Operations, Logistics, and Supply Chain Management: A Detailed Report

This report provides a comprehensive analysis of operations, logistics, and supply chain management, using Vauxhall Automotive as a case study. It explores key areas such as new product development and quality management, and discusses relevant theories including marketing theory, total quality management (TQM), and the triple bottom line (TBL). The report suggests practical solutions such as implementing the marketing mix (product, price, place, and promotion) and the eight elements of TQM to improve product quality, customer satisfaction, and overall business performance. It also examines the economic and environmental aspects of the TBL framework for sustainable growth. The report aims to provide insights into the challenges faced by Vauxhall and offer strategic recommendations for enhancing profitability, market share, and long-term success in the automotive industry.

UNDERSTANDING
OPERATIONS,
LOGISTICS AND
SUPPLY CHIAN
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
RECOMMENDATION...................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
Supply chain management can be describes as management the flow of products and
different services. Addition to this, the process of transforming raw material into end products is
also a part of supply chain management. Supply chain management also promotes product
development of companies (Ashby, Leat and Hudson, 2012). This report will study about various
theories related to logistic, operations and supply chan management. Also, solutions to the
concerns arising while launching new product of Vauxhall Automotive organisation will also be
discussed. The present report is based on Vauxhall Automotive Company. It is British Car
manufacture firm and owned Subsidiary of German Car manufacturer Opel.
MAIN BODY
Vauxhall Automotive is an automotive manufacturing organisation. The respective
organisation is providing its services to United Kingdom. Vauxhall deals in passenger cars, light
commercial cars, etc. It is one of the oldest car manufacturing company in United Kingdom.
Vauxhall has been the second largest selling company in UK. Addition to this, respective
company has successfully launched world's first sports car. Along with this, Vauxhall has also
introduced first 100 mph car in Britain. However the profit margin has not been up to the level
from past few years. The prime areas which can help overcoming the issue of low profit margin
are New product development and Managing qualities. In order to raise the profitability and
growth of Vauxhall automotive organisation, various theories can be practised by companies
which are discussed below:
Areas and Theories:
New product development:
Introducing new product range is a very crucial time for Vauxhall Automotive when the
respective company invest in various factors such as promotions ans development. New product
can help the organisation to attract more customers and provide a great opportunity to earn more
profit and expand business (Christopher, 2016). However, Vauxhall I facing certain issues in
launching new products. Thus, to understand it better, certain theories are mentioned below:

Theories
Marketing Theory- It is a theory which deals in promoting the products and services of
the company. The prime motive of the theory is to maximise the sales and profitability of the
organisation. Similarly, there are various elements which are considered in strategic planning of
marketing while launching a product (Gligor and Holcomb, 2012). Some of the major concerns
are method of promotion which is chosen by the company and how to fully utilize these
resources in order to achieve better outcomes.
Solution- In order to maximise the effort of marketing and achieve maximum outcome
from the marketing activities, marketing mix can be practised on Vauxhall Automotive.
Marketing mix is a tool which studies a wide range of factors such as product, price, place and
promotion in order to achieve the goals and objectives of respective company. These are further
discussed below:
 Product- These are the items and services which are served by the company. Currently,
Vauxhall is dealing in budget friendly and light weight commercial cars and passenger
cars. Thus, the respective company should come up with new range of products which
satisfy the needs of other customer groups as well and help in grabbing more market
share such as high range and fully loaded cars which are high in demand for cream
customers (Green and et. al., 2012). Similarly, respective company can also launch
Illustration 1: 4 Ps of Marketing Mix
Sources: 4 P's of marketing, 2018

various heavy commercial vehicles such as buses, heavy duty tankers, etc. Addition to
this, Vauxhall should adapt different technology advancements in their car features which
will help in keeping the company up to the market trend.
 Price- This factor studies the price range that are offered by the company to the targeted
customers which helps in earning profit for company. The price range of the products of
Vauxhall Automotive are budget friendly as most of the products are light weight
commercial and passenger vehicles (Hugos, 2018). This helps in attracting the middle
class customers which is a big market. However, the respective company should revise its
prices in compare to the quality of products that Vauxhall are offering which will not
only help in attracting more customers, but also will help in building the reputation in the
industry.
 Place- It if refereed to the location that company is operating. Vauxhall Automotive is
currently offering their services to United Kingdom. Thus, in order to expand their
business, the respective organisation should operate in other countries which will help in
increasing the profit level of company as well as help in grabbing international market.
 Promotion- This element of marketing mix focuses on the promotional activities
conducted by the organisation in order to promote their products and services to the
targeted customers in order to enhance the sales and educate the customers regarding
different updates of the company. Vauxhall Automotive practise various traditional
promotional activities such as news papers, billboard, etc. However, there are variety of
other methods which can be practised by respective organisation such as internet
promotions, social media, advertisement, press conferences, and other companies event.
This will help in promoting the products and services and result in attracting more
customers for the company.
Thus, by implementing this theory, Vauxhall Automotive can alter their product
development strategies in order to assure a healthy revenue of company. Addition to this, these
tools can helps in managing different concerns which needs to be taken care while making a
marketing plan such as price, promotion, etc. (Jacobs, Chase and Lummus, 2014.) Vauxhall
Automotive can implement these changes which will help in successful product launches and
developments.

