Operations and Supply Chain Management Report: Volkswagen Case Study

This report examines Volkswagen's operations and supply chain management, focusing on logistics and supply chain processes. It explores key areas such as new product development, specifically the introduction of electric cars, and relevant theories including scientific management, human relations, and systems management. The analysis covers vital components like inventory management, customer service, and supply chain visibility. The report also discusses the application of these theories and provides recommendations for improvements in supply chain processes, including automation, IT department enhancements, and training programs to improve efficiency and customer satisfaction. The conclusion summarizes the importance of effective supply chain and logistics for organizational success.

Understanding Operations
Logistics and Supply Chain
Management

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Two areas of operations and supply Chain Management............................................................3
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Logistic operation is the process by which an organization manages flow of things within
the point of origin and point of consumption in order to attain customer’s satisfaction through
working over needs raised by them. This operation helps in developing of factors that are helpful
in attaining customer’s satisfaction. Supply chain management helps in making good and
services supply to be managed. Scope of both elements is wider as they deal with customer’s
satisfaction and supply of product or services. Nature is dynamic as fluctuation can be created
through them within sustainability of an organization in market. Organization takes for the essay
is Volkswagen that is a Germany based automaker and got established in the year 1937. Its
headquarters is in Wolfsburg. In these essay two areas of operations and Supply Chain
management is to be selected with relevant theories and applied in it. In the end Areas required
to be improved is to be discussed.
MAIN BODY
Two areas of operations and supply Chain Management
Supply chain management is the process by which flow of goods and services is been
formed through raw materials. In other words this management makes final product to be
transformed out of raw materials (Lai, Sun and Ren, 2018). It makes activity of production to be
done in an organization like Volkswagen to attain competitive edge in market. As per this
management effort made by supplier to develop a fine product according to chain of supply that
makes efficiency and economic increment possible for an organization like Volkswagen which
makes goals and objectives to be achieved. In supply chain cover all things from production to
product development over information system to be direct with undertaking. Now Volkswagen
seek to introduce new product that is “Electric Car” for which New product development process
is required to be used by Volkswagen. This is the process by which new product is brought by an
organization within the market place. This is possible by understanding certain factors like
market wants, smart products and developing new product on the basis of customers expectation.
In this new product to be developed by Volkswagen is “electric car” for which various stages of

the process is required to be used that is Idea generation as per this stage new idea over a
product is formed by an organization like Volkswagen. So Volkswagen is to introduce a new
product that is “electric cars”. There are two source of idea generation that is through internal
and external manner. In internal stage new idea is generated through research and development
over internal factors of an organization. External idea this is generated by an organization taking
on consideration elements like distribution, suppliers and competitors. Volkswagen has taken the
new product by analyzing internal factors. Idea screening at this stage screening of idea is done
as per which new idea is been explained with its concepts. Concept development and Testing
according to the stage electric car that is to be introduced by Volkswagen so for this purpose new
technology is to be developed and expertise in field of automotive should be higher for its
testing. Concept development in this main focus of Volkswagen should be over targeting
customers for which price chart has to be prepared as per customers of various segments.
Concept testing as Volkswagen is introducing new electric car and to meet customers need
testing is to be done over various kinds of development as per customers demand. Marketing
strategy development Volkswagen introduces electric car for this purpose marketing strategy is
to be developed which cover promotion, awareness and fund. So, advertising can be done by
Volkswagen to make its product introduced in market. Business analysis as Volkswagen in
order to increasing selling of product is required to understand about aspects related to business
which enhances growth of business. Product development the new product development
process goes on with the actual product development. Up to this point, for many new product
concepts, there may exist only a word description, a drawing or perhaps a rough prototype. But if
the product concept passes the business test, it must be developed into a physical product to
ensure that the product idea can be turned into a workable market offering. The problem is,
though, that at this stage, R&D and engineering costs cause a huge jump in investment. Test
marketing this is the last stage that is to be followed by Volkswagen to make its product electric
car to developed so for this testing is required to be done over development while making
expenses over distribution and sales factor is to be considered. Scientific management theory:
This theory is been developed by Frederick Taylor he was one of the very first people to study
about management through scientific mean and logic. Taylors principals recommends scientific
method that can be used for performing tasks within workplace and opposing leaders relying over
judgment through personal discretion of team members. He has paid more philosophical emphasis

