Understanding Operations, Logistics, and Supply Chain Management

This report discusses the importance of operations, logistics, and supply chain management in Aston Martin Lagonda Global Holdings plc. It explores the issues faced by the company and provides recommendations for improvement.

Understanding
Operations, Logistics
and Supply Chain
Management

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction of company........................................................................................................3
Two selected areas of Operations and supply chain management.........................................4
Theories and techniques that will be applied.........................................................................6
Economic, Environmental and social approach of company.................................................7
Potential areas of improvement..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations are the activities which are carried out by businesses so value can be created
for customers and sales of company can be increased thereby increasing the company profits.
Logistics on the other hand is the management of flow of people, materials, inventory and
equipment from the point of their origin to the point where they are finally consumed by
customers. Supply chain management is the centralised management of the flow of goods and
services which include all the processes that help in converting raw materials into final products.
It is important that SCM is efficiently managed so that efficient use of resources can be done and
cost of company can be reduced (Christopher, 2016). It is also important that the operations,
logistics and SCM of companies are efficiently managed and their issues are addressed on time
so that the company can continue to deliver high quality products and services to its cutomers.
This report is based on Aston Martin Lagonda Global Holdings plc which is a British
independent car manufacturing company that produce luxurious and sports cars and grand tours.
In this report the issues faced by the company in its operations, logistics and SCM will be
discussed so that appropriate recommendations can be formed for company which can help it in
making necessary improvements.
MAIN BODY
Introduction of company
Aston Martin Lagonda Global Holdings plc is a car manufacturing company headquartered
in England, UK which manufactures luxury sports cars and grand tours. The company was
founded in 1913 by Lionel Martin and Robert Bamford and the cars manufactured by the
company are regarded as British cultural icon. The company has over 150 car dealerships in over
50 countries which makes it a global brand and in 2003 was awarded the Queen’s Award for
enterprise for its outstanding performance in international trade. The current models of its cars
are Aston martin DB11, Aston martin DBS supperleggera, Aston Martin Vantage. The upcoming
models of its cars are Aston Martin Valkyrie, Aston Martin DBX and Aston Martin Valhalla.
The company is thus known for its luxurious cars and is associated to the high class society
which increases the status of people owing these cars (Hugos, 2018). The company is however
facing shortage in its sales as there are a large number of competitors in market who are
providing highly advanced technologies in their cars in lower budgets. This means that the

company needs to focus on improving its manufacturing process so that cost of company can be
reduced and sales can be increased.
Two selected areas of Operations and supply chain management
Operations and supply chain management plays an important role in achieving the aims
and objectives of company as they help in delivering the goods and services manufactured in an
efficient manner. It is important that the operations of company are effectively managed so that
all the activities of company can be conducted effectively which will increase the quality of
goods and services produced by the company (Ishikawa and Lu, 2015). The areas that are
selected for understanding the operations and supply chain management of Aston Martin are new
product development and process and managing quality of the products manufactured by the
company. This will also help in addressing the issues of company so that it can compete in the
market and earn huge amount of profits and also create high value for customers so that the sales
of company can increase and they can continue to purchase the company’s products and services.
Aston martin is facing certain issues in its operations and supply chain management due to which
the sales of cars has decreased. Therefore it is important that these issues are identified so that
efficient steps can be taken that can help in minimising the effects of these issues on company.
Managing quality
Operations: These are the regular activities of company that are regularly performed so
that it is able to meet the requirements of its customers which can help it in earning huge profits.
It is thus important that the managers and leaders of company efficiently perform their functions
and direct all the resources to be used efficiently and optimally which can help in reducing the
wastage and also the quality of company’s product and services can increase. It thus requires the
managers of Aston Martin to efficiently plan, control, direct and manage all the activities of
company so that company can function well (Nemet and Brand, 2015). The issue which are
faced by the company in its operations are that the resources available with the company are not
utilised in an efficient manner which lead to increase in the cost of manufacturing of its cars.
This also means that the potential of employees is not utilised to the fullest which affects their
ability of contributing towards the company’s profits. Thus is important that the managers of
company effectively monitor and direct the employees of company so that they can find ways in
which the resources of company can be efficiently used which can help it in lowering its cost of
production.

