The Role of Two Supply Chain and Technology in Operation Management - Coursework Example

?The role of two supply chain and technology in Operation Management Operations management is related to facilitate the creation, production, distribution and delivery of a firm’s goods and services to perspective buyers. It is a broad area of management study which involves the involvement of two key agents – supply chain and technology. Let us find out the role of supply chain and technology in operations management. Supply chain in operations management: Supply chain management ensures that the entire process of purchase, transport and manufacture is determined. It analyses the three elements namely, supply chain management components, supply chain business processes and supply chain network structure. In order to promote the competitiveness of organizations, promote cost efficient and accurate methods unrestricted flow of information is necessary. Hence, the key role of supply chain in operations is to ensure that all processes are in place in order to get accurate results. In order to ensure that the supply chain is cost effective and efficient, companies use a process known as supply chain management. A series of steps are followed by firm in order to ensure that the company transforms its raw materials into finished products. These series of steps may comprise of five stages namely, planning, developing, creating, delivering and returning defective products. With the changing markets globally, many companies and firms are forced to review their operations policy. Companies have changed from centralized operations to decentralized operations to be close to their markets and take advantage of available resources (Gunasekaran & Ngai, 2005). a) Procurement – One of the major roles of supply chain in operations management is that of procurement. All companies need to order goods and services in order to conduct business. A good supply chain manager is one who ensures that best quality goods are obtained at the least price. In manufacturing, the key responsibility and role of a procurement specialist is to search for vendors to procure materials which match the budget constraint and quality requirement. Hence a key requirement of purchasing professionals is to develop relationships with their suppliers and even look out for partnership options wherever feasible. A firm having an efficient supply chain management process seeks to provide purchasers multiple benefits which also include increased and improved coordination with suppliers. If the coordination between purchasers and suppliers is better, then this leads to increased commitment and a long term relationship between the suppliers and purchasers; thereby leading to a cost effective option to the purchasing organization (Giunipero & Brand, 1996). Smaller organizations need to order stationaries and hence they need to maintain a regular list of vendors who provide them the best quality products at the lowest price. Hence, an efficient procurement specialist should be a good negotiator in order to get the best deals from the suppliers. b) Transportation – One of the major roles of supply chain in operations is to efficiently handle transportation. Transportation in an essential part of the production process right from manufacturing of the product till the time of delivery to the final consumer and returns. The key prerequisite for this process to be successful is to ensure excellent coordination between each component in order to attain optimum benefits (Tseng & Yue, 2005). This requires in first determining the best suited and cost effective method of transportation applicable to the organization. Managers responsible for this first try to assess the tradeoffs in terms of price and speed. Most companies may have two or more modes of transportation depending on the urgency of the requirement. Shipping goods and equipment through a truck may be cost effective than by a flight. However, the time taken to send the consignment may be more in comparison to the time taken to send the goods by flight. Also some transport services may be highly reliable than others and may have less risk of damage to goods. These are some constraints managers must think about before taking the final decision as to which mode of transport should be used. Depending on the time and budget constraint, managers may determine which will be the best suited method to deliver goods to a certain destination. Goods can be delivered by means of ships, air, land or express delivery. These are the traditional methods by which goods are shipped from one place to another. However, with the advent of e-commerce the future of transportation industry has changed. It has become easier as people do not have to go through the unnecessary hassles of paper works. c) Vendor relations – Another important role of supply chain is to maintain relations with vendors. This includes negotiating rates and formulating contracts, conducting meetings regularly so as to ensure that the service or goods obtained is in excellent condition. One of the main prerequisites is to maintain excellent business relationship with diverse vendors so as to ensure best quality and cost effective goods and services. Operation managers need to have excellent communication and negotiation skills. Also they must have knowledge of economics and international business. They also must be firm in their dealings with the vendors. d) Quality control – another important role of supply chain in operations is to provide best quality of goods and services. In order to attain this objective, there must be fixed parameters which define the quality or service provided. Managers must ensure that the products delivered do not have too many defects. If most products provided are defective then the firm stands a chance of facing lawsuits. A lawsuit may not only be expensive but it may cost a firm its reputation in the market. Hence, it is always advisable for managers to put the product to complete quality tests before it is dispatched to the client. e) Customer Focus – A firm needs to keep in mind to provide the best services and goods to its consumers. Customer requirements change from time to time and accordingly firms need to evaluable them regularly and accordingly adjust their operations. In short, a company needs to extensively research its customer base so that the customer needs are identified. This will ensure smooth exchange transformation in supply chain and hence better operations management (Chen & Paulraj, 2004). Technology in operations management: Nowadays, technology has filtered into all aspects of business and plays a key role in operations management as well. Firms are on the look out to providing enhanced quality of goods and services and technology makes it possible to attain this objective. Nowadays more and more organizations are investing on eBusiness technologies in order to create and develop seamless integration of all entities involved in operations management. This includes proper coordination