BM563 Operations and Service Management: Sainsbury's Supply Chain

This report provides an analysis of operations management practices at Sainsbury's, focusing on supply chain management. It identifies supply chain management as a key operational practice and critically analyzes its impact on the organization's efficiency. The report discusses the role of technology in operation management activities, including automation, computer-aided design and manufacturing, and inventory management technology. It also highlights supporting functions such as resource management, purchasing, operations, informative workflow, and logistics, explaining how these contribute to the company's success. The analysis emphasizes the importance of supply chain management in improving collaboration, optimizing shipping, mitigating risks, and enhancing visibility through data analytics, ultimately leading to increased revenue and efficiency for Sainsbury's.

OPERATIONS AND
SERVICE MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Identify the operation management practice within the Sainsbury’s company...........................3
Critically analyse how this operation management practice impacts the organization in regards
to efficiency.................................................................................................................................5
Role of technology in operation management activity and their importance..............................6
Supporting functions related to the operation management practices and helps in company
success.........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management means as administration of the businesses practise to generate the
good and high level of work in the organization. Operation management is related to with change
raw material and working people into the final products and services as effective as achievable to
generate good revenue of the company (Heifer, 2020). Sainsbury's is a public limited company
which deal in retail industry and located in England, London, United Kingdom. Company is the
2nd largest chain of supermarket in UK with a good market share, company vision is making a
standard atmosphere where individual trust organization and fascinated to shop and work.
Sainsbury's offer great quality services and products at responsible prices, so the
company have powerful customer relationship and customer’s loyalty. This report highlight the
supply chain management as an operation management practices. And this report also critically
analysis the impact of operation management process on the company in regard to efficiency.
Moreover, this report will discuss the technology connected to operation management. This
report also includes supporting function which are similar to the operation managing activities
and then evaluate how it can helps in organization success.
MAIN BODY
Identify the operation management practice within the Sainsbury’s company
The Operation management within the organization is the method of managing design and
monitoring the procedure of manufacturing and reforming the operations of the enterprise for the

creation of products and goods.it helps in administrating the business practices for creating the
highest level of efficiency which is possible within an organization. The operation management
of the business firm helps in monitoring the procedure of the production and also provide the
most appropriate manner for the business operations. This department have to manage and
control the entire operational process of the organization. It supports in making the production of
the manufactured goods in a more significant manner by optimizing the business practices. The
main aim of the operations management is to provide profitability and quality to the customers.in
this report a brief description of the operation management practice will be elaborated (Wolniak,
2020). Sainsbury’s is the 2nd biggest chain of supermarkets in the UK and having a stake of 16%
in the segment of supermarkets. The aim of the company is to deliver good quality food and
appropriate shopping to the customers whether it is in marts or virtual. The company provide
delightful and good quality food at a competitive cost price. Motivating and appreciating the
food consumers with delicious remains the priority of the Sainsbury’s company. The operations
management of the Sainsbury’s company is to attain the main performance purposes like client
satisfaction, fast processes, attaining the elasticity for the consumer needs and recollecting the
faithful customers.it also helps in meeting the target growth and regain the position of the
company. The Sainsbury’s company follow many process for making an innovative operation
management like making an improved inventory administration, healthy technological
progressions and generating a better consumer base. The operational management practice
followed by Sainsbury’s is supply chain management practice (Mitropoulos, Manthou, and
Vlachopoulou, 2019).
The company need to have an effective supply chain management for running the operational
activities in a smooth manner. Supply chain management refers to the activities, industries or
organization that is elaborate in supply chain for ensuring that the customers are getting good
value for the money they are spending. The supply chain management of the company have been
intended grounded on the IT, winning, logistics as well as loading or warehousing amongst
others. For maintaining the supply chain management of the Sainsbury’s the inventories and
logistics have been properly planned. The company provide various and effective agreements
with companies in the logistics segments in the supply chain and one of them is being with the
iForce. The success of the Sainsbury’s in its logistics management is achieved by the supply
chain and this can be attained by the hep of a proper barrier connecting its warehouse to fight the

