Importance of Logistics and Supply Chain Management

This assignment report emphasizes the significance of logistics and supply chain management in achieving high levels of efficiency within organizations. It delves into various theoretical frameworks that help in resolving problems related to quality management and location setup, ultimately aiming to occupy better results in the hospital industry.

Understanding Operations,
Logistics and Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company overview.....................................................................................................................3
Total Quality Management for Managing quality.....................................................................4
Theories of Alfred weber (Location and layout).........................................................................6
RECOMMENDATIONS.................................................................................................................8
Triple bottom line........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................12
.........................................................................................................................................................1

INTRODUCTION
Operations management is the administration of business practices to create highest level
of efficiency within an organisation (Ashby, Leat and Hudson-Smith, 2012). In general, it is
concerned with converting raw materials and labour into goods and services as efficiently as
possible to maximise profits of an organisation. It balances cost with the revenue to achieve high
net profits. Operational managers has the responsibility of acquiring and managing inventory
levels, acquisition of raw materials, quality control, materials handling and maintenance policies.
Logistic and operation management is the key factor for for organisation success and growth.
Logistics is the management of the flow of things between the point of origin and point of
consumption in order to meet requirement of customers. This will help company in providing
higher productivity and profitability. Supply chain and logistics is interrelated in industry where
both concepts are related to product cycle. Supply chain management is a broad range of
activities require to plan, control and and stimulates product flow to final consumer in cost
effective manner. Hence, operational management, logistics and supply chain management helps
in smooth running of business operations which provides efficiency in its operations by
satisfying customer needs and wants.
MAIN BODY
Company overview
This report study upon hospital named as Princess Alexandra Hospital a UK teaching
hospital. It work on both teaching and guiding students about healthcare with surgical and
medical specialist in their area. In that hospital around 1.6 million people stay and avail of
treatment and hospital has approximately 780 beds and 5800 members in staff that provides
reliable services to their customer's. They are devoted to provide and assist in satisfying
requirements of consumers (Seuring and Gold , 2012). It also work in field of data collection of
patients which helps to access data and information about new requirements of consumers. This
hospitals also invest a lot of money on promotion and distribution of goods and services with
understand need of consumers in potential market. It is provide facilities to deal in fierce diseases
with solution of forthcoming diseases. It is the leading hospitals in providing research and
academic centre to their potential clients. Moreover it focus on services such as mental, physical

and surgical and cancer treatments which is beneficial for both clients and hospitals (Seuring,
2013 ).
There are two important issues that face by Princess Alexander:
Managing Quality
This hospital is facing problems due to the old machineries and technology that are
situated in that hospital that reduce the capabilities of services in Hospital and dissatisfying
consumers. Indirectly it incapable to manage its quality while providing services to their
consumers. it affects revenue of hospitals (VanWassenhove and Martinez, 2012).
Location and layout
Hospital also facing problem of location and layout. Hospital industry have to restore a
large no. of medicines and machinery that increase its operations cost and it also increase
warehousing cost of hospitals in industry.
Total Quality Management for Managing quality
Total quality management is an approach of long term success adopted by the
organisation in improving product, services that are deliver to people. TQM is founded in japan
and it will expand its approaches in other locations. It is customer oriented activity which helps
in improving quality and promoting various theories and concepts towards practices. Princess
Alexander hospital adopts Total Quality Management approach for resolving the issue of
managing quality in its business operations. In this scenario respective hospital chooses
managing quality topic and implements TQM for improving the quality of equipments and
services rendered to patients. Managing quality is considered to be one of the most important
factor which every hospital should address and take specific actions to improve their image and
satisfy customer needs and wants. The respective hospital uses various theories of TQM for
managing and improving the quality of service which are as follows-
Deming's theory – This theory focusses on increasing the quality of service and provide
quality equal to the work efforts (Christopher, 2016). It will help in estimating the degree of
uniformity and dependability along with standard quality which provides best results to patients.
Princess Alexander hospital are adopting managing quality method for improving the new
services which serve to their patients. They are trying to focus on improving the quality of
equipments which helps in better recovery of patients and provide immediate services at the the

