Operations, Logistics and Supply Chain Management

This report discusses the importance of logistics and supply chain management in improving operational performance. It explores the areas of managing quality and choosing the right location for a business. The case study of Aston Martin is used to provide insights into these concepts.

OPERATIONS,
LOGISTICS AND
SUPPLY CHAIN
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES ............................................................................................................................10

INTRODUCTION
The management of a company adopts various methodologies for boosting up their
operational performances. Implementing pre decided plans and policies by management of the
business firm is a tough task for it's management considering factor of competition in a given
marketplace(Tiwari and et. al., 2018). Logistics and supply chain management are been used in
comparative sense in an industry as well as academy. These terms when used in operational
activities of an enterprise their importance revolve around life cycle of a product from production
to supply process. In this report Aston Martin which is an automotive industry is been taken into
consideration.
MAIN BODY
Aston Martin is an independent British manufacturer which deals in manufacturing of
luxury sports cars product line. The company was founded by Lionel Martin and Bamford in
1913. Considering the fact that every business firm has to deal with uncertainties in formulation
of respective business policies. Management of respective company in order to deal with
dynamic forces of business, focuses on making up of flexible policies for effective conduction of
operational activities in the firm (Schönsleben, 2016). The higher authorities of chosen
workforce is aiming to improve operational sustainability and flexibility to cope up with constant
changes in demands their respective customers. The senior manager of company i.e. Wyer, who
looks for all purchasing activities of this company agreed with theories of supply management
and highlighted about it's importance in near future for meeting up respective customers
requirement with quality products at best prices. It helps an organisation to build good relations
with their valuable customers and also enhances transparency of operations to a business firm.
Supply chain management and operations classify a broader area that covers both service
as well as manufacturing industries (Samara, 2017). It includes management of materials of the
company, it's operational planning, forecasting of demand of companies customers and many
more. Logistic management is a part of supply chain management which focuses on planning,
implementing and controlling activities of respective departments of the workforce. It includes
activities related to management of outbound and inbound transportation, warehousing,

management of inventory, fulfilment of order, designing of networks logistically and many
more.
In this competitive business world, more companies are been shifting towards building up
of uniqueness in their product line and are adopting innovative approaches for carrying out
operational activities of the business firm. In context to chosen company i.e. Aston Martin,
management of the workforce focuses on triple bottom line for improving it's performances in
respective operational activities (Nonato and Aupetit, 2018). It is an accounting framework that
is consist of three parts: social, financial and environmental respectively. The core activities of
an organisation focuses on aspects of environmental, social and economic environment in their
respective business environment. It involves focusing on supply chain perspective of an
organisation. As due to it's importance for improving effectiveness of operations in the
workforce, better services to customers and competitive approach management of many
companies showed interest in this concept and implement it to boost up sales of their business
firm also to give healthy competition to their respective competitors. The idea of sustainability
includes 3 interdependent components society, economy and environmental. Holding of
companies are been pressurised to earn good revenue out of their operational activities and
distribute decent amount of profit margin to their shareholders. This tool helps the company to
perform better with existence of intensive competition and enhances profit making capabilities of
the workforce (Musa and Dabo, 2016). Aston Martin have dealings with it's 200 suppliers of car
parts operations which is below 50% based in UK and remaining are spread in continents of
Europe, Asia and North America. But as analysed the concerned company has to face some
issues which are as follows: Increased cost: As this management technique uses lots of research programs and
conducts detailed analysis of market trends and customers demands, it adds up to the cost
of production for the firm. Complexity: As it is known that business has dynamic environment, it becomes hard to
predict environment of the business which makes it hard for it's management in
formulation of it's key plans and policies and most of the times ends on failure which
costs loss of investment to the firm.

