CASE STUDY NAME

Application of the operations management design thinking case method in Rotorua district council to come up with a feasible solution regarding their operations problems. 

INTRODUCTION

This study will find operations problems in Operations and Strategic Supply Chain Management within the New Zealand business environment and follow the operations management design thinking case method to come up with a feasible solution. In this context, this study will apply the operations management design thinking case method in Rotorua district council to come up with a feasible solution regarding their operations problems like logistics delays. Companies have the option of choosing how they will lead, as present and future company leaders are unable to decide whether or not to lead. In order to create value and be environmentally friendly for the "new normal," this study will further critically review the organisation's operations as well as supply chain strategies and plans. It will also recommend modifications and improvements to the business's existing supply chain using the methods of operation and supply chain fundamentals and procedures.

BACKGROUND

As the COVID-19 epidemic spreads, many governments such as New Zealand are putting in place different procedures to deal with its effects. Such "lockdown" measures have had a significant impact on Rotorua district council, despite being crucial in halting the disease's spread. This has become evident that in order to better handle any similar interruptions in the years to come, the operations as well as supply chains that Rotorua district council currently use will need to be upgraded and redesigned (Rotorualakescouncil.nz, 2023). In the near future, businesses will face difficult economic conditions, but accomplishing it well by contributing to the creation of the "new normal" will also be thrilling and fulfilling (Talwar et al., 2021). Businesses who are going to be successful will discover that they are shifting from strict cost-cutting methods to effectiveness, efficacy, and most importantly, innovation. Operations along with supply chain administrators will be expected by corporate executives to take the lead in providing knowledge, creativity, and quick business solution ownership. In order to accomplish this, businesses must demonstrate decisiveness and resourcefulness while creating and updating their supply chains and operational procedures (Rotorualakescouncil.nz, 2023). This will result in an efficient organisation that can handle both present and future issues. Operations as well as supply chain executives have the chance to redefine themselves as producers and sympathisers, pattern recognizers and meaning creators throughout this transitory phase.

EVALUATION

Organisation’s Operations and Supply Chain Strategies and Designs

The four competitive priorities in Rotorua district council operational strategy are flexibility, quality, cost as well as speed.

The ability to create products and services at a price that is lower than rivals is referred to as cost competitiveness. The capacity to provide services and products that exceed or meet consumer expectations is referred to as quality competitiveness. The capacity to react swiftly to consumer demands and launch products ahead of rivals is referred to as rapid competitiveness. The capacity to quickly adjust to modifications in customer preferences or market circumstances is referred to as flexibility competitiveness. Maintaining a competitive edge in market sectors and satisfying consumer needs are made possible by Rotorua District Council striking a balance between these aims (Fahim Nia et al., 2019). This implies that Rotorua District Council has to promptly respond to customer requests, adjust to changes throughout the market, and offer goods and services at the most affordable feasible cost without sacrificing quality.

The supply chain of Rotorua district council continues to be a key area of competitive edge for businesses. The focus of the Rotorua district council’s supply chain administration research is on optimising the value proposition through efficient resource allocation and use throughout the entire organisation (Cole et al., 2019). The series of value-adding transactions that link Rotorua district council '’'s suppliers with its consumers is known for their robustness and flexibility in supply network. The basic idea behind their supply chain activities is to receive feedback from other companies' vendors, add value, and deliver the result to customers. All of the entities engaged with Rotorua district councils are satisfying customers' requests, whether they are directly or indirectly, are included in their supply chain strategy.  Manufacturers, vendors, transportation companies, warehouses, sellers, and occasionally the consumers themselves are all a part of their supply chain strategy.

Lean supply chains adopted by Rotorua district council eliminate waste throughout the system and use continuous improvement techniques. However, novel items that might make use of innovative technology call for an elastic supply chain (Wamba, 2020).  Agile supply chains implemented by Rotorua district council are dynamic and adaptable across organisations, allowing them to adapt quickly to changing global marketplaces. Since hybrid products are complicated and include several parts and organisations involved throughout the supply chain - hybrid supply chains—so named because they require a diversity of provider relationships—might be required.

Customer relationship management in Rotorua district council refers to the full range of techniques used to handle complaints from clients, establish enduring connections with consumers, and raise customer satisfaction. Building strong client relationships is a key component of Rotorua district council’s logistics integration, which helps them to react to customers more quickly (Holmström et al., 2019). The value of information exchange in supply chain management. Information exchange within logistics networks is the basic tenet of supply chain management. Rotorua district council can react to the ever-shifting requirements of the consumer more swiftly by exchanging information with its supplier network participants.

