Operation and Supply Management

Introduction to the operations and supply management

The operations and supply management comprises of all the method used to create and distribute the firm’s primary services and products. The process begins from the identification and supply of inputs to the distribution of the output. Within the operations and supply management structure are the production and supply chain management system.

The transformation processes result into the products and services desired by the consumers. The supply chain processes range from sourcing processes to distribution processes. Within the continuum are the manufacturing and service procedures, which are connected to the sourcing and distribution processes by the logistics progressions.

Products and services

Products are characterized by their tangibility, consistency, storage capacity and low customer interaction. On the other hand, services are intangible, inconsistent, produced and consumed at the same time, have low storage capacity and high customer interaction. Products can be categorized into the core and pure products. Similarly, services can be categorized into the core, pure and value-added services. The core services are the elementary effects the customers need from the products they purchase.

For instance, the customers may look for price, quality, flexibility or speed from the products they buy. The value-added services are what differentiate the product from others. The value-added services provide increased competitive advantage to the firm and create relationships that bind the firm and the customers.

Traditional development and the current issues in the operations and supply management

While the traditional development of the operations and supply management look into the manufacturing strategy paradigm, the current issues in the operation and supply management focuses on the co-production of goods and services.

Essentially, the current issues in the operation and supply management include matching the correlation between different organizations that support each other, boosting worldwide supplier, manufacturing and distribution linkages, appropriate handling of the customer experience during the provision of the services and increasing the efficiency in the operations as a substantial competitive advantage.

Operations and supply strategy

Operations and supply strategy is the establishment of comprehensive programs and guidelines aimed at using the firm’s resources to support the long-term plans that would increase its competitive advantage. The firm may gain the competitive advantage through the use of the dimensions that include the price, quality, efficiency in terms of delivery speed and reliability, coping with changes in demand, flexibility and new product development as well as other specific criteria.

While applying the competitive dimensions in the broad plans and policies, it is critical to consider the trade-offs that are involved. For instance, reducing the costs during the product developments may result in the low product quality. The order qualifiers are the primary standards that permit the firm’s products to be liked and purchased by the clients. The order winners are the qualities that single out the firm’s products and services.

Steps in developing a manufacturing strategy

The first step in developing the manufacturing strategy is dividing the market depending on the product types. The second step is the recognition of the necessities of diverse products in terms of marketability and the profit margins. The final step is the transformation of order winners into precise performance desires.

Distinctive competencies, service strategy capacity and capabilities

The distinctive capabilities of the firm’s products can be determined through the SWOT analysis. The firm’s strengths and opportunities can be exploited to increase its competitive advantage. The services strategic capabilities include process-based, system-based and organization-based.

Measuring productivity in operations and supply management

Productivity is the level in which the firm utilizes its resources. Productivity is the product of outputs and the inputs. In other words, it is the ratio of outputs and inputs.