1. Introduction

Managing risks in a supply chain involves recognising potential threats, developing strategies to deal with them, and taking precautions before they happen. Supply chain risks, no matter how little and initially disregarded they may seem, have the potential to cause enormous problems in the supply chain and cost billions of dollars. According to ÖZKANLISOY and AKKARTAL (2021), the supply networks were severely impacted and the supply chain was disrupted when the ship Ever Given accidentally blocked the Suez Canal while being transported on March 23, 2021. Throughout the case study, ACME’s Director of Supply Chain, Rajesh, struggles to cope with the crisis’s immediate and possible long-term effects. Case details include ACME’s “just-in-time” inventory approach, difficulties with ambitious sales forecasts, and crisis-related strategic choices (Lawrence, 2021).

2. Nature of Operations Management within ACME

The process of overseeing the assets used in the production and distribution of goods and services is known as operations management (OM) (Lee, 2018). To create a variety of goods and services, any business needs operations. The marketing, product/service development, and operations activities form the foundation of any business. To generate requests from customers, the marketing function must inform its target markets about the services and products on offer. The product/service development function must then think of ways to improve or introduce new services and products to the market. Finally, the operations function must take all customer feedback into account when making and delivering services and products. Although other support functions exist to enable the basic activities, in reality, there is no obvious separation among these three (Brown et al., 2013). From a high-level view, OM includes all the tasks required to meet customers’ day-to-day needs because it interacts with every other department of an organisation. A heuristic search approach is necessary for many OM choices since they are difficult optimisation issues. Thus, OM is a dynamic field of study that has profited from the use of AI methods like genetic algorithms (GAs) to find efficient and effective answers to several real-world challenges (Jay, 2023).

In the same way, ACME encompasses not just retail packaging but also industrial packaging, health care systems, cleaning equipment, restaurant equipment, and food service packaging. While the Suez Canal was under difficulty, ACME adopted the JIT method. An integral part of the just- in-time (JIT) supply chain (SC) that aimed to reduce reliance on production and delivery schedules and associated costs was the ACME. The financial reductions were great, but this method proved a huge liability during the Suez Canal bottleneck. The case study examined optimal efficiency under typical circumstances, supply chain dependence, inflexibility, and the absence of buffer stock.

2a. Role and Importance of Effective Operations Management

1. Role of Effective Operations Management

Recognising, evaluating, and reducing supply chain risks are essential components of a successful operations management position. Here, operational managers can observe ACME’s “just in time” sensitivity to unexpected disruptions, such as a Suez Canal blockade (Calvo, Olmo and Berlanga, 2020). On time, the management and leaders may have devised a backup plan. The optimisation process is also an important part of the supply chain. It is critical to ACME’s operations to maintain balanced inventory levels to fulfil client expectations. Reducing the expense of surplus inventory is also part of the job description. Moreover, to keep things running smoothly, it is necessary to provide other routes for shopping and boost the safety supply (Emenike and Falcone, 2020). Furthermore, decision-making is the responsibility of operation managers; for example, at ACME, the operation manager collaborated with executives to guarantee alternate possibilities and reduce expenses.

2. Importance of Effective Operation Management

Important aspects of the ACME are cost-effectiveness, customer happiness, and sustainability. When you run an ACME firm efficiently, you can save expenses, boost ACME’s profit margin, and free up capital for ACME’s expansion. Profitability is directly proportional to how efficient a company is. When calculating the value, expenses, or advantages of a programme, investment, or project, ACME uses it. In doing so, it assists ACME in determining if a choice is worthwhile and gives the company an idea of what it stands to gain from pursuing a certain business opportunity. In addition, according to Barbosa-Póvoa, da Silva, and Carvalho (2018), customer satisfaction is a metric that shows how well a business’s offerings fulfil client expectations. Indicators of consumer intent to buy and loyalty rank high on the list. Therefore, it aids in forecasting that ACME’s company would have growth and revenue. To succeed in today’s economic climate, ACME must focus on the here and now while also planning for the future. When a business can keep running and making money for a long time, it has long-term viability.

