Operation Management Practice at ASDA: Efficiency and Technology

This report examines operation and service management within the context of ASDA, a leading UK supermarket chain. It focuses on supply chain management as a key operation management practice, detailing its impact on efficiency, including cost reduction, improved inventory management, and enhanced supplier relationships. The report highlights the role of technology, such as web EDI, in streamlining supply chain processes and improving data transparency. It also discusses the connection between supporting functions like production, human resources, and marketing with the chosen operation management practice. Overall, the report emphasizes the benefits of effective supply chain management in enhancing ASDA's competitive advantage and achieving its business objectives through optimized operations and improved customer satisfaction.

OPERATION AND SERVICE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
One operation management practice within ASDA....................................................................2
Impact of operation management practice in context of efficiency.............................................5
Technology embedded in supply chain management practice within organization....................7
Supporting functions are connected to specific operation management practice........................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation and service management is administration of ventures practices to develop
highest degree of efficiency possible within a company. It is concerned with transforming raw
materials into finished product as effectively as possible in order increase sales and profitability
of a firm. They are more concern with utilizing physical assets so as to cater desired utilities to
consumers while meeting other business objectives. The current study is based on ASDA, which
falls under category of leading and most popular supermarket chain in UK. Their dedicated
workers serve target market from wide network of their stores and online services, including
superstores, petrol filling stations, super centres, depots across United Kingdom etc.
The current assignment will explain one specific practice of operation management and
its impact on company in regard to efficiency. It will justify how technology can embedded in
chosen process or examine how it has already been achieved. Furthermore, this report will clarify
supporting functions link with current operations management practice and their support in
success of company.
TASK
One operation management practice within ASDA
Operation management is an area of administration highly concerned with planning,
designing & handling procedure of production and restructuring business operations. They are
accountable for managing overall activities that are part of manufacture of items or services.
Their direct accountabilities include managing operations procedures, embracing design, control,
planning, operations tactics and performance improvement. They focus on carefully managing
procedures to manufacture and distribute services or products. Strategic, operations and tactical
are kinds of operations management. It is essential for ASDA because it aids effectively manage,
monitor and supervise items, human capital and services. It can be said that operation
management conduct a lot of practices or activities, which is quite beneficial for growth and
success of company. Here, one type of OM practice has been discussed in regards to company.

Supply chain management is one of the operation management practices that is very
important in context of chosen organization (Abdel-Baset, Chang and Gamal, 2019). It is
administration of flow of services or goods and includes all procedures that convert raw
materials into complete items. It includes active streamlining of company supply side actions to
increase consumer’s value and to gain competitive benefits in retail. Retail organizations like
ASDA become included in supply chain management practice in order to control services or
goods quality, timing, inventory degree and expenses. It is wide range of activities needed to
plan, control and execute an item’s flow from materials to manufacture to distribution in most
economical way possible. It encompasses integrated planning & execution of procedures
required to optimize flow of materials, data and capital in functions that widely include sourcing,
logistics, demand planning, inventory management and production or transportation and storage
of materials as well (Azmi and et.al., 2017).
It includes purpose of a supply policy, developing and implementing supply chain
planning and assurance, and supply chain betterment and control. Along with other operation
management practices, it caters several benefits to organization in term of increasing operational
efficiency and productivity level rather than before. It aid to assure superior quality of grocery
and other items delivered to customers in systematic manner.

Figure 1Supply Chain Management Activities
(Source: Integrated Supply Chain Management, 2020)
Supply chain management is a complex and expansive comprehending that relies on each
partners from number of suppliers to manufacturers and beyond to operating well in retail
industry (Çankaya and Sezen, 2019). It is important parameter which differentiates ASDA from
their competitors like TESCO, Sainsbury’s and other. Supply chain management help to achieve
business objectives and aims of organization and provide appropriate satisfaction to target

market. There are varied types of supply chain management tools available in the world of
business, which can be utilized by operation managers to ensure supply of products selling by
firm. ASDA is the first general merchandise outlet, containing all their non-food ranges
including home electronics, apparel, health, home wares, beauty items and toys. It comprise with
different business activities or functions that help to increase profitability level even better.
By using supply chain management tools and techniques, managers can deliver products
or services in effective and systematic manner, they can assure changes in production procedures
and systems which eventually outcome in superior quality things. Effective and efficient supply
chain management also needs change management, communication between all participants or
shareholders, collaboration as well as risk management to develop alignment. It produces
different benefits for company such as higher profits margin, new efficiencies, and increased
collaboration & decrease costs.
Impact of operation management practice in context of efficiency
Supply chain management is chosen operation management practice of ASDA, it makes
administration able to better manage demand, deal or handle disruptions, carry right amount of
inventory, keep price to a minimum and meet demand of target market in most effective manner.
It put positive impact on operational efficiency of company and helps to increase their
profitability level rather than competitors. Effective supply chain management gives organization
better negotiating power or strength to obtain the best products and rates in shortest time period
which in return decrease inventory costs and increase overall planning as well as efficiency of
business operations. It can be said that this practice of operation management is extremely
essential part of functions, as it established strong and better communication & relation with
suppliers, supporting to avoid shipment delays and decrease errors in context of logistical
(Moyano-Fuentes and et.al., 2020).
All above things assures company that they can deliver a better degree of consumer
services which turn into deliver dramatic financial growth or success. Outcomes indicate that
higher degree of supply chain management practice can lead to increase competitive benefits and
improve performance of business even better. Also, competitive benefits can have a direct,
positive effect on ASDA practices. In recent time of competition and globalization, retail firms
have recognized that they have to enhance their efficiency by utilizing technologies and

