Given the competitive worldwide marketplace, today’s companies need to be first

Question

Given the competitive worldwide marketplace, today’s companies need to be first to market, the largest in their industry, clearly/singularly identified as a product leader, etc.. These realities, and more, directly impact a company’s overall business and its operations management department planning.   If things go as planned, and everybody nods ‘yes’ the company will need to ramp-up to accomplish its new goals. Using The McJunk Laptop Computer Company as our example, discuss/describe these potential strategy changes that might affected the Operations Department:

how new product delivery speed might be affected

how configuration control and new product changes might impact both the company and the customer

how phasing out older products/pushing new products into the marketplace

changes to the product support/warranty strategies.

Explanation / Answer

1) Product delivery or scheduling is a sensitive process as it is impacted by both demand and supply and various other factors. Any increase in product demand would require subsequent modification in the supply process for the demand to be addressed efficiently. Any company which is in the growth stages needs to constantly monitor and modify product delivery due to addition of new products, or addition of new markets or expansion within existing market.

The major internal factors which impact product delivery are:

The inventory of finished goods available or level of inventory maintained by the organisation

Type of production infrastructure available in the form of raw materials, machines, human resource. With increase in production capacity to meet increased demand, more efficient management of the resources through Optimisation and minimization wastages will need to be implemented. Weather the laptops are only assembled awesome of the parts are manufactured by the company.

The process intervals within the manufacturing process right up to delivery to end user will require modification.

The technology that is being utilised for management of production as well as supply plays a major role in product delivery. Superior Technology facilitating easy monitoring with up to date reporting and adequate flow of communication will ensure that demand and production availment and the entire delivery system is streamlined to ensure in time delivery, everytime.

Economics plays a vital role as economic supply and order quantity to be able to maximize efficiency and profitability.

Whether Logistics are internal or external and how well they are controlled and managed by the organisation. For example, if the organisation consider forward vertical integration through acquisition of transport facility, the product delivery speech is under direct management of the organisation.

The external factors which impact product delivery speed are:

The demand for the product by the consumers along with the variation in the demand whether it is easy to forecast or is highly sensitive with large variability.

The lead time available between order and delivery date and how flexible it is.

The product delivery network whether it is through a large network of dealers and retailers with the level of inventory maintained by them.

The mode of delivery whether it is door delivery or from a store or a warehouse.

2) Configuration control or new product changes will impact both the company and the customer due to them representing the demand and supply factor respectively. The company will need to implement greater monitoring and control the associated with the change proving to be detrimental. Whenever a new product is introduced previous one changed feedback from the consumer becomes mandatory and crucial as it is critical in the success or failure of the product. This risk will need to be mitigated through an effective feedback mechanism and facilitation flow of communication between the customer Service Department and The Change management department to ensure the product is subject to requirements engineering and meets consumer wants and needs adequately. The customer looks for value addition with every change in product or within every new product as features which increase value proposition make the product attractive for the customer. For the customer, the decision to utilise a product or service depends only upon the value perceived within a product. Extensive competition and vast array of features available within laptops this becomes especially critical for the computer industry, to clearly define the target customer segment and create a product on the basis of requirements and needs of this target segment as wider application for a generalized segment may prove to be subject to risk of rejection.

3) phasing out of older products and pushing new products into the Marketplace requires extensive cooperation and coordination within the customer relation management department and the Sales personnel. Phasing out all the products simultaneously with introduction of new products creates apprehension among present consumer upon the product service becoming redundant leading to unavailability of product support rendering the warranty for the product redundant and in applicable. This may prove to be a major negative for the brand and Company image as the customers may feel cheated. The company Neem Store adopt an ambidextrous approach with maintaining clear an objective focus on both potential customers of the new product, along with existing customers of the old product. The strategy which needs to be adopted is by making the entire customer relation as well as sales force extremely efficient in managing and handling the situation. Old customers can be offered attractive discounts in the form of buy back schemes for converting to the new product. the existing customers need to be convinced that adequate product support and warranty applications would be available regardless of phasing out of the product, if unconvinced to upgrade. The potential customers also need to be convinced that introduction of new products by the company does not negatively impact the product support and warranty applicable upon the older models with every product and customer receiving similar importance. It is essential this message be communicated clearly to the customers through promotional campaigns also. It is essential that the customers perceive the company as empathetic and responsive to the needs even after the sale of the product. This becomes especially important for a segment such as laptops which are utilised for professional responsibilities where quick and efficient service facilities become crucial.

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