BM563 Operations and Service Management Report: Autologic Logistics

This report analyzes Autologic, a UK-based vehicle logistics company, focusing on its operations and service management practices. The report examines key operational practices like stock control, delivery, and supply chain management, and their impact on organizational efficiency. It critically analyzes how these practices contribute to Autologic's success, particularly in terms of cost reduction and customer satisfaction. Furthermore, the report evaluates the integration of technology, such as procurement software and AI, within Autologic's supply chain to enhance efficiency and visibility. Finally, it identifies supporting functions, including purchasing and warehousing, and assesses their role in ensuring organizational success within the context of Autologic's operations.

Operations and
Service Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Identify one operational management practices within a chosen organisation......................1
Task2................................................................................................................................................2
Critically analyse how this operational management practice impacts organisation in regards
to efficiency............................................................................................................................2
Task 3..............................................................................................................................................4
Evaluate how technology could be embedded in this process or evaluate how this has already
been achieved.........................................................................................................................4
Task 4...............................................................................................................................................5
What supporting functions are linked to this operation management practice and evaluate
how they can assist with ensuring organisational success......................................................5
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8

INTRODUCTION
The functional responsibility of operation and service management is to produce the
services of an organisation and providing directly to the final customers. It is concerned with the
decision regarding production and consumption of intangible products. Operation management is
one of the business practice which is aimed to create a highest level of efficiency within an
organisation with the effective utilisation of resources from staff, materials, equipment and
technology. Operational managers puts an efforts to deliver a value-drive goods to the customers
on the basis of their needs and wants. Additionally, operation management make attempts to
generate a highest profit by reducing cost. Autologic is one of the largest vehicle finished
logistics company in UK, established in 1996. Autologic delivers a wide range of high quality
services to car importers, manufacturers, rental operation and contract hire companies and
dealers. The report covers, operation management practices that is adopted by the company
along with their impacts on efficiency level of a company (Zhan and et. al., 2021).
Task 1
Identify one operational management practices within a chosen organisation
Autologic was established in the year 1996 which is one of the largest vehicle finished
logistics company with its origin in London and have its business operation in UK and Europe.
The company transports finished vehicle from a manufacturing plant to a retail outlets for the use
of customers. The company is engaged in wide range of services delivering a value driven
automotive services to car manufacturers and importers, rental operators and other contract hire
dealers and companies. The Prime purpose of a company is to build a large fleet of transporters
in UK through their integrated network of management,storage and preparation, distribution and
technical facilities.
One of the best practices and methodology that Autologic use in its business operations is
stock control, delivery and supply chain management in order to its business performance.
Managing stock, delivery and supply chain management are considered as the crucial factor in a
business like Autologic whose functional areas are majorly concerned with logistics (Bordoloi,
Fitzsimmons and Fitzsimmons, 2019). These terms in the context of Autologic in explained
below :
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 Stock control : Inventory management is a signifiant part of supply chain management
which is concerned with planning, controlling of storage of goods, and the information
regarding flow and storage of goods from one place to another. Autologic use a various
sources for collecting the data and information in order to keep a track on the goods from
the manufacturing unit to the final destination (Field and et. al., 2018). These are unique
ID's lot numbers, serial numbers, the number of goods and time and date of the
movement of goods at each stage. Stock control is defined as the process of maintaining
right amount of supply within an organisation so to meet the demand and supply of the
market. Autologic also takes into consideration various factors like forecasting future
demands, production control, customer satisfaction and financial flexibility.
 Supply chain management : Supply chain management is a important aspect of one of
the best operation management practice as it is concerned with sourcing the raw material
or inputs needed by an organisation to produce a goods and services and deliver the final
product for the final consumption. The prime purpose of Autologic is to develop and
operate supply chains in a most effective and efficient way so as to increase the value of
the customers and helps in gaining competitive edge over others. Therefore it is the
process of designing, planning, executing, controlling, and monitoring of supply chain
activities with the objective of constructing competitive infrastructure and measuring
performance by synchronising demands and supply.
Task2
Critically analyse how this operational management practice impacts organisation in regards to
efficiency
Supply chain management plays a crucial role in a business organisation as coverage of
market, availability of products or services at locations is totally depends on effectiveness of
supply chain management (Reid and Sanders, 2019). Supply chain management is management
of all business process and activities ranging from procurement of raw materials, manufacturing
and distribution of finished goods to the end customer. An effective supply chain management
gives Autologic a competitive edge over others as its helps the business in saving money and
time and improve customer satisfaction by reducing waiting time for getting the product for the
consumption. Autologic offer services in transporting ready vehicles from manufacturing unit to
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the retail store, with their effective supply chain management system company maintain a right
balance between demand and supply of the automotive segment.
