Analysis of Operations, Logistics, and Supply Chain at Mercedes-Benz

This report examines the operations, logistics, and supply chain management of Mercedes-Benz, a global automotive manufacturer. It analyzes the company's new product development process, emphasizing the importance of innovation and consumer satisfaction. The report explores how Mercedes utilizes supply chain management, including the implementation of Total Quality Management (TQM) and Six Sigma methodologies to improve efficiency, manage stakeholder relationships, and drive continuous improvement. It highlights the significance of operational management in enhancing competitiveness and profitability, especially within a competitive market. The study focuses on how Mercedes-Benz integrates these strategies to develop innovative products, manage supply chains, and maintain a strong market position, ultimately aiming to improve business relationships within the supply chain.

Understanding Operations,
Logistics and Supply
Chain Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................6
RECOMMENDATION...................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Understanding over logical operations and supply chain management of business plays a
vital role in establishing stability in business operations (Tayur, Ganeshan and Magazine, 2012)
It will analyse the new product service development process of Mercedes the global auto-mobile
manufacturer. The company is serving consumer satisfaction since ages as it launches
automotive with advanced features and at affordable prices as compared to its rivalries. Further,
the report will outline the process of managing people and supply chain process in and enterprise
in order to improve efficiency and effectiveness of services.
MAIN BODY
The products and services of the company are valuable and are effective therefore to
manage the effectiveness of business operations Mercedes every time innovate its existing
products with some creation in order to attract consumers. The focus on company is based on
less emission of harmful gases in order to preserve environment in order to establish sustainable
development(Plambeck, 2012). Apparently the innovation in products and services leads to
waste of old resource which creates impacts on companies' fund and environment. The
innovation in products and services is leading to depletion of natural resources for the world
which is heading towards global warming. New product development for Mercedes plays vital
role as it helps in enhancing its services for consumers in order to serve consumer satisfaction
and to maximize profits. In process of new product development the company focuses on
implementing new ideas of innovation and screen them by collecting views of consumers over
new ideas (Fernie and Sparks, 2014). However, the new product development process of
organisation is complex as it involves the analysis of all key stakeholders that is employees,
consumers, shareholders and supply changing. However, to make innovation in products and
services, the company make use of effective supply chain management process. Supply Chain
management encompasses all the activities of business which are related to goods and services
starting from raw material to finished services (Schönsleben, 2016). Further, to establish
effectiveness in supply chain management process of Automotive the management focuses on
implementing Total quality management model. The ultimate motive behind implementing the
use of this model is that it helps the Mercedes in managing successful business operations by
delivering consumer satisfaction. This model assist the auto mobile company in managing
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business relationship with all the individuals who are involved in Supply chain management
process (Pagell and Shevchenko, 2014).
Mercedes manages its business relationship keeping in mind all the factors which are
considered under Total quality management model. The model is used by the organisation as it
assist the company in enabling continuous improvement keeping in mind the quality of services.
Moreover, the model assist auto-mobile company in making accurate evaluation regarding the
products and service innovation and managing business relationship with stakeholders. The
model is acceptable by all the employees as it focuses on making involvement of all the
employees in decision making process(Stadtler, 2015). Last and most important that the model is
based on making innovation keeping in mind the needs and wants of consumers. Apparently the
use of TQM theory makes the business ad innovation process rigid and constant for all the
innovation. Apart from this there is six sigma theory which assist the firm in evaluating the
innovation in products and service from start like, in first step it focuses on defining the
problems with the existing business operations or products and services (Sarkis, 2012). Further,
in this the management focuses on evaluating the impact of problems because innovating or
making changes in Auto-mobile products in s not easy and demands huge investment and needs
appropriate resources. Next this theory assist in analysing the case of the problems like for
instance, if in case the specific model of car is emitting huge amount of fuel gas due to which
environment is getting affected and even consumers are facing problems. In accordance to
situation like this, the theory of six sigma assist in evaluating the impacts of the problems
(Ashby, Leat and Hudson-Smith, 2012). Furthermore, the model assist the firm in setting
improvement measures in order to attain effective solution to identifies problems. Lastly it
focuses on setting control measures, in this the company either focuses on making innovation in
existing product or launches new products keeping in mind the present model. This model assist
the management in understanding the importance and effectiveness of logistic operations.
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In contrary supply chain management process assist in making systemic record of
business operations in order to improve efficiency and effectiveness of its Automobiles. Thus,
the process of supply chain management ensures the easy flow of operations as it assist the firm
in making strategic planning for the new product innovation or idea (Christopher, 2016). Further,
it demands planning in which the steps are formulated to attain certain objective. This assist in
making systematic flow of business operations, in this the enterprise includes all the employees
and evaluates the market condition and requirement. After evaluation of demand the company
plan supply and procurement of resources and raw material it is based on involvement of
suppliers and investors. Then comes, the manufacturing process of supply chain management in
which the process involves implementation of all the innovative ideas and product specification.
