This report discusses the impact of COVID-19 on supply chain management in large organisations, using Aston Martin as an example. It covers the role of government assistance, key suppliers, and strategic choices made by the organisation. Recommendations for improving supply chain management are also provided.
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Supply chain resilience in large organisations
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Table of Contents INTRODUCTION..........................................................................................................................3 MAIN BODY...................................................................................................................................4 Briefly introduce and describe the organisation.....................................................................4 Briefly describe how and why their business and customers were affected by the pandemic4 Identify A Key supplier in their supply chain (vital supplier)................................................5 PART B............................................................................................................................................5 Identify if and how the chosen organisation had to change their “business model” with respect to their supply chain (up and down stream) because of the pandemic...................................5 Identify and describe any Government/State “assistance” that the business and/or supply chain have received3 what has been the effect of this aid...............................................................6 Describe if and how the supply chain has needed to adapt for the chosen organisation as affected by the factors concerning the pandemic...................................................................7 List the key supply chain related, strategic choices that the organisation has implemented..8 PART C...........................................................................................................................................8 RECOMMENDATIONS.................................................................................................................8 CONCLUSION.............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Supply chain management is considered as key function of a business in which a company focuses on development of a systematic approach in maintaining supply of goods and services(Cheng, and Lu, 2017). All major companies focus on development of engineering based activities in order to perform effective operations. In this report, example of Aston Martin company is taken into consideration which is a multinational car manufacturing company. The company was founded in the year1913and is headquartered inGaydon, United Kingdom. Aston martin is specialised in manufacturing sports and luxury cars in order to lead the marketplace. In this project how and why business and customers were affected by the COVID- 19 pandemic. This project includes role played by supply chain management in order to facilitate all major operations of a company.This project also includes role of government in impacting supply chain and strategic choices applied by a business entity to develop supply chain.
MAIN BODY PART A Brieflyintroduce and describe the organisation Aston Martin company is a leading car manufacturer company of United Kingdom which performs key operations. The company is expert in manufacturing of luxury sports cars and grand tourers. The CEO(Chief Executive Officer) of Aston Martin is Tobies Moers who is an enthusiasticandpassionateleader.Companyhasestablishedgreatmilestonesincar manufacturing sector like its DB5 model was used in James Bond's Movie named Gold Finger. Sports cars manufactured by Aston Martin are considered as regular British cultural icon which is a great achievement for company.Aston Martin Works classic car department, which focuses on heritage sales, service, spares and restoration operations. The company also has a Formula one team which is headquartered in Silverstone. Aston Martin's main car models include 1924 tourer and 1923 Razor Blade team cars which are very popular. Brieflydescribe how and why their business and customers were affected by the pandemic In the year 2019, COVID-19 emerged as a major pandemic which created a major impact on all operations of Aston Martin. COVID-19 steadily impacted on key operations of all major international and national marketplace, which negatively impacted on revenue and profitability of Aston Martin. The Lock Down created by government of United Kingdom led to shut down of all major companies. This is also one of the key role of a business to focus on development of various strategic choices that will help in revival(Gligor, Gligor, and Bozkurt, 2019). Customers were also not visiting any company as they were having fear from the communicable disease which is corona virus. Due to shutdown, all major companies suffered a lot and also faced various issues and challenges. Aston Martin company also faced a key change in its operations and functions. The company stopped car manufacturing and on the other side all major car manufacturing companies also faced critical issues.
