Aston Martin: Operations, Logistics, and Supply Chain Analysis

This report provides a comprehensive analysis of Aston Martin's operations, logistics, and supply chain management. It begins with an introduction to the company and identifies two key areas: managing quality and managing business relationships within the supply chain. The report then delves into the application of various theories, including Total Quality Management (TQM) and Network Theory, to these areas, offering detailed explanations, practical applications, and critical analyses. The report uses TQM to analyze the quality of goods and services and Network theory to analyze business relationships. The report also examines the triple bottom line approach of Aston Martin, providing recommendations for improvement. The report concludes by summarizing the key findings and highlighting the importance of effective operations, logistics, and supply chain management for Aston Martin's success.

Understanding
Operations, Logistics
and Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to Aston Martin and Two Main Topics Chosen................................................3
Explanation of Theories to Managing Quality, Its Application, Critical Analysis and Example
................................................................................................................................................4
Application of Theories to Managing Business Relationships in Supply Chains, Its
Application, Critical Analysis and Example..........................................................................6
Managing Business Relationships in Supply Chains: ...........................................................6
Triple Bottom Line Approach of Aston Martin.....................................................................7
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFLECTIVE PIECE.....................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Operations Management can be defined as the administration of different business
practises applied in an organisation for achieving the highest level of efficiency possible in work
(Operations Management: Definition, Principles, Activities, Trends, 2019). With proper
administration of different tasks done, their work progress and efficiency can be noticed and
needed improvements can be made. The following assignment is based and will focus on three
main tasks whose successful accomplishment is very important for the success of an
organisation. These are Operations Management, Logistics and Supply Chain Management
(SCM). Logistics is the process of proper planning and execution of transportation and storage of
goods of an organisation so that they can be provided to customers as per their demand. Easy
availability of goods at right place and at right time are also important for an organisation and a
way to attract customers towards the products (Chen, Sohal and Prajogo, 2013). Supply Chain
Management is a broad concept and can be defined as the management of process of flow of
goods and services and considering all the processes which are required to convert the raw
material into finished products for the final consumption of customers. With this an organisation
can make dramatic increase in their profits and also leads to more customer satisfaction. This
assignment will further focus on maintaining quality of goods and relationship with the people
included in the Supply Chain. This will be done with the application of various theories and also
they will be critically analysed.
MAIN BODY
Introduction to Aston Martin and Two Main Topics Chosen
For the successful completion of this assignment, Aston Martin Company is chosen
which is UK based. This company manufactures Luxury Sports Cars and Grand Tourers fro their
customers. It was founded in the year 1913 in London and is headquartered in Gaydon,
Warwickshire, United Kingdom. The total revenue of the company for the year ended 2017 was
£876 Million and is employing 3000 people.
The two areas in managing operations, logistics and supply chain of Aston Martin are
discussed as Managing Quality and Managing Business Relationship in Supply Chains.
Managing Quality: Managing Quality can be defined as the process of checking all the tasks
and processes which are helpful in providing the customers with the best satisfaction possible

through the products of an organisation. It is done with the help of planning policies related to
the quality and also implementing those policies and procedures in the operations of business,
logistics and supply chain management. Customers are paying for getting satisfied from the
consumption of goods and this satisfaction can only be provided by proper management of
quality at every level such as production, transportation, etc. In case the company is not focusing
on quality of product, it will result in loss for the company and also will decrease their
productivity, profitability and market share (Christopher, 2016).
Managing Business Relationship in Supply Chains: In supply chain of an organisation,
various people are included such as employees, customers, suppliers, wholesalers, retailers, etc.
are included. It is also important to maintain proper relation with people who are taking part in
the production process as their work will create revenue for the company So it is important not
only at operational level but also other levels from a product passes as they help in generating
income and creating loyalty towards the company.
Explanation of Theories to Managing Quality, Its Application, Critical Analysis and Example
Quality Management is an important concept which every business like Aston Martin
should consider. It is so because quality is one of the main aspects which the customers prefers to
check. For purchasing a good, it is important that the satisfaction level from the good which
customers derives from it must be equal to the price of good. In this regard the theory which will
best suit to Aston Martin is the Total Quality Management Approach which is explained as
under:
Total Quality Management Approach (TQM):
This approach to maintaining the quality of products can be defined as the continuous
process of detecting, reducing and eliminating the errors from the operations, supply chains to
provide the customers with better satisfaction level. It is also beneficial as it takes into consider
all the parties who are involved in the production process (Gimenez, van der Vaart and Pieter
van Donk, 2012). It will help in knowing exactly about where the errors are coming and will also
help in eliminating them. Many principles are identified under this approach which are discussed
as under:
Continuous Improvement: As from the definition it is clear that this approach is all about the
continuous improvement to be made in the production process by checking the work of

