Enterprises are always trying to broaden their horizon by going beyond borders and across continents. The newly grabbed opportunities could mean setting up joint ventures, factories, expanding the existing distribution channel, or creating more operational centers. As the business grows, the enterprise can grow to be more complex in terms of structure and lose out on standardized operational procedures. This can create problems, and the operations can go haywire.
One of the most common sights of a globally expanding enterprise is some of its departments working in complete isolation and using processes not falling under standardized modus operandi. To ensure uniformity and efficiency, enterprises are constantly searching for ways to come up with strong Enterprise Resource Planning or ERP. This is to maintain the decorum and keep all the departments and teams united working beyond geographical constraints.
In case you are wondering how you can achieve consistency and efficiency in a setting where you carry out operations on a broader scale across a complex network, read on to find out.
What to Do To Overcome This Dilemma?
One strategy that can solve the puzzle for such enterprises is the Hub and Spoke model.
It has all the features that an enterprise might seek to keep their local and international processes in complete harmony.
Speaking of this, a Hub and Spoke model can make it possible to turn strategic ERP solutions into a reality and make the enterprise more efficient by working on its competitiveness and lowering overhead costs.
What Does The Hub And Spoke Model Mean?
The model is a type of distribution method in which every activity originated through a centralized location, called Hub. The goods and services then reach the regional offices owned by the company, called Spokes. It is a far better option than a traditional point-to-point business model that carries operations across multiple sites. Moreover, nothing beats the flexibility this model brings to a business coupled with the ability of up-scaling.
How Does It Help Maintain Productivity?
For starters, the centralized Hub ensures a continuous movement of products or services. The model thrives on consistency as it promises on-time performances, considering the broad reach this model can provide. The Hub and Spoke network ensures that the product or service reaches its destination within the designated timeframe and at the right place.
It can be beneficial because it manages to bring the much-needed stability and simplicity that a large enterprise earnestly seeks. If you tweak the model per the needs, it can bring a sense of commonality between the enterprise and its liaison with small businesses. The Hub and Spoke model tends to give them a sense of autonomy when it comes to being a part of a big organization and can ensure cost-efficiency concerning operations and standardization of processes for the enterprise.
The Hub and Spoke model shapes up otherwise scattered operations and molds them into a hierarchical frame. The authority systematically extends from the Hub all the way to Spokes. This creates a chain of command and a sense of accountability among the team members. The result is increased productivity and a centralized approach ups efficiency.
Moreover, the model is perfect for the enterprise as it can open new doors of opportunities. It can allow you to tap into potential market gaps that you might be able to see as and when you set up Spokes in different regions. An untouched regional space means a pool of talent and clientele waiting to be discovered and included.
An enterprise with a keen interest to expand its footprint needs to cater to the underlying issues. This includes disparity between the operational processes amongst various departments. The Hub and Spoke model can be an excellent strategy to eradicate any inefficiency and form a stronghold.
Through a Hub and Spoke model, an enterprise can reach new heights, as it will allow it to meet both international and local needs. All in all, the mode promises scalability in addition to reduced operational as well as maintenance costs.
Contact Steven Goldstein at Chicago Broker at 312-840-9002 to discuss your current needs and how we can help you employ proven strategies to help you optimize your office space utilization.