Problems

Operations problems that Rotorua district council face in Operations and Strategic Supply Chain Management within the New Zealand business environment is logistics delay. Demand shocks resulted in a decline in sales resulting in a decrease in the Rotorua district council’s profitability.  This will cause interruptions to the supply chain as well as business closures in addition to uncertainty. The effect of the lock down on the financial system will be multifaceted because of the significant amount of interconnectedness and interdependence between value chains throughout the economy along with lockdown. A high reliance on China may also cause significant disruptions to New Zealand's raw material supply (Queiroz et al., 2021). The majority of industries are dealing with issues like delayed manufacturing, fewer options for transportation, and store closures, which have decreased revenue and made it difficult for businesses to pay for operating costs as well. Following the unlocking process, manufacturing facilities worldwide are experiencing restricted access to cargo and transportation services. This will result in not simply postponed shipments but additionally escalated logistics expenses of Rotorua district council.

Changes and enhancements to the company’s current supply chain to create value and sustainability for the ‘new normal’

The first thing the Rotorua District Council does to identify the existing issues with the supplier network is calculate the carbon footprint of the products. They figure out which procedures need to be addressed and start creating an efficient supply chain sustainability strategy by measuring the carbon footprint of their products. In addition to these, Rotorua District Council is also using optimised transport as a means of generating value as well as sustainability within its supply network for the "new normal" (Chowdhury et al., 2023)." They have access to a wide range of technology choices that can help reduce emissions associated with transport. The Rotorua District Council, for instance, fills the majority of its cargo space with 3D loading of truck software. In a comparable manner Rotorua District Council uses traffic alongside route optimisation strategies to minimise greenhouse gas emissions during distribution. Through encouraging drivers to travel at low speeds, IoT also assists Rotorua District Council in reducing the environmental impacts of transportation (Tennison, 2020).  In addition, Rotorua District Council works with suppliers who are environmentally friendly to develop value and environmental sustainability into their supply network for the "new normal."

SOLUTIONS

The Operations Design Thinking Case Method:

• What is
• What is there?
• Rotorua District Council used the operations management design thinking case method to come up with a workable solution to their operations difficulties.
• What works? (Good)
• Corporate executives have proved that operations and supply chain managers are capable of taking the lead in offering knowledge, innovation, and swift business solution ownership.
• What does not work? (Bad)
• adapt to changes in client preferences or market conditions
• What if
• Brainstorm
• Striking a balance between corporate goals to maintain a competitive edge in market sectors while also satisfying consumer requirements (Koh et al., 2019). It is also essential to respond quickly to client requests and adapt to market changes
• What do we have to do well?
• Enhancing the value proposition through efficient resource allocation and use within the company
• Potential solutions
• Working with environmentally friendly suppliers to build value and environmental sustainability into their supply network for the new normal.
• What wows
• Chosen solution
• Utilising optimal transportation as a means of generating value as well as sustainability within its supply network for the new normal, and having access to a diverse variety of technology options that can help reduce emissions related with transportation (Helo, 2019).
• Flowchart

• Network chart
• • IPOOI
  • The IPOOI model provides a performance leadership structure to Rotorua District Council that accurately represents the comprehensive approaches to performance knowledge that are now in use.
  • What works
  • Implementation
  • A financial investment in traceability of supply chains is required because the technique supports in managing hazards and the formation of contingencies or replacements for moments of catastrophe (Helo, 2022). Participate in the aggressive management of customer specifications and the resolution of current transportation issues.
  • Measurements

  This is necessary during times whereby major outages develop unanticipated and affect every business, area attendees, and people internationally (Caiado et al., 2021). Consequently, for the purpose to reduce inconvenience to the firm's activities, the authorities of New Zealand have to set up measures for coping alongside the present scenario, which may endure for a prolonged amount of duration, as well as any potential future tragedies.

  RECOMMENDATIONS

  Transparency via expertise: To manage operations and meet impending issues, a centralised system must be put in place.

  A single point of contact for all enterprise communications: Stakeholders ought to be updated about organisational developments via a single point of contact.

  Decentralised decision-making: During a crisis like this, specialists should decide according to their roles as well as their level of expertise.

  Supply chain modelling: An investment throughout the mapping of supply chains is necessary since it aids in risk management and the development of backup plans or alternatives for times of emergency. Additionally, assist in proactively managing client requirements and resolving current supply chain problems.

  Planning for industry steadiness: this is crucial in circumstances where there are significant disruptions that occur suddenly and impact all industries, actors in the sector, and people worldwide. Thus, in order to minimise interruption to the company's operations, the government of New Zealand must develop strategies for dealing with the present scenario, that may last for an extended duration of time, as well as for any future calamities.

  QUESTIONS

  What operations problems do you face in operations and strategic supply chain management?

  Does operations management design thinking case method help you to tackle the issue?

  Do you think that operations management design thinking case method is beneficial to come up with a feasible solution regarding the operations problems like logistics delays?

  CONCLUSION

  The logistics delay is one of the operations difficulties that Rotorua District Council faces in Operations and Strategic Supply Chain Management in the New Zealand business environment. Demand shocks caused a drop in sales, which reduced the Rotorua district council's profitability.  Rotorua District Council collaborates with environmentally friendly suppliers to build value and environmental sustainability into their supply network for the "new normal."  Rotorua District Council is also utilising efficient mobility to create value and sustainability within its supply network for the "new normal." In an emergency like this, professionals should make decisions based on their roles and level of competence.

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