Evaluating Operations Management Practices: A Case Study of ASDA

This report provides a comprehensive analysis of ASDA's operations and service management, focusing on supply chain management as a key operational practice. It examines the impact of supply chain management on the firm's efficiency, highlighting its role in cost reduction, improved customer service, and enhanced financial position. The report delves into the technological aspects of operations management within ASDA, emphasizing the importance of Information and Communication Technology (ICT) in streamlining communication and inventory management. Furthermore, it explores the supporting functions, such as purchasing, that are integral to the success of supply chain management. The report concludes by summarizing the benefits of effective supply chain management and technology integration for ASDA's overall organizational success.

OPERATION AND SERVICE
MANAGEMENT

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
One operation management practice within ASDA Company...................................................3
Supply chain management as OM practice impacts firm in context of efficiency.....................5
Technology within the operation management practice.............................................................6
Supporting function which are linked with the operation management practice and its role in
ensuring organizational success..................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations and service management is essential administration of business practices
utilized to create highest degree of efficiency and affectivity within a company. It is concerned
with transforming materials into finished items or things as effectively as possible to deliver
target market and increase profit of firm in effective manner.
The current study is based on ASDA, is British leading retailer in UK and serving in
many nations with skilled and talented applicants serving millions of buyers in systematic and
ethical manner.
This study will explain specific operation management practice within selected firm and
also clarify how chosen operations management practice impacts company in context of
efficiency. Furthermore, this report also justify technology embedded in operation management
procedure and will examine how it has already achieved. This assignment will also define
supporting function connection to one operation management practice that will be chosen and
explain it will assure operational success.
MAIN BODY
One operation management practice within ASDA Company
Operations management is mainly concerned with planning, managing and monitoring in
contexts of manufacturing, production or provision of products and services. Here, supply chain
management practice of operations management is discussed that is quite beneficial and
effective in regards to ASDA. It is one of the best management of flow or items or services and
includes all procedures that convert raw materials into complete goods. Supply chain
management includes active streamlining of firm supply side actions to increase consumer’s
value and gain competitive benefits in retail sector. It shows an attempt by suppliers to create and
implement supply chains that are as economical and efficient as possible. It covers each and
everything from manufacturing to data systems required to direct these undertakings.
Supply chain administration efforts to mainly control or connect production, distribution and
shipment of product. It is totally based on idea that mostly every item that comes to sell
outcomes from efforts to firm that makes up a supply chain (Coyle and et.al., 2016).
Supply chain of ASDA is comprised of all individual and management contributions
included in manufacturing and delivering groceries items, furniture and other things. It makes

company able to source raw materials needed to produce a item and deliver that thing to
consumers who are seeking to purchase it for longer period of time. The aims of this practice is
to improve and manage supply chain activities much better than past few years while operating
business in retail industry. Accurate and timely supply chain info permits firm and their
production department to produce and then ship only as much items as can be sold in market. It
help retailers and manufacturer to eliminate excess inventory, it can also decrease cost of
shipping, storing, producing and insuring item that cannot be sold (Genovese and et.al., 2017).
Supply chain management comprised with 6 elements that are quite beneficial and useful
in term of increasing profitability, productivity and sales rather than before. Planning, sourcing,
making, delivering, returning and enabling are most important components of this operation
management practice within ASDA that are highly beneficial for firm.
It analyzed that SCM is important within company as it help to restock shelves as goods
are sold to buyers. It is wide range of activities needed to plan, manage and execute a item flow
from raw materials to manufacturing to distribution in most economical method possible. There
are varied types of methods used in context of supply chain management within firm to manage
each activity before and after producing goods.
Transaction cost analysis, network perspective, channel coordination, consumer
relationship management; requirements chain management and supply chain road map are the
most common approaches of SCM. It help to identify potential issue before they occur, when a
buyer orders more item than company can deliver traditional response has been to cut order. It
leaves consumer feeling inessential & convinced firm services is poor. Producer who anticipates
shortage before customer is disappointed may be capable to provide a substitute item of other
things to keep people happy.
Supply chain management within organization optimize price dynamically. Seasonal
items especially food products have a limited shelf life. Any that does not sell by end of season
are removed or sold at deep discounts before it get worst to empty ASDA warehouse. Retailers
like ASDA with a range of products adjust prices dynamically to meet market demand. It can be
said that supply chain management is connected network of individuals, activities, resources and
technologies included in producing and selling of range of products. It is quite beneficial in all
aspects that will discuss below clearly (Pettit, Croxton and Fiksel, 2019).

