Report on Operation and Service Management Practices at Sainsbury's

This report analyzes the operation and service management practices of Sainsbury's, a major UK retailer. It explores key concepts like supply chain management, inventory control, and the role of technology such as CAD and automation in improving efficiency. The report evaluates the impact of operational management on organizational performance, focusing on elements like customer satisfaction, cost reduction, and revenue growth. It also discusses supporting functions crucial for operational success, including purchasing, resource management, and logistics, and their impact on company objectives. The report emphasizes the importance of effective operations management in achieving competitive advantages, improving financial positions, and adapting to market changes. It also highlights the importance of quality management and strategies to enhance the supply chain.

OPERATION AND
SERVICE MANAGEMENT

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Operation management practices within a company...................................................................4
Critically evaluate the operational management practices impact on organization efficiency....6
Role of technology in operation management process and its importance:.................................7
Supporting functions related to operation management practices and helps in organization
success..........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation and service management is refers as delivers services to customer, in operation
management there is task of converting raw material into finished good and service management
is focused on customer relationship and providing value to customers (Benzaid, and Taleb.,
2020). Operation management have four functions such as planning, organizing, controlling and
leading. Sainsbury's is public limited company deal in retail industry and located in England,
London, United Kingdom. Company is 2nd largest chain of supermarket in UK with good market
share, Sainsbury's vision is making the atmosphere where people trust company and interested to
shop and work. Their objective is to become customer first choice, so their purpose is offer good
food at fair price. Company follow hierarchical organization culture helps employees to
understand different levels of leadership. Sainsbury's offer good quality products and services at
low prices, so they have strong customer relationship and customers loyalty.
This report will highlight the concept of operation management practices, and discuss one
operation management practices in an organization and also discuss this practices impact on
organization efficiency. Moreover, this report will elaborate some technology which is use on
operation management such as computer aided system, inventory management technology, CAD
and automation technology. Also, includes some supporting function related to operation
management practices which support company success.
MAIN BODY
Operation management practices within a company
Operations management means converting labour and material into products and services
in effective manner to increase the profits of the company. It helps company to manage activities
effectively, supervise and control goods, people and services (Wolniak ., 2019). Operations
management involve planning, controlling, organizing and coordination various resources
required to produce organization products and services. Stock control and supply chain
management practice helps Sainsbury's to produce good quality products at low price. There are
four elements in supply chain management that company should focus to improve performance,
customers satisfaction, quality improvement and good customer relationship such elements are
operations, integration, distribution and purchase. Integration starts at planning phase and critical

throughout company's information and communication sharing and data storing and analysis. It
means everyone takes part in manufacturing process, so it improves communication in the
organization and reduce cost, time etc.
Operations for a better supply chain, regular operation are backbone of manufactures so
manager monitor and track the work that is going on the right path or not. Purchasing element of
supply chain management check that an organization has all the manufacturing products, involve
supplies, materials, equipment and tools, it means everything which is needed in manufacturing
is having before employee actually need it (Ongkasuwan, and Sookcharoen., 2018). Demand
forecasting provide company a practical and solid method of establish that an organization have
proper product in a proper quantity at right time. Manager should track competing product,
suppliers and demand cycles so company can reduce their operating costs over the purchasing
and sourcing process. Distribution is the last element in supply chain, when products land on
various stores where customers buy them or front door (that is online purchasing). Many
companies use software to track and manage their supply chain, for example a company
transport their product by shipping process, so they easily track their product. Inventory control
is also known as stock control, the process of managing proper quantity of stock, so organization
can easily meet the customers demand with low cost of holding. There are various methods that
company use for stock control such as first in first out, batch control, economic order quantity,
just in time, vendor managed stock and many more.
Sainsbury's use batch control methods for inventory control, it reduces difficulties in
production process and helps in ensure short term targets are meet. It also helps in keeping low
cost. By using different stock control software company can cover multiple warehouse, track
batch, support multiple user etc. so for operating such operation practises a manager should have
skills like communication skill, negotiation skill, motivational skill, exceptional skill, leadership
skill, problem solving and awareness of customer needs. Sainsbury's have good customer
relationship and provide good services to customers (Novia,. 2019). Performance objective of
company is great food, respect environment, sourcing with integrity, good working environment
etc. For every organization have objective of improving their competitive advantage by growing
other ventures so Sainsbury's focus in developing non-food items to get large market share. They
also develop their banking services to grab financial market which result in increasing growth.
Sainsbury's effective operations' management plan make sure that customers demand is fulfilled.

