Understanding Operations, Logistics And Supply Chain Management

Understanding Operations, Logistics And
Supply Chain Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Critically review relevant operational, Logistic and supply chain management theories......1
Analytic discussion with relevant and similar example and applying appropriate solution of
operational management.........................................................................................................4
RECOMMENDATIONS.................................................................................................................5
CONCLUSIONS..............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For any company whether it is a manufacturing industry or is a hospitality service
sector it is very essential for the management to work according to the set goal. There are
different operational functions which need to be performed in the organisation like that of
producing, financing or selling and distribution of the product of the company. The following
report is based on Volkswagen a car and automotive manufacturing Germany based
company. There are many operational, logistic and supply chain management work need to
be performed by the company throughout the world. Volkswagen is the worlds the largest car
manufacturing and selling company with having the current revenue of about €105.6 billion
in the year 2016. The company is making the decision regarding manufacturing of car then
marketing of car and then earning of profits. Volkswagen is having its suppliers all around
the world where they need to do the negotiation and then make the decision at company level.
Critically review relevant operational, Logistic and supply chain management theories.
Volkswagen as it the best known car and automotive manufacturing company of the
world and operating throughout the world in almost all the countries of world. The company
need to operate in number of areas across the world and they also need to manage the supply
chain as having many suppliers in all the countries (Sindi and Roe, 2017). Operational
department of Volkswagen work on the basic functional area of company which deals with
the day to day working of company. Which mainly include the manufacturing and assembling
of parts of car and make the tactical decision regarding the operation. All these decision are
made by the higher level of management which form a framework in the supply chain of the
company and also help to take the best competitive advantages. As Volkswagen is having a
global suppliers and company need to negotiate contracts to make the decision on company
level which help them to take advantage of Volkswagen global buying power. They need to
find those types of suppliers who will be able to sell the products of the company on a cost
saving purpose. Logistic is that part of Volkswagen which help it to identify cost saving
benefits and the 3PL company has integrated them into supply chain. To bring efficiency at
lowest cost strategies and tactical supply chain decision are made within the framework of
operational decision. In the automotive industry and the company like Volkswagen there are,
many issues regarding operation, logistic and supply chain management are faced and they
are also needed to solve at the management level (Prajogo, Oke and Olhager, 2016). The
operational function also support the market in which company is operating and then deliver