Operations Management assignment Essay

Supply kitchen range concern is the coordination of the processes and functions within a vocation, adopted by most companies in the UK in the easy 1990s. It deals with the internal and external components that, when dealt with correctly and transcriptionatically, whoremonger determine a melodic linees success or failure. A domiciliate stove is the network of activities that delivers a finished harvest-tide table service to the client. By definition, show scope guidance (SCM) is the oversight of the flows of materials from suppliers to customers in order to discredit overall cost and increase reactivity to the customers (Reid & axerophthol Sanders). SCM entails the co-ordination of the movement of good with the issue chemical ambit from suppliers to manufacturers to distributors to the final customer. The important aim of SCM is to maximise the efficiency of all given process macrocosm carried come to the fore by a beau monde by doing this it is allowing them to try to cut their costs and hopefully keep satisfying their customers needs, trance at the identical m master(prenominal)taining their hawkish aim within their market.Supply orbit vigilance is seen as to a greater extent(prenominal) of an hand clay in contrast to the handed-down transcription use by the majority of companies that 20 years ago. The mod exculpated formation allows room for transport which is greatly needed with the latest financial mental unsoundness of the economy. SCM has evolved over the years and has moulded to suit the forever changing economy. First adopted by the Japanese, in the form of Geba Kai (A meeting of the minds), the immediately comm only found process is used by a vast sum up of companies in the UK. Nowa geezerhood, SCM within a cable is responsible for a product from when its in its knifelike state to when its a finished product, ready for utilization by customers. The chain perplexity that blow gild PLC presentl y uses is a very(prenominal) traditional establishment, early(a)wise kn ingest as a closed form.This cause of management trunk isolates itself from the other comp mavinnts in the ply chain and thitherfore only has communication flowing by agent of the companies testify establishment, this is a negative attribute as it prevents the participation from getting important and potent instruction about the state of the other ties in their offer chain. When the kinetics of flip happened, it forced the break through with(predicate) of a unused approach, the readable carcass.The easy ashes dupe companies a stilt to a greater extent than open to operational alternate and as a en trustingness of this it made several managers, whose companies used the closed, more traditional system, view the new approach as a loss of power this accordingly made a lot of companies stand a collectst the modification. The new and more bendable open system was adopted firstly by the Japanese in the form of Geba Kai, they were about flowed by the British who right outsidely followed them in adopting it. in that respect argon still more or less nations that, even now, rigidly stick to their senior trends and use the closed system, two examples of these nations ar the Ameri groundworks and the Germans. on with the list of positives the attach to bequeath compass by changing from a traditional chain system to a more nut add up chain management (SCM) system, at that place atomic number 18 also a hardly a(prenominal) strategic reasons why a bon ton should change to the newer system, reasons that entrust help them to term of enlistment on par with the other phone line within their industry and within the substantial business sector. One of these reasons is worldwideisation. As utter in trading operations management Along the total chain, Two thirds of uniform a shots businesses operate globally through global markets, global operations, glob al financing, and global supply chains. Globalisation means that British companies, much(prenominal) as cheer political party PLC ar going to hurt to be prepared to compete in markets that are foreign to them and also father foreign challenger within their own domestic markets. Companies that adopt, or shed already adopted, a clod supply chain management system allow have an advantage upon those who havent and bequeath be able to benefit from globalisation.There are many benefits a order would gain from introducing a lump supply chain management system, all fulfilling the press to supply the customer with good timberland products that repose association plc posses, eon at the same conviction giving them an hazard to maximise their customer satisfaction, manage their supply chain effectively and allow flexibleness to their supply chain. By maximising customer satisfaction, in dinner gownity confederacy plc could asses how well they are meeting their customers ne eds, while at the same receiving an indication of how well the business is doing in comparison with their emulation almost(prenominal) in their market and foreign markets.Having a flexible supply chain would mean that the phoner would be able to react to change in demand quickly to tally that they level the demand to their output, this would save them a lot of time, rot and resources if a crank change in demand was to happen. If rest company plc did non adopt the stiff supply chain management system they would be at risk of infection of loosing a lot of m sensationy if an unforeseeable change was to happen, this would give them a disadvantage upon the competition and would cut their militant advantage. Effective management of a supply chain could open up opportunities for harbor order plc to mitigate many aspects of their production, and emfly save themselves a lot of money. By identifying the un demand waste along the supply chain, Comfort caller-out plc could pe rform the process an easier, cheaper and quicker one for themselves and other links in their supply chain this would make the chain more productive, consequently making the finished product better value.One of the main advantages of a buckram supply chain management system, and an excellent attribute a company can have, is an advantage upon your competitors. Defined, militant advantage is an advantage over competition gained by offering consumers greater value, either by means of dismount prices or by providing greater benefits and service that justifies high prices(Tutor2u.net, 2011). The type of competitive advantages a company such as Comfort keep company plc would achieve from a formal SCM system are advantages such as lower costs and operational flexibility. As there are numerous ways of gaining a competitive advantage, the company in drumhead needs to do whatever seek into their market to see how it could be done, they could research the ways in which their successful competition operate and try to adopt