Effective Supply Chain Management for Automotive Industry

The assignment discusses the importance of effective supply chain management for Bentley Motors Limited, highlighting the need for efficient logistics and operation management to meet customer satisfaction levels. It emphasizes the role of strategic management and dedicated employees in enhancing performance. The study concludes by recommending a perfect state of logistics, operation management, and supply chain management improvement to maintain competitiveness in the market.

UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY
CHAIN MANAGEMENT

Table of contents
Introduction......................................................................................................................................3
Critical review of relevant operation, Logistics and supply chain management theories...............4
Analytic discussion and Application of correct operation management solutions..........................7
Conclusion and Recommendation...................................................................................................9
References......................................................................................................................................11
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Introduction
Business operations are the processes, which are carried, by the employees and staffs in order to
achieve the organizational objectives and targets. Operations require effective management and
this require to deal with the forming of better altitude of efficiency which are possible in an
organization. According to Rushton et al. (2014), the efficiency in operation is highly linked
with operational activities, transportation of goods, production of products and functions to
distribution. In general, there exists management team to manage daily operations of an
organization. This study does focus on the operations of Bentley motors limited. This company
serves the industries of engineering, manufacturing and distribution. This mainly deals with the
automotive industry that was formed in 18 January 1919 and had headquartered in England,
United Kingdom.
The supply chain management does provide huge raw materials needed to carry on the entire
operations during working in the organization. This enhances the operation mode needed for
business such as automotive industry. As opined by Christopher, (2016), logistics and supply
chain management play an essential role in supplying the raw materials to the market. The
operation management has the role in processing better form of the outsourcing and control the
quality of business in the automotive industry. The operation management includes production,
planning, production control and quality control. Bentley motors limited tries developing the
operation management that can properly address to the strategic decisions for optimal outcomes
in the automotive industry.
The study aims to betterment in the operation management by the implication of logistics by
establishing an essential area in the company. The company requires maintaining the supply
chain management for product delivery in the market. The study delivers critical review of
relevant operation, logistic and supply chain management theories along with analytic discussion
and correct solutions towards the operation management.
Triple bottom line provides the major systems that are utilized in the business form making
ultimate quantity of profit during the solutions of corporate sustainability. This provides the
organization to enhance profits in social, environmental and economical. This helps in better
form of approach towards economic sustainability that allows in corporate forming of capital
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within environment and human. Intact economic condition can be measured for providing
positive effect over the business within economic environment. This allows succeeding in
present as well as future aspects. The organization may aware of their traditional profits earned.
As opined by Prajogo et al. (2016), the triple bottom line provides processes to enhance the
business expansion and understand the present situation in the economy along with future
survival ability. The corporate sustainability allows measuring the ability of business. This
provides positive impact over the environment as well as contributes for the economy. Bentley
does aim focusing over the entire performance along with their profits. The organization also
focuses on the triple bottom line in order to enhance their quality and performance for making
better automotive industry.
Critical review of relevant operation, Logistics and supply chain management
theories
Bentley makes effective operations in automotive industry. The company manages the necessary
forms of operations, which can be introduced strategic decision-making. This increases the
quality of operations for high productivity, streamlining and effectiveness. The global expansion
of Bentley does enhance practices, which create overall performance, and optimizes the
productivity. The company’s technological innovation delivers support for setting up of goals on
the performance of operation management. According to Mangan and Lalwani, (2016), the
essential of managing quality ensures effective performance, reliability and durability. There are
various tools for ensuring better performance due to managing quality in manufactured products.
The quality management can be done towards goods designing, focusing over quality
management, services, process and capacity design, supply chain management and inventory
management.
Bentley has focused over two major aspects in order to help their operation management,
logistics and supply chain. This reclines in managing people and quality within supply chain and
operation. The logistics give their management with proper flow of products from point of origin
to the point of usage achieving certain requirements of Bentley and this is the example of
customers or corporations. According to Monczka et al. (2015), the logistics recline towards the
data flow integration, packaging, handling the materials, inventory, production, security,
transporting and warehousing. Thus managing resources in logistics includes the raw materials
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for the vehicle production. The organization performs all their operations by effective form of
logistics with the implementation of correct products, within right consumers, in proper quantity,
at correct status, at correct time, in right place and right pricing.
This is essential for an automotive industry to establish logistic areas meeting the demands of
their customers. Two forms of the logistics include outbound and inbound logistics, which
enhances the productivity. Bentley performs their operations in two modes and this is from
suppliers to consumers. There are such issues detected by the supply chain management and the
operation areas during working at the company. This may rise due to insufficient supply in raw
materials that are needed in manufacturing Bentley’s vehicles. The supply chain management
delivers strategic and systematic coordination needed in completing every function in automotive
industry. The long-term enhancement is essential in the supply chain management (Stadtler,
2015).
