Emerging Operations Management Functions - Essay Example

? Emerging Operations Management Functions Emerging Operations Management Functions Operations Management involves the design and administration of goods, services, chains of supply and resources. It comprises the purchasing, development and the way the procured resources are put into use for production (Shim & Siegel, 2009, Pg.51). Its ultimate ambition is to make sure that the desires and wants of the customers are satisfied. The activities of operation management vary from tactical to strategic and at different operational ranks. The strategic representative considerations comprise determination of the locality and size of the manufacturing industries, the organization of services and coming up with the technology applications in the chains of supply (Mahadevan, 2010, Pg. 92). The framework and layout of the plant, administration of the processes of production and selection, repair and replacement of tools and equipments lie under tactical issues. Operation activities include the control of production, management of inventories, control and regulation of quality standards and implementation of management policies. In the operation management, there are a number of emerging functions from different dimensions. The functions include globalization of the dimension of productivity and completion tactics and e-procurement for the supply of resources and materials. Globalization is movement of people, services and goods across different nations in the world without restrictions. The across border movement is conducted in an integrated and flawless way (Shim & Siegel, 2009, Pg. 55). It is as a result of opening up the global economy and the associated increase of trade relations among nations and regions. Globalization will make countries to go global hence increase the integrations of the world’s economy. In other words, countries will relax their import restrictions and attract more foreign investors into various business sectors of the economic development hence attract more foreign for the improvement of the respective countries. E-procurement is the process of conducting procurement and purchasing of materials, resources, goods and/or services between business organizations via the internet (Mahadevan, 2010, Pg. 92). Use of internet in the modern has been incorporated in almost all sectors whereby the sector of business in not left behind. It is a crucial component in business to business sites commonly referred to as B2B sites. In the B2B sites, users who are registered eligible find clients who want to buy or sell products and services. Depending on the preference and approach that may be used by the clients prices of goods and services can be specified and sometimes negotiation can be done (Kumar & Suresh, 2009, Pg. 130). The software of e-procurement automates the transactions of buying and selling over the internet. This function will enable companies to effectively and efficiently control the inventories, minimize the number of purchasing personnel and more significantly improve the processes of manufacturing. In the future, the function of e-procurement is expected to be incorporated with the computerized supply chain management (Shim & Siegel, 2009, pg. 65). Since in the coming years globalization will be more than it is now, it is vital for companies and organizations to prepare for the future globalization due to the challenges that may be accompanying (Galloway, 2010, Pg. 105). To be on a secure side a country must take caution and diverse considerations before making a move of implementing any type of venture in globalization. One of the practical concerns that need attention is currency (Homann, 2009, Pg. 150). The currency that is dominating in the world today is the Euro and the US dollar. In addition to that, there are more than 200 currencies which are used in global business transactions. Companies venturing into globalization must be aware of the costs involved in the exchange of foreign currencies and the challenges which are accompanied. Another one is the legal frameworks and policies of the globalized organizations. The policies can impact the firms making joint ventures infeasible. Therefore, it is extremely significant for companies interested in globalization to consider the aforementioned aspects (Galloway, 2010, Pg.121). If the risks and future challenges are properly considered and adequately addressed, globalization will enhance the development of many trade opportunities. Some of the opportunities that will be provided by globalization include easy and accessible importing and exporting of goods and services (Homann, 2009, Pg. 102). Since globalization opens up ways in which countries which are under-developed to connect with the world, their economy will be enhanced. Besides, it will offer cheaper procurement and outsourcing of low cost resources including labor and equipment. Globalization will also have negative impacts too. Illegal businesses such drug and human trafficking will be enhanced greatly. Uncontrolled migration, terrorism and crimes that can impact economic development will be difficult to control and prevent (Kumar & Suresh, 2009, Pg. 78). E-procurement which facilitates easy purchasing of products and reduces the costs accompanied can be done in the following sites: brokering sites, industry portals, information sites, websites of companies and product supply sites (Pani & Agrahari, 2007, Pg. 90). This is one of the emerging functions which will dynamically shape the future business transactions. In these sites orders can be done online and negotiations initiated to reach into an agreement hence the clients get the services or goods they want. E-procurement will enhance business activities hence the outcome realized will be high. The more profit made will be utilized in investment hence boost the development of the economy (Neef, 2011, Pg. 105). There will be more opportunities of opening new businesses because the supply chain management and other activities will be easy to handle. Another significant advantage that will be provided by e-procurement is that, the buyer will access many sites where he or she will choose the company which is producing quality products at an affordable price. Moreover, e-procurement will enable cheap shipment of products across many countries especially the ones with globalized business companies (Neef, 2011, Pg. 130). The workforce that will be required by various countries to undertake this activity will be reduced hence the expenditure and the administrative requirement will be less. Therefore it translates that; most companies will put more resources in investment hence the business activities will continuously expand across the globe (Pani & Agrahari, 2007, Pg. 80). References Galloway, R. L. (2010). Operations management: the basics. London, International Thomson Business Press. Pgs. 101-127. Homann, K. (2009). Globalisation and business ethics. Aldershot [u.a.], Ashgate. Pgs. 97-151. Kumar, S. A., & Suresh, N. (2009). Operations management. New Delhi, New Age International. Pgs. 68-137. Mahadevan, B. (2010). Operations management: theory and practice. Upper Saddle River, Pearson. Pgs. 87-105. Neef, D. (2011). E-procurement: from strategy to implementation. Upper Saddle River, NJ, Financial Times/Prentice Hall. Pgs. 101-139. Pani, A. K., & Agrahari, A. (2011). E-procurement in emerging economies theory and cases. Farmington Hills, Mich, Thomson Gale. Pgs. 77-105. Parker, B. (2010). Introduction to globalization and business: relationships and responsibilities. London [u.a.], SAGE. Pgs. 27-72. Shim, J. K., & Siegel, J. G. (2009). Operations management. Hauppauge, NY, Barron's Educational Series. Pgs. 45-90. Read More