 Unpredictable needs and wants of customers: This method is been based on providing
right quality products to right customers. It becomes hard to predict and to cope up with
ever changing trends in customers demands and results in system failures.
AREAS OF OPERATIONS
Managing Quality: Quality of a product or service is highly related to it's prices. It refers
to a parameter that classify products and services being delivered by a company to their
customers as inferior or superior. In general sense it can said that when a product or service
exceeds people satisfaction or rises their living standards is to be classified as good quality
product or service. According to Armand, Joseph and Edwards, concept of TQM is been
originated from manufacturing sector, however it has it's various dimensions and it's use could be
applied to all sections of an organisation. This concept states that respective staffs of the
workforce focuses on giving their best towards improvement of organisational culture, systems,
services and many more for ensuring better growth of a business organisation. It helps
management of the firm to ensure better operational working of their employees and building up
of decent reputation of the firm for a longer period of time (TQM – Total Quality Management –
Definition, Principles & Importance, 2021).
International quality standards are the basic criteria set up by an organisation that helps in
determining cooperation among different countries in international markets. It defines the
standards of various products and services being sold by a business organisation in international
markets. It helps customers to differentiate respective products or services being sold by the
company on basis of their qualities with relation to it's prices being offered to them (Bozarth and
Handfield, 2016). By maintaining a specific standard of quality of a product or service makes it
easier to an enterprise to establish better goodwill of it's business and helps in increasing loyalty
of valuable business customers. ISO is an independent international body which conducts it's
operational activities across 165 countries of the world (Bouranta and et. al., 2017). This institute
keeps a regular check on quality of products and services being delivered to customers in
international markets. It ensures better quality of products being delivered that are not harmful to
human health and helps in maintaining living standards of respective brands consumers.
Due to past global recession of late 70's and 80's US had to face intensive competition
from Japan. As they have captured markets of automotive and electronics by delivering good
quality of products at reasonable or comparatively lesser rates then rest of the world's company.

Which forced management of various companies from respective nations to look closely the
strategies and plans followed by Japanese companies to capture demands in the marketplace
(Ferretti and et. al., 2018). It was the time when TQM came to rescue as name suggest total
means full dedication from all employee working in an organisation to give their best of their
efforts to improve performances of business to initiate growth and boosting up of sales. By
giving them proper training and providing them enough motivation to convey organisational
activities. To tie up all the strategies and methods of respective management of a firm TQM was
adopted. It works on following principles: Customer focus: The foremost principle of TQM is of producing companies products and
services as per their customers demands and marketing trends. It ensures the right quality
of product or services is been delivered as per different living standards of people. Total employee commitment: It is believed that an organisation can't increase it's
performance and productivity without contribution of companies employees at their best
of abilities (Goldsby and Zinn, 2016). In order to carry business operations effectively
management provides enough motivational techniques for boosting up abilities of their
staffs and to keep them motivated towards working of an organisation. Process approach: It works on a the basis activities of the workforce should be well
coordinated. It provides ways to establish effective coordination between respective
departments of a business firm to ensure maximum quality of output being delivered by
company to their valuable customers.
 Integrated system: This principle states about all the activities being done in respective
departments of the company should be interconnected to each other (Akao, 2020). It
establishes sense of accountability and responsibility between companies departments to
carry work of in the firm effectively without wastage of it's limited resources.
Location and Layout: For a business firm deciding correct location for
conducting it's respective business activities plays an important role in deciding success of it's
planning function. The management of the concern firm do a proper research and development
of given marketplace before making it's key strategies (Mehralian and et. al., 2017). It analysis
market demands of product or service consumers and evaluates their taste and preferences also
analysis current marketing trends. Good initial decisions made on selecting right location for a