depots. The logistics of the Sainsbury’s company have been made better by the setting up of the
suitable workshops.one of the other way of supply chain management that is used in the
Sainsbury’s company is warehousing and this helps in operating the business activities with
efficiency and stamp authority in the supply chain management. The company have to organize
large warehouses and depots for the products and services (Hughes, and Merton, 2020). The
location and amount of inventory of an organization within the supply chain management helps
in ensuring that the products of the company do not reach to a unfavourable level within the
supply chain management.
Critically analyse how this operation management practice impacts the organization in regards to
efficiency
Operation management is impacting the association in a very decent way as it benefits in
handling, regulating and managing the goods and amenities created by the group.it supports in
giving a tactical arrangement of the goods developed and manufactured by the organization. The
operational management of the organization helps in controlling and managing all the internal
and operational activities required for the business activities. This improves the overall growth
and productivity of the organization. Similarly the Sainsbury’s is using the supply chain
management practice in the operation management and by using this practice the company will
be able to work in a more effective manner.it helps in facilitating and optimizing the movement
of goods, statistics and assets, permitting the corporations for creating a improved connection
worth and expand the complete effectiveness of the business.it is the process of managing the
entire movement of a dissemination network from dealer to the ultimate client. The supply chain
management practice helps the organization in regard to the efficiency of the organization as
there are many benefits of using this practice in the operation management (Stank, Keller, and
Closs, 2021).
The supply chain management practice provides a better collaboration because of the improved
access to data the leaders of the supply chain management helps in providing a better
collaboration, this gives a benefit of better quality control and which consequences in growing
the productivity of the Sainsbury’s corporation. Shipping optimization is also one of the ways
used by the supply change management in the Sainsbury’s company for increasing the
productivity and efficiency of the company.an effective supply chain helps in reducing the need

of maintaining the inventory and therefore cut the overhead costs which is associated with the
storage and security. The supply chain management practice supports in improving the risk
mitigation factor and also maintains a strict quality and stock control and tally the costs and
prices can benefit the business liquidity by improving the cash flow.an effective supply chain
management enables the company to adapt more opportunities and helps in running the
operational activities of the organization in a smooth and effective manner. Consequently by the
assistance of supply chain the enterprise will be able to uphold a more responsive industry and
which fallouts in producing more income and income margin (Caridi, and et.al, 2018). Better
visibility and data analytics is also one of the ways that the company have been using for
enhancing the operational skills and improving the efficiency by using the supply chain
management practice within the Sainsbury’s company. Consequently it has been assumed that
the objective of the operation management is to help in exploiting the productivity in the union
and also in growing the efficiency of the enterprise, they also support in growing the revenue by
dropping the prices and safeguards that the value goods are distributing to the consumers
according to their desires and necessities.
Role of technology in operation management activity and their importance
Technology plays essential role in all business organization, promotion in technology
permit organization to take advantage of internal stability. It is well clear that business
technological progress provide competitive advantage to organization and help them in become
the market leader. Technology is used in all the department but its role majorly seen in the
operation management process where non-stop work is done. From succeed in supply chain to
handle total quality of production, application have critical role in the process. Technological
advancement have varied the manner of managing business operation in the whole industry.
There are some type of technology which is already been in use in the operation management
practice, these are as follows:
Automation technology: It is another common but have essential role in the operation
management process, this technology cut manual intervention and permit organization to cut
down cost occurring in manufacturing process (Schröder-Hinrichs., and et.al. 2019). Even so,
automation technology is high-priced as well as it required continuous maintenance, business

might need large capital investment to gather this technology. There are certain automation
technology which keep changing with the change in industrial technology, it is costly to change
the technology according to the market demand, and automation may consider modern
machinery, production machinery and heavy machinery which cannot be transformed over time.
Computer Aided Design: It is one of the common but important software system technology
used in the activity of operation management, this link-up with two complex unit of production
into one to get clear insight (Zakharova, and Grebenyuk., 2021). Computer aided design is used
at all level of the operation management department, this work link among all the unit where
information is shared and store with each other. In the design of services and product, CAD play
important role that is allowing organization to create unique and attractive design for the product.
CAD is commonly used in assist accuracy in the operation process because a single fault can
impact on the whole operation process.
Computer Aided Manufacturing System: It is one of the powerful operation management
technology used in operation process, this technology not only share and store data or
information but this system also keep control over machine as well. CAM work in the three
dimension of operation that is examining potential break down and keeping eye on machinery
that might occur in the production process. Computer aided system allow organizations to
manufacture and design products fast, at low cost and in effective manner, and they are also
helps company to improve and monitory their quality.
Inventory management technology: Inventory is pump of supply chain management, operation
management process is incomplete without a inventory management (HR, and Aithal., 2020). It
is clear -cut that business might require advance technology in managing inventory because lack
of proper delivery or insufficient supply of the raw material might impact on performance of the
organization and have great impact on a enterprise position in the market. Business mainly use
various type of supply chain management technology, for example record of raw material in put
have various technology supply accurate information about the demand of the raw material in the
production so it reduces the wastage.
Supporting functions related to the operation management practices and helps in company
success
The primary supporting function related to the supply chain management are resource
management, purchasing, operations, informative workflow and logistics. Purchasing is the first