strategies that are beneficial for them. However, implementation of these tactics needs a sizeable
investment. In order to enhance productivity of business and remain competitive, respective
supply chain management must be efficiently managed. This practice is comprises of three
elements sourcing, manufacturing and distribution. By working effectively and managing these
components effectively, supply chain administration and manger can impact in positive manner
on business operations efficiency. The affect of SCM on key efficiency an decision operation
mangers make on a way basis can be examined by comprehending connections between different
supply chain elements and operation decision.
Supply chain management increase operational efficiency-
In current era’s international supply chains are increasingly difficult, making a data
driven method to SCM a must. It caters visibility from end to end for monitoring flow of data,
products and services from procurement to production and then supply to end customers. Data is
not only factor of effective supply chain management; other drivers such as supplier relationship,
good vendor, securing appropriate logistics partners, effective cost control and adoptive creative
supply chain technologies make a wide affect too. It is not a simple and easy undertaking, but
efficiency practice offers several benefits that enhance bottom line. It analysed that info flow is
prominent issue or obstacle for any company. According to oracle, more than 76 percent firms
lack an automated flow of data across supply chain and half of organizations say fragmented data
outcomes in lost sales chances. Supply chain management and its techniques can permit for
seamless sharing of data and help to provide a big picture view of SC from beginning to end
(Tortorella, Giglio and Limon-Romero, 2018).
It analysed that SCM impact positively in term of improving quality control. Quality
control problems follow rule of 10, according to that rules, cost of repair or replace an product
increase by tenfold at each phase of progression, outcomes in important costs for company when
quality problems arise. Organizations like ASDA that have greater control over not only their
direct suppliers but also their providers, who benefits from improved and better quality control.
Implemented standard decrease quality issues for example, enables direct suppliers to determine
and partner with secondary distributors that meet those needs.

Technology embedded in supply chain management practice within organization
Technologies plays vital role in success and growth of any company and allow them to
grab competitive advantages available within industry in which they operate since for so long.
By embedding technology in supply chain management activities, ASDA can increase their
consumer base even better and improve supply chain services in effective manner (Zeraati and
et.al., 2019).
New generation of purchasing options through mCommerce and ecommerce has made
supply chain management an important area of concern for company. It is especially essential for
retail firm like ASDA, which are heavily rely on supply chain partners like suppliers to deliver
their products. Suppliers, shippers, retailers and manufacturers are the major stakeholders in
supply chain of production organizations, which ends with item delivery to consumers. With a
maximizing emphasis on technological betterments and changes in client’s expectations, need for
an integrated SM has become increasingly essential. For organization to build substantial
consumers bases, digitization of business procedures has become much of a required than a value
add proposition. It has increased needs for creating a digital environment that seamlessly link
operations carried out by different entities in supply chain.
Information technology is valuable for supply chain management; it caters improved
responsibility and flexibility. In order to bring effectiveness and efficiency to total production
procedures, it is really very essential that organization have clear sight into recent phase of in
production items, foresee any potential issues or delays they might face and be capable
production plans accordingly. Utilize of technology can bring essential transparency into whole
procedure. It permits ASDA to have better control over flow of items and information flow
across supply chain. It helps to improve inventory management after using at workplace by
embedding in supply chain management. It aids to maintain optimal degree of inventory within
firm and reduce risk of waster. It has been embedded by creating adaptable business procedures
that cater flexibility to deal different demand situations. By sharing information and analysing
overall conduction manager helping administration to achieve their financial goals with
predictable growth by managing their sales orders and inventory effectively.
Organization in order to have faster and more secure information transactions and
minimize transmission costs, used AS2 standardised web EDI technology which is quite