2b. Operations Performance Objectives of ACME

Managing inventory well, delivering goods efficiently, keeping customers satisfied, and keeping costs low are the primary goals of the ACME. Maximising profits is ACME’s top priority, thus the company is working to build a loyal client base, increase sales, and control expenses (Epiphaniou et al., 2020). In addition, ACME’s supply chain uses the “Just-in-Time” method to maintain efficient product delivery, which helps gain customers’ confidence and attract new ones. The ACME also strives to maximise its cost-effectiveness by controlling expenditures, reducing waste, and optimising resources. Achieving a happy medium between having enough inventory to fulfil demand and not having enough is one of ACME’s primary goals in inventory management. In addition, according to Zavala-Alcívar, Verdecho, and Alfaro-Saiz (2020), leadership and team management abilities that can adapt also contribute to ethical practices that promote sustainability. Engagement, work happiness, advancement opportunities, and development are all values that ACME shares with its employees. Efficient job completion is a result of ACME’s talented, competent, and motivated workforce.

3.Manage the Design of Systems and Operations in the ACME Organisation

The foundation of ACME’s efficient system is the constant evaluation and feedback on the activities. In addition, ACME incorporates stakeholder interaction, process mapping, and system design and planning. Along with integrating technology, Ghaffar, Corker, and Fan (2018) state that sustainability is one of ACME’s key aims. The needs of the company’s customers, the market, and internal procedures may all be better understood via regular reviews. Process mapping has the potential to be helpful in evaluating weaknesses and identifying improvement opportunities, according to Duan et al. (2020). Acme combines technology and sets up key performance indicators to analyse the workflow operations. However, stakeholder participation is useful as it is a component of the design. Client relationship management (CRM) is critical for ACME to meet its long-term goals and remain competitive in the business.

a. Design Systems and Operations to Meet the Objectives of the ACME Organisation

The company ACME is trying to incorporate sustainable practices into its systems and operations so that it may enter new markets, make new customers, be more efficient, and keep costs down (Park and Li, 2021). A just-in-time inventory strategy helps ACME minimise costs and minimise inventories. In addition to assisting with cost savings and operational efficiency, this method also contributes to sustainability. Understanding market trends, analysing customer segmentation, and developing the customer experience are the foundations upon which ACME’s customer satisfaction design and system rests. Key components of ACME’s design methodology and operation also include mapping the customer journey, integrating feedback surveys, and negotiating. Equally important in the planning and execution of ACME that results in trouble-free delivery are staff training programmes, employee engagement, culture, and leadership (Chang, Iakovou and Shi, 2019). To guarantee market development, ACME also needs technologies that are agile and responsive. In light of the lessons learned from the Suez Canal instance, ACME has updated its backup plan with new principles and a structure for crisis management that is easier to understand and implement.

b.Impact of the Supply Chain on Systems and Operations

Academics and professionals in the field are already concerned about how COVID-19 would affect SCs (Aldrighetti et al., 2019). According to Queiroz et al. (2020), the OSCM is already feeling the effects of the COVID-19 pandemic. Fortune (2020) reported on February 21, 2020, that 94% of Fortune 1000 organisations were experiencing SC interruptions as a result of COVID-19. The full impact of the pandemic on SCs is yet unknown, according to another report (Deloitte, 2020). What managers can learn about the SCs from previous pandemic outbreaks is invaluable. Organisations and businesses, according to the World Economic Forum (WEF) (Doherty, Botwright and World Economic Forum, 2020), should rethink and modify their supply chains to face the trade obstacles of the future. While ‘transport and production’ and ‘worker mobility’ may take precedence in the near term, SCs’ “digital readiness & data sharing” skills and tactics will take precedence in the far future.

The operational efficiency of the ACME supply chain also contributes to better transportation, easier logistics, and faster delivery of products and services. The Suez Canal instance demonstrates that SC may impact inventory levels as well. As a result of the potential closure of the Suez Canal, innovative and efficient supply chain management strategies have emerged. Managing the supply chain effectively also contributes to happy customers. Customer retention is directly proportional to customer satisfaction. In addition, the Suez Canal instance demonstrated that supply management leadership and involvement contributed to the resolution of the problem, even in the face of opposition. While SC’s leadership and participation are essential to its operations, the company may also expand into other markets.