Logistics: These are related with the mobility of things from their point of production to
the point where they are used. It is important that the raw materials that are required to make cars
in Aston Martin are effectively monitored so that they can be acquired at high quality and at
reasonable prices. There are various other elements involved in maintaining the efficiency of
logistics like inventory planning, order processing, handling the materials, warehousing,
transportation, packaging etc. all these can be efficiently managed so that the manufactured cars
can reach to their customers on time and on their demand (Noe and et. al., 2017). Aston martin
must efficiently manage its logistics so that the flow of items from their production point to their
consumption point can be done in an efficient manner that can help in enhancing customer
satisfaction and also in reducing the warehousing cost of company. Aston martin efficiently
manage its logistics so that the costs can be controlled and also the quality can be maintained
high which can help the company in maintaining its brand image in market. It is also important
that the company focus on its inventory management so that it can manufacture cars based on the
demand and supply so that cost of manufacturing can be controlled that can help in lowering the
price of cars. Also the company can use JIT principle so that it can reach to the right customers,
at right place and at right time so that delivery of cars can become efficient.
Supply chain management: It is related with managing the complete flow of goods and
services so that they can be converted into final products and can be made available to the right
customers so that brand image of company can be magnified in market. It is important that the
SCM of company is effectively maintained so that highest quality of goods and services can be
produced. Aston Martin is known for its luxurious cars that help in providing high status to its
users along with high level of experience (Reid and Sanders, 2015). It is important that company
follows TQM and lean production principles so that high quality can be maintained and also
waste management can be done. This will help in effectively reducing the waste and non value
adding stages so that the cost can be lowered and available resources can be efficiently used.
Through these principles all the workers of company can be made efficient in their work so that
their performance can be improved and high efficiency can be achieved.
New product development
In order to become highly competitive in market it is important that the company keeps
on introducing products in market as per the needs and wants of customers.

Operations: It is important that the company improve its activities and include
participative working environment so that the employees can be given the opportunity to come
up with new and innovative ideas. This can help the company in introducing new products in
market that can increase its competitiveness and increase its sales (Rumane, 2017).
Logistics: The logistics of company can help the company in remaining in contact with
the direct customer so that their needs and wants so that they can be provided with innovative
features in cars that can help in increasing customer satisfaction so that the sales of company can
increase and also its brand image can be increased.
Supply chain management: The supply chain of company must be effectively managed
so that the available resources of company are completely utilised that can help in adding
additional features to company cars. This will create new and modified cars so that the changing
demands of customers can be efficiently met.
Theories and techniques that will be applied
The theories that can be applied in order to manage quality in company are:
 Joseph Juran’s Theory: This theory focuses on quality planning and improvement &
controlling so that the quality of products and services of company can be effectively
managed. It is important that it is important that during the production process the
wastage of raw materials is reduced and they are used in the most effective manner which
can also help in maintaining the costs and improving the performance of company in
meeting the requirements of both the customers and company itself. The mangers of
Aston martin thus need to effectively monitor all the stages involved in manufacturing
process so that high quality can be achieved and waste can be reduced so that prices can
be lowered thereby increasing sales of company (Xu and et. al., 2015).
 Ishikawa’s Theory: According to this theory it is important that the management of
company efficiently monitor the employees of company so that they can be effectively
managed and the quality and efficiency of their work can increase. This can help in
improving the overall quality and productivity of company so that the goods and services
that are produced can help in improving customer satisfaction. The managers and leaders
of Aston Martin must support and guide the workers of company so that they can be
motivated to improve their performance so that the quality of overall operations can
increase.

