Supply Chain Management Literature Review

This assignment focuses on analyzing a collection of academic literature related to supply chain management. It requires students to critically examine various aspects of the field, such as logistics, reverse logistics, integration, sustainability, and modeling approaches. The selected readings span diverse publications, including books, journal articles, and online resources, covering both theoretical foundations and practical applications of supply chain management principles.

The Automotive company (manufacturing industry)
An area of market in which organisations included design, manufacturing, development, selling, marketing
etc. of motor vehicles is considered as automotive industry. It is one of the fastest growing sector in the
world, where contributes a huge level of the GDP, of an economy as compared to other segments. When
looking at the automotive sector of UK, it can be seen, that, this sector generated 77.5 billion GBP in
recent accounting period. Apart from this, more than 169,000 people are employed in this stated sector
directly. The present essay is based on operations, logistics as well as supply chain management of
automotive industry. Further, Ford Motor Company is taken into account in the current assignment, which
has global presence in automotive sector. Further, it is a public company and provides luxury and
commercial vehicles along with automotive parts. Apart from this, it provides services of vehicle leasing
as well as automotive finance worldwide.
In order to carry out the essay, two areas are selected which are related to operations as well as supply
chain management. Herein, managing quality of products and services as well as managing business
relationships in supply chains are considered. Apart from this, theories related to managing quality like
TQM, lead production, Kaizen etc. are applied. Furthermore, some aspects or theories like employee
relations, proper logistics etc. are implemented which support the Ford Motor for fulfilling the business
relationship in supply chains (Stadtler, 2015). Every company along with Ford Motor is highly concerned
towards the quality aspect of the products and services provided to the customers. One of the best tools
is Total Quality Management (TQM), where initially the standards of raw materials purchased are
evaluated before entering into the operation process. Additionally, for managing business relationships,
the company should apply one of the best tools which is Human Capital Management (HCM). This
particular concept will be helpful to Ford Motor for managing employees and establish attractive relations
at the working environment. In the workplace of the selected company, when these both areas will be
improved up to a greater extent, managers will easily be able to enhance the business performance.
Critically review theories of relevant operations, logistics as well as supply chain management
According to Prajogo and Olhager (2012), the operation department is one of the pivotal parts of each
and every organisation. The reason is, that it helps to convert available raw materials or processed
products in finished goods and services. Once this process is completed, then only management is able
to sale the products to the customers and generate sales revenue. At the time of manufacturing any kind
of goods, quality is a highly concerned part of an enterprise. This particular aspect is supportive for the
companies, in order to increase the attraction level of customers. Ford Motor Company is one of the
largest organisation in the automotive industry, which provides cars and services across the globe. Being
a multinational company, it offers higher quality of cars, where luxurious vehicles are also included in its
product range. Under the operation function of Ford Motor, it is mandatory to make a proper plan and
schedule for the whole production (Seuring, 2013). When an appropriate and efficacious plan of the
project is made, then, any organisation is easily able to manufacture products by focusing on the quality
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aspect. For this, theories as well as principles related to operations, are coming into consideration.
Furthermore, by implementing such theories, in an effectual direction, Ford is able to provide the higher
quality of luxurious cars, worldwide. As per the views of Fernie and Sparks (2014), being a multinational
company, logistics must be suitable, which helps to transport goods and services, from one place to
another place. The Ford Motor Company is considering the best and the efficient kind of logistics,
whereby, the process is easy and smooth to be able to deliver products or cars from one area to another.
Apart from this, inbound logistics of the firm is also very higher and appropriate. On the basis of this, raw
materials are easily purchased and delivered at the workplace for completing process of operations. On
this aspect, quality matters up to the greater level, where raw materials must be of the higher standard.
On the other side, if quality of such materials is lower, then Ford Motor is unable to reach the higher
standards for the cars. In logistics, theories regarding the stock are coming into consideration, where
logistics depended on this only (Seuring and Gold, 2012). Herein, if the closing stock in the firm is
remained at the end of year, then management will manufacture less number of cars in the following year,
resulting in requiring less raw materials at the lower quantity than the previous year. Therefore, on the
basis of stock level, decisions related to logistics are to be made in the workplace of Ford Motor.
Tako and Robinson (2012), articulates relating the logistics that, there are seven R's involved which make
this process accurately and smooth. Logistics in each organisation of automotive industry consists of
theory of seven R's where R denotes for 'Right'. Such R's includes Right product, time, quality, consumer,
cost place and quantity. Until and unless these things are not accurate and efficient in the Ford Motor
workplace, then it cannot complete logistics in a smooth manner. The selected company, considered
logistics aspects along with operations in an appropriate direction. However, if sometimes the
relationships between the employees and employers are not very strong. Both concepts of quality and
quantity are highly the main concern under the logistics concept. The reason is the quality of the raw
materials must be of the higher level along with the adequate quantity. The same thing should be related
to outbound logistics where manufactured cars are supplied among customers and retailers.
