Operation and Supply Chain

Every organization will have a strategy for meeting a specific amount of sales. Through sales volume, the profitability of a company can be estimated. For any form of manufacturing industry, there has to be an effective system for conducting operations. Operation and Supply Chain Management forms an essential part..

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Operation and Supply Chain Management

Every business has some form of operations and supply chain protocol. This will include the manufacturing businesses as well as the servicing business. Such protocols have to be effectively followed and implemented within the framework of an organization. However, there are unprecedented times that disrupt operations and supply chain in the organization. During these times, an organization needs to have a solid backup plan to ensure its operations are optimum. Operation and supply chain management deals with developing solutions that an organization can use to maintain balances between operation and supply chain.
Operation and supply chain management is crucial for an organization. Through this system, a competitive edge can be achieved by an organization.

What are the factors that affect Operation and Supply Chain Management?

Operation and Supply Chain Management
  • Effective Communication

Communication is the key for all enterprises to coordinate with each other. Manufacturing and servicing companies also communicate within departments to carry out a different form of work functions. To have seamless and smooth functioning, effective communication is crucial.

  • Example

Take a manufacturing company which is manufacturing computers in the USA. The company has to manufacture a specific amount of finished goods within a period. To complete their manufacturing orders, they have to secure raw materials and capital goods from another department or another company. In several instances, a company will receive capital goods from another country. Communication is the key to vital operation and supply chain management in an organization.  

  • Transportation

When it comes to operations and supply chain management, transportation is the critical element determining the profitability of an organization. An organization manufacturing good requires raw materials. Raw materials coming from another location will need transport. Hence there has to be smooth functioning of the logistics. Transportation can either be regional, national, or international. Depending on the type of transport arranged by the parties’, proper security must also be taken out. For shipping, marine insurance would be taken out through respective providers.

  • Strategic Planning and Analysis

Planning is required for every business. Without a proper plan, the business cannot operate. Operation and supply chain management services would also provide you with a strategic plan for your organization. Through strategic planning, an organization can ensure the smooth implementation of protocols 

  • Inventory Management and Control

Inventory management is one of the facets of operation and supply chain management. Inventory management is useful in computing the number of items in the warehouse. There are specific skills that are required for a prudent inventory manager. Inventory management deals with the number of goods that come into the warehouse and the goods that leave the warehouse. Specific software is present to make inventory management and control seamless and efficient.

For example, large e-commerce companies such as Amazon and Flip kart use Enterprise Resources Planning (ERP), and other data software to assist them with effective inventory management and control. Separate departments are allocated the work for inventory management and control. Having software systems to handle inventory management is crucial for an organization, without which managing it becomes impossible.

Objectives of Operation and Supply Chain Management Services

Operation and Supply chain management services have the following objectives:

  • It will streamline the operations and supply chain departments of an organization, ensuring a smooth transition within the crucial departments of an organization.
  • It improves the overall performance of the company.
  • Companies that manufacture products require operation and supply chain management to ensure smooth coordination between different departments.
  • Effective operation and supply chain in a company help in redefining customer satisfaction and appreciation.
  • Operational efficiency in an organization will improve its reputation.
  • One of the main aims for operation and supply chain management is to implement it throughout the system in an organization. By carrying this out, an organization will have end-to-end protocols to manage different forms of operations and supply chain risks.

Factors that improve the performance of Operations and Supply

There are critical factors that improve the performance of operations and supply within an organization. These factors have to be implemented within the organization's framework. The following are the critical elements that affect operation and supply chain management:

  • People

People are the most crucial assets of an organization. Without any workforce, an organization cannot survive. A company or organization cannot be formed without an individual or representative. Hence, workforces form a crucial part of the organization. The organization must ensure to recruit and attract suitable talent to ensure that they meet specific criteria. Specific individuals are given the responsibility to handle large projects within an organization. Trust is one of the significant factors that thrives the organization to meet its goals. Trust is based on having adequate transparency and governance in an organization. Corporate Governance frameworks should be implemented within all departments in an organization.

Apart from developing effective corporate governance frameworks, the organization must ask itself one question. Whether the current workforce can meet all the goals and objectives of an organization? An analysis has to be made regarding this. Specific criteria have to be formed based on the above.

  • Functions and Processes

After recruiting the workforce in an organization, the next question which will come to the mind of shareholders would be whether the functions and processes are implemented thoroughly within an organizational framework. Functions can be the following:

1) Human Resources Functions.

2) Supply Chain Functions.

3) Financial Functions.

4) Research and Development Functions.

If there are proper protocols within an organization, an organization can function effectively.