The supply chain management does provide whole process in supplying product to customers.
This process comprises of manufacturing, suppliers, retailer and wholesaler. Bentley takes entire
ownership of the supply chain by choosing and taking among conventional management and
custom design practices. This yields effective product quality by ensuring better relationship
with their suppliers. The supply chain provides different challenging factors in many areas that
create impact to shutdown. The entire supply chain process can be possessed by the company by
shifting policy and restrict resource quantity among large competitors. According to Heizer,
(2016), the cross functional approach may be taken out by the supply chain management which
recline with managing every movements of the raw materials making betterment in processing of
finished products in order to meet the customer expectations. There exist different theories
within the supply management such as strategic choice theory (SCT), system theory (ST),
agency theory (AT), dynamic capability theory, just in time theory and dynamic management
theory.
Entire operation management, supply chain and logistics can be carried out with the product
quality management with enhancement in better features and better designs. This helps in
attracting more customers by providing better quality vehicles, which are produced by the
Bentley.
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The supply chain gives unique aspect for the social sustainability and responsibilities. This
provides business issues, which may create negative impact on the logistics network. This can be
utilized in triple bottom line areas which incorporates certain aspects which are inclusive of
social, environmental and economic. As opined by Wisner et al. (2014), the social
responsibilities recline to the faced challenges on operational manager helping in developing
high quality of green products and are safe towards the society. The social responsibilities
provide Bentley focusing over employee motivation that is another reason for effective
production for the organization.
From the total quality management theory of Philip Crosby, the business organization requires
spending great quantity of money towards setting the quality. This theory has elaborated four
different absolute steps. The theory defines the quality theory according to the requirements.
Prevention is measured to be best method to ensure better quality. Mistakes are measured
towards the quality standards. Quality can also be measured through the prices of nonconformity
(Prajogo et al. 2016).
Fourteen steps are there, for the maintaining of continuous improvement process. They are as
follows:
 Attain entire commitment commencing management
 Form a team related to the quality improvement
 Establish metrics for every activity in quality improvement
 Identifying the cost of quality and contribution towards the improvement
 Supervisors must be trained
 Encouraging the employees
 Establish certain zero defect commission
 Require to make understand to all about the quality steps
 Elaboration of organizational commitments
 Targets are established on monthly basis
 Detect the main error causing factors
 Development of incentive program towards employees
 Development of quality council
 Repeat all the steps
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For new product development theory the product life cycle model can be used which consists of
five diverse stages.
 Introduction – new product is launched into the target market.
 Growth – product demands increases the sales volume.
 Maturity – there is increase in sales quantity and enhancement in product demands.
 Saturation – there is stable in sales quantity with no declination or inclination in it. There
is necessity of modification of attributes for attracting new potential customers (Wang et
al. 2016).
 Decline - since products comes by variety of stages, the production process as well as
their characteristics are well known. Hence, production units occupy the shifting
opportunities to other developing nations where they can find easy to hold the market and
distribute their productions.
Analytic discussion and Application of correct operation management
solutions
The operation management of logistics and supply chain has been paying attention over the
managing of operation quality and this maintains the people for operation enhancement. The
Bentley requires to maintain their operations by effective managing in their quality through the
development of features, designs, styles and technologies which can attract huge customers. As
opined by Heizer, (2016), the operation management does provide the aspect, which is anxious
to the controlling of production, processes and restructuring of better products and services
delivered to customers. This involves effective ways of responsibilities, which establishes the
better form of the business operations. Bentley Motors Limited has established effective
operation management by better form of management in the areas of productions in order to
enhance service quality towards their customers. For gaining, the positive outcome there is the
requirements of introduction of operation management for every organization. This provides
main ways of function with management of logistics, supply chains, finance and human
resources.
The function for operation makes better variety of techniques, which make management focusing
over the production of services and products. Within the automobile industry various decision
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are carried related to the operation which reclines to the inventory control, facilities planning,
production planning, quality management, capacity, process of designing, product designing as
well as strategies for operations. As opined by Othman et al. (2016), the operation management
does provide three varieties of functions during the working at the organization. This lies on the
product qualities, which are manufactured at the company and the services, delivered according
to the customer demands. The enhancement of operation management does reduce the cost,
which is needed for the manufacturing industries.