of activities and sharing timely and accurate information between business entities (Devaraj, Krajewski & Wei, 2007). Nowadays, more and more manufacturing industries are shifting towards automation and post – industrial systems where the emphasis is given to provide high quality products and quick response to consumers. Most manufacturing firms are opting for Advanced Manufacturing Technology (AMT). This technology helps to apply computer – enhanced applied science to the production system of an organization. Firms need to considerably invest on computer numerical controls and computer facilitated designs. However, this helps to reduce the response time and provide a shorter product life cycle by designing and producing custom oriented high quality products. Hence, technology in operations helps firms to develop an effective mix of derivative products in order to meet specific client requirements. Hence, technology is adapted by more and more firms as it helps to speed up the product design process and at the same time provide improved quality of products. In operations management, technology plays a vital role. In the manufacturing firms, technology facilitates an environment which aide timely and accurate shipment information (Tracey, Vonderembse & Lim, 1999). With the advent of the internet, the operations management has had tremendous benefits by means of accurate and speedy receipt of information. This has at the same time proved to be cost effective. Some opportunities included in operations management are as follows: a) Buyers can find online vendor catalogues which provide detailed information regarding the product or the service provided. Not only this, internet has made it possible for people to order products directly from the suppliers. b) It is now possible to track the status of the shipments (be it by air, land or sea) and find out by when the product will be delivered. c) It is possible for customers and vendors to contact regarding a wide range of issues like alterations in the shipment dates, customer service issues relating to late delivery of products, late arrivals, stock outs, damage to products and a range of issues. d) One can reserve space in warehouses online for anticipated deliveries to specific locations. e) With the advent of information technology, it is possible to attain 24 by 7 customer services. f) It is possible to acquire contracts and sign deals with international customers and vendors. g) One can notify vendors and customers in advance regarding the change in product configurations (especially those for which an order has been placed). h) One can make the payment online and again check for outstanding / balances. i) It is possible to check the status of the products / services from vendors online j) One can bid products or services online especially on projects which are issued by industry buyers and government. k) It is possible to directly establish successful communication with customers and vendors 24 by 7 through e-mail. l) The ability to schedule deliveries and pickups online m) Technology has made it possible for firms to be more responsive to customer service related issues n) Technology has led to the reduction of response time and service cost (Lancioni, Smith & Olivia, 2000). Technology has had tremendous impact in operations management. Nowadays, vendor quotations, designing activities are all done online. Previously, advertising and designing professionals had to manually design equipment / products etc. Nowadays, operations personnel directly design the product with the help of online designing tools and submit it to the prospective client. The client then views the same online and suggests possible changes / modifications (if at all to be done). Hence, technology helps in getting speedy output. Operations management entails collecting and maintaining data with relation to the activities of creation, production, distribution, delivery and return of products or services provided by a firm. Technology facilitates one to collect and maintain data. Previously operation managers had to maintain stack of files and folders to collect and maintain data over a period of time. With the advent of technology, such data can be maintained by means of CDs, files, hard disk drives etc. In other words, the once cumbersome process of maintaining data has become much easier and compact. Moreover, technology has facilitated one to retain only the data that is useful and it is possible to organize data in such a way that the relevant points can be seen at a glance. Take the case of information technology. The media and print industry has evolved over a period of time as it is able to display tickers containing important news almost immediately after the event has occurred. All this is possible with the help of technology. Operations personnel here need to just type in the desired commands and the display can be viewed. Another important aspect of technology is the unification of the entire offices. Multinational companies have offices all across the world. With the advent of the intranet, it is possible for employees to access common information. People can also hold meetings on a particular schedule and time. Managers have tremendously benefitted from technology as this has helped to speed up the decision making process. The key role played by operation managers is to transform a firm’s inputs into finished goods and services. In this endeavor, technology and supply chain plays a crucial role. Nowadays, advanced measures have been formulated and implemented with the advent and breakthrough in technology. Hence, the pattern of work has become more organized and easy. At the same time, it is possible to obtain accurate and speedy results. Works cited: Gunasekaran, A. & Ngai, E.W.T. “Built – to – order supply chain management: a literature review and framework for development”. Journal of operations management 23 (2005): pp. 423 – 451. Print. Giunipero, L.C. & Brand, R.R. “Purchasing’s role in supply chain management”. The International Role of Logistics Management 7 (1996): pp. 29 – 38. Print. Tseng, Y. & Yue, W.L. “The role of transportation in logistics chain. Eastern Asia Society for Transportation Studies 5 (2005): pp. 1657 – 1672. Print. Chen, I.J. & Paulraj, A. “Towards a theory of supply chain management: the constructs and measurements”. Journal of Operations Management 22 (2004): pp. 119 – 150. Print. Devaraj, S., Krajewski, L. & Wei, J.C. “Impact of eBusiness Technologies on operational performance: The role of production information integration in the supply chain”. Journal of Operations Management 25 (2007): pp. 1199 – 1216. Print. Tracey, Michael, Vonderembse, Mark.A. & Lim, Jeen - Su. “Manufacturing technology and strategy formulation: keys to enhancing competitiveness and improving performance”. Journal of Operations Management 17 (1999): pp. 411 – 428. Print. Lancioni, R.A., Smith, M.F. & Olivia, T.A. “The role of internet in supply chain management”. Industrial Marketing Management 29, (2000): pp. 45 – 56. Print. Read More