primary function of supply chain management, in the process raw material need for producing
services and products (Wolniak., 2020). It required coordination and cooperative with supplier
for deliver the necessary material without delay. When an organization sources raw material ,
then it is essential to ensure that the material is of good and high quality which suitable for the
company. Even a small mistake in this function can damage the company reputation. So
Sainsbury's should focus on the quality of the raw material because company USP is providing
good quality services and products to the customers. So purchase manager should focus on day
to day data of orders and material need on time. The manager must handle the available
inventory space in proper manner and manage only necessary materials in the organization
warehouse.
There are many supporting functions which are linked to the supply chain management practice
and this will help in ensuring the success of the organization.
1. Purchasing-Purchasing is the first step in the supply chain management. The raw
supplies are compulsory to produce goods and facilities in the industrial process and it is
vital to see that these ingredients are obtained and transported on time for preliminary the
production. For this organization with the contractors and distribution enterprises will be
required so as to avoid any threat (Zakharova, and Grebenyuk, 2021).
2. Operations-Demand planning and forecasting are the two factors which comes under the
processes. This purpose is very vital in the supply chain management as the Sainsbury’s
must precisely prediction request for consuming also abundant and too fewer record and
that leads to the losses in the profit margin and revenue.
3. Logistics-it is the part of the supply chain management that helps in coordinating the
various features of the preparation, buying, manufacture, warehousing and transportation
so that the final products will reach to the customer without any problem.
4. Resource management-The production requires the raw materials, technology, time and
labour for performing the operations related to that and resources are required for
managing the business activities within the organization. This will help in providing an
optimized production schedule for maximizing the efficiency of the operations (Thomas,
2020). This also ensures that the production schedule is feasible and accurate.
5. Information workflow-this is the last support function linked to the supply chain
management. Information sharing and distribution are the two factors which keep all the

other function of the supply chain management on track. This prevents the
miscommunication and time spent and updating every individual on the new
developments.
CONCLUSION
This report highlights the concept of supply chain management operation and service
management, practice in a company, and this report also includes evaluation of operation
management practices on a company success such as low cost and quality management etc.
furthermore, this report also discuss the role of technology in a business such as automation
technology, computer aided manufacturing system, computer aided design, and inventory
management etc. and this report also involve few supporting function such as information
workflow, operation, resources management, logistics, and purchasing which helps organization
to manage operations pratices in effective manner. An effective supply chain management helps
company to decrease their wastage and cut down cost and this report also elaborate about
inventory control helps organization.

REFERENCES
Books and Journals
Heizer, J., 2020. Operations management: Sustainability and supply chain management. Ontario;
Pearson Canada.
Wolniak, R., 2020. Main functions of operation management. Production Engineering
Archives, 26.
Matopoulos, A., Manthou, V. and Vlachopoulou, M., 2019. Integrating supply chain operations
in the internet era. International Journal of Logistics Systems and Management, 3(3),
pp.305-314.
Hughes, D. and Merton, I., 2020. “Partnership in produce”: the J Sainsbury approach to
managing the fresh produce supply chain. Supply Chain Management: an international
journal.
Stank, T.P., Keller, S.B. and Closs, D.J., 2021. Performance benefits of supply chain logistical
integration. Transportation journal, pp.32-46.
Caridi, M., and et.al, 2018. The benefits of supply chain visibility: A value assessment
model. International Journal of Production Economics, 151, pp.1-19.
HR, G. and Aithal, P.S., 2020. Integrated Inventory Management Control
Framework. International Journal of Management, Technology, and Social Sciences
(IJMTS). 5(1). pp.147-157.
Schröder-Hinrichs, J.U., and et.al., 2019. Transport 2040: Automation, technology, employment-
The future of work. World Maritime University, Transport, 2040.
Wolniak, R., 2020. Main functions of operation management. Production Engineering
Archives, 26.
Zakharova, A.A. and Grebenyuk, Y.V., 2021. Knowledge models in computer-aided
manufacturing systems. In IOP Conference Series: Materials Science and
Engineering (Vol. 1019, No. 1, p. 012045). IOP Publishing.
Tan, K.C., 2019. A framework of supply chain management literature. European Journal of
Purchasing & Supply Management, 7(1), pp.39-48.
Thomas, M.U., 2020, January. Supply chain reliability for contingency operations. In Annual
Reliability and Maintainability Symposium. 2002 Proceedings (Cat. No.
02CH37318) (pp. 61-67). IEEE.