Supply Chain Management, Logistics and Operations

This report provides insights into the supply chain management, logistics, and operations of Wellington Hospital. It discusses the concepts of managing quality and managing people in operations and supply chain. The report explores the principles of Total Quality Management and scientific management. It also examines the triple bottom line framework and provides recommendations for enhancing operational efficiency.

SUPPLY CHAIN
MANAGEMENT,
LOGISTICS AND
OPERATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Supply Chain Management refers to an effective way through which the flow of products
and services within and organisation is planned, organised and controlled. On the other hand,
logistics refer to stocking and delivery of products within the company in relation to effectively
help maintaining the flow within and around the organisation (Tripathy and et. al., 2016). Thus,
the report below is based on supply chain management of Wellington Hospital, which is one of
the most renowned hospital within the UK. The report effectively covers an appropriate insight
into the operations, supply chain management and logistics of the hospital. This includes
effective introduction to the company as well as chosen topics, which are managing quality as
well as managing people in operations and supply chain. Moreover, several theories with respect
to these topics are implemented and assessed against the working of the organisation.
Furthermore, the report includes an effective as well as detailed insight in terms of triple bottom
like which considers economic, environmental and social considerations. In addition to this,
based on all the elements and factors above, the report also provides certain recommendation for
Wellington Hospital, in order to enhance the hospital's performance in context of operations,
logistics and supply chain management.
MAIN BODY
Organisational Background
Wellington Hospital is one of the most recognised and preferred hospitals within the UK,
which is renowned for its exceptional human resources and professionalism in handling patients.
It attends patients suffering from problems with brain functioning, cardiac issues as well as
orthopaedic problems. In relation to this, the organisation is North London's largest independent
healthcare centre within the whole country.
With respect to the organisation above, there are two effective concepts that are discussed
in brief below. One is Managing Quality, which develops the need for an organisation to
appropriately and effectively manage the overall quality of their services, particularly supply
chain management and logistics. It is one of the most appropriate and effective concepts which
are required to be appropriately adhered to by an organisation in relation to ensure effectiveness
in functioning (Marchi and Zanoni, 2017).
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Another concept is in relation to Managing People in Operations and Supply Chain,
which is subjected towards management of individuals and employees within the supply chain
department of the company, in relation to delivery and procurement of goods and equipments
within the hospital. This concept is very much required by the organisation, as people are the
forces that ensure that effectiveness is managed within the organisation (Ali and Haseeb, 2019).
Managing Quality
The very first concept which is been taken into consideration is managing quality. It is
quite imperative for a health organisation like Wellington Hospital to adhere to their quality
standards which means acquiring products and equipments that are enhanced in quality standards
and are in alignment with the industrial standards. Furthermore adherence to this concept is also
required as in order to promote good health within the organisation, it is highly important that
quality within operations, logistics and supply chain management is maintained.
There are several theories which could be used and implemented within this concept,
which highlights the practices and principles to be followed by a healthcare organisation in
relation to appropriate and effective provision of services to the patients. One such theory is
Total Quality Management, which refers to development of an organisational structure and
functioning which are subjected towards ensuring continuous improvement in a workplace in
terms of improvement of quality. This is also subjected towards enhancing the demand for an
organisational services and products. In terms of its critique, it is one of the best strategies which
are implemented towards enhancing the quality of logistics and supply chain management within
a healthcare organisation. Furthermore, it helps in enhancing the scope of developing an
effective culture within a workplace, which is subjected towards improved operations. However,
in case this theory is applied for a long term perspective, then it might lose its impulse and effect
overtime due to changing conditions within the business environment. Thus, it must be flexible
within organisations with respect to better and effective working within the company and
appropriate enhancement of quality (Cosimato and Troisi, 2015).
In relation with Total Quality Management, there are certain principles associated with
this method which are imperative to be considered and adhered to by a healthcare firm. A very
crucial principle related to the same is continuous improvement. This refers to all the initiatives,
measures and techniques used by organisations to continuously improvise in their supply chain
management, logistics and other operations. This allows the firm in enhancing the scope of
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improvement and ensure betterment simultaneously, which helps the companies in facilitating a
better working environment and enhanced provision of services. Another principle within TQM
is customer focus. This refers to the fact that healthcare organisations must adhere to the
expectations and preferences of the patients that are accommodated within the hospital. This
would further help them assess what elements within their operations, supply chain management
and logistics are ineffective in providing better and advanced care to customers.
