Creating an Agile Business: DCSL's Response to Disruption

This report examines the essential components for establishing an agile business capable of thriving amidst disruption. It emphasizes adaptability, stability, flexibility, and innovation as critical ingredients. The report introduces the Distilleries Company of Sri Lanka (DCSL) as a case study, analyzing its operations management through the 4Vs framework (Volume, Variety, Variation of Demand, and Visibility), and its performance objectives including quality, speed, flexibility, and cost. Furthermore, it explores DCSL's supply chain management, detailing its facilities, functions, and activities, while also addressing how the company manages customer expectations through quality standards, product availability, and total quality management. The report provides a comprehensive overview of how DCSL navigates the challenges of a dynamic market environment.

Table of contents
1. Identifying the key ingredients to create an agile business that is responsive to disruptive
environment.
2. Introduction of the company.
2.1 Operations Management.
2.2 Performance Objectives.
3. Supply Chain Management.
4. Managing Customer Expectations.

1. Identify the key ingredients to create an agile business that is responsive to
disruptive environment. (PART A)
In a market that’s rapidly changing a business should be agile to face the competition and
achieve its goals and objectives. Agile or Agility means the capability of a business to make
timely and effective organization changes with response to the internal, external factors and
competition. When the business is agile it will be able to achieve its goals and objectives and
also reach the businesses vision and mission and face the competition effectively and
accordingly. (Project Times, n.d.)
Main ingredients for a business to be agile, Adaptability, Stability, Flexibility, Innovative
1. Adaptability- Is the ability of a business to change, adapt and response to the changing
internal and external factors. Markets or environments can always change because of that
the business should be ready to adapt to new scenarios an agile business will always be
successful in a disruptive environment.
2. Stability- This refers to having a stable and efficient operations process and a stable and
efficient supply chain management as the foundation. Even though a business is supposed
to change and adapt quickly it should also have some stable foundations too. Operations
process is the process of manufacturing and delivering a product while managing the
resources efficiently and effectively, it should be stable in order for a business to carry
out its activities smoothly. Supply chain management is the process of delivering a
finished product to the final consumer efficiently and effectively having a stable supply
chain will help the business to gain consumers trust and have a competitive advantage
from others.
3. Flexibility- Is how quickly you can adapt and change to the rapid changes in the external
or internal factors. If the business isn’t quick enough to change and response that firm
will fail to be in the market so with the rapid changing environment the business should
always make changes and look for the changes to be in the market as well as to be
successful and achieve its goals and objectives.

4. Innovative- While adapting and changing to new methods and new competition a
business should be innovative and use, introduce new and advanced methods to do their
business activities. Using these new innovative methods will help the business to have
competitive edge from the other business in the market, but as a threat other businesses
will also try to come up with new innovative technology so no business will use any
outdated technology or methods. The businesses who doesn’t co-op with these activities
will automatically get ruled out if otherwise.
2. Introduction of the company
The Distilleries Company of Sri-Lanka (DCSL)
The Distilleries Company of Sri-Lanka has grown to become the largest distiller’s in Sri Lanka
throughout the years and also it has being one of the most profitable and well-recognized leading
manufacturing and service providing business in Sri Lanka. DCSL is a premier blue chip
company in the Colombo stock exchange and it has a commanding presence in the CSE. DCSL
has won many awards over the years one of the biggest achievements of theirs is being ranked
amongst 200 of the best companies in Asia for three times by Forbes Asia this is an indicator
which shows the performance, stability and overall excellence of the company. (Dcslgroup.com,
n.d.)
2.1 Operations Management
DCSL’s operation activities are distilling and manufacturing quality arrack and delivering its
product to consumers on time. To achieve this DCSL uses top of the line, modern machines and
equipment, people who are well trained through international practices and also uses information
to find out consumers behavior and purchasing patterns.
The use of 4 dimensions of operations management (4V’s) can be explained as, (Eshelby, n.d.)
Volume- DCSL uses the ultra-modern state-of-the-art fully automated plant to produce arrack at
a faster rate and has a large warehouse to store a large amount of barrels to be distilled and also a