Efficiency of supply chain management is concerned with internal standard for
measuring the performance with respect to how efficiently company uses its available resources
so as to meet long term goal of an organisation (Daradkeh and Moh'd Al-Dwairi, 2018). The
prime purpose of increasing efficiency is to deliver a value driven services while maintaining
speed, accuracy and generation of profit by reducing cost. In simple terms, supply chain
management is the art of delivering the right product, at right time, at right place, at a appropriate
cost to the customer so as to deliver a maximum value.
Improving effectiveness of Supply chain management
 Autologic conduct regular meeting with the purpose of communicating effectively with
the team members of internal operations to address the forthcoming issue in logistics and
to be prepared in advance for the same. While further evaluating these areas, company
identify the process that makes a intense use of resources which leads to increase in
wastage. Autologic try to eliminate the large scale process and make the efficient use of
resource so as to improve business performance.
 Transparency is a key to success in logistic segment. Autologic keep their shareholder,
suppliers and client updated with the relevant information with complete transparency.
Sharing and informing employees provides an opportunity to Autologic for the unique
and creative ideas that would help in gaining efficiency in Supply chain management.
 Enhancing efficiency of supply chain management is a ongoing process which needs to
be measured, reviewed and revised on a timely basis so to remain competitive. Autologic
uses “Perfect order index” which is the most commonly used measure to measure the
performance of supply chain management. The measure ensures that the product is
delivered completed, on time, with correct documentation along with no or minimal
damage (Barnes, 2018).
 Another way to boost the efficiency level of supply chain management is to make
alliance with the suppliers that would help in improving the performance of supply chain
management at each level of process. Partnering with the other suppliers gives a
competitive edge and improve the performance of a business in overseas market. As the
Autologic also operates in other European countries, making alliance with the local
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suppliers will help in determining the current market trends, economic conditions and
other factors that affect the functionality of a business, and contribute in ease of
conducting business activities even in a complex and dynamic market conditions.
Task 3
Evaluate how technology could be embedded in this process or evaluate how this has already
been achieved
With the continuous technological advancement logistic sector have gone under a drastic
changes over the last 10 years (Keskinocak and Savva, 2020). Rise in the demands of on-time
delivery products, cost-effective production and improving the way companies interact with the
customers have given rise to the emergence of artificial intelligence, neural network and machine
learning in logistics. However, there were many challenges that the logistic segment faced which
are : freight movement restrictions in urban markets, concern for environment protection,
demand for sustainable product, rules and regulations for carbon footprints and emission of
combustible, trade wars and even economic policies. Persistent nature of Autologic have helped
in gaining competitive edge and longevity in the business operations. Autologic have made
continuous changes in their supply chain management so as to make a on-time delivery to the
customers and to make a right balance between demand and supply in the market.
Adoption of technology in the logistic segment have enhanced the efficiency and
accountability in the complete supply chain. Use of technology in supply chain management
have increased the visibility and tracking of the goods at each level of supply chain process. This
gives an deep insight of the each activities ranging from shipping to billing (Cachon, Girotra and
Netessine, 2020). The broad range of technological products in supply chain management
includes smartphones, tablets and GPS devices which helps in determining the exact location of
a vehicle on a real time basis. Autologic use various technology based software in its supply
chain management which are listed below :
 Procurement and order management software (OMS) : Autologic make the use of
this software in order to execute a purchase functions. The software allows a automated
purchase function which includes getting quotation from suppliers, approvals, rejection
and even cancellation of a placed order. Additionally OMS handles and execute the
placement of orders which are queued in a streamline process. Procurement and order
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management software is a centralised data base system which maintains a record of
contracts and vendors which acts a basis for further negotiation and selecting a
appropriate supplier in the upcoming business activities (Choi, Wallace and Wang, 2018).
 Shipping software and online platforms : The use of this software come into force
once the production process ends and final product is ready for the shipment for the final
consumption. Shipping software offers wide range of services ranging from making
booking to tracking the activities of shipment, which makes the business operations of
Autologic more secure, easy, trackable and efficient in terms of delivery of products on a
real time basis.
 Artificial Intelligence and machine learning : Autologic make the use of artificial
intelligence and machine learning for creating a fully or semi automated procedures for
the efficient optimization of supply chain. Optimization improves predicting, planning,
implementation and maintenance of human performance and knowledge with the use of
Artificial intelligence and machine learning. Use of AI and machine learning have helped
the Autologic in improving the customer services by interacting with them on a regular
basis. Apart from this these AI equipped procedures have foster the transparency which
help in identifying the areas for further improvement.
