Visualizing Operational Challenges at Overseas Bases: YCP Releases Global Value Chain Analysis Approach

Against the backdrop of supply chain disruptions, rising costs, and increasing geopolitical risks, companies operating globally are facing the challenge of "strategies existing but not being executed on the ground" across their entire value chains, including overseas bases. "Invisible inefficiencies" lurking in operations spanning countries, bases, and departments are major factors reducing productivity, profitability, and competitiveness.

YCP Holdings (Headquarters: Singapore, Director and Group CEO: Hiroki Ishida) has released an "Operational Analysis Approach" to address these challenges by analyzing performance gaps in the global value chain, including overseas bases, and leading to sustainable operational improvements.

Many global companies suffer from a lack of alignment between strategy, KPIs, business processes, and organizational management. As a result, insufficient inter-departmental collaboration, stagnation in system utilization, and reliance on individual-driven operations have become commonplace. These structural disconnects lead to decreased productivity, extended lead times, and increased costs. Operations spanning multiple regions and organizations, such as overseas factories, logistics hubs, and regional headquarters, are characterized by challenges that are difficult to identify.

For example, cases where optimal decision-making and resource allocation for the entire organization are hindered are not uncommon, due to misaligned management goals and on-site KPIs, or execution gaps between plans and actual operations. Furthermore, even when core systems like ERP are introduced, many companies still rely on spreadsheets and individual judgment for on-site operations, failing to achieve the expected business standardization and data utilization.

YCP proposes an "Operational Analysis Approach" that analyzes the operational execution system of the entire value chain from the perspectives of Management Control Systems (MCS), business processes, organizational structure, digital utilization, and behavioral characteristics.

This approach is characterized by going beyond mere data review. By visualizing the actual flow of operations through on-site observation, Day-in-the-Life (DILO) analysis, and process mapping, it identifies fundamental issues such as bottlenecks that are difficult to grasp on dashboards, ambiguity in responsibility boundaries, and a decline in execution discipline.

Furthermore, it allows companies to quantitatively grasp the room for improvement in key management indicators such as productivity, processing capacity, cost, and working capital, enabling them not only to visualize challenges but also to translate them into actionable transformation measures based on prioritization.

YCP Partner Daniel Menezes commented as follows: "For many companies, the challenge lies not in the strategy itself, but in the execution phase. Without understanding what is actually happening on the ground, fundamental improvements cannot be achieved. The key is to visualize the inconsistencies between systems, processes, and organizational behavior, and translate them into actionable transformations."

Based on YCP's expertise in supporting operational transformation worldwide, this approach is utilized across a wide range of industries, including manufacturing, energy, logistics, construction, consumer goods, and the public sector, for improving global operations, including overseas factories, logistics hubs, and regional headquarters.

YCP has released a white paper titled "Operational Analysis Approach: Visualizing Performance Gaps in the Value Chain," which details this approach, industry-specific analysis perspectives, and methods for quantifying improvement potential. Please read the full text at the following URL: https://ycp.com/ja/insights/whitepaper/operational-transformation-analysis-approach

About YCP

YCP is a consulting firm with over 500 professionals in more than 20 locations worldwide. Primarily in the Asian region, we support corporate transformation and long-term business growth through diverse professional services such as business strategy, M&A, operations, supply chain, digital transformation, marketing, and sustainability.

For more information, please visit the YCP website (https://ycp.com/ja).