  • Integration and Systems

Digitization has disrupted how companies work. An organization must ensure that they have invested a lot in systems within the framework. Nowadays, without technology, it is impossible to perform a different form of functions in an organization. The internet age has made companies work on wireless systems. Operation and Supply chain management also provide weightage on the investment what the company makes on IT systems and facilities.

IT systems will include the use of software, cloud-based technologies, artificial intelligence, machine learning software to create a seamless work environment. Having effective IT within an organization would also require cybersecurity protocols to protect the servers against cybersecurity threats. Facilities will involve investment in assets such as machinery, property, and office spaces.  An e-commerce company will invest heavily in warehouses to ensure seamless integration of the services offered.

  • Machinery

For a manufacturing company, machinery is crucial to ensure that production is maintained at an optimum level. An organization entering into the manufacturing segment must ensure that sufficient investment is made in machinery. Under operations and supply chain management, machinery forms the part of the operations for a company.

  • Facilities

Facilities that are offered by the company would derive customer and product value. An organization providing more facilities would get more returns from customers. Facilities do not only include the services offered by the company to customers, but it includes the facilities that are present within the organization. Operation and supply chain management also deals with facilities offered by a company. 

Challenges in Operation and Supply Chain Management 

operation Supply Chain Management
  • Legal and Regulatory Challenges

Legal challenges are present in every phase of a business. When a company registers itself as an entity, it has to submit different Paper works for the registration. Similarly, an e-commerce company will have property law issues when it comes to acquiring a warehouse for storing equipment. There are specific regulatory issues when it comes to supply chain management.  For example- When goods are shipped from one country to another country, sufficient marine insurance must be taken on the goods shipped. The parties must follow compliance under respective insurance contracts. Another risk of goods transported through the sea is the loss of goods due to the ship's sinkage or destruction of goods. If the parties I .e.the supplier, and the buyer have negotiated contracts, it is good. However, are these contracts covered by a clause that negates both parties' liability for unforeseen circumstances? This clause is known as the force majeure clause.

  • Risks

There is a different form of risks that affects the marketability of the product. When products are shipped from one country, their marketability is questionable in another country. Apart from consumer preference and market risks, there are also government risks and political risks prevalent in the market. These risks can be such as a lockdown or an unforeseen event. 

 The above risks can be mitigated and avoided by developing an effective risk management strategy.

  • Fast-Paced Technology

Technology factors in the market pose a major risk to operation and supply chain management. Disruptive technological factors affect how a consumer operates. Companies need to integrate new forms of technology to meet the changing preferences of consumers. Companies that meet this need, will get more consumers.

Operation and Supply Chain Process

Forming a proper protocol for effective operations and supply chain is quite easy. However, there are certain challenges when it comes to implementing this protocol within an organizational framework.

Experts at Enterslice have come out with a strategic operation and supply chain management process to suit your organization's needs. Our operations and supply chain process integrates technologies backed by AI, Data Analytics, Machine learning, and cloud-based processes, which will be implemented throughout the framework in your organization.

This process will fulfil your organization's needs when it comes to providing your customers with integrated end-to-end solutions. Our process will cover systems infrastructure, business planning, integration, and supply chain management. Your organization can gain a competitive advantage using this interface. 

Enterslice Advantage- Operation and Supply Chain Management

  • We embrace technology and development.
  • Experts at Enterslice have conducted operations and supply chain services with the primary objective of adding value to your organization.
  • We have multifaceted teams of professionals comprising of Chartered Accountants, Business Executives, Legal Executives, and IT professionals 

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Frequently Asked Questions

Operation management is the process in which an organization implements effective protocols to ensure a high-efficiency level in the operations. Operation management protocols can be implemented in specific departments to improve the efficiency of the department.

Managing the supply of resources in an organization is called supply chain management. Supply chain management is a form of inventory control in an organization. It involves elements such as sourcing and control of goods present in an organization.

No, operation management deals with the operations of an enterprise. Operation management can be present for any form of enterprise. However, supply chain management deals with the management of inventory in an organization. This is usually present in organizations that only manufacture products and services.

Some of the benefits of operation and supply chain management are:

• It ensures that all the operations within the organization are working smoothly.

• The organization will perform well in the market, thus directly affecting its reputation.

• Consumers will benefit from an organization having a properly working framework.

• It increases compliance in an organization.

Logistics is also known as transportation. Logistics management is the term covered under supply chain management when it comes to transportation of goods from one port to another port. Logistics management can be either domestic logistics or international logistics.

Supply forms one of the important links in an organization. It involves managing the procurement of goods in an organization as it provides constant revenues and business to an organization.

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