fleet of modern vehicles ensure that the product gets to even the remotest areas. These various
methods has helped DCSL to produce large volumes of arrack and also to capture a large volume
of people.
Variety- DCSL produces a variety of arracks and also through the fully owned subsidiary
company Periceyl we produce variety of whiskey and brandy etc. because of this people has a
variety of choices to choose from.
Variation of Demand- Variation happen due to other competitors local or multinational since
these competitors are there consumers have a lot of products to choose from and if our products
aren’t up to the standards or up-to consumers’ expectations and if the prices are too high they
will tend to move to a another product which gives the same results at a cheaper value so DCSL
tends to always keep a rigid price and always satisfy consumers with the best quality products
Visibility- DCSL doesn’t have a lot of visibility to customers. A main reason for this is because
it’s not entirely a service providing business but this hasn’t being an issue for DCSL since people
trust our products because DCSL has given excellent products since 1992.
2.2 Performance Objectives
Quality- DCSL produces 100% natural coconut arrack using pure coconut toddy. DCSL takes
measures to not to make any mistakes in production to provide quality arrack that satisfy the
customers.
Speed/Dependability- DCSL takes measures to make the products available everywhere anytime
by reducing time wastages that takes place in production (automated machines) and
delivering(modern vehicles). This makes the consumers dependability on the product grow.
Flexibility- DCSL has being in this industry since 1992 and we have changed our production
methods accordingly with time and also come up with new products to the market over the years.
DCSL can be known as a business that is flexible to external as well as internal factors.

Cost- While DCSL keeps up with new technology and uses all quality methods for the products
DCSL manages to sell products at a lower price than other competitors mainly because it’s a
local made brand and other brands have to pay a lot of taxes and levy’s since they are foreign
brands. (Dcslgroup.com, n.d.)
Supply Chain Management of DCSL
Supply chain management is the set of activities that is required to have a productive and
efficient production flow of a business. Supply chain management starts from the beginning of
obtaining the raw materials to moving through the production and all the way to distributing the
product to consumers. DCSL focuses heavily in having an effective Supply chain because it
creates efficiency in the business, lowers costs and enhances the customers and suppliers
relationships. (Rouse, n.d.)
Supply chain facilities- DCSL has a massive warehouse to contain the distilled arrack and
wooden Halmilla barrels and a large factory to manufacture and bottle the arrack at an amazing
rate of speed and our products are available at any liquor store in Sri-Lanka.
Supply chain functions and activities- DCSL gets 100% natural coconut toddy from toddy
tappers and it goes through a lot of processing and given careful consideration to the process
with ISO standards and other quality assurance methods.
Upstream Supply chain- DCSL invests a lot of money on research and development processes
and also on other quality processes just to create a product that’s error free.
Downstream Supply chain- DCSL takes measures to make sure the products gets to every
customer in every area in Sri-Lanka by using correct supply management decisions

Managing Customer Expectations
While DCSL maintains and produces quality arracks we not only tries to satisfy the customers
but also to delight customers with a quality Sri-Lankan product. We manage these customer
expectations through several methods,
Using quality standards- Customers will have trust on ISO or other quality standards because to
obtain those certificates the business has to maintain certain levels of quality through production
to delivery. Since DCSL is ISO certified people doesn’t have doubt about the products we
manufacture.
Availability- DCSL has never gone out of stock. We make sure our arrack can be purchased
without any hassle of losing stock.
Total Quality Management- DCSL makes sure that not just production we look over every aspect
of the creation to make sure our products are defects free always.
References

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Dcslgroup.com, n.d. DCSL - Sri Lanka. [Online]
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Dcslgroup.com, n.d. DCSL - Sri Lanka. [Online]
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Eshelby, P., n.d. The 4 Vs of Operation Management. [Online]
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Project Times, n.d. Agile Transformation: The 3 Key Ingredients. [Online]
Available at: https://www.projecttimes.com/articles/agile-transformation-the-3-key-ingredients.html
[Accessed 13 June 2019].
Rouse, M., n.d. What is supply chain management (SCM)? - Definition from WhatIs.com. [Online]
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[Accessed 13 June 2019].