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Essay / Organizational Components - 801
An operational plan is part of a strategic plan within an organization that sets out a guideline for how we will operate in practice. Its objective is to develop a plan aimed at carrying out the action and monitoring plans previously formulated. There we find descriptions of the capacity needed to achieve our objectives. It also details a comprehensive plan on how we will mobilize the organization's resources, as well as how to manage risks and ensure the sustainability of the proposed project. However, it does not work in unison but rather integrates issues such as the human capacity required, the financial obligations to be met, the risk assessment and mitigation strategies put in place and the estimated execution time of the proposed strategy. Outsourcing has become a key element in the productive sector. Over time, the situation evolved from traditional outsourcing of materials and components to more diverse areas that even involved traditionally in-house services. This helps an organization carry out higher value-added activities and reduce its operational risks by spreading them across outsourced businesses. This was mainly highlighted in logistics departments where services such as warehousing and transportation, among others, saw a higher outsourcing trend than most. However, for this to be managed effectively, there is a need to mix central and local management of the organization, which requires a strategic approach to the concept. The production sector is apparently the key to the success of the supply and distribution sectors. To this end, the sector is supposed to be sufficiently dynamic to vary its levels according to the production of the two departments as well as past forecasts which give a...... middle of paper ...... themselves to at the head of great fortunes. This is because they are assured of improved cash flow while being able to plan their purchases accurately. They also listen to the needs of their customers and are therefore able to make accurate production projections. These further serve as a guide to the organization's sales trends and help determine the organization's value beyond its current assets. It is also important in determining expected revenues which play a determining role in operational management. To this end, the organization achieves increased revenue, high customer retention while experiencing lower production costs while maintaining efficiency. ReferencesHarland, CM (1996). Supply chain management, purchasing and supply management, logistics, vertical integration, materials management and supply chain dynamics.