Understanding Operations, Logistics and Supply Chain Management

Understanding
Operations, Logistics
and Supply Chain
Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management refers to process of which is focused with designing as well as
controlling of production of goods and service (Musa and Dabo, 2016). It also includes planning,
monitoring and organisation of production of products and services of company. This project
report includes study of Volkswagen which is Germany company and manufacturer of motor
vehicles. It is established n the year 1937 by German Labour Front This project report includes
identification of various issues occur in operation as well as supply chain and identify function of
operation which provide support to market in which company offer their products. It includes
discussion of manufacturing system and use of infrastructure in managing delivery system. It
also includes analysation of various components like economic factors, environment as well as
social factors.
MAIN BODY
Issues occur in operation, supply chain management and logistics:
There are various issues faced by managers of operation and supply chain management while
handling operations logistics supply chain management in organisation (Bettín-Díaz, Rojas and
Mejía-Moncayo, 2018). This problem can create negative impact on business and its
profitability. it is important for managers of business to overcome of this problem in order to
attain growth and success in market. Some of problem faced by operation manager in
Volkswagen company are as follows:
Increasing cost: Increasing cost create negative impact on profit earned by business.
This cost increase from different areas of business and due to lack of accountability as well as
visibility to reduce this cost also results in increasing operational cost (Cagliano, De Marco and
Rafele, 2017). There is various reason which results in increasing cost. As due to development of
new product as well as service, organisation required to do research, need to hire skilled
employees, implement new technologies as well as machinery which also increasing cost of
company. Managing quality of product as well as service offered by our company also increase
the cost of company as to increase quality of products organisation need to buy high quality raw
material and also need to implement new technology which helps them to improve quality.
Changing needs and improve quality and service: Operation and supply chain
manager of Volkswagen company are facing various problems in market in managing operation
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