Traditional customer delivery chains have become less effective during the last decades. The need to invest in more modern organizational systems became apparent after companies noticed diminishing discipline and slower innovation implementations. As a result, some companies started implementing agile organizational methods that were intended to increase productivity and internal processes. One of the companies that effectively used and implemented an agile method was Gazprom, and agile changes in organizational principles allowed it to achieve better results.
The greatest constraints preventing corporations like Gazprom from achieving agility in their internal operations are related to traditional management goals. The definitions of such difficulties were stated by Zhukov et al. (2019), “The factors which prevent them from this are the desire for short-term profitability and long-term integrity, economic efficiency and sustainability, as well as the desire to achieve competing interests of the parties concerned” (p.416). However, agile organizational concepts place a greater emphasis on the correlation of intrinsic, social, and ecologic components of the firm (Zhukov et al., 2019). The combination of the components often describes the agility of the company. A business model that promptly adapts to external alterations and influences signifies a presence of agility in its structure and operations (Zhukov et al., 2019). In addition, social processes affect the workflow of a company and further define the final results. Thus, the focus on acknowledged in the past objectives such as short-term gains and economic sustains became less significant. Instead, the modern agility views demanded concentration on environmental and social factors.
Gazprom utilized traditional systems of the supply chain but altered them in the process of development. The main systems consisted of the management of supply and warehousing facilities (Zhukov et al., 2019). They also emphasized scheduling, strategy implementation, distribution control, and logistical analysis (Zhukov et al., 2019). The system utilized by the firm until 2007 was RPMS (Zhukov et al., 2019). However, the lack of comprehensive planning techniques and fluidity of informational integration demanded a modern approach. Later, the company started introducing the agile principles of organization. Principles of the agile manifesto, such as creating self-sustained parts inside a company and acceptance of changes to the core workflow, allowed them to increase the effectiveness of the supply chains (Zhukov et al., 2019). As a result, the company constructed new automated warehouses and integrated technological equipment that increased the agility of supply procedures (Zhukov et al., 2019). By changing the conservative system and implementing agile methods of integration, the company achieved increased productivity in distribution chains.
The researchers have been able to identify the central results of the implementation of agile principles by using various techniques. The studies focused on the flexibility to adjust networks and the substitution of materials for manufacturing to evaluate the productivity of the company (Zhukov et al., 2019). In addition, they emphasized product and shipping management and the consistency of the supply cycles (Zhukov et al., 2019). The researchers evaluated the data of different indicators of agility and assessed it under the guidance of managers and business analytics (Zhukov et al., 2019). The experts received surveys and filled them according to the provided data and information (Zhukov et al., 2019). The main indicators for analysis of the company were the agile expansion of supply chains, increased sponsorship and globalization, and also the speed of shipments and an overall cycle of orders (Zhukov et al., 2019). The research used expert opinions and indicators to evaluate the results of agile methodical integrations.
The outcomes of applying agile concepts demonstrated a transformation in the organizational processes. The overall number of supply operations and their agility increased (Zhukov et al., 2019). The hierarchy and the distribution of managers in the supply chain have improved (Zhukov et al., 2019). Furthermore, the organization has seen an increase in the number of technical implementations as a result of accelerated learning and social processes (Zhukov et al., 2019). However, the company also faced difficulties during the implementation (Zhukov et al., 2019). Barriers such as the lack of human resources and the practice of agility principles’ difficulty in evaluating staff performance and knowledge contributed to the decrease in agility (Zhukov et al., 2019). The adoption of agile methods of management enhanced social interactions and enlarged the supply chains (Zhukov et al., 2019). Despite the multiple obstacles, the deployment of agile methodology greatly increased the number of logistical operations and technical optimizations.
Gazprom utilized traditional organizational systems that focused on aspects of the economy and short-term profits. However, the decrease in informational and technological implementations requested a new approach. The integrated agile methods, such as formulating independent parts, increased the number of supply chain operations. The evaluation of the improvement was completed by researchers and experts in the business analysis. By establishing indicators of the progress and using surveys, they made an evaluation of the company. Despite all the barriers to agile transformations, the company has observed an advancement in social interactions within the organization and an expansion of various logistical processes.
Reference
Zhukov, P. V., Silvanskiy, A. A., Mukhin, K. Y., & Domnina, O. L. (2019). Agile supply chain management in multinational corporations: Opportunities and barriers. International Journal of Supply Chain Management, 8(3), 416-425.