employees from time to time and guiding them. It will help in accomplishment of task with
efficiency.
Training: For doing the task provided to employees with efficiency, it is necessary to provide
training to them so that they remain updated with the changing patterns of doing the work.
Customer Focus: Another main principle of Total Quality Management Approach is customer
focus. The improvement in goods must be made by timely analysing the market so Aston Martin
could know about the needs, taste and preference of their customers and make changes in their
goods according to them. In today's world customer is the king of market so companies must
make those goods which customer wants not those which the company wants to sell (Heckmann,
Comes and Nickel, 2015).
Methodology and Tools: With the change in way of working, the methodologies and tools used
in production process should be changed from time to time. Employees must be provided with
proper tools and educated about their use so that the reason behind failure does not come because
employees do not have proper tools and knowledge to complete their task.
Employee Involvement: The foremost principle is the employee involvement. These are the
persons who are directly engaged with the work. So Aston Martin must encourage employee
engagement so that they could do their work motivated and eliminate errors if any they found or
tell to their seniors if it is out of their knowledge.
Application of TQM in Aston Martin:
This approach can be applied in Aston Martin Company. The Supply Chain Management
Process of Aston Martin is very long so it is very necessary to look over all the processes very
carefully. The company can apply this model in its working firstly by timely analysing the needs
and demands of customers so that their product can be made according to the needs of
customers. After that Aston Martin has to look upon its production process (Wang and et. al.,
2016). At the passing of every stage of production process, the quality of the product should be
checked according to the reviews provided by customers and required rectifications should be
done in them. The Quality checking process should be done only by employees such as Quality
Manager or Supervisor as these persons have the best knowledge about the standards. Further the
company can also set minimum standards and benchmarks which will help in maintaining the
quality of goods.

It should also be applied in logistics also. The goods must be carried and stored with due
care and safety so that they may reach to the customer in good condition which will increase the
customer satisfaction level. In supply chain management the quality improvement process can
also be applied by taking feedbacks from the customers during the sale of their products for
making further improvements in the products (Heizer and et. al., 2017).
Like every other approach, this one is also having their own advantages and
disadvantages which it can cause to Aston Martin. One the one hand it is useful for Aston Martin
because it can gain higher customer satisfaction level and improve the quality of their products
such by implementing numerous quality methodologies and tools for making continuous
improvement in the production process, statistical tools, advanced quality planning. On the other
hand, application of this Approach by Aston Martin can also cause loss to the company. It is so
because it requires accurate planning and long term allocation of resources, patience, dedication
and motivation of all parties. A little mistake in the planning process can spoil the application of
whole approach and can bring negative or irrelevant results.
The example of the company who had applied this approach in their operations is Jaguar
which is one of the biggest, successful and well known brand in the world. Hence, the proper
application of this approach by Aston Martin can also make improvement in the quality of their
products.
Application of Theories to Managing Business Relationships in Supply Chains, Its Application,
Critical Analysis and Example
Managing Business Relationships in Supply Chains:
Supply Chain can be defined as the network of all individuals, resources, activities and
technology which is used in making the product till it delivers to the end user. Managing the
business relation with those included in supply chain will increase the satisfaction level of
customers, employees, suppliers and will also help in developing the market share (Van
Wassenhove and Martinez, 2012). The theory which will best suit to Aston Martin in managing
good business relation in supply chain is discussed as under:
Network Theory:
The following theory was developed during the year of 1970s and 1980s. This theory
focuses on enhancing the relationship among different members of supply chain which are
suppliers, employees, customers, retailers, wholesalers, etc. with the company. It provides the

