Operations, Logistics and Supply Chain Management: Aston Martin

This report provides an in-depth analysis of Aston Martin's operations, logistics, and supply chain management practices. It examines the company's strategies for managing inventory and capacity, and ensuring product quality. The report highlights the importance of effective supply chain management in enhancing collaboration with suppliers, improving product quality, and meeting customer expectations. It discusses the application of lean production principles and Total Quality Management (TQM) to address challenges related to inventory control, quality assurance, and overall operational efficiency within the automotive industry. The report also compares Aston Martin's approaches to those of competitors like BMW, emphasizing the significance of continuous improvement and customer-driven standards in achieving business goals and maintaining a competitive edge.

Understanding
Operations, Logistics
and Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONLUSION..................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In the organization, management always looking for reducing overall cost of production.
So management have to implement effective operations, logistic and supply chain management
in order to improve the overall performance of the company which make them capable to
minimise the cost and maximise the profit martin. Effective supply chain management will helps
in improving collaboration with suppliers which make them able to build effective relation, helps
in enhancing product quality by using various tools & techniques, meet the customer's
expectation, minimise the risk, retail employees and develop new opportunities to expand their
business (Adams, 2014). In addition, effective logistic management provide top level services
such as deliver goods to consumers on time. Increase the transparency in the supply chain which
is beneficial for the company to make their logistic system more effective. It also improve the
efficiency as well as reduce the cost of overall production which maximise the profit margin of
the company.
This report based on Aston Martin company for the better understanding of this concept.
It is which UK based luxury car manufacturing company which founded in 1913 by Lionel
Martin and Robert Bamford. This project report is about relevant theories of operations, logistic
or supply chain management. Critically analyse the solutions of operations management along
with some recommendations in order to improve the operational performance of the company.
MAIN BODY
Aston Martin selected for this project report because it is UK based Car manufacturing
company which related to automotive sector and perform operations, logistics and supply chain
management activities in the business. Aston Martin has over 150 car dealership across the 50
countries which make them international brand. Company also traded in London Stock Exchange
and constituent with FTSE 250 Index. In 2003, company win the Queen's Award for enterprises
for the outstanding contribution in the global trade. Headquarter of the company is situated in
Gaydon Warwickshire, England. Company also announced to make themselves global luxury
brand and extended their projects which include speed boats, bicycle, real estate development,
clothing etc. and most of the operations start on licence basis.
Operations management is the process of designing and executing a product from raw
material to finished goods where management have to build various strategies for the effective
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implementation. Logistic is the part of supply chain management where they implement or
control the flow and storage of goods from the origin point to consumption point. In the last,
supply chain management, which include the planning and overall management of all the
activities which is related to the sourcing, procurement, conversion and other logistics activities
(Alexander, 2014). It is also required coordination, collaboration with channel partners which
supply the material or become third party service provider for the company. Management of
Aston martin follow all the their operations, logistics and supply chain management in order to
produce effective outcomes.
This essay report based on two topic which become issue for operations & supply chain
managers that further impact the operations, logistic and supply chain management of the
organization. Managing inventory & capacity and managing quality is the important function
of the Aston martin which make them capable to improve their operations and serve the quality
product which satisfy customers.
Managing inventory is most important function which every manufacturing company
have to manage as well as transportation of goods. Supply chain managers of Aston Martin have
to optimise their inventory and supply chain demand across the multiple channel. Operations and
supply chain managers have to build various strategies in order to manage their inventory level
for the production which helps in preventing the wastage as well as shortage of material which
directly impact the production as well as profit margin. Effective inventory management will
helps in maintaining stock level so distribution channel do not run out of products and make all
time availability of goods for the consumers. If Aston Martin does not manage inventory level
effectively then it will cause the two issues regarding loss of quality as well as quantity. In the
production process, if material quality is not good or match the standards then it will become an
issues regarding loss of quality (Apte, 2016). Because of low quality, they loose their customer
which reduces the quantity as well. So operational or supply chain managers have to make sure
that, at the time of managing inventory that choose those suppliers who provide quality material
because cheap material will provide low cost but also reduce the demand in the market. Because
Aston Martin manufacture luxury cars so they have to select their suppliers as per the demand of
quality. Otherwise it impact the brand image which further reduces the production as well as
profitability.