At last the enterprises start warehousing products, fulfilling orders and transportation. This entire
process of managing supply chain assist the company in developing understanding logistic
operations of business(Monczka and Patterson, 2015). However, Mercedes make use of various
theories and models which assist in establishing efficiency ad effectiveness in business
operations. In addition, it is important for the enterprise to make use of appropriate models in
order to manage business relation with the helps of supply chain management as it connects all
the individuals related to enterprise. Supply chain management is the best process which helps in
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Illustration 1: Total quality mnagament model
Source: (Total Quality Management (TQM) 2017)

improving efficiency and effectiveness of business operations. Thus, the supply chain
management when innovating new products plays vital role as it is focused on planning,
execution, designing, controlling and monitoring business activities (Walker and Jones, 2012).
Operation management is one of the most significant aspect in the present time as in the market
there is huge competition among the corporation. In order to survive in the competitive market, it
is very important for the company to develop such effective strategy and solution by which firm
can enhance its competitive advantage and strength of business. Operation management is a path
by which company can enhance its profitability and productivity in the market (Kwon, Hong and
Kim, 2017). It is a systematic procedure of administration of business practices for develop the
highest level of the efficiency within the company. With help of this approach, company can
enhance its quality and efficiency of business. In the context of Mercedes, it is one of the huge
popular auto mobile company which produce and sale the high quality of luxury cars. The
current objective of the cited venture is to enhance the business relationship in supply chain and
develop the new product and services. For attain this objective, operation management plays a
very significant role by which it can attain its determined objective (Ramanathan, 2017). With
assistance of the appropriate concept and technique of the operation management company can
enhance the profitability and growth of the business. In this corporation, business have main aim
is to manage the business relationship in supply chain. It is crucial part of the business by which
all product and services can deliver to the final customer. In this aspect, firm can apply the
technique of operation management that is total quality management. It is one of the most
effective and significant concept of the operation management under which all the functional
department can equally contribute in order to enhance the potential and productivity of the
business. The major objective of the total quality management is to enhance the quality of the
production, manufacturing and operation. With help of this approach in the company, business
can enhance its quality of production and manufacturing of automotive. This also assist in
overcome the cost and wastages from the production and manufacturing process. The very
important thing in this process and technique is needed to be considered that is participation of
all member and department which is involving in the operation of business. For instance,
Automobile company have major objective is to manage the business relationship in supply
chain then in this situation with help of total quality management, corporation can easily improve
the all process, system and function of the supply chain. In the aspect of supply chain
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management, company delivers its product and services to the final customer by use of various
channels and intermediaries. If company implement the approach of total quality management
then it can easily promote and encourage to all department for enhancing the quality and
efficiency of production and operation. With assistance of the total quality management
approach, company can promote all functional departments members so as they can enhance the
quality and productivity of the business. In addition to this, in order to enhance the business
relationship with supply chain, total quality management tool can assist to the corporation in the
accuracy of deliver of product and services. As per the research it has been founded that total
quality management can help in reducing the cost of the company (Olson and Wu, 2017). If
company cost reduces then it assists in developing the new innovation and creativity in the
business. Thus, it can be said that with help of this technique, cited venture can enhance the
innovation and creativity in the business with respect of the product and services. In addition to
this, it also helpful in enhancing the customer relation in the market. In addition to this,
corporation can develop the new customer chain in the market. As quality of the product and
services can enhance then customer can automatically attract toward the company.
As cited venture is going to develop the new product and services for enhancing its
profitability and market share in the competitive business environment. With help of this idea,
company can develop its won competitive advantage and also design its strength. Cited venture
wants to design such innovative design of the product which have not available in the market. It
desires to create such innovative strategy of product development through which it can give
tough competition to its rivals. Thus, in this case total quality management can aid to the
company in design the product and also develop the benchmarking. In order to generate the new
product in the market, total quality management encourage the all members of the company for
contribute in high effective manner (Papadopoulos, Gunasekaran, Dubey, Fosso Wamba and
Childe, 2017). While all member of the company equally contributes in the company operation
and production then the new product can successfully launch in the market. Apart from that it
can also say that total quality management approach can assist in the creating new strategy and
design for the product launching. Basically it can be said that in this process, all member
contributes in improving the product, service and culture of the company. With assistance of the
operation management, company can enhance its operation and productivity of the business. In
addition to this cited venture can create the new image in the market with help of this technique.