4.Planning and Control of the Operations of ACME Organisation

a.Need for Planning and Control of Operations

SC operation establishes a link between technologies and their effects on risk elements (RE) such as hazard (H), exposure (E), and vulnerability (V), as well as those linked to digital platforms and Digital Twins (DT) (Novak, Kutnjak and Hrustek, 2022). The platforms provide a foundation for organisations to collaborate and engage with SC business partners. Thanks to this technology, the SC can swiftly adapt to changes and volatility in the market, guaranteeing its long-term success. The primary benefits gained from implementing such technologies include improving production activity planning, providing support for business processes, increasing transparency in operations, and facilitating the exchange of crucial business data that allows for the monitoring of both current and future demand (Das, Gottlieb and Ivanov, 2019). Ivanov (2021) argues that digital platforms are essential for the rapidity of data collecting, analysis, and knowledge generation and that they also facilitate SC visibility.

For better resilience, managers need a model that can capture the network’s status at any given instant and provide full visibility across all SCs. Complex risk analysis of SCs, backup plan creation, and effective operational management are all possible with its help. By reflecting the physical SC in terms of transportation, inventory, demand, and capacity data, it helps with data- based decision-making (Irfan et al., 2022). It is feasible to assess the disruption’s effect on performance by transferring the results of the DT simulation to an ERP system or business intelligence tool, and it also aids in forecasting the spread of potential disruptions and quantifying their impact. Serrano-Ruiz, Mula, and Poler (2021) state that DT, when combined with Machine Learning, can enable simulation and optimisation methods, promote faster actions to reduce lead times and improve forecast accuracy, and make the SC’s demand forecasting, aggregate planning, and inventory planning more reliable, efficient, and quick.

b. Plan Operations of  the Organisation and the Needs of Customers

The goal of effective supply chain management (SCM) is to save costs while maximising flexibility and ensuring the continual flow of goods and materials throughout the whole process. Unpredictable and unforeseen occurrences, such as emergencies, fluctuations in demand, and changes in government policy, provide a significant risk of disruption to organisations’ operations in today’s more dynamic surroundings (Deiva Ganesh and Kalpana, 2022). These things happen all the time to SCs, and they ruin their uninterruptedness, objectives, and profits. This means that COVID-19 is a novel kind of environmental disturbance that affects the way businesses operate today. Several potential negative outcomes might result from this, including disruptions in supply, insufficient resources, unpredictable demand, halted production, and longer lead times. So, businesses should be ready to keep an eye on these risks and take measures to lessen them. Finding these risks, evaluating them well, managing them proactively, and keeping tabs on their ongoing development have all received a lot of attention. This COVID-19 pandemic highlights the need to upgrade the current SC to be more resilient, flexible, and strong in the face of shocks from an ever- changing world (Dixit, Verma and Tiwari, 2020). A smarter supply chain would be the SC’s ability to assess potential alternatives and reorganise the flow in response to disruptions. The goal is to build a network that is transparent, responsive, and agile via the use of digital technology; this includes digitising SC, which also involves the planning and production sequence. The term “digital transformation” describes this kind of change in operations, goods, and services (Baryannis et al., 2018).

5.Improve Performance within ACME Organization

Setting goals for people and groups to improve how well workers, teams, and, finally, companies can do their jobs so it fits into the aim and plan of the organization (de Waal, 2007). Furthermore, holding people responsible for their work by tying them to rewards, job advancement, and contract closure (Owen et al., 2001). As Khan et al. (2019) say, a successful performance management method is built around three things: having organized reviews, setting goals, and giving constant feedback. It doesn’t matter what technique an organization chooses.

Planning, tracking, growing, rating, and awarding are the five parts of performance management. They all work together and support each other, making it normal and successful (Friedlander and Pickle, 1968). These five things make up good employee performance management for ACME (Omar Sharifuddin Syed‐Ikhsan and Rowland, 2004). Bernstein (1976) says that managers should make it clear what each goal and change means to present workers and to organizations in the future. For ACME It might seem like a lot of work at first, especially if workers on the shop floor have to talk to each other in person instead of by email, but it’s important to remember that successful communication is easy to do again and again once it’s part of the company culture (Holá and Pikhart, 2014). Communication in the workplace is a steady, planned way for everyone to get the information they need in ACME. ACME can only get their workers to “buy into” the idea of achieving greatness by making it clear what is expected of them and making sure they know it (Gramatnikovski, Stoilkovska, and Serafimovic, 2015).