business helps in building up of long term goodwill of the firm and maintain loyalty of
companies customers towards companies brand.
Seven major factors that affects decisions making for location of the firm
Cost: It is the most important factor that is to considered while determining the location
of the workforce. It includes, fixed costs, wages rates, land cost, manufacturing cost and many
more.
Characteristics of Labour: This factors tell about quality of labour available in given
location. It includes, rate of unemployment, motivation of workers and attitude etc.
Infrastructure: It relates to rate of availability of transportation which includes railways,
airports, sea ports and roads. It includes quality of modes of transportation and systems of
telecommunications.
Proximity to suppliers: It tells about respective factors of suppliers that affect working of
a business organisation. It includes number of suppliers available to firm at the given location.
Also highlights bargaining powers of suppliers of the workforce at location of business firm.
Social and cultural factors: It refers to different cultures followed by people at the given
location. For producing efficiency management of a firm has to critically analyse social and
cultural factors of an organisation.
Economic factors: It includes respective policies imposed by government of the nation.
This consists of tax structure and incentives, custom duty, tariffs and many more.
Legal factors: This factor tell about legal formalities for a business enterprise to operate
it's business activities at given marketplace. It includes, industrial laws, legal systems,
regulations related to establish joint ventures and many more.
Importance of layout strategy
Layout for an organisation is a key factor that determines it's goodwill in long term. It is
implemented strategically as it highlights flexibility in companies policies, quality of work being
produced in an organisation and tell about cost management techniques of the workforce
(Mangan and Lalwani, 2016). An effective organisational layout helps it's management to
implement desired plans and policies without creating loophole in companies workings and
creates sound business environment in the workforce.
The operational management of Aston Martin follows the above two areas of operations
in order to carry it's operational activities in effective manner. It helps the workforce in

formulating respective plans and also provides good hand to implement such planning structures.
As due to existence of competition in market a company have to go through many unpredictable
possibilities. By adoption of supply chain management, business firm is able to classify different
product quality to serve it's respective classes of customers. It enhances profitability of the firm
and boost up it's new sales. Another area of operation that has been analysed in respect to chosen
organisation is of choosing up of right location for a business enterprise to carry it's business
activities (LeMay and et. al., 2017). Management of Aston Martin by focusing mentioned areas
of operations helps it's operational management to formulate appropriate plans and enables
organisation to serve best quality products to their valuable customers that adds to trust building
of respective customers towards companies brand.

CONCLUSION
From the above report it can be analysed that TQM plays an important role in maintain
the respective living standards of various customers of a brand. Supply chain management is a
helpful tool to a management of the business firm to determine market demands and trends of
various product or service consumers. It helps in attainment of profit maximisation objectives of
an organisation and enhances companies growth. A business firm operates it's respective
activities in various areas of operations. This report analyses managing quality of companies
brands and helps in deciding preferred location to operate it's business activities.

REFERENCES
Books and Journals
Akao, Y., 2020. Hoshin Kanri: Policy deployment for successful TQM. CRC Press.
Bouranta and et. al., 2017. Identifying the critical determinants of TQM and their impact on
company performance. The TQM Journal.
Bozarth, C.C. and Handfield, R.B., 2016. Introduction to operations and supply chain
management. Pearson.
Ferretti and et. al., 2018. Planning and concession management under port co-operation schemes:
A multiple case study of Italian port mergers. Research in transportation business &
management, 26, pp.5-13.
Goldsby, T.J. and Zinn, W., 2016. Technology innovation and new business models: can
logistics and supply chain research accelerate the evolution?. Journal of Business
Logistics, 37(2), pp.80-81.
LeMay and et. al., 2017. Supply chain management: the elusive concept and definition. The
International Journal of Logistics Management.
Mangan, J. and Lalwani, C.C., 2016. Global logistics and supply chain management. John Wiley
& Sons.
Mehralian and et. al., 2017. TQM and organizational performance using the balanced scorecard
approach. International Journal of Productivity and Performance Management.
Musa, A. and Dabo, A.A.A., 2016. A review of RFID in supply chain management: 2000–
2015. Global Journal of Flexible Systems Management, 17(2), pp.189-228.
Nonato, L.G. and Aupetit, M., 2018. Multidimensional projection for visual analytics: Linking
techniques with distortions, tasks, and layout enrichment. IEEE Transactions on
Visualization and Computer Graphics, 25(8), pp.2650-2673.
Samara, T., 2017. Making and Breaking the Grid, Updated and Expanded: A Graphic Design
Layout Workshop. Quarry Books Editions.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Tiwari and et. al., 2018. Big data analytics in supply chain management between 2010 and 2016:
Insights to industries. Computers & Industrial Engineering, 115, pp.319-330.
Online
TQM – Total Quality Management – Definition, Principles & Importance, 2021, [online],
available through<https://cleartax.in/s/total-quality-management>