Understanding Operations, Logistics and Supply Chain Management

Running Head: SUPPLY CHAIN MANAGEMENT 1
Understanding Operations, Logistics and
Supply Chain Management

SUPPLY CHAIN MANAGEMENT 2
Table of Contents
Formative Assessment.................................................................................................................................3
Introduction.............................................................................................................................................3
Brief Overview of the Company and Critical Review...............................................................................3
Summative Assessment...............................................................................................................................4
Analysis....................................................................................................................................................4
Supply Chain Management of Honda Motors.........................................................................................4
Managing Quality................................................................................................................................5
Managing people in operation and supply chains...............................................................................7
Triple bottom line – Economic, environmental and social factors...........................................................8
Conclusion and Recommendations...........................................................................................................10
References.................................................................................................................................................11

SUPPLY CHAIN MANAGEMENT 3
Formative Assessment
Introduction
Supply chain and logistics management is one of the most significant practices of the operations
management of an organization. Looking at the changing trends and competition in the
industries, it is very important for the companies to focus on its supply chain issues and develop
strategies accordingly (Monczka, et al, 2015). The major objective of this essay is to analyze the
supply chain processes and operations of the chosen organization i.e. Honda. The essay incudes
the discussion about two selected areas of operations and supply chain management i.e. quality
management and managing people in supply chain and operations in context of Honda Company.
Honda Motors is one of the leading manufacturers of automobiles that have its operations all
over the world including United Kingdom. Different theories and techniques are applied to
analyze the supply chain and operations of this automotive company. Moreover, the essay
applies triple bottom line approach in order to analyze economic, social and environmental
factors. At the end, recommendations are provided which can be practiced by Honda to
overcome its operational and supply chain issues and to improve its supply chain processes.
Brief Overview of the Company and Critical Review
Honda Motors is one of the major players in global automotive industry that is operating its
business across the world. Primarily, the company is engaged in manufacturing of automobiles,
motorcycles, aircrafts and power equipment. It is a Japanese multinational conglomerate entity
that has been the largest manufacturer of motorcycles since the year 1959. The company was 8th
largest automotive manufacturer all over the world behind Toyota, Volkswagen, Hyundai,
General Motors, Ford, Fiat and Nissan in the year 2015. With the passage of years, the
organization has ventured into many sectors and now it is manufacturing the robots and jets.
Honda has implemented effective practices in its supply chain management so that it can manage
its operations and processes (Honda Motors, 2018).
Here, two of the most important areas of operations management are selected for the discussion
i.e. quality management and management of people in supply chain process. In the supply chain,
quality management is an important practice that ensures the products and processes of

SUPPLY CHAIN MANAGEMENT 4
organization are consistent. Moreover, it is vital for the organizations to manage all the parties
involved in supply chain process either directly or indirectly with the objective to meet the
customer request. Supply chain process of a company does not only covers suppliers and
manufacturers, but also warehouses, transporters, retailers and customers. Both of the practices
will be analyzed by using different techniques and theories. For managing the quality at Honda,
Total Quality Management techniques will be applied and training and development will be
implemented in context of Honda Motors. It is using different strategies and practices for
managing the quality effectively. There are some areas which need improvement in the supply
chain process of Honda like delivery time issue, quality issues, safety issues and issues in
flexible selection of suppliers (Soble, 2015). Honda needs to focus on the above-mentioned
issues so that it can manage its supply chain activities.
Summative Assessment
Analysis
Supply Chain Management of Honda Motors
Supply chain management is the process of managing the flow of goods and services and this
includes all the practices which are used in transforming the raw materials in finished products
(Monczka, et al, 2015). It can be stated that supply chain and logistics management includes the
active streamlining of supply activities of business to maximize the value of customer and attain
competitive advantage in market. Honda Motors is the best example that is using effective
strategies and processes in its supply chain management (Alnasser, 2013). The company works
in partnership with the suppliers all over the world so that they can promote sustainable
initiatives at its manufacturing and production sites. The company aims to adopt a supply chain
that coexists with local society and a firm which community accepts. Honda strives to strengthen
its supply chain in the areas of transportation and purchasing. Looking at the supply chain
management, it can be stated that it builds long term relationship with the suppliers, but it does
not use the type of institutional mechanism for instance supplier association and family
relationship. In purchasing processes, the company directly interferes in the activities which are
carried out by the makers of its components. For various components, it arranges the buying of
raw materials 2 or 3 tiers back along its supply chain that allows the suppliers to attain the