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IdentifyA Keysupplier in their supply chain (vital supplier) In the year 2013, Aston Martin signed an agreement with Mercedes Benz group in order to focus on marketplace operation. The Mercedes company was now liable to supply electrical systems to Aston Martin and also provide supply of next generation of Aston Martin car This is also one of the major role of a company to focus on suppliers and supply chain in order to perform effective operations. The Ford company is also focusing on supplying key resources to Aston Martin in order to perform key operations. Aston Martin also takes supply from key competitors in order to develop upgraded and updated technology. The financial management of AstonMartinalsoapplieskeyapproachinmaintainingsystematicrecordofallmajor transactions related to supply(Hosseini, Ivanov, and Blackhurst,2020). The electrical systems which are supplied by Mercedes are important for Aston Martin in order to gain systematic development. Aston Martin company also focus on development of strategic policy to maintain its supply chain. The suppliers of Aston Martin also faced major change in its operations due to spread of COVID-19 pandemic. It is also one of the key role of supply chain management of Aston Martin to follow COVID-19 protocols after the supply is resumed. A business should also focus on key roles of suppliers and develop a major and effective systems to follow command. The Aston Martin should take help of all its suppliers to deliver good quality and innovation based products. It is key role of business to also take into consideration development of logistics management department to focus on key operations with the support of professionalism (Huo, Gu, and Wang, 2018). It is also one of the major concern of a business to bring overall stability in its functions with the help and support of strategies and policies. PART B Identify if and how the chosen organisation had to change their “business model” with respect to their supply chain (up and down stream) because of the pandemic The Aston Martin used to follow universal concept of supply chain in order to facilitate its development. The business model is considered as key approach which is helpful for maintaining and developing major aspects of supply chain. In the tough times created by pandemic, supply chain management of Aston Martin faced key issues which were very essential to be addressed (Inoue, and Todo, 2019). There was an urgent need in operations of supply chain and their modifications to develop precise approach. Aston Martin company adopted business
model to facilitate supply chain with key considerations. In the recent times, digital technology is a major business tool followed by a company to perform quick and accurate operations. The database management related to supply chain management of Aston Martin is also facilitated by strategic choices that are made by company. A business organisation at the marketplace should also practice ethics and integrity in order to maintain supply chain. Informationandtechnologybasedmodelsarehelpfulincreatingdigitalbusiness environment for the company and are also helpful in supporting business development. The virtual environment is created by Aston Martin with support of key technological tools that are effective in business environment. All major companies in the global and domestic marketplace focus on implementation of various theories and models related to supply chain like resource based view, transaction cost analysis, Knowledge-based view, strategic choice theory and systems theory. Implementation of these theories with effective supervision and control can help in revival of company (Jabbarzadeh, Fahimnia, and Sabouhi, 2018). Also it is crucial role of Aston Martin to select new suppliers in the marketplace in order to develop an innovation based approach. Identify and describe any Government/State “assistance” that the business and/or supply chain have received3what has been the effect of this aid Government plays a key role in a business and also helps in development of a business entity.Thedevelopmentofacompanydependsonrulesandregulationsformulatedby government of United Kingdom. This is one of the major role of a business to focus on government assistance in order to revive themselves after Lock Down. This is one of the major role of a business to focus on key competitors and their strengths and develop functioning accordingly. The assistance which is provided by government includes subsidies and relief funds which are to be measured by a business entity. The different companies in the global and domestic marketplace focus on key policies developed by government of different countries to ensure ethical and legal business (Pettit, Croxton, and Fiksel, 2019). Government of United Kingdom is formulating corporate laws in order to facilitate development of major companies. Strategic options which are to be selected by government in order to regulate key practices based on corporate laws are effective in dealing with issues in corporate business environment. The supply chain of a business should be capable of handling key resources and utilise them in a precise and systematic manner. All major companies should focus on strategic
approach in effective manner to gain competency edge. Government of United Kingdom is also bringing laws and policies to regulate key business operations. The support by government in terms of corporate laws will also lead to economic development. Monetary policy is also modified by government of United Kingdom which will help in controlling inflation in the economy of UK. The monetary policy of UK is essential to be formulated with a professional manner to control money supply whole economy (Polyviou, Croxton, and Knemeyer, 2019). This is also one of the key role of a business to focus on analysing competitive strengths and utilise them in a well defined manner. Government of UK is also preparing an agreement with other major countries to facilitate trade development after COVID-19 pandemic. The top level management of Aston Martin should implement best and key practices related to government policies to achieve marketplace stability. Describe if and how the supply chain has needed to adapt for the chosen organisation as affected by the factors concerning the pandemic Supply chain involves all the procedures required to make a final product available for the use . In the pandemic time, supply chain was affected and major operations of Aston Martin got trapped (Wieland, and Durach, 2021). The activities include acquisition , operation, making, collecting , selling and finally marketing of a particular product , working together to achieve the goals of an organisation. Earlier companies were interested in inputs and outputs but with the changes involved other activities like networking, marketing, adapting new technologies and many more were adoptedleading in the strategic management of the organisation with higher profits, cost reduction and many other benefits for the organisation (Queiroz, and Telles, 2018). Now because of pandemic, it is major need for Aston martin to facilitate development of supply chain with support of major strategies. Supply chainhas lead to more stronger networks within different organisations and industries and even outside the national boundaries. Effective market coverage, optimum utilisation of resources , anytime availability of products depends on the effectiveness of the supply chain networks. And any loss or glitch in the supply chain network can lead to the loss of value , reputation or goodwill of the product. Now it is main role of management of Aston Martin to develop focused and well managed planning in order to lead the marketplace (Remko, 2020) Aston Martin should adopt digital technology in supply chain to perform quick and accurate operations. Modern supply chain management of a business is responsible for management of key goals and objectives that
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are helpful in development of a business. Aston Martin company should also hire professionally trained IT experts in order to develop precise operations. List the key supply chain related, strategic choices that the organisation has implemented In the past 2 years, Aston Martin has suffered from a great economic and financial loss due to COVID-19 pandemic. It is now key role of management to focus on development of supply chain in order to increase revenue and profitability. The various strategic choices which Aston Marting has implemented to maintain its supply chain are following: Supply chain council- Aston Martin has made a supply chain council and association which will be helpful in increasing its market strength (Revilla, and Saenz, 2017). The supply chain council of Aston Martin is having large number of members who will focus on development of major rules and regulations which are prominent in making supply chain more flexible and simple. Embrace digital technology-Information and technology can be two major tools which can be used by a business to facilitate development of supply chain (Sabahi, and Parast, 2020). The Aston Martin should use computer and software in order to regulate different functions related to key supply chain based factors. Optimise inventory management-The inventory management should be major priority of Aston Martin to maintain supply chain in a systematic manner. The inventory management is also a key function of logistics department of Aston Martin to manage all aspects related to supply chain. PART C RECOMMENDATIONS This is major responsibility of a business to focus on key recommendations which are important for an organisation in order to facilitate all major operations related to supply chain (Sáenz,Revilla, and Acero, 2018). The recommendations for Aston Martin in order to develop its supply chain are mentioned below: Aston Martin should focus on development of systematic process and approach in order to lead the marketplace. The company should also focus on analysing key factors which impact on its supply chain and largely impact on business operations.