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Apart from that, Mercedes can also consider another approach of the operation
management that is six sigma. In order to manage the organisation relationship in supply chain,
company can also apply the approach of six sigma. It is a set of technique and tool for process
improvement. The major purpose of this technique is to improve the quality, efficiency and
effectiveness of the operation and productivity of the business. This technique seeks to improve
the quality of the output of a process by identifying and removing the causes of defects and
minimising variability in manufacturing and business process. In this aspect, company can use
several methods such as statistical tools, empirical etc. Six sigma can carried out within an
organisation follows a defined sequence of steps and has specific value targets. In addition to
this, by use of this method, company can reduce process cycle time, reduce pollution, reduce
costs, enhance customer satisfaction and enhance the revenue of the company (Zhuo and Wei,
2017). Six sigman provides the new path and growth to the firm by delivering high quality of
work pattern. It employees can also beneficial with the operation management approaches. Thus,
it can be said that with assistance of this method company can easily enhance the quality and
productivity of bushiness by which its aim can easily address at the right time. As it desires to
develop the new product then six sigma method can assist to the venture in enhancing the
operation and profitability of the company. Thus, from this entire discussion about the supply
chain and operation management it can be said that cited venture can easily attain its objective to
manage the relation in supply chain and develop the new product with help of various
approaches of the operation management.
CONCLUSION
The report summarized understanding over logical operations and supply chain
management of business plays a vital role in establishing stability in business operations. It will
outline, models and theories which can assist Mercedes, the global auto-mobile manufacturer in
improving efficiency and effectiveness of business operations. Further, it analysed that Supply
Chain management encompasses all the activities of business which are related to goods and
services starting from raw material to finished services. Therefore, to establish effectiveness in
supply chain management process of Automotive the management focuses on implementing
models like Total quality management, six sigma etc.
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RECOMMENDATION
The essay concluded different theories of managing business relationship in supply chain
management which can assist Mercedes in improving its understanding over logistic business
operations. According to essay some recommendation can be proposed which are as follows:
 To manage people and relationship in organisation, Mercedes should focus on developing
its relation with suppliers.
 The company should focus on innovating auto mobiles which emit very less amount of
fuel and harmful gases.
 The company should make use of models like Six sigma to determine the problems and
its effects on right time.
 The enterprise should focus on maintaining contractual relation with suppliers in order to
improve the efficiency and effectiveness of supply chain management process.
 Implementing the use of high quality raw material in manufacturing process can assit the
firm in stabilising its business operations.
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REFERENCES
Books and Journals
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Plambeck, E. L., 2012. Reducing greenhouse gas emissions through operations and supply chain
management. Energy Economics. 34. pp.S64-S74.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Monczka, R.M. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage
Learning.
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.
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature. Supply Chain Management: An International
Journal. 17(5). pp.497-516.
Pagell, M. and Shevchenko, A., 2014. Why research in sustainable supply chain management
should have no future. Journal of supply chain management. 50(1). pp.44-55.
Sarkis, J., 2012. A boundaries and flows perspective of green supply chain management. Supply
Chain Management: An International Journal. 17(2). pp.202-216.
Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Zhuo, H. and Wei, S., 2017. Gaming of Green Supply Chain Members Under Government
Subsidies—Based on the Perspective of Demand Uncertainty. In Proceedings of the
Tenth International Conference on Management Science and Engineering Management.
Springer Singapore.
Papadopoulos, T., and et.al., 2017. World Class Sustainable Supply Chain Management: critical
review and further research directions.
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Dubey, R., and et.al., 2017. Sustainable supply chain management: framework and further
research directions. Journal of Cleaner Production.142,.pp.1119-1130.
Pérez, A.T.E., Camargo, M., Rincón, P.C.N. and Marchant, M.A., 2017. Key challenges and
requirements for sustainable and industrialized biorefinery supply chain design and
management: A bibliographic analysis. Renewable and Sustainable Energy Reviews, 69,
pp.350-359.
Olson, D.L. and Wu, D.D., 2017. Enterprise Risk Management in Supply Chains. In Enterprise
Risk Management Models. Springer Berlin Heidelberg.
Kwon, I.W.G., Hong, S.J. and Kim, S.H., 2017. Do Collaborative Relationships in Supply Chain
Pay-Off?. International Journal of Organizational and Collective Intelligence
(IJOCI), 7(1), pp.36-46.
Ramanathan, U., 2017. How Smart Operations Help Better Planning and Replenishment?:
Empirical Study–Supply Chain Collaboration for Smart Operations. In Supply Chain
Management in the Big Data Era. IGI Global.
ONLINE
Total Quality Management (TQM) 2017. [Online]. Available through:
<https://www.toolshero.com/quality-management/total-quality-management-tqm/>.
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