beneficial for them in term of increasing profit margin and improving speed and efficiency of
EDI communications (Tröger and Alt, 2017). This technology is effectively embedded by
management by planning that has been achieved business aim and objectives. It is a globally
recognized and approved approach for transmitting key information and business contract and
documentation over internet in both authentic and secure manner, which make supply chain
management activities easier for company. By using standardized format company embedded
this technology in SCM and interchange information of business with their suppliers to make
supply chain actions faster more than past few months. This technology makes suppliers able to
establish secure way link with company via internet connections to transfer EDI documents.
With this approach, traffic cost for company and their suppliers are decreased and delivery as
well as conformation on receipt of transmission are made fast.
Implementation of technology speeds up stock replenishment circle, caters flexibility to
enhance data volumes at no advanced cost, improves tracking of outbound & inbound data, and
is also believed to have a profound effect on all manufacturing and retail industry organizations
like ASDA.
Supporting functions are connected to specific operation management practice
Typical business company like ASDA may consist of varied main functions or
departments; production, human resource management, research & development, purchasing,
marketing and accounting. All these are considered as supporting function of organization that is
interrelated to supply chain management practice to achieve common aim and objectives of
business.
Link between production and supply chain management-
SCM work more closely with production and inventory management, they all work
together. Supply chain management assures that essential raw materials within ASDA arrive at
production sites on timely manner (Koberg and Longoni, 2019). Workers in production
department are totally dependent on SCM, they communicate with other section employees to
place order for arranging essential items. After collecting important materials from supply chain
administration, production team start their work and delivery quality products to consumers
according to needs and market demands. Majority of SCM systems also includes add on

suggestions that can enhance related actions, such as contract management, product lifecycle,
capital asset management and other processes.
Marketing and SCM-
Just like above functions, marketing and supply chain management also perform together
within organization. To create better consumer value, marketing goals at developing, improving
and maintaining multiple connection in supply chain. Through concept of market orientation,
marketing and relation marketing, promotion section supports in success of supply chain
activities, which turn into increasing efficiency of ASDA operations. Marketing department by
generating brand awareness lead to increasing product demand which directly influence supply
chain management activities in effective manner. Marketing channels form SCM, a sum
distribution system that serves people and creates competitive benefits for ASDA.
HRM and SCM-
By indentifying needs of staff and experienced applicants in supply chain function,
human resource management and its managers plan for recruitment, which is really very
essential in order to increase productivity level and supply chain efficiency. With talented and
knowledgeable workers supply chain management effectively and delivery required materials to
production which they can use to manufacture items accordant to client’s demand. It can be said
that HRM system is quite similar to supply chain administration programme because HR
manager handles a chain of inter connected functions with diverse job accountabilities working
with a goal to achieve common objective of ASDA.
Accounting and SCM-
Finance or accounting department is accountable for funding, financial controls and
managing budgets of company. Profitability, growth and capital utilization are better optimized
through data, financial and physical supply chain integration. Accounts and supply chain
management work effectively together and has strong interdependency upon each other.
Accounts manager support SCM by providing funds to purchase raw material which they
provide for further operations activities. This support function is highly accountable for identify

money needs in other functions. By working and performing together, both functions provide
many benefits to business in term of increasing efficiency of operations.
Benefits of interrelationship between above functions in regard to organizational success-
It can be said that marketing, supply chain management, HRM and accounts department
work together drive business towards achieving all their objectives and aims in effective manner.
For example, supply chain caters required materials to production which they utilize to transform
it into final item that help to satisfy consumer’s needs.
CONCLUSION
From above analysis, it has been concluded that supply chain management increasing
operational efficiency of ASDA rather than before. This operation management practice is quite
essential and beneficial for organization. They work effectively with other supporting functions
like marketing, human resource management and finance, in order to assisting organizational
success.

REFERENCES
Book and Journals
Abdel-Baset, M., Chang, V. and Gamal, A., 2019. Evaluation of the green supply chain
management practices: A novel neutrosophic approach. Computers in Industry. 108.
pp.210-220.
Azmi, I and et.al., 2017. Logistics and supply chain management: The importance of integration
for business processes. Journal of emerging economies and Islamic Research. 5(4).
pp.73-80.
Çankaya, S.Y. and Sezen, B., 2019. Effects of green supply chain management practices on
sustainability performance. Journal of Manufacturing Technology Management.
Koberg, E. and Longoni, A., 2019. A systematic review of sustainable supply chain management
in global supply chains. Journal of cleaner production. 207. pp.1084-1098.
Moyano-Fuentes, J and et.al., 2020. Extending lean management along the supply chain: impact
on efficiency. Journal of Manufacturing Technology Management.
Tortorella, G.L., Giglio, R. and Limon-Romero, J., 2018. Supply chain performance: how lean
practices efficiently drive improvements. Journal of Manufacturing Technology
Management.
Tröger, R. and Alt, R., 2017. Design options for supply chain visibility services: learnings from
three EPCIS implementations. Electronic Markets. 27(2). pp.141-156.
Zeraati, H and et.al., 2019. A model for examining the effect of knowledge sharing and new IT-
based technologies on the success of the supply chain management systems. Kybernetes.
Online
Integrated Supply Chain Management. 2020. [Online]. Available through: <
https://bizfluent.com/about-6690370-integrated-supply-chain-management-.html>