time of urgency to save the life of patients. Implementation of this theory will help in cost
reduction of service and helps to reduce defects.
Crosby' theory- This theory focuses on quality as basic requirement. Zero defects is the
performance standards of quality (Gligor and Holcomb, 2012). Quality is measured by the price
of non conformity. The respective hospital uses this theory for improving the service quality by
the elimination of defects and waste and helps hospital in reducing cost and improving quality.
Hence increasing customer loyalty.
These theories of TQM would greatly help in Princess Alexander hospital to improve and
manage quality of service and helps in better recovery of patients.
Importance of TQM for Princess Alexander hospital
 It helps in effective controlling and measuring of business operations and helps to review
the quality and if any deviations found corrective actions are taken to render better
services.
 It focusses on customer needs by analysing the problems they are facing and helps in
managing quality of the equipments used for treatment of patients, and helps in
maintaining quality of medicines which doesn't harm the patients and provides a healthy
living.
 It helps in alleviating problems as these systems prevent clinical and administration
problems , continuously improve the organisation processes and provide better health
care services then those of competitors.
 It can be used for focus on increasing customer evaluation, recognise issues or problems,
making appropriate commitment and encourage open decision making among employees.
Disadvantages of TQM for Princess Alexander hospital
 TQM is expensive to implement. It includes the cost of development, infrastructural
improvements and requires continuous investment in form of machine inspection and
quality measurements.
 TQM is long term process, requires patience and dedication too see the tangible results.
The respective hotel when adopts TQM approach have to wait for long time to see results
Comparison of TQM in Princess Alexander and Arnold Palmer Hospital
TQM is set of standards which helps organisation to provide improved quality of services
for facilities of their patients. Here, Princess Alexander and Arnold Palmer hospital implemented

TQM method for managing its services and improving its quality (Green Jr and et.al., 2012). In
princess Alexander hotel Total quality management assist in reducing cost of some equipments
which renders services to its patients. TQM helps to gain customer retention for Princess
Alexander by focusing on improved quality services on treatment of cancer, heart attacks etc.
which helps the patients to recover as early as possible by providing appropriate medicines and
with improved and advanced technology. On the other hand after the application of TQM in
Arnold Palmer Hospital it focuses on improving and addressing the problems faced by the
patients and helps to manage the quality by improving its service. It will also enhance the
reputation of the respective hospital which helps in recovering of more patients which will
enhance motivation among staff members to work and helps to gain morale by reducing
turnover. They also conducts surveys in hospital to know the positive and negative impacts of
TQM and take appropriate actions to mange the changes effectively. Hence application of TQM
assist in improving and managing quality of its services (Jacobs Chase and Lummus, 2014).
Theories of Alfred weber (Location and layout)
This theory is related to all analytical study that focus on subject of location of office and
plant in area. Weber formulated this theory in 1909. Firstly features of this theory stated in two
parts Pure theory and Realistic theory and some other features includes deductive and
incorporates that summarise as factors that attract local people in some regions and that helps in
ultimately decides in which location is finally set up. There are certain costs which affiliated with
location and its maintenance like interest and depreciation. There are two factors affecting
location of industry that classified in two sectors:
Regional factor and Agglomerative and degglomerative factor
Regional factor:
In that theory weber denotes that cost differentiate according to region and location price
of land. So industry in general should be localized according to price of specific region so that
operating cost can be deduct.
In regional cost two factors included such as Transportation cost and labour cost.
In transportations cost influenced by transportation and distance that is covered. Generally
industries localize or stablish where sufficient funds and resources available. The location totally
based on type of material and nature of transformation is used.
Agglomerative and degglomerative factors:

Agglomerative factors includes business that centralize at one place. In factors includes
insurance facilities, banking and external economies etc.. this concept of centralization
influenced by manufacturing index which denotes proportion of manufacturing cost in total
production.
In degglomerative factors includes factors which decentralization of location. Such taxes on land,
residence cost with labour and transportation cost. These cost reduce as shifting of location to
another place.
Weber indicated two possibilities one is bifurcate into location. When different products allocate
at different places that reduce operating cost and advantageous to restore different activities in
smooth manner by split location. Weber divided material into two categories in iniquities and
specific raw materials. In previous is available in every place and material divided into pure raw
materials and gross raw material.
Critical analysis of Weber theory:
The main criticism of weber theory are as follows:
Inadequate analysis of transportation cost:
This theory cover in transportation cost is only two factors which includes transportation
cost and distance that is covered. There is some other factors also includes such as quality,
geography that influence transportation cost. Weber not consider these points.
Omission of important cause of location:
In this theory only includes transportation cost and labour cost that cause of centralization
and decentralization of industries. In that other factors includes location in which climate, credit
etc.
mathematical expressions:
This theory includes index numbers and coefficient theory which make it complicated. In
that includes technical analysis and it is mathematical in nature which make it difficult.
Consumption centres:
This theory based on consumption centres that are stable but nature of consumers is
unstable and they scattered again and again.
Overemphasis on labour costs:

Weber emphasis on labour centres which are fixed and labours are uncertain in nature.
This assumption is not realistic. But all of that this theory is relevant in today's world. In this
theory improvements is very necessary to make it more useful.
Positive aspects of Weber theory:
In positive side of theory denotes that key strengths of theory and it benefits in location
selection and save cost of production.
why some industries are located where they are located:
It helps in understand the need of proper location and advantages that a location provide
benefits to their clients . It helps in evaluate operation cost that taken by location and how much
distance is covered by them. In this theory it evaluate advantages of location at perfect location
and how it increase brand value of product and services in industry.
Take transportation:
It helps in taken decisions regarding the transportation and expenditure that incurs when
location is far located and it unable to provide raw materials to their customer at proper time and
in proper way so it is very useful theory which helps in taking decisions.
Comparison between princess Alexander and Arnold Parmer:
Princess Alexander and Arnold Parmer is situated at good locations. Princess Alexander
is situated at that place that it can avail all resources that is necessary for its suitable operations.
On other hand Arnold Parmer is comparatively located at prime locations so that people can
reach it easily.
RECOMMENDATIONS
Turn caregivers into allies
Give training to the staff to the importance of including caregivers in take care for
patients both at hospital and at home. As companions, these individuals can be potential
supporters to nurses’ efforts to provide excellent patient care.
Prepare the clinical staff to work with caregivers
Create an skilled clinical staff that can efficiently provide care to patient while also pay
attention to caregiver. Moreover, patient caregiver is becoming a potential area of care quality.
Create a culture of shared accountability
A superior nursing team will help each patient with care and respond effectively in right
manner and give mentally satisfaction.

Understand how caregivers impact hospital image and reimbursement
Every tasks and deeds impacts on decision of staff of hospital. Poor performance of a
member of nursing staff can humiliate entire team’s performance. Hospitals need to recruit,
train and retain staff that understand value of service side of the care.
Triple bottom line
Triple bottom line (TBL) Is an accounting framework within three parts such as social,
environmental and financial. Princess Alexander have adopted TBL framework to evaluate their
performance to create greater business value. It measures company's degree of social
responsibility, its economic value and its environmental impact.
 Economic aspect- In order to provide improved quality respective hospital should take
initiatives some cost saving concepts to manage quality in cost effective manner. Princess
Alexander should promote a better quality of medicines and healthy food system which
leads them to spend billions on diet related but helps to improve life of patients by
managing quality of services rendered ton them. They should provide services in such a
manner that it creates value for patients but in a cost effective manner.
 Environmental aspect- Princess Alexander should minimise the impact on environment
as a sick planet leads to sick people. Waste created by the hospital leads to air and water
pollution which in turn leads to respiratory illness, cancer and reproductive diseases.
Hospital should install such technologies and machines in such a manner that it doesn't
affects the environment and thereby nor having implications on general public (Rushton
Croucher Baker, 2014).
 Social Aspect- Princess Alexander should take care of patients and employees by making
sure that medical devices and chemicals used are non toxic and doesn't harm the users.
When Princess Alexander conducted surveys it identified that cancer, asthma and birth
defects are mainly linked to hazardous hospital chemicals. Employees working in
hospital are facing major problems, proper actions should be encountered to resolve the
issue.
CONCLUSION
From above report it has been concluded that operation management helps organisation
to achieve high level of efficiency in organisation to obtain business objectives. This report study

upon importance of logistics and supply chain management in industry by analysing different
aspects. Moreover it explains theories which helps in resolving problems regarding quality
management and location set up. That helps to understand the value of these factors. In addition
to it elaborates reforms and recommendations that hospital industry have to apply to occupy
better results in this industry to occupy best results.

REFERENCES
Books and Journals
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.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gligor, D.M. and Holcomb, M.C., 2012. Understanding the role of logistics capabilities in
achieving supply chain agility: a systematic literature review. Supply Chain
Management: An International Journal.17(4). pp.438-453.
Green Jr, K.W., and et.al., 2012. Green supply chain management practices: impact on
performance. Supply Chain Management: An International Journal.17(3), pp.290-305.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Sarkis, J., 2012. A boundaries and flows perspective of green supply chain management. Supply
chain management: an international journal. 17(2). pp.202-216.
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.
Van Wassenhove, L.N. and Martinez, A.J.P., 2012. Using OR to adapt supply chain management
best practices to humanitarian logistics. International Transactions in Operational
Research.19(1-2). pp.307-322.
Waller, M.A. and Fawcett, S.E., 2013. Data science, predictive analytics, and big data: a
revolution that will transform supply chain design and management. Journal of Business
Logistics. 34(2), pp.77-84.
Wang, G. and et.al., 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.

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