company with the changes in the environment and notices the influence of partner to partner
relationship on the organisation's process.
Application:
The following theory can be applied by the Manager of Aston Martin by focusing the
feelings of members of supply chain such as weak or strong because this relation is the bonding
or connection in between the supply chain members and the company. So the Manager of Aston
Martin can firstly analyse the relation and in case it is weak than the manager should develop
those strategies which will help in strengthening the bonding in between supply chain and
company. For example, the company can maintain good relationship with their employees by
providing them performance based incentives which will be a reward to them and will also
increase their motivation level. By doing this the company can increase the efficiency of work as
well as of the employees (Neilson, 2012).
Further it can also be applied to logistics and customers as there also comes a need that
the transportation and storage of goods and the relation in between customers and Aston Martin
must be good enough to make company and customers profitable.
The following approach also has its own benefits and drawbacks on the company as it
will create positive affect such as the improvement in the relationship with people. On the other
hand it also impacts negatively on Aston Martin as the improvement in the relationship depends
the needs of these members and it is very difficult for the manager to identify these needs as they
fluctuate very rapidly according to the changing trends and environment.
The best example for application of this theory is Land Rover as it has adopted this
theory in its working and it has also provided positive results to the company so it can also make
use of this theory.
Triple Bottom Line Approach of Aston Martin
There are three dimensions of sustainability of a business which are Economical,
Environmental and Social Factors. The including of all these factors ensures that a business is
going in the right direction and fulfilling its obligation towards the society, environment and to
itself. The explanation of all these factors are provided as under:
 Economical Approach: Every business wants to be well financially and this can be done
only if the business is earning sufficient profit. But in the economical approach, it not
only considers the economic approach, other than this it can also use and focus on

making the business sustainable by adopting sustainable practises such as increasing the
profit by encouraging the recycling process (Rushton Croucher and Baker, 2014). Aston
Martin can recycle the waste and convert it into again a useable product or can use that as
an part or accessory. It will neither cost much to the company nor it will effect the prices
which will again impact negatively on the demand of the products (Touboulic and
Walker, 2015).
 Social Approach: In the social approaches the people and the employees are taken into
consideration. Aston Martin is providing good wages to their employees and also making
their processes in an ethical and transparent manner. Further, to identify the
organisation's relevant issues, Aston Martin has conducted a materiality analysis both
from internal and external perspective and this analysis was done following the principles
of GRI’s G4 Guide. The company has also supported two charitable organisations which
are Prince's Trust and Helping Hands so as to fulfil their social obligations also.
 Environmental Approach: Aston Martin is taking seriously to its obligations towards the
environment by developing environmental policy which covers every aspect of their
company's operations, engineering, manufacturing, servicing or restoration of motor cars
or the distribution of parts. For the prevention of environment, it is developing their first
Electric Car with a motive to contribute towards saving the environment from being
polluted. Aston Martin is also focusing of recycling and waste management seriously
with diverting the waste from landfill which is approx. 99.75%. Moreover, it has also
adopted the policies which help in reducing the wastage of water (Gligor and Holcomb,
2012)(Sunil and Meindl, 2013).
Recommendations
From the above data, it is analysed that Aston Martin is doing a good job in almost all
aspects. But the company is having the chances of improvement in their working so as to
enhance the level of quality in their goods they are providing to their customers. The application
of Total Quality Management Approach is recommended to Aston Martin as it will help the
company in developing its policies, strategies and plans to make improvement in their way of
checking the quality of products. Further it is also recommended to Aston Martin in order to
enhance the relation between different people covered in Supply Chain such as the employees,

