Overview of the article
Various operations management facts and theories are objectively presented throughout the article of “Supply and Demand Chain Management: The Effect of Adding Services to Product Offerings” by Oscar Bustinza, Glenn Parry and Ferran Vendrell-Herrero. These theories include supply chain management and competitive advantage, operations strategy and technology. The main purpose of the literature being reviewed is to address the research question of “How does changing the offering affect the supply and demand chain management?” (Bustinza, Parry. & Vendrell-Herrero, 2013, p. 618). They achieve their research objective through a study of the music industry and demonstrate how the digitization of the creative industries has affected the supply and demand chain management approach when new services are added to traditional product offerings.
Operations Management (OM) explores numerous theories on how to improve the processes and design of a supply chain. OM can be defined as “the science and art of ensuring that goods and services are created are delivered successfully to customers” (Collier and Evans, 2012, p. 1). The content of BX2062 predominately studies the seamless integration of logistics, operations and the customer. The literature covers a wide variety of themes that repeatedly emerge within the subject content of BX2062, Operations Management. Although the literature presents these themes in an array of different contexts, this paper will primarily focus on their application and relevance to the subject content of BX2062.
Critical thinking
Operations Management continually studies methods to find the best supply chain processes to be able to serve each customer and each product at a given point in...
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...hough, despite this criticism, it is a detailed article, with the intention to illustrate to firms the affect that digitising their services can have on their supply chains.
The authors of the article suggest that introducing new services to traditional product offerings has many implications not only on the creative industries approach to supply chain management, but similarly those industries that associate themselves to the creative industry. From the study, they found that “traditional manufacturing supply chains are affectively broken when services are added to the firms product portfolio.” (Bustinza, et al. 2013, p. 626) The digitization of products can affect the design and change the way that the supply chain is operated and managed. And eventually, could completely alter the way that firms manufacture and distribute their finished products in the future.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
Business Operations Management Operations management can be defined as the management of the processes that produce or deliver goods and services. It has made a significant contribution to society by playing a role in areas such as increasing productivity, providing better quality goods and services and improving working conditions. ‘Every organisation despite having or not having a functional operations department use operations management as every organisation produces either goods and or services’ (Greasley, A. 2010). The key elements of operations management are facility design and location, process technology, product and service design, process design, job and work design, planning and control, inventory management, capacity management,
Have you ever wondered how all those products that you buy everyday get to those stores or how that website is able to ship you what you want? Have you ever wondered how all those companies have those products ready and waiting for you? Well I can tell you that they just don't appear out of nowhere! Businesses use what is called a supply chain to make it possible for them to provide the consumers with the products they desire and need. What exactly is a supply chain and how does it ensure that everyone gets what they need? In this paper we will define a supply chain and also take a look at business to business supply chains and business to consumer supply chains and see how they differ and how they are alike.
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
The report highlights in detail the role and the importance of Supply Chain Management (SCM) in an organization with respect to Radio Frequency Identification (RFID) and its growing impact in the industry and talks about the changing SCM trends keeping RFID as the focal point.
Roth, A.V. and Velde ,M V D.(1991), “Operations As Marketing : A Competitive Service Strategy”, Journal of Operations Management ,Vol. 10 ,No. 3,pp 303-328
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
The increase of business digitization processes, services and products ensures a better understanding of the digital strategies of a business. Some of the digital strategies such as IT outsourcing and investments in general information technology are major elements of overall business strategy, which most of the timesoften allow organizations to differentiate themselves from their competitors and also creating create demands that conform with the norms of the competition (Cadle, Paul & Turner, 2010). The needs need to changeof changing the digital strategies for competitive environments areis prompted by:
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which
These major supply chain components that have shaped Walmart’s success over recent years are their buyer bargaining power (one of Porter’s Five Forces), focus on the overall customer experience, and investments in emerging technologies along with the implementation of these technologies in their business plan. The third and final key trend in which all of the top 25 supply chain companies possess emerging digital business models. Over the past couple of years, Walmart has boosted its e-commerce operations and brought in a large portion of revenues from online sales (Aronow & Burkett, 2015, p. 20). Gartner Inc. describes Walmart as a “supply chain pioneer” that has continued its push into e-commerce and has expanded investment in multichannel drive-thru pick-up centers and a ‘click-and-collect’ grocery service offered at some of its stores (Aronow & Burkett, 2015, p. 20).
Studying pre-existing models of operations management may be a smart approach to truly understand this field. But since technology is advancing by the minute, new concepts, and tools should be adapted for operations management. The book titled Operations Management strategically explains the different concepts, divisions, and approaches to operations management. References Encarta (2005) Definitions of Operations Management. Retrieved September 15, 2005.
At present, every organization believes that operations management plays a pivotal role in establishing and maintaining global leadership, and is a part of the overall organizational strategy. The strategic part that operations management plays in hierarchical execution can be seen as more companies are moving towards dealing with their operations from a value chain viewpoint. There are many reasons that support, operations management an important element for the success of the business. It encompasses manufacturing and services, and its essential in adequately and effectively dealing with the productivity as every company ought to have high productivity which can prompt economic growth and development and help the company’s work force in getting high wages, as well as lead to a rise in organization's profit. Operations management is likewise imperative as it plays a major role in any company’s
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp