to save cost and improve procurement
operating model.
• Develop supplier risk management strategy and vendor
evaluation programmes to reduce risk of supply chain
failure.
Production Strategy
& Operations
• Production Strategy
• Plant Turnaround
• Performance Improvement
• Strategic Cost Reduction
• Debottlenecking of the production process to improve
turnaround time.
• Production process assessment and materials
traceability review to prepare for TPP.
Logistics & Inventory
Management • Distribution Network Design &
Optimisation
• Warehouse & Distribution
• Transportation Improvements
• Developed an inventory model to calculate optimum
stock levels, freeing up working capital and reduce
incidents of stock outs.
• Re-design of warehouse facilities to reduce processing
time and increase capacity.
25 – 50% reduction in total supply chain costs
25 – 60% reduction in inventory-holding
25 – 80% increase in forecast accuracy
30 – 50% improvement in order-fulfillment cycle time
Cross-industry studies show that
integrated operations management
typically yields the following results:
PLAN
SOURCE
MAKE
DELIVER
STRATEGY
SOURCE
Industries we serve
Manufacturing Retail Automotive Logistics Construction
We have worked with clients in a variety of industries, including but not limited to the following:
Technology &
Telecom
Service
Industry

4. Contacts in Vietnam
Stephen Gaskill
Partner, Advisory Services
+84 909 229 467
stephen.gaskill@vn.pwc.com
Nidhi Thubanakere
Director, Management Consulting
+84 903 374 050
thubanakere.sreenidhi@vn.pwc.com
© 2016 PricewaterhouseCoopers Consulting (Vietnam) Limited. All rights reserved.
PwC refers to the Vietnam member firm, and may sometimes refer to the PwC network. Each member
firm is a separate legal entity. Please see www.pwc.com/structure for further details.