The manager of Bentley motors limited performs certain specific operations which help the
company to increase their productivity and able to manage their supply chain system. The
products that were manufactured by the company, provides intangible and tangible aspects in the
operation. All the activities of their operations are similar in vehicle manufacturing. However,
only the design changes in the operation. There is hike in challenges from the areas of
productivity, which makes the proportion of outcome products by the input resources. For the
operation management the effective people management in the supply chain and business
operation is essential factors, which require focusing by the Bentley motors limited. For carrying
out of operations in automotive industry there are need of large number of staffs which requires
to indulge within the whole operations that brings better productivity. According to Mangan and
Lalwani, (2016), there are requirement of large number of people for effective product supply to
the customers ranging from starting points to the delivery points of the organization productions.
The similar kind of examples reclines with the utility of operational management, which gives
the global aspect of tendency within the automotive industry in order to control the essential
aspects. The spontaneous enhancement can be built from the demand, rely on the sector of
automotive industry. The railways provide the control of process and help in drawing various
benefits, which would help the organization to achieve success.
Another example reclines to the enhanced amount of competition on the various people and
presents a less number of vacancies. There are also social as well as emotional forms of
intelligence, which assist with some effective working people. The social intelligence increases
the social skills, which helps for development of the business. The emotional intelligence does
provide the capability in tackling every emotional aspect, which are continuously developing
issues during the time of working at the organization (Hsu et al. 2016).
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Within the operation management, there presents the developing of effective state of operations,
logistics as well as supply chain management. There are different challenges, which are required
to get mitigate by the help of organization’s manager. This is during the same time of execution
and completion for whole process. This does provide effective state of solutions within the
operation management that helps in completion of whole supply chain. The perfect practices
within the supply chain management do provide the replenishment as well as demand of mutual
planning structure. The mutual productions may be introduced by the effective state of suppliers
as well as manufactures over the raw materials present within the supply chain. According to
Mangan and Lalwani, (2016), the mutual logistics state of planning requires to get coordinated
within the warehousing in order to supply the production outcomes in proper way by the
transportation facilities. Within the automotive industry there are inclusive of various other
companies, which makes incessant rivalry with Bentley Motors Limited. This lies to the
Volkswagen Group, which is the parent company that takes the entire processes to be their core
operations. Bentley motors limited is the company, which manages their operations effectively,
and the outcomes from the effective operations are very remarkable and satisfactory to the
customers. Being being acquired by various other well-managed organizations is another
solutions fore the effective operation management.
Conclusion and Recommendation
From the summing up of entire study this can be concluded that the production of the
organization, logistics as well as supply chain does provide various unique features for the
developing of products within the automotive industry. In this particular case of Bentley motors
limited has been chosen. This has been practiced with better quality of operation management in
order to produce effective quality in the production outcomes by the help of dedicated as well as
motivated employees. This can help the company in improving the whole supply chain for the
raw materials, which are essential to manufacture the products that can meet the customer
satisfaction altitudes. The operation management requires to be practiced by the Bentley motors
limited during the time of enhancement of their performances. This is recommended to the
organization that perfect state of logistics, operation management and supply chain management
improvement is essential to improve so that they do not fall behind in the competitive market.
The challenges faced by the organization is the operation and logistics and supply chain
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management must be reduced with the application of effective strategic management and hiring
effective and efficient employees.
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References
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hsu, C.C., Tan, K.C. and Mohamad Zailani, S.H., 2016. Strategic orientations, sustainable
supply chain initiatives, and reverse logistics: Empirical evidence from an emerging
market. International Journal of Operations & Production Management, 36(1), pp.86-110.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John
Wiley & Sons.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John
Wiley & Sons.
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Othman, A.A., Kaliani Sundram, V.P., Mohamed Sayuti, N. and Shamsul Bahrin, A., 2016.
The Relationship between Supply Chain Integration, Just-In-Time and Logistics
Performance: A Supplier’s Perspective on the Automotive Industry in Malaysia. International
journal of supply chain management, 5(1), pp.44-51.
Prajogo, D., Oke, A. and Olhager, J., 2016. Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive performance. International
Journal of Operations & Production Management, 36(2), pp.220-238.
Prajogo, D., Oke, A. and Olhager, J., 2016. Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive performance. International
Journal of Operations & Production Management, 36(2), pp.220-238.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
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Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management
and advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Wang, G., Gunasekaran, A., Ngai, E.W. and Papadopoulos, T., 2016. Big data analytics in
logistics and supply chain management: Certain investigations for research and
applications. International Journal of Production Economics, 176, pp.98-110.
Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A
balanced approach. Cengage Learning.
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