What Is the Importance of Develop an Operations and Supply Management Strategy?
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What is the importance of develop an Operations and Supply Management strategy?
The importance of Operations Management has increased dramatically in recent years. Significant competition, shorter product and service life cycles, better educated and quality-conscious consumers, and the capabilities of new technology have placed pressures on the operations function to improve productivity while providing a broader array of high-quality products and services.
Operations Management explores the way services. Everything you wear, eat, sit on, use or read comes to you courtesy of the operations managers who organized its production and distribution. Goods such as automobiles, airplanes, computers and houses, must be produced, as do the services provided by hospitals, ski resorts, trucks, and airlines. Its the job of an operations manager to make sure these activities occur.
Operations Management is the systematic development and control of the processes that transform inputs into goods and services. The operations function comprises a significant percentage of the employees and physical assets in most organizations. Operations Managers are concerned with each step in providing a product or service. They determine what should go into an operating system, such as equipment, labor, facilities, materials, energy, and information, to produce the output. Operations Managers are also responsible for critical activities such as materials management organizations produce and distribute goods and, capacity planning, purchasing, scheduling and quality.
Supply Chain Management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et. al., 2001).
A customer focused definition is given by Hines (2004:p76) “Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward distribution to those in the supply chain adding value. The supply chain system must be responsive to customer requirements.”
Global Supply Chain Forum – Supply Chain Management is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders (Lambert, 2008)
Supply chain management transformation gain importance because provides fast