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Company also manage demand through supply chain which is difficult but they have to
look for other distribution routes. In addition, they have to add third party marketplaces such as
e-commerce, wholesale or drop-shipping which make things more complex. Managers required
transparent reporting which shows the supply and demand planning across all the channel which
make work more easy (Dubey, 2017). It further help the business to maximise their order before
left out the stock or become issue for the operations. Basically, operations or supply chain
mangers of Aston Martin have to manage inventory level as well as their suppliers in order to
produce enough quality which satisfy the customer's needs and prevent the issues like loss of
quality as well as loss of quantity. These issues directly impact the production which reduces the
demand and profit margin of the company which reduces the growth as well in the market.
In order to manage inventory in the Aston martin, supply chain managers follow the Lean
production. It is one of the effective method which is used in the manufacturing compaie4s in
order to minimise the waste and enhance the quality. There are various principles which
organizations have to follow or implement to make their supply chain or logistic functions more
effective.
Lean production also provide various benefits such as reduces the lead time, operating
cost, enhance operational functions or quality of products etc. There are total five principles
which required to follow for better performance such as identify the value from customer's
perspective (Gonzalez-Feliu, 2014). Here, value is created by the produces but it is defined by
the consumers. Company have to reduce the wastage and cost from business operations so
further they have to set price which customer is willing to pay or it maximise the profit margin of
the company. Another principle is mapping where managers have to record to information which
is used in the future to make strategies. Basically, with the help of it, they able to examine the
each stage and find the waste which required to eliminate from the operational process.
After identifying the error, managers have to identify the ways to improve the process or
lead time to ensure the smooth delivery of goods. Along with this, establish a pull system rather
than push system. In addition, lean production target the root cause which create issues in the
quality. In context of Aston Martin they applied Lean production in the firm where they
implement these principles. For example: company manufacture luxurious cars which have
advanced technology along effective designs. Company use the surveys method to ensure that
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what customers want. Designs and features of Aston Martin cars are very exclusive which make
them different from their competitors.
Second concept is regarding managing quality of the products which help them to satisfy
their customers or maximise the production as well as profitability. It indicate the overall
management of Aston Martin regarding planning, processes, design, logistics and supply chain
management (Gualandris, 2014). Along with this, scope related to the quality is quite high
because it is applicable in the each department in order to enhance work quality as well as final
outcomes.
Managing quality in the supply chain is most effective because supply chain managers
need to focus on product quality through eliminating all the errors from the productions.
Managers of Aston martin have to check the material quality before delivering to the
manufacturing units. After converting raw material into finished goods they have to delivered to
the consumers for the final consumption through supply chain. From initial point to the ending
stage, business have to placed a combination of independent auditors on the quality checkpoint
to monitor or control the quality of material to the quality of finished goods that match the
standards of the products which clearly documented in their contract. For the effective supply
chain management, companies track the movement of goods by using GPS system which help
the supply chain managers to track the location of goods. It is beneficial for the manufactures to
prepare receipt and done further processing (Hofmann, 2014). Quality of products can become
big issue for the Aston Martin, so supply chain managers have to collect data on quality, price,
speed and other indicators which required to analyse. As managers analyse these data on regular
basis so they have to evaluate the factors which impact the demand or required for future
improvement which helps in increasing production as well as profitability. So basically, in order
to solve the issues regrading quality of products, supply chain managers of Aston martin have to
place independent auditors from many places of production such as, from checking of raw
material to check the finished products quality standards.
In order to top resolve the issues regarding product quality, supply chain managers
implement Total Quality of Management (TQM) theory in the business operations to improve
the product quality which increases the demand among the consumers. Total Quality of
Management refer to the management theory which include the tools and techniques which used
by the organizations in order to enhance their product quality. Under this approach, business
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haver to follow some principles for the effective quality management where they focus on
customers because they want quality products so management have to provide effective training
to their employees which enhance their skills or make them capable to achieve desired outcomes
or produce quality goods to satisfy customers needs (Kembro, 2014). Other principle also
applied for to make supply chain more effective which reduce the overall cost or maximise
customer experiences. TQM undertaken by Aston Martin to ensure the improvement in the
overall process which leads to a better quality that delivered in the marketplace.
Continuous improvement in the operational process is one of the best principle which
followed by the organizations (Schenkel, 2015).. It include several steps such as planning,
processing, monitoring and controlling to ensure the quality and better management. In terms of
enhancing supply chain management, business emphasise the perception of customers which
used to develop essential relationship with supply chain, they also make sure that manufactured
goods will be based on the customer driven standards.