In the opinion of Walker and Jones (2012), omission of materials, finance as well as all the information
required in the operation department, where this move from one party to another is referred as the supply
chain management. Generally, such things and aspects are to be moved from supplier to manufacturer
i.e. Ford Motor to wholesaler, retailer and then customers. In this, very high level of strong coordination
along with integration is required up to the greater extent. If coordination is not of the strong level among
businesses, then it is not possible to complete the supply chain in smooth direction. For managing and
improving supply chain there are some theories and standards involved in this. By taking advantage of
such theories, the organisation of automotive sector is easily able to supply the goods and services, in an
effective manner (Dyckhoff, Lackes and Reese, 2013). One of the best and widely considered theory of
supply chain management is theory of constraints (TOC). This specific principle, supports the Ford Motor,
for assessing any issues associated with the supply chain before proceeding. Due to this particular
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characteristic, the management is able to make and apply successful strategies for making solutions of
constraints which will incur.
However, Winter and Knemeyer (2013), critics that, the channel coordination theory of supply chain
management is one of the best methods. The company is able to consider for better and reliable channels
for moving raw materials from suppliers, and manufactured cars to wholesalers as well as customers.
Apart from this, channels or ways of supplying are considered of those types, which are safe and
inexpensive. On this basis, Ford Motor is easily able to establish better coordination between channels.
Therefore, the supply chain procedure will become smooth and effective where it will support to establish
strong relationships among the businesses. In addition to this, agency theory of supply chain
management is also an effective principle. As per the agency theory, the selected company is able to
make effectual relations with agent. Hence, several risks associated with the supply chain are to be
resolved and Ford Motor becomes capable for meeting the goals and objectives smoothly.
Analytically discussing relevant or similar illustrations as well as implementing suitable solutions of
operations management
it is an accounting framework which differs from traditional method as it incudes ecological and social
factors for appropriate measurement. It is commonly known as three P's people, place and profits. It
measures the scope of the business in a particular location.
 Economic measures- it deals with the flow of money such as income, expenditures, taxes, etc.
by involving business and climate factors. It further includes personal income, job growth,
percentage of firm, etc.
 Ecological measures- it measures the natural resources and its potential influence on the
business. It incorporates air , water quality, energy, etc. it helps the business to identify the
impact on specific project on particular area. Examples are: solid waste, fossil fuel, electricity, etc.
 Social measures- it seals with the social dimensions of community or society and incorporates
education, health, well being, quality of life, etc. some examples are unemployment rate, poverty,
etc.
Data collected can be of state or national level. It is useful for community when conducting a TBL. The
scope and nature of project changes with respect to geographical change. The TBL is successful for local
projects as it determines the measures locally. Stack holder participation can be secured in TBL by
developing matrix of decision making into project planning. It is so that stack holders can rank the
components according to community priorities. But the final decision will be taken by measuring the
factors of specific area. TBL is used by business, non profit organisation and government but it differs in
the way they measure these. These all needs to be integrated to identify the results of economic
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development, regulation or policy and to access option for trade-offs. Many challenges are faced in TBL
like how to make index and how to identify the variables that compose the index.
In the workplace of an organisation which operates in the automotive industry logistics, operations and
supply chain are highly significant functions. These are all the terms of what can be understood by
considering different kinds of theories along with suitable examples (Afshar and Haghani, 2012). In the
current essay, only two areas are taken in consideration, managing quality as well as managing business
relationships with reference to supply chains. Further, there is an approach which helps to continue the
process of production, by reducing errors in the workplace of the operational department. When the level
of errors and damages are declining from the Ford Motor Company, then quality will be definitely
improved up to a higher extent. Moreover, as mentioned by Christopher (2016), TQM approach is to be
segregated into four categories which included Plan, Do, Check and Act (PDCA). Briefing, manufacturing
and selling of cars produced within the Ford Motor is to be completed after applying the PDCA cycle.
Based on this, this plan needs to be prepared initially, as it is one of the crucial parts of the whole
enterprise and operation department. Herein, if the workforce of the organisation comes up with any kind
of issues and queries, they will be faced by them. After that, the preparation plan is to be applied within
the firm where actions are taken into consideration. Once the Plan and Do stages are completed from the
TQM approach, then management moves towards Checking phase. In the third stage, Plan is to be
compared with the actual outcomes, generated at the end of project or production. At this phase, results
are to be analysed and then evaluated by the manager of operation department (Total Quality
Management - Meaning and Important Concepts, 2017). If any kind of issue is to be seen, then proper
actions will be taken which comes under the last phase, i.e. Acting. This is one of the best example
considered by Ford Motor for managing and enhancing quality of cars and services offered by it globally.