The company is working on expand their services over home delivery and they now offer home
deliver services to many customers which improve customers satisfaction and have great impact
on brand image.
Critically evaluate the operational management practices impact on organization efficiency
Supply chain management is managing the flow of products and services into market, and
the process of converting material into final products. A strong supply chain give competitive
advantages to the company and maximize customer value in the market. By managing supply
chain Sainsbury's can cut extra costs and improve their deliver services. The four Vs of
operations management are volume, variation, visibility, variety (Santoso, and Wijaya., 2020).
For volume Sainsbury's provide more quality food for fair price, variety Sainsbury's offer various
types of goods in different taste, visibility company have good labelling which attract customers
and have great brand position in the market. Variation Sainsbury's offer both services on-site and
online, and they deliver the products on stores and also offer home delivery services. Effective
operation management make sure that final products and services are delivered to customers on
time and meet the customers' requirement most effectively. It save companies money by
eliminating unnecessary expenses such as shipping inventory, overhead cost etc.
Supply chain management improve customer satisfaction but if organization have
problem in supply chain then it leads issue in customer satisfaction such as company unable to
meet the customers' requirement, sending incorrect orders to customers, customer are waiting for
a particular produce from a long time and products are not being in the proper place at time. So
its very important to have effective supply chain management to minimize such issue and
improve customer satisfaction which help organization to expand their operations. Effective
supply chain is crucial for organization performance it reduces overhead and inventory cost. By
stock control Sainsbury's minimize overhead cost which helps in maintain reasonable price of a
product (Choi., 2019). Operation management allow company to sell more products and
minimize cost which leads as increase revenue and growth of company. Waste reduction is an
important in operation management, company can use various techniques which can be used to
eliminate and identify waste in manufacturing operations. If supply chain is manage effectively
then it provides efficiency in an organization.

Supply chain management helps company to create strong cash flow, if company
products are available in stores at the time of purchase then it gives positive impact in customer
satisfaction and build good company image in the market (Zhang., 2021). Customer purchase
products from various channels so business focus on develop variations on supply chain
processes such as E-commerce platforms selling products directly to the customers, so they
required fast delivery and local logistics, drop shipping required good international services so
customer receive products quickly. It also helps in improving financial position of the company
so effective supply chain decrease overhead cost, increase cash flow, and profit leverage
(because it reduces supply chain costs). Effective supply chain provide competitive advantages
for example if customer visit local store for a particular product of a specific brand but at the
time of buying the product is not available they customer can take other company products. So
its very important to manage inventory in effective manner. Quality management is also
important for organization, as Sainsbury's is known for their good quality which make company
sustainable in the market. There are some strategies to improve supply chain such as optimize
company inventory, improve distribution channels, embrace technology, establish green
enterprise etc.
Role of technology in operation management process and its importance:
Technology plays vital role in every business organization, advancement in technology
allow company to gain internal stability. It is very clear that company technological advancement
provide competitive advantage to business and help them to become market leader. Technology
is used in every department but its role can be seen majorly in operation management process
where continuous work is done (Yan, 2018). From managing supply chain to managing total
quality of the production, technology have vital role in the process. Technological advancement
have changed the way of managing business operation in whole industry. There are certain type
of technology which is already been in use in operation management practice, these are:
Computer Aided Design: CAD is one of the most common but important software technology
used in the process of operation management, this link two complex unit of production into one
to get clear insight. CAD is used at every level of the operation department, this work as link
between each unit where information is store and shared with each other (Tetik and et.al., 2019).
In designing of product and service, CAD play major role allowing company to generate unique