It is also key role and responsibility of a company to focus on improving distribution network. The review of whole procedures related to supply chain on regular business can also help and support Aston Martin to maintain supply chain related factors(Wamba, Dubey, and Akter, 2020).
CONCLUSION From the above stated report it can be concluded that supply chain management is one of the major function of a business which helps in systematic arrangement of resources. This project also concludes that supply chain is a system or network involving the selling or supplying of various products and serviceswithin organisations . Supply chain performs all the activities involving from the use of natural or raw resources into finished or usable products or services. This report concludes, it is important for a business entity to focus on key aspects and areas of supply chain in order to develop effectiveness in different tasks functions. This report also concludes that strategic and planning framework helps an organisation to support key supply chain operations with stability.
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REFERENCES Books and Journals Cheng, J.H. and Lu, K.L., 2017. Enhancing effects of supply chain resilience: insights from trajectory and resource-based perspectives.Supply Chain Management: An International Journal. Gligor, D., Gligor, N. and Bozkurt, S., 2019. Distinguishing between the concepts of supply chain agility and resilience: A multidisciplinary literature review.The International Journal of Logistics Management. Hosseini, S., Ivanov, D. and Blackhurst, J., 2020. Conceptualization and measurement of supply chain resilience in an open-system context.IEEE Transactions on Engineering Management. Huo, B., Gu, M. and Wang, Z., 2018. Supply chain flexibility concepts, dimensions and outcomes:anorganisationalcapabilityperspective.InternationalJournalofProduction Research,56(17), pp.5883-5903. Inoue,H.andTodo,Y.,2019.Firm-levelpropagationofshocksthroughsupply-chain networks.Nature Sustainability,2(9), pp.841-847. Jabbarzadeh, A., Fahimnia, B. and Sabouhi, F., 2018. Resilient and sustainable supply chain design:sustainabilityanalysisunderdisruptionrisks.InternationalJournalofProduction Research,56(17), pp.5945-5968. Pettit, T.J., Croxton, K.L. and Fiksel, J., 2019. The evolution of resilience in supply chain management:aretrospectiveonensuringsupplychainresilience.JournalofBusiness Logistics,40(1), pp.56-65. Polyviou, M., Croxton, K.L. and Knemeyer, A.M., 2019. Resilience of medium-sized firms to supply chain disruptions: the role of internal social capital.International Journal of Operations & Production Management. Queiroz, M.M. and Telles, R., 2018. Big data analytics in supply chain and logistics: an empirical approach.The International Journal of Logistics Management. Remko, V.H., 2020. Research opportunities for a more resilient post-COVID-19 supply chain– closingthegapbetweenresearchfindingsandindustrypractice.InternationalJournalof Operations & Production Management,40(4), pp.341-355. Revilla, E. and Saenz, M.J., 2017. The impact of risk management on the frequency of supply chain disruptions: a configurational approach.International Journal of Operations & Production Management. Sabahi, S. and Parast, M.M., 2020. Firm innovation and supply chain resilience: a dynamic capabilityperspective.InternationalJournalofLogisticsResearchandApplications,23(3), pp.254-269. Sáenz, M.J., Revilla, E. and Acero, B., 2018. Aligning supply chain design for boosting resilience.Business Horizons,61(3), pp.443-452. Wamba, S.F., Dubey, R., and Akter, S., 2020. The performance effects of big data analytics and supply chain ambidexterity: The moderating effect of environmental dynamism.International Journal of Production Economics,222, p.107498. Wieland, A. and Durach, C.F., 2021. Two perspectives on supply chain resilience.Journal of Business Logistics,42(3), pp.315-322.
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