 Deming’s Theory As per this theory an organisation is composed of a system of
interrelated processes so it is important that each and every process of company is well
managed so that overall efficiency of company can be increased. It is also important that
the quality of each process must be maintained in such a way that no variation in quality
is achieved which will help in maintain high quality of company goods and services. It is
also important that interaction among all the members can be improved so that they can
all work in an efficient manner so that overall quality of company can be improved.
Economic, Environmental and social approach of company
 Economic: Aston martin manufacture cars which are highly luxurious and it mainly target
the upper class of the society who can afford the cars offered by the company. Thus the
company usually aim at high income society which means that the success of cars depend on
the availability of purchasers in market and so the company should sell its cars at places
having high income society. UK is economically stable which makes the company highly
successful and also it can sell its products at high rates so that the standard of living can be
improved (Grant, Trautrims and Wong, 2017).
 Environmental: With the increasing issues of pollution and global warming it has become
important that the companies manufacture cars that are environmental friendly and also
cause less pollution. This makes it important for Aston martin to manufacture cars which are
high in quality so that they can cause less pollution and harm to the environment. Thus with
the help of highly advanced technology the company can manufacture cars which are
environment friendly and with the combustion of their fuel less pollution is caused.
 Social: These are the factors related to the people in society on which the products and
services of company are targeted. Aston martin targets its products at the high income class
of the society who can afford the expensive cars of company. The company thus need to
establish its units at places where it can find customers who can afford the cars that are
provided by the company which can help in increasing the sales of company (Choi, Chiu
and Chan, 2016).
Potential areas of improvement
From the above discussion it can be said that Aston martin is a company which help in
adding class to its customers by providing them with highly luxurious products so that their
status in market can be increased. The company has high potential of earning profits by

improving the quality of its cars and services that it provides to the customers so that the sales of
company can increase by reducing the cost of its production and making the complete process
highly efficient. It is important that the overall efficiency of company can be increased by
reducing the wastage during production so that it can achieve high quality and also the
performance of company can be improved (Prajogo, Oke and Olhager, 2016). The areas where
improvements can be made in Aston martin so that it can continue to earn huge profits through
its business activities are:
 Use of technological advancements to innovate its products so that new and highly
advanced cars can be produced which can help it in adding value to its customers so that
they can continue to purchase its products despite of the high prices.
 Achieving economies of scale through effective operational management so that cost of
company products can be reduced. The company can take its manufacturing or
assembling units to other countries where cheap labour can be available that can help in
increasing the economies of scale so that the overall cost of production can be reduced
while improving the operations of company (Lamba and Singh, 2017).
 Ability to effectively compete in the highly competitive marketplace which can be
possible by finding out ways so that cost of company can be reduced so that prices can be
lowered which can help in increasing sales of company. This will also make the company
more competitive as compared to other car manufacturers present in market thereby
improving its reputation and increasing its sales.
CONCLUSION
From this report it can be said that operations, logistics and supply chain management of
company play an important role in the functioning of business in market and so they must be
improved timely so that company can continue to successfully sustain in the market. It is also
important that any issues related to these components are identified so that appropriate steps can
be taken and efficiency can be achieved. Company can also apply various theories in managing
their quality so that high customer satisfaction can be achieved.

REFERENCES
Book and Journals
Christopher, M., 2016. Logistics & supply chain management. Pearson UK
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons
Ishikawa, K. and Lu, D.J., 2015. What is total quality control?: the Japanese way (Vol. 215).
Englewood Cliffs, NJ: Prentice-Hall.
Nemet, Y. and Brand, E., Varcode Ltd, 2015. System and method for improved quality
management in a product logistic chain. U.S. Patent 8,967,467
Noe and et. al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Reid, R.D. and Sanders, N.R., 2015. Operations Management, Binder Ready Version: An
Integrated Approach. John Wiley & Sons.
Rumane, A.R., 2017. Quality management in construction projects. CRC Press
Xu and et. al., 2015. Evolution of Rolls-Royce air-cooled turbine blades and feature analysis.
Procedia Engineering, 99, pp.1482-1491.
Grant, D.B., Trautrims, A. and Wong, C.Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Choi, T.M., Chiu, C.H. and Chan, H.K., 2016. Risk management of logistics systems.
Prajogo, D., Oke, A. and Olhager, J., 2016. Supply chain processes. International Journal of
Operations & Production Management.
Lamba, K. and Singh, S.P., 2017. Big data in operations and supply chain management: current
trends and future perspectives. Production Planning & Control, 28(11-12), pp.877-890.
Adebanjo, D., Laosirihongthong, T. and Samaranayake, P., 2016. Prioritizing lean
supply chain management initiatives in healthcare service operations: a fuzzy AHP
approach. Production Planning & Control, 27(12), pp.953-966.