Understanding Operations, Logistics, and Supply Chain Management

This essay discusses the areas of operations and supply chain management, with a focus on purchasing, manufacturing, and logistics. Relevant theories and strategies are explored to improve supply chain management for organizations like Volkswagen.

Understanding Operations
Logistics and Supply Chain
Management

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Two areas of operations and supply Chain Management............................................................3
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Logistic operation is the process by which an organization manages flow of things within
the point of origin and point of consumption in order to attain customer’s satisfaction through
working over needs raised by them. This operation helps in developing of factors that are helpful
in attaining customer’s satisfaction. Supply chain management helps in making good and
services supply to be managed. Scope of both elements is wider as they deal with customer’s
satisfaction and supply of product or services. Nature is dynamic as fluctuation can be created
through them within sustainability of an organization in market. Organization takes for the essay
is Volkswagen that is a Germany based automaker and got established in the year 1937. Its
headquarters is in Wolfsburg. In these essay two areas of operations and Supply Chain
management is to be selected with relevant theories and applied in it. In the end Areas required
to be improved is to be discussed.
MAIN BODY
Two areas of operations and supply Chain Management
Supply chain management is the process by which flow of goods and services is been
formed through raw materials. In other words this management makes final product to be
transformed out of raw materials (Lai, Sun and Ren, 2018). It makes activity of production to be
done in an organization like Volkswagen to attain competitive edge in market. As per this
management effort made by supplier to develop a fine product according to chain of supply that
makes efficiency and economic increment possible for an organization like Volkswagen which
makes goals and objectives to be achieved. In supply chain cover all things from production to
product development over information system to be direct with undertaking. There are two main
areas where Volkswagen is required to be focused over. They are Purchasing and manufacturing.
Purchasing means acquiring of goods or services to accomplish goals and objectives to be set by
an organization for making production more effective Volkswagen should maintain quality and
value over products produced by organization. It should minimize cash tie up in inventory,
maintain flow of input in order to make sure output is presented. Organization like Volkswagen

focuses over maintaining of inputs for ensuring outputs and strengthens organizations
competitive position in market. Developing review over the product is to be done over product
specification. For making purchasing to be increased there should be receipt and processing of
requisitions, advertising for bids, bid evaluation, award of supply contracts, inspection of good
received, their appropriate storage and release should be there that makes purchasing to be
increased. This is considered as core functions of Volkswagen which provides material and
resources that is required to make a product. As the economy becomes more global, the
opportunities become even more exciting. Role played by purchasing are coordinator or analyst,
materials manager, corporate purchasing manager (Halldórsson, 2019). Managers of Volkswagen
perform role of purchasing manger in order to make sure that quality of maintained over product
that has been produced. Its functions is dependent over organization and demand that is been
produced by customers. It is the duty of purchasing manager to make sure that image of
organization is maintained within market through customer satisfaction to be achieved.
Manufacturing: is production of merchandise for using or selling various products that is been
sold by an organization. Further certain theories are there which helps in boosting of purchasing
and manufacturing and they are Scientific management theory: This theory is been developed
by Frederick Taylor he was one of the very first people to study about management through
scientific mean and logic. Taylors principals recommends scientific method that can be used for
performing tasks within workplace and opposing leaders relying over judgment through personal
discretion of team members. He has paid more philosophical emphasis forces people or
employees to work hard that increases productivity of employees working in an organization.
Instead he has paid more focus over making tasks easier and less complex which is going to
increase production capacity. He suggests that managers should assign team members to do task
that best matches their ability or skills. Also he recommends over supervization for ensuring
efficiency of role. This is going to helps Volkswagen to achieve maximum workplace efficiency
by finding out optimal way to make production fast and cost effective. This theory helpful for
Volkswagen in increasing of coordination and cooperation between employees working in an
organization like Volkswagen. Principles of administrative management theory: this theory is
been developed by Henri Fayol in the theory it can be examined by him that organization
through its perspective of managers various challenges can be faced by them in the process of
accomplishing Supply chain management. It is believed that leaders having six main functions to

be focused over coordination, planning, command and control. These are helpful in making
development of principals require fulfilling for making manufacturing and purchasing to be done
for supply chain management. This also helps manger to interact with employees in better and
effective manner for deterring upon managing and efficiency with effectiveness. Certain
principals that has been outlined under the theory and is required to be followed by manager of
Volkswagen has been explained as Initiative that is refer to as that level of freedom which is
carried out by employees through responsibilities without having any kind of force or order.
Equity principal that has been implied by everyone in an organization, which has to be equally
treated and environment of kindness should be developed. Scalar chain these are the principal
which works over chains of supervisors from top level of management to lower level and make
communication to be done from top to bottom level. The main emphasis is paid over hard rule
relating to communication process through chain of command. Remuneration of personnel these
principals is been referred to those assertion that is based over both monetary and non –monetary
remuneration based on performance levels to create a bond between the employee and the
organization( Fernandes, A.C and et. al., 2017)
.
Logistic management is defined as that part of supply chain process that makes plan and
implements control with efficiency through effective flow and storage of goods, services related
to information from point of origin through consumption. Logistic management is an inclusive
term which encompasses both planning and execution of key aspects of logistics that is
transportation, distribution, warehousing and purchasing. All these factors make an organization
like Volkswagen to make its product reach to customers in less time. This factors is going to
enhance overall growth of an organization and keeps accounts of steps to be followed in the
process of production. These come into force from the origin of product till its consumption. In
this management there are certain key components of logistic management that helps in
facilitating of strategy to be applied for production and consumption. These elements are
inventory, planning and management, warehousing, procurement of goods and services,
packaging and storage, transportation, customer service. Main is to be focused by Volkswagen is
inventory planning and control that are those functions relating to managing over forecasts for
determining customer’s satisfaction for meeting demand. In these process mangers is required to