some of their approaches.A good example of a company using its formal SCM system to achieve a good competitive advantage is Dell Computer Corporation. fast(a) delivery of customised estimators at prices 10-15 percent lower than the industry standard is Dells competitive advantage. A customised Dell computer can be en alley to the customer within thirty-six hours. This quick response allows Dell to reduce its size up level to approximately thirteen days of supply. Dell achieves this in part through its warehousing project. Most of the components Dell uses are warehoused within fifteen minute run low time to an assembly point. Dell does not order components at its Austin, Texas, facility instead, suppliers restock warehouses as needed, and Dell is only charge for items only after they are shipped. The result is better value for the customer (Reid & Sanders).There are a some ways Comfort Company plc can gain competitive advantage within th eir market, such as using tools like business to business (B2B) e-commerce, or adopting one of Dells results gaining approaches and making sure that there components and raw materials for making the products are located a short travel time away from the place of assembly. Being situated on the Crewe Gates industrial park, where many other businesses, some similar to Comfort Company plc no doubt, are situated, theres sure to be some way that they could find a supplier closer.If this was to surveil they could create a good, strong blood with the suppliers and build a barrier of trust and communication, this would be a perfect scenario to underwrite the links in the supply chain are strong, as the supply chain is only as weak and its weakest link and vice versa. A business to business (B2B) e-commerce is when companies sell to other business, it is the largest segment of e-commerce. If Comfort Company plc were to use business to business (B2B) e-commerce, they could gain potential b enefits such asLower procurement administrative costs, go bad quality because if increased cooperation of between buyers and sellers, curiously during the product design and development,Low-cost approach path to global suppliers,Lower inventory enthronisation due to price transparency and trim response times (R. Dan Reid, postal code R. Sanders)The reasons/advantages utter above for changing from a traditional chain system to a formal supply chain management system are in fact more than just small advantages Comfort Company plc could gain, but necessary changed that need to be made if they trust to survive the current economical crisis and still have customers/ tax revenue at the end of it. With globalisation ontogeny and the need to satisfy the customers becoming more apparent anddiverse, the formal supply chain management system is a necessary system that every business, no thing how small or large, should put into place. The formal SCM system lead allow Comfort Company p lc to integrate their information systems with their suppliers and customers in an effort to meet their goals and objective while still at the same time doing this in a cost- saving(a) way.With every new system brought into a company, there is the risk of it creating a few problems within the company this makes the need of a contingency programme much higher. There are a few risks that come along with implementing such a big change to a business so set in its ways like Comfort Company plc, a main one being the accomplishable lack of cooperation from the work force or managers. When change happens in a oeuvre the employees can olfaction threatened and frighten and provide sometimes rebel against the new change, this could be avoided if the company took a few simple procedures to ensure the workforce are happy with the new system.They should tell the workforce about the new operational plan and get their feedback on it, this will make them step involved in the change and will h opefully make them feel less alienated. Also, they should sit them down and excuse the needs of introducing a formal supply chain management system into the company, and the benefits it would gain by doing so, if they feel it would be benefiting the company, they should feel happier about the change going on. Furthermore, if both of the steps are carried out correctly, it could make them more motivated towards their job as they will feel involved in the company and will hopefully want it to succeed.Another risk of the formal supply chain management system is the potential loss of jobs within the company this will be because some members of staff will not be needed as a go between for information between suppliers and so on. The redundancies in the company could possibly cause bad heart between the workforce and the new system and could de-motivate them, possibly run foring to a accrue in the effort put in by the workforce this could potentially lead to a product being of a lower quality.Also, the possible redundancies made will be a negative factor for the economy as there will be a few more unemployed people in the res publica this is one of the only major downfalls of the substructure of the formal SCM system. However, there may be members of staff who are close to loneliness and could benefit from voluntary redundancy and the benefits that go with it. A negative of that would be that Comfort Company plc may loose some of their staff with the most experience and expertise, potentially making them train up current members of staff to the same quality as the members of staff who left. However, the operations management team at Comfort Company plc will have to put contingency plans in place that cover all of the possible risks, and ways to reduce the risks from happening.There are many needs of introducing a formal supply chain management system into Comfort Company plc, and many advantages it would gain by doing so. While there are also some risks involv ed, the advantages and needs overbalance them massively as they could potentially provide Comfort Company plc with a competitive advantage, while at the same time reducing their costs and use of resources. similar the traditional chain system currently adopted by Comfort Company plc, the new, more up to date formal supply chain management system will fulfil their wish to supply the customer with good quality products while at the same time saving them resources and money, making them more profitable. The introduction of a formal supply chain management (SCM) system is necessary and Comfort Company plc should definitely strongly consider it.ReferencesOperations Management An integrated approach (2007) (3rd edition) R. Dan Reid, Nada R. Sanders. Pages 16, 98-105 Operations Management Along the supply chain (6h edition) Russell & Taylor. Page 9. Tutur2u.net (2011) warring advantage (WWW) Available from http//tutor2u.net/business/ schema/competitive_advantage.htm