Supply chain management as OM practice impacts firm in context of efficiency
Supply chain management is the best operation management practice that direct influence profit
margin and productivity of business rather than before within marketplace by increasing
operational efficiency. By managing supply chain, ASDA is able to cut excess cost and cater
items to consumers faster than its competitors operating in same sector since for so long. It can
be done by keeping tighter control of internal inventories, sales, production, inventories and
distribution of firm vendors. It analyzed that supply chain management put positive impact on
company as it help to increase sales and productivity rather than before (Gandhi, Shaikh and
Sheorey, 2017). It produces many benefits such as higher profits, new efficiencies, increased
collaboration and lower costs. It enables firm to better manage buyer’s demands, keep costs to
enhance and meet consumer’s needs in most effective manner. These supply chain management
benefits are achieved and gained through selecting effective methods and appropriate software to
manage progressing complexity of today’s supply chains. It has important impact on firm as
increase efficiency and retains potential buyers for longer period of time.
Its activities can improve consumer’s service of ASDA as it helps to assure consumer’s
satisfaction by making some important items is accessible at right place at right time. By
increasing satisfaction level of Buyers Company can able to build their positive brand image all
around the world and improve target market loyalty.
Supply chain management also cater many benefit or advantage for firm by decreasing
operations costs rather than before. It reduces cost of buying, manufacturing and total supply
chain. Decreasing costs improves organization financial position by maximizing profit & cash
flow. SCM best practice can increase overuse of wide fixed assets such as vehicles and
warehouses by permitting supply chain experts within company to redesign their network to
maintain consumers service level while managing warehouses as it reduce cost of owning extra
facilities (Li, Holsapple and Goldsby, 2019).
Supply chain management as operational management practice within ASDA put impact
in several ways. For example, it put positive influence by boosting consumer’s services, reducing
operating costs and improving financial position. Firm value SCM because it help reduce and
control supply chain costs, it can outcome in dramatic increases in company profits. It decreases
use to wide fixed assets such as warehouses as well as transportation vehicles use in supply chain
activities.

It also help by increasing speed of product flow to buyers for instance when ASDA can
produce and deliver their items to target market in 2 more than 5 days it can inform people 6
days sooner.
In recent time, supply chain management is really very important as it increase customer
satisfaction and competitiveness. Efficiently and effectively running supply chains permit firm to
quickly and efficiently deliver items to end users for a low cost. The main motive of efficiency
practice is to reduce inventory costs for organization. It ultimately keeps track of items
consumption and accessibility when needed. It brings immense modification in business growth
and success. There are varied of ways according to which SCM can lower down present
overhead expenses to firm.
Improves inventory management programme, facilitates successful implementation of
inventory system, reduce damage assets by managing storage space efficiency of completed
products. The most effective feature of supply chain management is boost up cooperative level
within retail sector or company task. It gives access to measure what suppliers & distributors are
doing all period.
Technology within the operation management practice
The technology is the most important aspect in the current competitive and global world
and this need to be adapted by the company. This is essential because of the fact that the if the
company will not use the latest technology within the operation and service management of
company then the company will not be able to manage the working of the company and this will
have a huge impact over the working and profitability of the company (Hugos, 2018). The
operation is the most important part of the company as this includes the product and
manufacturing process and if this will not work in proper and effective manner then this will
have a huge impact over the productivity and profitability of the goodwill.
In operation management the most important practice is the supply chain management.
The supply chain management is the process of activity which manages the flow of good and the
raw material to and from the company to the end consumers. The supply chain is the most
important practice within the operation management of ASDA as if the raw material will not be
provided on time then the company will not be able to produce the goods and services ion time
and that produced good will not be delivered to the consumers on time.

In this highly advance and competitive world the technology plays a crucial role within
the management of the supply chain. This is majorly because of the reason that when the
company uses the practice of supply chain then the company has to communicate with many
different parties and the various types of suppliers. Thus, here the Information and
Communication Technology (ICT) is very much helpful. This is so because of the reason that
this assists the company in managing the proper and clear and understandable communication
with the other parties. Also, this communication can be kept as a proof for the future reference as
well. In addition to this the use of the tracking and ordering system is also being used by ASDA
with regard to the latest changes taking place in the technological sector. This is due to the fact
that under this technique as and when the inventory level reaches to a particular level the
inventory is automatically ordered with help of the machine and the online system (Pettit,
Croxton and Fiksel, 2019).
In this just the manager has to enter the minimum stock level and as the whole stock
reaches to that level then the order is automatically being placed with help of either the emails or
with help of social media marketing (Jabbour and de Sousa Jabbour, 2016). This system is
referred to as the economic order quantity under which as the level of the stock reaches to the
minimum the order is automatically placed with the suppliers and then the order is delivered on
time. This is essential for the proper functioning of the whole production process.
Supporting function which are linked with the operation management practice and its role in
ensuring organizational success
With the main activity there are some or the other supporting functions as well which
assist the company in managing that function in proper and effective manner. These supporting
functions help the company in managing the main function in good and successful manner. The
major supporting function in the supply chain management of ASDA is as follows-
Purchase- this is the main supporting function of the supply chain management as if the
purchases are not made in effective and efficient manner then the supply chain will not work in
proper manner. Thus, this is the major supporting and assisting function of supply chain
management.
Logistics and transportation- this is another major important supporting function of the
effective supply chain management of ASDA. This is majorly because of the reason that it is not
possible that the raw material is available at the nearby places only and thus, the raw material