design for the product. CAD is commonly used in facilitating accuracy in operation process
because a single mistake can impact whole operation process.
Automation technology: automation technology is another most common but have important
role in the operation management process, this technology reduce manual intervention and allow
company to reduce cost occurring in manufacturing process. However, automation technology is
costly as well as required continuous maintenance, company might need huge capital investment
to gather automation technology. There are certain automation technology keep changing with
change in industrial technology, it is very costly to change technology according to market
demand, automation may include heavy machinery, modern machinery and production
machinery which can not be changed over time.
Inventory management technology: Inventory is heart of supply chain management, operation
process is incomplete without inventory management. It is very clear that business might need
advance technology in inventory management because insufficient supply of raw material or lack
of proper delivery might impact performance of the company and have major impact on business
position in the market (Tönnissen and Teuteberg, 2020). Business mainly use different type of
supply chain management technology, for example record of raw material in put have different
technology providing accurate information about the requirement of the raw material in
production.
Computer Aided Manufacturing System: CAM is one of the most powerful operation
management technology used in the process, this system not only store and share data but this
system keep control over machine as well, the time in which a machine has run and cost occur in
running of a machine, every essential data is stored in this system to get max. accuracy in the
operation management process. CAM work in three dimension of operation, keeping eye on
machinery and examining potential break down that might occur in the production process.
Supporting functions related to operation management practices and helps in organization
success
The main supporting function related to supply chain management are operations,
purchasing, resource management, logistics and informative workflow. Purchasing is the first
function of supply chain management, in manufacturing process raw material required for
producing products and services (Yang., 2022). It required coordination with supplier for deliver

the required material without delay. When a company sources raw material , then it is necessary
to make sure that material is of good quality which suitable for the organization. A small error in
this function can damage the company reputation. So Sainsbury's should focus on quality of the
raw material because company USP is providing good quality products to the customers. So
purchase manager should focus on day to day information of orders and material requirement on
time. Operations function is engage in forecasting and demand planning, before giving an order
of raw material purchase the manager most anticipate the demand for a particular product and
also forecast the number of units to be produce so this control the wastage of the raw material. In
this function managers are responsible for production planning related to demand. The manager
must manage the available inventory space in effective manner and manage only essential
materials or goods in organization warehouse. They are also responsible for packaging materials,
labels for products which is need to be delivered to the customers.
Logistics functions is required for coordination, the manager make sure that product must
reach to the end point of delivery without any error. They also arrange the transportation for
delivering goods. So they make sure that demand match the supply as they forecast the demand
of the products, so they manage the requirement and meet the customer need (Zhao, and Chu.,
2019). The manager is always looked for new suppliers who can offer good rates, better
interaction with the existing suppliers, warehouse owners, transporters helps in bring cost down.
Supply chain managers always have alternative option to arrange conveyance immediately. Road
and weather condition may delay materials supply so manager should focus in this and make
arrangement to make sure that products arrive on time. This function helpful for communication
between different department so goods can be delivered to customer faster and at low price.
Resources management as every organization need technology, labour, raw material and time so
this function make sure that every resource must be available at the right time. The major role of
a manager in this function is properly allocat people and resources to make sure that work is
done in effective manner and on time. This function more focus on optimizing production and
efficiency of operation. Manager can calculate the cost which is involved in resources for
expand production and make sure it not affects profitability of organization. Manager ensues that
proper recurses should be allotted to the activity in proper manner (Zheng and Wenrong., 2018).
Information workflow is very important fiction in the supply chain, so information can flow
easily, if communication and flow of information are poor then it gives bad impact on supply

chain. Arranging the resources in right way then it gives positive impact on organization success.
So all the function are required to manage effective supply chain of company, effect supply chain
full fill orders on time, reduce wastage, improve customers experience, increase profits and
revenue etc.
CONCLUSION
The above report discuss the concept of operation and service management, and supply
chain management operation practice in a company, and also includes critically evaluation of
operation management practices on an organization success such as quality management, low
cost etc. Moreover, also discuss role of technology in an organization such as computer aided
design, inventory management, automation technology, computer aided manufacturing system
etc. and this report also involve some supporting function such as operation, logistics,
purchasing, information workflow and resources management which helps organization to
manage supply chain management. An effective supply chain management helps organization to
minimize their wastage and reduce cost and also elaborate about inventory control helps
organization.

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