Select a SERVICE ORGANIZATION of your choice. It could be the organization in wh

Question

Select a SERVICE ORGANIZATION of your choice. It could be the organization in which you are working currently. Carry out a research on the following aspects and present it in the form of a Report.

1. Introduction - Give a brief overview of the organization including its services, location & history.

2. Product - Describe the service in more detail.

3. Process - Give an overview and flow diagram of the service process.

4. Location – Discuss the significance of the current location of this organization. Discuss issues pertinent to its location.

5. Layout - What type of layout does this organization have? What is the rationale behind the layout? How does the organization manage bottlenecks?

6. Supply-Chain Management a. What is the supply chain strategy of the organization? b. Discuss how the supply chain is managed.

7. Summarize by linking the service operations strategies to the mission and goals. Make recommendations for improvements.

Note : the answer should be around ( 1500 - 2000 ) words and should be typed by the computer - Please do not copy and paste

Explanation / Answer

I would like to choose Amazon Web Services (AWS) for this requirement.

Strategic and Operational Planning within a Supply Chain:

Introduction to Strategic Operations Planning:

Supply Chain Management:

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with the Web-based application (ASP) who promises to provide part or all of the SCM service for companies who rent their service.

Supply chain management flows can be divided into three main flows:

The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.

There are two main types of SCM software: Planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.

Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies.

When an organization collaborates with a partner in the downstream supply chain, it is said to be Forward integration. For example, in the case of a medical supply chain, an academic medical center combines operations with general surgery groups. Amazon integrated the logistics function into its value chain to add a competitive advantage based on faster and low-cost delivery.

One of the key reasons for Amazon’s rapid growth is its domestic forward and backward integration linkage strategies in the manufacturing sector. Such strategies are predominantly associated in the manufacturing sector than IT sectors.

They did their own low-end imported components and the required infrastructure and skill sets were built in-house. All supplies to the assembly plant were produced in Amazon’s fulfillment center without outsourcing. These two backward integration strategies have created enormous jobs in the company which has substantially improved their own consumption of goods and services that are in-house developed.

These backward linkages resulted in multiplication effect where the creation of direct and indirect jobs which is undertaken in a holistic view. These linkages have resulted in vertical integration that is having the customer base and supplier base internally and the enhancement to the value chain which is design to manufacturing within its internal national boundaries. This resulted in improved internal utilization within Amazon’s space even when the export ratio is high.

Both of these forward and backward linkages created enormous demand for their competitors as well. For example, backward linkages created the demand for suppliers who supply raw materials. The Same way forward linkages are the one where the manufacturer becomes the supplier to a different industry. Amazon continues to focus on expanding both backward and forward integration strategies, especially in the manufacturing sector.

The three e-commerce categories that will be involved here are,

Amazon’s way of supply chain integration works in the following way:

The consumer does the online booking of their requirement where the web interface transacts with the web server which is dedicated for the e-com portal. This web server supplies the consumer requirement to the order manager which is a centralized unit that reviews all the stages of various orders which are a typical workflow management system. This order manager is linked to a database that confirms if the need of the consumer is mapped to what is available in the inventory

If the items are not in stock, the other inventory database orders for the product supplies from the wholesale order unit. Accordingly, the inventory database provides an intimation of ETD to the consumer. Alternatively, if the stock is available in the inventory, the order manager process it and sends out the communication to a merchant system which is typically run by the 3rd party firm who is linked to the back for accepting the payment with the help of consumer’s credit or debit card details.

The background check also happens to the consumer's bank PC and once the bank machine confirms the fund availability, the authorization from the merchant system is done. Based on this the order manager confirms about the completion of the transaction and notifies the web server that shows the customer a confirmation Web page that the order has been processed. Hence the transaction will be completed. Now the order manager supplies a request to the warehouse for the dispatch of the goods to the consumer. A truck from the dispatch firm goes to the warehouse, collects the product and delivers them to the consumer. Once the delivery of goods is confirmed, the machine in the warehouse sends out an email and mobile confirmation to the consumer that their product is on the way and confirms once done.

Manufacturing Supply Chain:

Manufacturing supply chain encompasses Suppliers, Manufacturers, Distributors, Retailers and End Customers. The supply chain here includes Raw Materials, SME Suppliers to large organizations, Distributors and then to customers.

Example of a Manufacturing supply chain - The Supply Chain for Exporting Coffee from Aceh. The supply chain consists of the economic actors who own the product as it moves from the farmer to the end customer improving the flow of products and information through the supply chain will enable goods to be delivered to the customer at lower cost, meaning improved profits to the actors in the chain. Here Coffee moves from Farmers to Local Collectors, then to traders and Exporting Companies.

Service Supply Chain:

A service supply chain includes supplier, service provider and the consumer. Demand Management is done through the supply chain. Capacity and Resource Management is done at the supplier and service provider level. Service performance management and order management process is done at Service provider and consumer.

Example of a Service supply chain: For a Hotel Management company, there are two sections - Upstream and Downstream units. Serving Raw Materials from Mill, Sand Quarry and it goes to Cement & Farming Contractor and then it goes to the General contractor for building and Mattress supplier. Along with Temporary Labors are supplied along with Food services. In the downstream, Hotel Brand, Business Travelers and Leisure Travelers are connected to the Hotel Management Company.

Forward logistics is when materials, products, information about the service etc., go from the company to a retailer, logistics unit, consumer etc., Here forecasting is clear and straightforward. There could be one too many relationships, uniformity in product quality, uniformity in packaging systems, clear destination, significance to speed and pricing options are clear, easily manageable product life cycle and clear visibility of the process. Hence, sharing of resources is very much possible due to above-mentioned reasons in forwarding logistics and also with the help of one of many distribution channels and clear practices of negotiation, marketing etc.,

Reverse Logistics is when product, goods, inputs goes from a consumer to a manufacturer, seller or transporter etc., Here forecasting is difficult, there are many to one distribution channels, non-uniform product quality, packaging is often damaged, disposition is unclear, product pricing depends on several factors, reverse cost is not quite visible, management of inventory is not consistent, larger product lifecycle challenges, negotiation is not quite easy, process visibility is very less. Overall cost reduction from the consumer standpoint is really better and it optimizes the supply chain for them and not to the organization.

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