Task 4
What supporting functions are linked to this operation management practice and evaluate how
they can assist with ensuring organisational success
Supply chain management is the process of managing business operations that are
involved in procurement of raw-materials, conversion of raw-materials into the finished goods,
and subsequently distribution of final products to the customers for consumption (Kumar and
Singh, 2019). An effective supply chain management works towards maintaining a right balance
between demand and supply, along with reducing cost and waste, while increasing profit and
ensuring that the product reaches on time for the final consumption. The prime objective of
Autologic's supply chain management is to cover the various aspects like storage of raw material,
managing sufficient inventory,warehousing and shifting of finished products from the point of
production to the point of sale. Supply chain management is supported by majorly by fives
functions which are listed below :
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 Purchasing : The prime function of a supply chain management is the procurement of
raw materials which are required to start a production for the goods and services.
Autologic through their services ensures that the raw-materials and necessary inputs
reach to the manufacturing unit for the conversion of raw materials into finished product
(da Costa Cordeiro, Marques and Gaspary, 2017). It is essential that the resource are
purchased and shipped to the production units on a timely basis so to begin production as
soon as possible. Operations : Another major function that acts as a backbone of supply chain
management is the operational function. These functions are concerned with predicting
and planning for the demand of the product in the market and determine the quality and
quantity of raw materials required to produce a finished product. However this function
needs to prioritise as the planning is done before the execution of any action. This
function plays a crucial role in the supply chain management as too much or too little
inventory will affect the production process and may leads to the wastage of time, money
and resources (Stock and McFadden, 2017). It is imperative to have a synchronisation
between the demand planning and inventory management, production, and shipping so to
avoid any discrepancies.
 Distribution : This aspect deals with the logistic part of supply chain management which
coordinates different aspects of planning, purchasing, warehousing, production and
transportation in order to make the availability of the right product, at right time, at right
place without any difficulties. Autologic communicates effectively within the different
departments so as to deliver a quality products to the customers at a lower cost on a real
time basis. Additionally there are other subsidiary functions too that is covered under
distribution function of Autologic which are mentioned beneath :
 Designing complex and advanced systems
 Managing and coordinating different resources within an organisation including “human
capital”.
 Integrating the functions of different departments ranging from manufacture to final
delivery. And aligning distribution flows (Slack, 2018) (Roth and Rosenzweig, 2020).
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 Resource management : Autologic ensures that the resources within an organisation are
allocated, with the required quantity and quality, to the right activity optimally so as to
reduce the wastage and produce a value driven products. Production of a finished goods
consumes time, raw materials, technology and labour, therefore in order to maximise the
efficiency and productivity it is imperative for Autologic to properly manage their
resources so that better quality services could be delivered with the optimum utilisation
of resources. Information workflow : The last and most significant function of supply chain
management is to communicate and inform the other team members so that the
operations of supply chain management won't get disturb. Continuous flow of
information and sharing keeps the activities of distinct functions on track. Autologic
ensures that the activities of each functional area are in proper coordination and aims to
improve the level of performance through strong communication practices.
CONCLUSION
From the above mentioned information, it is concluded that operation management is a
broad aspect of management which majorly deals with designing, planning, controlling,
organising and supervising the process of production, manufacturing, provision of services or
redesigning of business operations in the production of goods and services. Their prime objective
is to focus on delivery aspects, ensuring that the company efficiently process the raw inputs into
the finished outputs so as to deliver a value-driven products. Most significant key term of
operational management is supply chain management and logistics which covers a range of
activities from production to shipping of a product.
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References:
Books and Journals
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Bordoloi, S., Fitzsimmons, J. and Fitzsimmons, M., 2019. Service Management: Operations,
Strategy, Information Technology, 9e.
Cachon, G.P., Girotra, K. and Netessine, S., 2020. Interesting, important, and impactful
operations management. Manufacturing & Service Operations Management. 22(1).
pp.214-222.
Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management. 27(10). pp.1868-1883.
da Costa Cordeiro, W.L., Marques, J.A. and Gaspary, L.P., 2017. Data plane programmability
beyond openflow: Opportunities and challenges for network and service operations and
management. Journal of Network and Systems Management. 25(4). pp.784-818.
Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business intelligence adoption in
business enterprises: the effects of information quality, system quality, and analysis
quality. In Operations and Service Management: Concepts, Methodologies, Tools, and
Applications (pp. 1096-1118). IGI Global.
Field, J.M and et. al., 2018. Service operations: what’s next?. Journal of Service Management.
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literature published in manufacturing & service operations management. Manufacturing
& Service Operations Management. 22(1). pp.59-72.
Kumar, P. and Singh, A.P., 2019. Flexibility in service operations: review, synthesis and
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Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Roth, A. and Rosenzweig, E., 2020. Advancing empirical science in operations management
research: A clarion call to action. Manufacturing & Service Operations
Management. 22(1). pp.179-190.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Stock, G.N. and McFadden, K.L., 2017. Improving service operations: linking safety culture to
hospital performance. Journal of Service Management.
Zhan, Y and et. al., 2021. A social media analytic framework for improving operations and
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