and the finished good need to be transported to and from far off places. Thus, for this the
logistics and transportation is the most important supporting function for the success of the
supply chain management of ASDA.
Resource management- this is also a good and necessary supporting function of ASDA
as the resources are less and if they will not be managed in effective manner than this will affect
the working to a great extent. This is due to the reason that if the limited resources will not be
managed and allocated in optimal manner then the production will not take place in proper and
effective manner.
All these different types of supporting function are very helpful for ASDA in gaining
success (Lambert and Enz, 2017). This is due to the fact that if the supply chain management
will be successful then the company will be able to get success in the other entire department as
well. This is majorly due to the fact that when the company is able managing the production then
all the other functions and department will automatically work in proper and effective manner.
All these major and supporting function help the company in gaining success as when all these
function perform and work in properly coordinated manner then ASDA will surely attain success
and will be able to survive in the highly competitive market in proper and effective manner. This
will ensure that the company is getting success in this highly competitive market (Grant,
Trautrims and Wong, 2017).
Thus, for getting the success of the company the most important thing proper
coordination among all the different activities and department of the company. This proper
coordination will ensure that all the activities of the company are managed in effective and
efficient manner and this will ensure proper coordination. Hence, in the end it can be assured that
if the company will not be able to manage the working in proper manner then the company will
have sure short and this will be ensured.
CONCLUSION
From above analysis it has been concluded that operations management is one of the
most essential element of company which drives them towards gaining competitive benefits and
achieving set aims as well as objectives of ASDA. Supply chain management within company
cater many benefits as it help to improve overall procedure related to manufacture items or
services which is quite beneficial for company in term of increasing profitability and
productivity rather than before.

Furthermore, it has been summarized that logistic, resource management and other
important functions within company are connecting to supply chain management as operation
management practice. Information and communication technology is embedded in supply chain
management that provide many advantages as it help to increase speed of managing inventory
and other activities in effective manner. After conducting overall research it has been concluded
that operations management practice is beneficial in context of company. It satisfy buyers
appropriately and effectively which in return increase sales.

REFERENCES
Books and Journals
Coyle, J.J and et.al., 2016. Supply chain management: a logistics perspective. Nelson Education.
Fernandes, A.C and et.al., 2017. Supply chain management and quality management
integration. International Journal of quality & reliability management.
Gandhi, A.V., Shaikh, A. and Sheorey, P.A., 2017. Impact of supply chain management practices
on firm performance. International Journal of Retail & Distribution Management.
Genovese, A and et.al., 2017. Sustainable supply chain management and the transition towards a
circular economy: Evidence and some applications. Omega. 66. pp.344-357.
Grant, D.B., Trautrims, A. and Wong, C.Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Jabbour, C.J.C. and de Sousa Jabbour, A.B.L., 2016. Green human resource management and
green supply chain management: Linking two emerging agendas. Journal of Cleaner
Production. 112. pp.1824-1833.
Lambert, D.M. and Enz, M.G., 2017. Issues in supply chain management: Progress and
potential. Industrial Marketing Management. 62. pp.1-16.
Li, X., Holsapple, C.W. and Goldsby, T.J., 2019. The structural impact of supply chain
management teams: Supply chain agility development in multidivisional
firms. Management Research Review. 42(2). pp.290-310.
Pettit, T.J., Croxton, K.L. and Fiksel, J., 2019. The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics. 40(1). pp.56-65.
Pettit, T.J., Croxton, K.L. and Fiksel, J., 2019. The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics. 40(1). pp.56-65.
Online
The Importance of Supply Chain Management. 2019. [Online]. Available through:
<https://cscmp.org/CSCMP/Develop/Starting_Your_Career/Importance_of_Supply_Chai
n_Management.aspx#:~:text=Improve%20Financial%20Position,dramatic%20increases
%20in%20firm%20profits.&text=Increases%20Cash%20Flow
%20%E2%80%93%20Firms%20value,up%20product%20flows%20to%20customers.>