In contrary to this Rushton, Croucher and Baker (2014) states that, Six Sigma is also one of the best
illustration or approaches of managing quality in the workplace. On this basis, the number of wastage
products is declined up to a higher extent, which leads to improve the quality of cars. It is highly
significant, because the score of quality, under this is 0.06%, behind every 1000 units’ production, within
the company. It can be said that when Ford Motor Company applies this specific tool, then only 0.6 cars
will be damaged when it manufactures a total of 1000 cars at once. Six sigma is unique and different as
compared to other tools of managing quality where it focuses on consistent improvement of quality and
utilises all resources in optimum manner (What Is Six Sigma?, 2017). Moreover, Kaizen is also suggested
by most of the literatures which helps in order to produce products on consistent basis. When cars are
manufactured continuously in Ford Motor, then the quality will be improved. Apart from the managing
quality and the standard of products offered by Ford Motor, business relationships are also a highly
concerned part, which has significant importance in the supply chains. One of the best example is by
giving equal opportunities to all employees and suppliers, which maintain and manage effectual
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relationships in the workplace. When the business relationships are highly strong, the coordination for
supplying the goods and services will be completed in a smooth process (Heizer, 2016). Therefore, Ford
Motor is able to accomplish the terms which are like inbound and outbound logistics. The requirements of
the chain management principle are considered for making solutions, for the issues incurring during the
supply chain relationship. According to this theory, the needs and requirements of Ford Motor can be
presented in front of the suppliers. Once this procedure is completed in a suitable manner, then it is
possible to establish effectual relationships among suppliers and wholesalers. Moreover, it can be said
that when issues related to managing relationships come into consideration, then the manager of Ford
Motor should apply the Human Capital Management, known as the HCM procedure. It will become
possible to establish strong relations which leads to make the supply chains very smooth and appropriate
(Mangan and Lalwani, 2016).
Conclusions and recommendations
It can be articulated from the above essay that, logistics, operations and supply chains, are highly
significant functions for running an organisation in the automotive industry. The operation department
supports the Ford Motor Company for converting raw materials into finished goods, which are luxurious
and commercial vehicles. With logistics help, management is able to inbound raw materials and deliver
production. In addition to this, when goods and services are required to move to wholesalers, retailers
and customers then the supply chain management comes into consideration. In all this concepts,
managing quality and business relationships areas are playing a major role. For which reason, the higher
and the best quality of vehicles and services do lead in attracting more clients. Along with this, the
satisfaction level of customers also improves which is the indicator of enhancing profitability and
performance of Ford Motor in the automotive sector. Apart from this, it can be concluded that when
business relationships are managed properly then the company is able to manage the supply chains in an
unproblematic manner.
Considering the above, some suggestions are given to the Ford Motor company with reference to the
managing quality and business relationships. Further, the advices are stated below:
It can be recommended to Ford Motor Company that it should apply total quality management technique
which will be supportive for managing and enhancing standard of cars or vehicles manufactured by it.
Apart from this, it needs to implement six sigma tool at the workplace of operation department. On the
basis of this, errors and damaged products will be declined up to the higher extent. Once, level of
damaged cars is to be reduced then Ford Motor become capable for improving quality and enhance
customer's satisfaction level. It can be advised to management of Ford Motor that, it should consider
theory of constraints, agency theory as well as requirements chain management at the workplace.
Considering to this, it will be able to improve business relationships where supply chain management will
be enhanced up to the higher extent. At the end, the firm should consider Kaizen approach also by which
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production will never stop until and unless Ford Motor not closed in the automotive industry. Therefore,
quality of vehicles will increase on consistent basis.
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References
Books and Journals
Afshar, A. and Haghani, A., 2012. Modeling integrated supply chain logistics in real-time large-scale
disaster relief operations. Socio-Economic Planning Sciences. 46(4). pp. 327-338.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Dyckhoff, H., Lackes, R. and Reese, J. eds., 2013. Supply chain management and reverse logistics.
Springer Science & Business Media.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in
the retail supply chain. Kogan page publishers.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley & Sons.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of long-term
relationships, information technology and sharing, and logistics integration. International Journal of
Production Economics. 135(1). pp. 514-522.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution management:
Understanding the supply chain. Kogan Page Publishers.
Seuring, S. and Gold, S., 2012. Conducting content-analysis based literature reviews in supply chain
management. Supply Chain Management: An International Journal. 17(5). pp. 544-555.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision
support systems. 54(4). pp. 1513-1520.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced
planning. pp. 3-28. Springer Berlin Heidelberg.
Tako, A. A. and Robinson, S., 2012. The application of discrete event simulation and system dynamics in
the logistics and supply chain context. Decision support systems. 52(4). pp. 802-815.
Walker, H. and Jones, N., 2012. Sustainable supply chain management across the UK private sector.
Supply Chain Management: An International Journal. 17(1). pp. 15-28.
Winter, M. and Knemeyer, A. M., 2013. Exploring the integration of sustainability and supply chain
management: Current state and opportunities for future inquiry. International Journal of Physical
Distribution & Logistics Management. 43(1). pp. 18-38.
Online
Total Quality Management - Meaning and Important Concepts. 2017. [Online]. Available through:
<http://www.managementstudyguide.com/total-quality-management.htm>.
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What Is Six Sigma?. 2017. [Online]. Available through:
<https://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/>.
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