Managing quality:
It is a very important aspect for a company. Managing the quality of products can lead to
earn more profit or completely destroy it. Thus, Vauxhall should practise various theories will
will help in managing the quality of products and services (Monczka and et. al., 2015). As it is
important for the company to maintain the quality of products and services in order to have a
good reputation in the market and assure customer satisfaction. Thus, the theory is mentioned
below.
Theory
Total quality Management- Also known as TQM is a management approach which
mainly focuses on customer satisfaction. Thus, to practise this approach, the members of the
organisation takes certain measures in order to improve products, services, process and culture of
their organisation. Addition to this, the company uses effective communication, strategies and
data in enhance the activities of the firm.
Solution- In order to improve the quality of products, services and other activities,
Vauxhall can apply TQM approach. The respective approach undertake 8 elements which are
discussed below:
 Customer Focused- While practising total quality management approach, it is important
to keep in mind that customers are the main focus, as these are the individuals which will
help in deciding that efforts put in by the company for the improvement of products and
services are enough or not. Thus, it provides a great opportunity for Vauxhall to improve
their products and services in order to attain maximum satisfaction of customers.
 Total employee involvement- The involvement of employees are very important to
enhance the products and services. Thus, the management of Vauxhall should make
efforts which promotes healthy work culture and environment. Addition to this, it is
important to motivate the employees of respective company which helps in motivating
them to work up to their full potential (Rushton, Croucher and Baker, 014). The end
result of this factor is improved quality of products and services of Vauxhall automotive.
 Process centred- Quality enhancement is a process which takes efforts of thinking and
handling. These process are the guiding principles of company. Such as the mission,
vision and objective of the organisation. The guiding principle of Vauxhall is mobility,

simplicity and innovative. Thus, the products and services that are offered by respective
company should reflect innovation, mobility and less complexity.
 Integrated System- This principle of total quality management states that products and
services of company should have a standard quality which can be modelled in ISO 9000
standards. It is an international standard of quality management which helps in assuring
the quality of products (Schönsleben, 2016). Thus, the products of Vauxhall should be of
standard quality which fulfil the minimum criteria of standard quality model in order to
assure the customers about the quality of products offered by company. Similarly, it
helps in building a positive reputation of Vauxhall in the market place.
 Strategic and systematic approach- It is one of the crucial element of TQM approach
as it focuses on the strategic management and strategic planning. Thus, the management
of Vauxhall should critically examine all the factors that needs to be considered while
making the strategies. Addition to this, the management of the respective company
should make appropriate strategic plans which is focused on the mission and objective of
respective organisation.
 Continual improvement- This is a very important factor of total quality management
which states that it is important to make continuous improvement in all the aspects of the
organisation be it products, culture, strategies, goals, etc. By continuously enhancing
these elements, Vauxhall can assure a sustainable growth and competitive advantage for
company. Addition to this, it also helps in meeting the expectations of all the
stakeholders of the company which provides a wider scope of growth for respective
organisation.
 Fact based decision making- In order to assure the performance of the organisation, it
is important to conduct analysis on frequent basis. This helps Vauxhall to analyse the
rate of growth that company is making (Wassenhove and Martinez, 2012). Addition to
this, it also facilitates the respective organisation to improve their decision making,
strategies alterations, etc. in order to achieve the goals and objective of the respective
organisation.
 Communication- It is one of the crucial factor of an organisation as it helps in
motivating the employees to work up to their full potential, convey the objectives and
other duties that needs to be done by the employees and many other aspects. However, it

