Business Operations - A Systems View - Assignment Example

When faced with rising costs and slumping sales, Aramex’s management would tend to look within examine existing operations and reversing the trend. The idea of looking at the external aspects beyond their company is not a new concept. What is new, concerns viewing their company as collective of systems, creating a whole, whereas also examining the relations between the individual systems in order to determine their effect on the whole system. The systems theory advances the premise that organizations consist of systems that form a larger system.

The manner in which a sub-system fits in the system determines whether the sub-system will prosper. The managers at Aramex can use this concept to achieve a more holistic picture of the entire organization. Learning and understanding how Aramex relates to the system it exists in, and the manner in which the organization’s internal systems detract or contribute from the larger system relationship could give a more relevant analysis. Restructuring a learning company needs an understanding of the concept of learning organizations and its relationship to the outcomes the organization desires (Kontoghiorghes et al, 2005: p185). . If the material is not flowing, then the supply pipeline is non-existent.

Instead, there will be inventory imbalances with products and components not ending up where the organization wants. The movement could be very broad in its geographical scope. Completed products and raw materials could be moved among and between any regions in the world. As organizations pursue competitive advantage, most are now considering their supply chains and developing customer-supplier relationships to the smooth flow of materials (Phillips et al, 2006: p452). The plan for movement of material needs to be flexible.

Sometimes, the existing supply chain is perceived to be a barrier and too rigid (Phillips et al, 2006: p457). The weakest link at Aramex, according to Iyad, is forecasting in their corporate execution and planning. Therefore, the movement needs to be able to deal and adjust with business activity swings. This could need a multi-level, multi-level, and/or multi-mode service program to keep a smooth flow of the global supply chain. For instance, it could need a mix of air and sea modes to ensure a smooth flow of material, particularly if there are swings in requirements and volumes.

On the other hand, a mix of slow and fast boat transit time, freight costs on the sea, and transit times for trading off. In addition, if the material’s destination were on, say, the east coast, a mix of all water and MLB service, the multi-carrier approach would work, although it could stay with the same line of steamship. Enabling Responsiveness throughout the Supply Chain While the movement of materials and products is fundamental to Aramex, it is also important for them to know where the inventory is and whether there