In relation to the quality management, Wellington Hospital is quite ineffective in relation
to managing the quality within its logistics and supply chain management. This is because the
healthcare organisation does not give effective and proper attention towards enhancing the scope
of improvement in its operations. As a prominent example, patient needs are not adhered to by
the organisation, due to repeated deaths and fatalities with respect to ineffective equipments
(Wellington Hospital failures: 23 serious or fatal incidents, 2019). This reflects that the patient
health needs are not considered by the organisation as their logistics and operations are very
much ineffective. Another aspect which reflects that principles of TQM are not followed by this
organisation is in relation to repeated delays in acquisition of emergency equipments. Each
organisation within healthcare industry is under the obligation of ensuring a quick and consistent
supply chain management which helps them in acquiring necessary stock at times of
emergencies. Moreover, within logistics, it is necessary that all the equipments and services are
very stocked and maintained which saves time during contingencies. With respect to the
organisation, there is an inconsistent supply chain management and inappropriate logistics fails
the company in relation to adopting and implementing the managing of quality concept.
In comparison to the same, there is another organisation by the name of Bedford Trust
Hospital, which has been applying the principles of TQM quite effectively and has been adhering
to the industrial requirements in terms of managing the quality within the operations, logistics
and supply chain management. For example, in order to ensure effectiveness in acquisition of
equipments or machines, the firm only associates itself with the trusted suppliers that are
approved by NHS. This helps them in acquiring the products and equipments of topmost quality,
which helps in enhancing the services. In addition to this, the firm has integrated automated
system, which are required by the suppliers to register in order to ensure that topmost quality
products and medical equipments is gathered by the company (.Bedford Hospital: Buying
Department, 2019).
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Managing People in Operations and Supply Chain
Scientific management is propounded by F.W. Taylor in 1909 in which this discusses the
way through which operations of organisation is performed in specified format through which
productivity of organisation can be improved and maintain good profits. This is possible when
operation are performed in better and appropriate manner. In this theory, there is requirement of
analysing and ascertaining changes which are taking place (Schönsleben, 2018). There are four
principles of scientific management which has to be considered for proper formulation of
activities. These principles are discussed as under in detail-
First principle of scientific theory is “Thumb of Rule”. As per this there must not be use
of signature ways of conducting and completing task. When it is important for people to
understand the ways through which they can ascertain policies and take actions in lieu to get
better option. In Supply chain department of Wellington Hospital does not use old and repetitive
methods for conducting operations. This organisation have positive and flexible environment
through which they can use new and innovative style of consumer satisfaction and thumb of rule
is not implemented in Supply chain operations of Wellington Hospital.
Second principle is “matching of job with workers”. This is the principle which makes
positive impact on organisational performance because when operations are performed as per
consumer demand. When task is matched with employee's operation, then it is clear that
employees are also give their best. This makes employees skilled and talented. Wellington
Hospital does not apply this principle because when there is over crowd of patients, then supply
chain departmental head of Wellington Hospital is not able to assign targets as per worker's
efficiency and skills (Wang and et. al., 2016).
Third principle talk about “monitoring working performance”. This is the principle in
which managers of organisation have to evaluate performance, so it is clear that supply chain
within organisation is done in best and appropriate manner. In supply chain department of
Wellington Hospital, this principle is not implemented because in case of emergency, managers
are not able to evaluate whether good and provided properly or not. At that time, main focus of
supply chain managers is to provide material and services to other departments, so consumer
satisfaction can be maintained.
Fourth principles focus on “Distribution of work among workers and managers”. This is
the principle which focus on distributing of work among manners and workers. This makes ease
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in understanding with supply chain mangers what issue might faced by workers. In case of
supply chain department of Wellington Hospital, this principle is implemented because managers
not only provide guidance but they also work with employees in case of over time, so this
motivates them to give best. When training session are implemented for supply chain workers,
then managers also take part in it as participants because they also wants to improve their
learning and implement for providing timely services (Dondo and Méndez, 2016).
From the above discussion, it is clear that out of four principles, two are implemented in
supply chain activities of Wellington Hospital, but two are not implemented because of some
external or internal issues. It is essential to implement all the principles with the help of which
flow of organisational activities can be maintained. As supply chain management department of
Wellington Hospital is using internet access, innovative style of communication through which
they ease in their working and they provide exact and appropriate information. As managers are
working, so there is positive relations among workers and managers because both are working in
supply chain process,so possibilities of error is less.
As compared to London Bridge Hospital, it is evaluated that at supply chain process of
Wellington Hospital, they are using old and exact method through which employees can
concentrate on some other important aspects. There is use of new software with the help of
which it is easy to enter information and forward to accounting or financial department for
approval. At Wellington Hospital, there is no evaluation of performance, but London Bridge
Hospital when worker is in probation period, their performance is evaluated under strict rules
and regulations. Hence there is less possibilities of error afterwards. They use feedbacks from
consumers for evaluating performance on employees on sudden basis. Hence this makes supply
chain operations in specified and particular format.