requires strategies, time and methods. Thus, Vauxhall should effectively communicate
with their stakeholders in order to enhance the quality of products. Addition to this,
Vauxhall should practise a strong communication channel which will ease them in
operating their business activities more conveniently.
Thus, Vauxhall can practice total quality management method which will help in
enhancing the quality of products and services of the respective company. Addition to this, the
respective company should train their employees and senior management about the total quality
management principles which can guide the staff members to function more appropriately.
Addition to this, the management of Vauxhall can assess the satisfaction of customers along with
the work culture of the company. The managers of respective company can provide training in
order to support planning and implementation of these theories.
Triple bottom Line:
Also known as TBL is a framework which helps in evaluating the performance of
organisation. The respective framework focuses on three major concerns which are financial,
social and environmental. Vauxhall have influenced with TBL framework to analysis
performance to enhance better value to customers (Seuring, 2013). It measures and evaluates
social responsibility, value of economy and effects of environment in different aspects.
Economic Aspect:
It works to enhance quality of auto mobiles in respective industry that have to take steps
to save cost to manage quality to effective production and distribution. Vauxhall have promote a
advance and better quality of accessories and operating system that enhances billions of
customers to avail better quality of goods and services. They should produce products in such a
manner that it can be cost effective for both the customers as well as the company. Similarly,
Vauxhall should analyse the factors which can affect the cost of production and other factors and
look for better alternatives. This helps in lowering down the cost and maximising the
profitability of Vauxhall Automotive.
Environmental aspects:
Vauxhall have to minimise effects on environment that have to product less pollution
generated vehicle for worldwide so that they contribute in industrial development. Waste created
in production leads in cost enhancement and leads to less effective production of products and
services in market. Addition to this, Vauxhall should look forward for pollution free products

and services which will help in attaining a sustainability in the business such as electric vehicles,
solar vehicles, etc. which will help in attaining more positive reputation and lowering down the
impact on the surroundings. The organisation have to install technologies that it does not
enhance pollution and not harm environment that leads in healthy production and distribution of
products in market.
Social Aspect:
Vauxhall have to care of clients and employees by analysing needs and wants of
consumers that vehicles should be completed their every needs and give them comfortability.
When Vauxhall conducted researches and surveys that helps to determine new technology and
current needs of consumers by accessing current trends of market. Employees working in auto
mobile suffers from many hazardous problems that hinders self interest of both employees and
organisation also. Thus, Vauxhall should practise safety measures to avoid any uncertainty to the
employees. The organisation have to take action to resolve problems that help to satisfy needs
and wants. Vauxhall can help the employees by providing different pension schemes and other
benefits which will help in securing their future benefits from the company (Wassenhove and
Martinez, 2012). Also, Vauxhall can provide regular training to the customers which will result
in better services and polishing the skill set of the staff members of respective organisation. This
further helps them in attaining better career growth. It helps to access needs and analyse future
opportunities of potential marketers in the respective organisation.
RECOMMENDATION
From the above report, it is to recommend that Vauxhall should practice these tools and
technique i.e quality management and marketing mix which will in achieving competitive
advantage for the respective company. The quality of products and services can be enhanced
through total quality management however, the marketing efforts can be enhanced through
implementing marketing mix on the respective company. Addition to this, Vauxhall should
launch prime products which will help in grabbing more customers and high rate of profit
growth. Vauxhall should focus on its quality of products as it is highly required in auto mobile
industry.

CONCLUSION
From the above discussion, it can be concluded that managing quality and product
launches plays a vital role in growth and profitability of the company. Addition to this, there are
various issues that the respective company is facing while launching a new products such as
price management, quality management, etc. Thus, in rode to increase the profit levels,
respective organisation should take certain measures which can help to gain competitive
advantage to company. Addition to this, the respective organisation can improve its quality by
successfully implementing total quality management approach which helps in improving the
quality of products and services. However, product development can be managed through
marketing mix which is a marketing tool that assist in analysing various factors that influence the
marketing strategy of the company.

REFERENCES
Books and Journals
Ashby, A., Leat, M. and Hudson-Smith, M., 2012. Making connections: a review of supply chain
management and sustainability literature. Supply Chain Management: An International
Journal. 17(5). pp.497-516.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Gligor, D.M. and Holcomb, M.C., 2012. Understanding the role of logistics capabilities in
achieving supply chain agility: a systematic literature review. Supply Chain
Management: An International Journal. 17(4). pp.438-453.
Green Jr, K.W. And et. al., 2012. Green supply chain management practices: impact on
performance. Supply Chain Management: An International Journal. 17(3). pp.290-305.
Hugos, M.H., 2018. Essentials of supply chain management. John Wiley & Sons.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Monczka, R.M. And et. al., 2015. Purchasing and supply chain management. Cengage Learning.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Schönsleben, P., 2016. Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management.
Decision support systems. 54(4). pp.1513-1520.
Van Wassenhove, L.N. and Martinez, A.J.P., 2012. Using OR to adapt supply chain management
best practices to humanitarian logistics. International Transactions in Operational
Research. 19(1-2). pp.307-322.
Online
Supply chain challenges in the automotive industry. 2018. [Online]. Available
through:<https://www.inspirage.com/2016/07/supply-chain-challenges-automotive-
industry/>.
The 4 Ps of marketing are outdated. So what’s the solution?. 2018. [Online]. Available
through:<https://yourstory.com/2016/10/4-ps-marketing-outdated/>.