count and maintain all items required by Volkswagen. Then comes customers services in this all
complain that is being made by customers is registered in here by the executives selected for the
work. This is helpful for Volkswagen to make enhancement in the quality of product made by
Volkswagen. Theories that are applicable in order to improvise process of production are
Human relations theory the theory has been developed by Elton Mayo in the theory the main
focus is over human relation which exists between employer and employee in an organization.
Such theory was formed to makes change in the working conditions like introducing of break
times and time to work is also specified. The theory is been tested in all aspects and it was found
that employees perform better with more job satisfaction if changes as per the theory is applied.
This has helped in creating of better environment for working in an organization. The theory has
made improvement due to changes that has resulted in making research over employees and
making values to be formed (Coenen and et. al., 2018). These experiments gave rise to the theory
that employees are more motivated by personal attention and being part of a group than they are by
money or even working conditions. This theory is applied by Volkswagen making improvement
due to changes resulting in researchers paying attention over employees and making values to be
developed in organization like Volkswagen. Systems management theory the theory asserts
business consists of multiple components that have been working in harmony over larger system
for functioning in optimally. The organizations success is dependent on interrelations and
interdependency between subsystems. As per the theory employees is considered to be one of the
most important part of an organization. According to these theory managers in Volkswagen is
required to make evaluation over events and patterns in the organization for determination of
collaboration between employees which develops sense of togetherness between them. This
helps in ensuring success with growth. In order to improve supply chain of Volkswagen there are
certain things to be followed that is increase supply chain visibility in this supply chain
management should comprises of all kinds of latest technologies and all strategies applied within
it. This is going to increase visibility within supply chain management. This makes visibility that
is referred with the capability of organization to track each and every component to be produced
as it moves from suppliers. Automation this related to keep check over conditions of warehouse
in which the product is kept. This is an important step that helps in making an organization like
Volkswagen to gain trust over its suppliers that makes supply chain to run more smoothly.
Doing so can increase efficiency of Volkswagen in measurable and impactful way. Improving

IT department this helps in increasing network over web and making consultancy services to be
managed in proper manner. Also protects an organization from any kind of fraud or hacking.
This makes every transaction in supply chain to be done in more secured manner. Assisting
training program It is the responsibility of managers of Volkswagen to make training process
go smoothly that helps in new candidates understand about the concept of supply and attain
knowledge over it. This makes new candidate learn about various aspects of supply chain
process through better training tactics it becomes easy for new candidates to understand about
product and consumption( Behl and Dutta, 2019).
CONCLUSION
From the above discussion it can be concluded that supply chain management and
logistics management helps in increasing the production and consumption of good with services
for an organization. Further in this essay two areas from supply chain is discuss that and relevant
theory applicable to it is explained. Also logistic management and main areas is been discussed
in context of relevant theory. In the end few things is been explained which makes supply chain
management to improve itself.

REFRENCES
Books and journals
Behl, A. and Dutta, P., 2019. Humanitarian supply chain management: a thematic literature
review and future directions of research. Annals of Operations Research. 283(1).
pp.1001-1044.
Coenen, J and et. al., 2018. Understanding approaches to complexity and uncertainty in closed-
loop supply chain management: Past findings and future directions. Journal of Cleaner
Production. 201. pp.1-13.
Fernandes, A.C., Sampaio, P., Sameiro, M. and Truong, H.Q., 2017. Supply chain management
and quality management integration. International Journal of quality & reliability
management.
Halldórsson, Á., 2019. Actionable sustainability in supply chains. In Operations, Logistics and
Supply Chain Management (pp. 191-203). Springer, Cham.
Lai, Y., Sun, H. and Ren, J., 2018. Understanding the determinants of big data analytics (BDA)
adoption in logistics and supply chain management. The International Journal of
Logistics Management.
Mangla, S.K., 2019. Green supply chains and environmental benchmarking–implications for
emerging economies. Management of Environmental Quality.’
Müßigmann, B and et. al., 2020. Blockchain Technology in Logistics and Supply Chain
Management—A Bibliometric Literature Review From 2016 to January 2020. IEEE
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Nayak, R. and Choudhary, S., 2020. Operational excellence in humanitarian logistics and supply
chain management through leagile framework: a case study from a non-mature
economy. Production Planning & Control. pp.1-16.’
Qi, Y., Huo, B., Wang, Z. and Yeung, H.Y.J., 2017. The impact of operations and supply chain
strategies on integration and performance. International Journal of Production
Economics. 185. pp.162-174.
Zijm, H and et. al., 2019. Operations, Logistics and Supply Chain Management: Definitions and
Objectives. In Operations, Logistics and Supply Chain Management (pp. 27-42).
Springer, Cham.