At Wellington Hospital, there is proper and complete information with workers about
actions for which they are responsible. Hence it is essential for managers to understand positive
changes which is specific in context of arrival. While at London Bridge hospital, team leader of
supply chain management perform operations as per their skills and technical knowledge. When
information is generated and appropriate, then it will be easy for employees to give best. When
task are assigned as per skilled and knowledge, then workers are also satisfied that they have
perfection in some specified field and it is easy for London Bridge Hospital to train new
personnel about supply chain activities properly (Ho and et. al., 2015).
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Triple Bottom Line
This is the framework which emphasise on environmental and social prospects as well
while an organisation is operating. As managers of Wellington Hospital is fusing on profits, sales
and revenue, then as per this principle managers of hospital must focus on social and
environmental protection as well.
First component is Economic. This is the factor which is also known as profit. This is the
core motto for which Wellington Hospital is operating in industry. It is essential and relevant for
managers to understand the ways through which they can maintain or improve their profits.
Profits can be measured through profit and loss account and balance sheet.
Second component is Environmental. This is also known as planet in terms of triple
bottom line. With consideration to profits, it is important to analyse that they are responsible for
social development as well. Wellington Hospital is operating in environment, so it is important
to analyse that there must not be any harm to environment because of their activities. For
instance: there must be optimal use of water because this is nature resources and acquired from
environment.
Third factor is Social. This is also known as people. Organisations are working for
providing products and services to consumers, hence in this case, it is essential for managers of
Wellington Hospital to evaluate ways through which they can be socially active. When
Wellington Hospital is providing satisfactory services to consumers, then it is easy to maintain
positive and long term relations with them.
Recommendations
From the above discussed information, it is evaluated that Wellington Hospital is
performing well in industry. As they are working for betterment of workers as well and maintain
familiar relations with them by bridging gap between managers and workers. This is the way
through which operational efficiency can be achieved. But there are some factors which has to be
considered by managers of Wellington Hospital to get positive outcome and achieve operational
efficiency. Some recommendations are as under-
There must be regular feedbacks from employees, so in case of any issue, it can be
resolved and managers are able to identify what components might create hurdle. Hence if there
is any negative comment from client regarding services can be reduced.
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While planning for training of workers at supply chain management of Wellington
Hospital, then it is essential to communicate with workers, so they are aware and ready to learn.
Performance evaluation techniques must be clear to workers, so they does not have any
doubt in mind regarding biasses and benchmarks for evaluation. This assist in keeping work
force satisfied and they perform supply chain operations properly.
CONCLUSION
Thus, it is concluded by the above report, that operations, logistics and supply chain
management are required to be adopted by an organisation in relation to ensure effectiveness in
their system and functions. It is highly essential that the above variables are assessed by several
concepts, which are further backed up by several theories to ensure that each and every
requirement is being adhered to. In addition to this, it is important for organisations to adhere to
the triple bottom line considerations and adhere to recommendations to ensure their effective
working.
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REFERENCES
Books and Journals
Ali, A. and Haseeb, M., 2019. Radio frequency identification (RFID) technology as a strategic
tool towards higher performance of supply chain operations in textile and apparel
industry of Malaysia. Uncertain Supply Chain Management. 7(2). pp.215-226.
Cosimato, S. and Troisi, O., 2015. Green supply chain management: Practices and tools for
logistics competitiveness and sustainability. The DHL case study. The TQM Journal.
27(2). pp.256-276.
Dondo, R.G. and Méndez, C.A., 2016. Operational planning of forward and reverse logistic
activities on multi-echelon supply-chain networks. Computers & chemical engineering.
88. pp.170-184.
Ho, S., and et. al., 2015. Green supply chain management. The TQM Journal.
Marchi, B. and Zanoni, S., 2017. Supply chain management for improved energy efficiency:
Review and opportunities. Energies. 10(10). p.1618.
Schönsleben, P., 2018. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Tripathy, S., and et. al., 2016. Information technology is an enabling factor affecting supply
chain performance in Indian SMEs: a structural equation modelling approach. Journal
of Modelling in Management. 11(1). pp.269-287.
Wang, X., and et. al., 2016. Service outsourcing and disaster response methods in a relief supply
chain. Annals of Operations Research. 240(2). pp.471-487.
Online
Bedford Hospital: Buying Department. 2019. [Online] Available Through:
<https://www.bedfordhospital.nhs.uk/our-departments/support-services-2/buying-
department/>
London Bridge Hospital. 2019. [Online] Available Through:
<https://www.zoominfo.com/c/london-bridge-hospital/22987293>
Wellington Hospital failures: 23 serious or fatal incidents. 2019. [Online] Available Through:
<http://www.stuff.co.nz/dominion-post/archive/national-news/163690/Wellington-
Hospital-failures-23-serious-or-fatal-incidents>
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