Basically, in order to manage quality in the Aston Martin, supply chain managers have to
follow Total Quality of Management (TQM) theory which is used to improve the quality through
taking necessary actions. Such as, upgrade system software, enhance the design process, increase
the employees involvement which help them to achieve common goals. In addition, they also
make various strategies to improve product quality which helps in achieving vision, mission or
goals. This process also called strategic planning which focused on core competencies to
improve quality and manage as well for longer period.
There are other automotive industry companies which required to maintain the quality
and the standards of products as well as their services. Competitors of Aston Martin such as
BMW which introduce Automated Robot Inspection Cell in order to control and manage the
quality of their cars (Ravindran, 2016). Production system of those organizations also
implement the Total Quality Management (TQM) by using effective procedures such as market
analysis and regular monitoring of the operations as well as supply chain. It will allows them to
manage product quality on the basis of raw material, methods, technological usage etc. There is
very minimum implementation of these principles in the Aston Martin which required to
frequent analysis.
As per the discussion it has been recommended that, in order to improve the performance
of Aston Martin supply chain managers have to give concern regarding operations, logistics and
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supply chain management. Company have to adopt latest technology which make them capable
to stay in the market along with latest trends. They have to use more innovative technology such
as Artificial Intelligence. It helps in analysing the issues which impact the operations or increase
the working efficiency which save the time as well as cost of the organization. Regular review of
operational activities will helps identifying the issues related to the quality as well as inventory
management (Rozados, 2014) Along with this, Aston martin have to i8mplement effective
strategy for supply chain which enhance the scope of improvement. Another recommendation is
that company have to set independent auditors not for the checking of material quality but for the
other functions as well because manufacturing to distribution of cars included various stages
which required the proper analyse in order to increase the efficiency as well as effectiveness of
the operational process. It further help the Aston Martin to maximise their production as well as
profitability which helps in achieving their business goals & objectives. Aston Martin have to set
their quality standards according to the automotive industry which make them able to compare
their performance with their competitors.
Aston Martin also have to implement other inventory management system such as Just in
time which help the business to manage their inventory and order as per the requirement which
reduces the cost of carrying as well as ordering (Wisner, 2014). In addition, company have to
provide training to their employees in order to enhance their skills or make them capable to
perform well or produced quality products which satisfy the customers.
CONLUSION
From the above discussion it has been concluded that operations, logistic and supply
chain management plays essential role in the organization which improve their operational
performance and make business able to achieve their desired goals & objectives. Operations
management used to convert raw material into finished goods and by using effective supply
chain managers able to delivered goods for the final users such as consumers. There are various
issues which business operations face so in order to minimise the impact or solve the issues,
managers follow total quality of management to improve product quality and lean manufacturing
to manage inventory in the production units. With the help lean production, business able to
identify the error and try to minimise it because it further impact the quality of products.
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REFERENCES
Books & Journals
Adams, F. G.,2014. Supply chain collaboration, integration, and relational technology: How
complex operant resources increase performance outcomes. Journal of Business
Logistics. 35(4). pp.299-317.
Alexander,A., 2014. Decision theory in sustainable supply chain management: a literature
review.Supply Chain Management: An International Journal .19(5/6). pp.504-522.
Apte, A., 2016. Capabilities and competencies in humanitarian operations.Journal of
Humanitarian Logistics and Supply Chain Management. 6(2). pp.240-258.
Dubey, R., 2017. Sustainable supply chain management: framework and further research
directions.Journal of Cleaner Production . 142. pp.1119-1130.
Gonzalez-Feliu, J., 2014. Sustainable urban logistics: Concepts, methods and information
systems . (p. 43). Heidelberg: Springer.
Gualandris, J., 2014. Do supply management and global sourcing matter for firm sustainability
performance? An international study.Supply Chain Management: An International
Journal. 19(3). pp.258-274.
Hofmann, H., 2014. Sustainability‐related supply chain risks: Conceptualization and
management. Business Strategy and the Environment. 32(3). pp.160-172.
Kembro, J., 2014. Theoretical perspectives on information sharing in supply chains: a systematic
literature review and conceptual framework. Supply chain management: An
international journal. 19(5/6). pp.609-625
Ravindran, 2016. Supply chain engineering: Models and applications. CRC Press.
Rozados, 2014. December. Big data analytics in supply chain management: Trends and related
research. In 6th International Conference on Operations and Supply Chain
Management, Bali.
Schenkel, M., 2015. Understanding value creation in closed loop supply chains–Past findings
and future directions. Journal of Manufacturing Systems. 37. pp.729-745.
Wisner, 2014. Principles of supply chain management: A balanced approach. Cengage
Learning.
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