customers, suppliers as these are the main key factors which ensures the success of an
organisation.
CONCLUSION
From the above assignment it is concluded that supply chain management, logistics and
operations management are an important tasks of every organisation. Further it is also concluded
that focus of a company on quality and enhancement of relationship among supply chain are
beneficial for the company as it provides various benefits to it. The application of various
theories such as Total Quality Management Approach and Network Theory can be used for
enhancing the quality and relation in supply chain.
REFLECTIVE PIECE
The following assignment proved to be very helpful for me in many ways. Tutor's
Feedback kelped me a lot in finding the areas where I was weak and chances of improvement to
be made in them were more. Several mistakes which were made by me in previous exams are
considered and not repeated this time. The improvements made in my learning are the
enhancement in the knowledge about supply chains, operations and the logistics of the company.
Further it also had improved my knowledge and thinking about the triple bottom line and its use
which I learnt after the tutor's feedback and also gained full knowledge about the topic. By
completing this assignment I came to know what is supply chain, operations and logistics in a
company. It also enhanced my knowledge about the importance of these three tasks in the
company and there need that why they are necessary to perform. My knowledge about the topic
was limited and confusing but the following assignment provided me the chance to make better
and gain more knowledge about the topic. In future if I ever be provided with this kind of project
again, than these mistakes will not be repeated again. By this feedback I gained sufficient
knowledge and also had covered the areas where I was lacking behind had has not worked upon
yet. However my earlier work was not good and got feedback from the tutor due to which I was
supposed to resit. But this time I studied properly and completed the work with the best and with
full efficiency. The mistakes occurred in the earlier work are not repeated again in this project.
This assignment also provided and enhanced my knowledge about the Network Theory and Total
Quality Management Approach which is used in order to continuous improve the quality of the
products.

Earlier I was also unknown with the application of theories related to managing good
business relationships such as with the suppliers, customers, etc. and also to the theories to
managing the quality of products of the company. This project had made me aware about the
importance of maintaining the quality of the products and services of the company and also
about the advantages of maintaining good relationships with those persons who contributes in the
good working of the company. This project has also made me aware about the ways by which a
company can maintain the quality of its products and services and also focuses the ways by
which good relationships can be maintained within and outside the company. The following
knowledge I came across while making completing this project and gained knowledge about the
topic. It has increased my own efficiency and made me clear with all the aspects regarding the
topic. So whenever I will be given this kind of project again I will do the work more efficiently
and in a good manner. I will complete the project in time and will not provide the tutor with any
chances of mistake again.

REFERENCES
Books and Journals
Chen, J., Sohal, A. S. and Prajogo, D. I., 2013. Supply chain operational risk mitigation: a
collaborative approach. International Journal of Production Research. 51(7). pp.2186-
2199.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gimenez, C., van der Vaart, T. and Pieter van Donk, D., 2012. Supply chain integration and
performance: the moderating effect of supply complexity. International Journal of
Operations & Production Management. 32(5). pp.583-610.
Heckmann, I., Comes, T. and Nickel, S., 2015. A critical review on supply chain risk–Definition,
measure and modeling. Omega. 52. pp.119-132.
Heizer, J. and et. al., 2017. Operations management: sustainability and supply chain
management, 12/e. Pearson Education.
Neilson, B., 2012. Five theses on understanding logistics as power. Distinktion: Scandinavian
journal of social theory. 13(3). pp.322-339.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
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.
Sunil, C. and Meindl, P., 2013. Supply chain management. Pearson India.
Touboulic, A. and Walker, H., 2015. Theories in sustainable supply chain management: a
structured literature review. International Journal of Physical Distribution & Logistics
Management. 45(1/2). pp.16-42.
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.
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.
Online
Operations Management: Definition, Principles, Activities, Trends. 2019. [Online]. Available
Through: <https://www.cleverism.com/operations-management-definition-principles-
activities-trends/>