forces people or employees to work hard that increases productivity of employees working in an
organization. Instead he has paid more focus over making tasks easier and less complex which is
going to increase production capacity. He suggests that managers should assign team members to
do task that best matches their ability or skills. Also he recommends over supervention for
ensuring efficiency of role. This is going to helps Volkswagen to achieve maximum workplace
efficiency by finding out optimal way to make production fast and cost effective. This theory
helpful for Volkswagen in increasing of coordination and cooperation between employees
working in an organization like Volkswagen. Another important area to be focused over is
Layout or location according to this factors geographical area is been taken into consideration
with elements like transportation facilities and weather conditions required to be considered by
Volkswagen for making its product to be introduced in country like United kingdom within its
city London. Both the factors hold importance in regarding to logistic management.
Logistic management is defined as that part of supply chain process that makes plan and
implements control with efficiency through effective flow and storage of goods, services related
to information from point of origin through consumption. Logistic management is an inclusive
term which encompasses both planning and execution of key aspects of logistics that is
transportation, distribution, warehousing and purchasing. All these factors make an organization
like Volkswagen to make its product reach to customers in less time. This factors is going to
enhance overall growth of an organization and keeps accounts of steps to be followed in the
process of production. These come into force from the origin of product till its consumption. In
this management there are certain key components of logistic management that helps in
facilitating of strategy to be applied for production and consumption. These elements are
inventory, planning and management, warehousing, procurement of goods and services,
packaging and storage, transportation, customer service. Main is to be focused by Volkswagen is
inventory planning and control that are those functions relating to managing over forecasts for
determining customer’s satisfaction for meeting demand. In these process mangers is required to
count and maintain all items required by Volkswagen. Then comes customers services in this all
complain that is being made by customers is registered in here by the executives selected for the
work. This is helpful for Volkswagen to make enhancement in the quality of product made by
Volkswagen. Theories that are applicable in order to improvise process of production are
Human relations theory the theory has been developed by Elton Mayo in the theory the main

focus is over human relation which exists between employer and employee in an organization.
Such theory was formed to makes change in the working conditions like introducing of break
times and time to work is also specified. The theory is been tested in all aspects and it was found
that employees perform better with more job satisfaction if changes as per the theory is applied.
This has helped in creating of better environment for working in an organization. The theory has
made improvement due to changes that has resulted in making research over employees and
making values to be formed (Coenen and et. al., 2018). These experiments gave rise to the theory
that employees are more motivated by personal attention and being part of a group than they are by
money or even working conditions. This theory is applied by Volkswagen making improvement
due to changes resulting in researchers paying attention over employees and making values to be
developed in organization like Volkswagen. Systems management theory the theory asserts
business consists of multiple components that have been working in harmony over larger system
for functioning in optimally. The organizations success is dependent on interrelations and
interdependence between subsystems. As per the theory employees is considered to be one of the
most important part of an organization. According to these theory managers in Volkswagen is
required to make evaluation over events and patterns in the organization for determination of
collaboration between employees which develops sense of togetherness between them. This
helps in ensuring success with growth. In order to improve supply chain of Volkswagen there are
certain things to be followed that is increase supply chain visibility in this supply chain
management should comprises of all kinds of latest technologies and all strategies applied within
it. This is going to increase visibility within supply chain management. This makes visibility that
is referred with the capability of organization to track each and every component to be produced
as it moves from suppliers. Automation this related to keep check over conditions of warehouse
in which the product is kept. This is an important step that helps in making an organization like
Volkswagen to gain trust over its suppliers that makes supply chain to run more smoothly.
Doing so can increase efficiency of Volkswagen in measurable and impact way. Improving IT
department this helps in increasing network over web and making consultancy services to be
managed in proper manner. Also protects an organization from any kind of fraud or hacking.
This makes every transaction in supply chain to be done in more secured manner. Assisting
training program It is the responsibility of managers of Volkswagen to make training process
go smoothly that helps in new candidates understand about the concept of supply and attain

knowledge over it. This makes new candidate learn about various aspects of supply chain
process through better training tactics it becomes easy for new candidates to understand about
product and consumption( Behl and Dutta, 2019).
CONCLUSION
From the above discussion it can be concluded that supply chain management and
logistics management helps in increasing the production and consumption of good with services
for an organization. Further in this essay two areas from supply chain is discuss that and relevant
theory applicable to it is explained. Also logistic management and main areas is been discussed
in context of relevant theory. In the end few things is been explained which makes supply chain
management to improve itself.

REFRENCES
Books and journals
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review and future directions of research. Annals of Operations Research. 283(1).
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chain management through leagile framework: a case study from a non-mature
economy. Production Planning & Control. pp.1-16.’
Qi, Y., Huo, B., Wang, Z. and Yeung, H.Y.J., 2017. The impact of operations and supply chain
strategies on integration and performance. International Journal of Production
Economics. 185. pp.162-174.
Zijm, H and et. al., 2019. Operations, Logistics and Supply Chain Management: Definitions and
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Springer, Cham.