a. Establish Suitable Performance Measures

ACME must be able to keep providing high-quality goods and services if they want to be successful in the long run. The four-step process for making measures of success. The first step is to decide a list of possible steps and the second step is to judge how good each measure is. Third, make a small list of measures and rank them in terms of how important they are in the team. The fourth step is to spell out and write down what each suggested measure needs to do (Dumond, 1994). A good performance of a team in ACME can make changes as they improve the performance of the agency, section, or program, which means it can improve the quality of life of their customers or clients (Chenhall and Langfield-Smith, 2007). Quality, inclusivity, reliability, sustainability, and effective cost are the five most important business success goals for ACME. Probably speed and productivity are very important when it comes to business success goals (Moullin, 2007).

The Engage part of the ACME framework is all about making and using simple, strong, and useful management processes that get the organization to check on the progress of a strategy implementation program regularly and make the changes that are needed to keep the program on track (Owen et al., 2001). Performance management improves an organization’s financial and non- financial outcomes. However, some people say it has no good effects or effects that aren’t clear. A good way to get a better idea of this connection is to look into the part performance management

plays in making and keeping a high-performance organization (HPO) (De Waal and van der Heijden, 2015).

b.Monitor Compliance with Quality Standards

Compliance and quality assurance are important parts of the manufacturing ACME because they affect company image, customer happiness, and market success (Makhoul, 2019). The way SC managers handle these important parts has changed since real-time output tracking came along. Keep doing regular quality checks on new products and things to make sure the quality stays the same even though there have been problems. It is important to do thorough inspections, especially for important things (Cheong Cheng, 2003). The case study of ACME suggests closely studying the ISO 9001 standard to make sure that it is followed. They also say that successful paperwork management and corrective/preventative processes should be made very clear (Mishra, 2007).

ACME Engineers has a group of quality controllers who check their goods before sending them out. This also keeps an eye on production methods to make sure the range is free of flaws (Draghici, Popescu, and Gogan, 2014). The customer doesn’t get the product until it is guaranteed to be of good quality and meet their needs. Management regularly checks how well the quality system is working and leads internal efforts to keep getting better. According to Talluri and Sarkis (2002), compliance makes sure that a company that makes or sells a product follows the rules and laws set by law, accepted practices, or the terms of a contract.

c.  Identify Problems in Operations and Implement Solutions

To keep a business going during a disaster, it’s important to find and fix operational problems (Tammineedi, 2010). Awang Ali, Hanafiah, and Mogindol (2023) say that a company culture pushes all workers to find ways to make the business run better. (Steen, Ole Jacob Haug, and Patriarca, 2023) This includes coming up with ways to make things run more smoothly, reviewing how things are done now, and looking for ways to get rid of work that isn’t necessary. To keep up the process of ongoing growth for ACME, contingency and alternative approaches are a must. The first way is to cut down on the waste in ACME. The second way is to make a setting where the team can improve in adaptability. The third way is to use the PDCA cycle for ACME (Elliott, Herbane, and Swartz, 2001).

6.Conclusion

The Suez Canal incident in 2021 underscored the significance of effective operations management (OM) in managing supply chain risks and ensuring long-term viability. ACME, a retail packaging company, adopted the just-in-time (JIT) supply chain (SC) to reduce reliance on production and delivery schedules and associated costs. ACME’s primary goals include maximizing profits, building a loyal customer base, increasing sales, and controlling expenses. To manage the design of systems and operations, ACME incorporates constant evaluation and feedback, stakeholder interaction, process mapping, and system design and planning. Sustainability and technology integration are key objectives, and customer relationship management (CRM) is essential for keeping up with industry standards and achieving long-term objectives. The COVID-19 pandemic has already felt the impact of SCs, with 94% of Fortune 1000 organizations experiencing SC interruptions.

To adapt to future trade obstacles, ACME must rethink and modify their supply chains. Digital platforms and Digital Twins can help organizations collaborate and engage with SC business partners, enabling swift adaptation to changes and volatility in the market. Performance management is crucial for organizations like ACME to improve employee performance and align with their goals. Compliance with quality standards is essential for manufacturing ACME and identifying and implementing solutions to operational problems is essential for maintaining business continuity during disasters.

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