Essay on Operation Management With Annotated Bibliography

To meet the complex needs of customers and respond to the challenges from technological advancement and intense market competition, companies have to develop operation and change management strategies to become service providers. Operation management as a transformation process plays an important part in achieving organizational performance. To transform a manufacturing company into a service company require the internal configuration of the business and the transformation of the external relation with competitors, customers, and suppliers. Operation integration of supply chain has direct positive effects on customer action-based service and product-based service, which in turn improves a firms performance. Thus, Operational and strategic supply chain integration is critical in transforming an organization into a service oriented. Companies need to focus on supply chain integration to improve service-oriented transformation to meet customer needs and increase organizational performance.

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Comparison

For years, strategic integration among customers, manufacturers, and suppliers have been an important strategy that can help a firm in supporting business strategies achieves a competitive advantage and provides ways of improving effectiveness and efficiency. Product based services like logistics support, online help, expert assistance, training services, financial services and after-sale services are service categories that are important in the transformation of businesses from manufacturing to service oriented firms (Prajogo and Olhager, 2012). Huo (2012), state that a manufacturing company can provide services that account for approximately 65% of value addition. Maintaining the quality of services is the best way of maintaining relationships with customers, which strengthens customers confidence and impacts customer satisfaction. Firms can be enhanced operational integration in supply chain management through information sharing to improve product based service quality (Green, Zelbst, Meacham and Bhadauria, 2012). Strategic integration is necessary in providing capabilities needed in developing services for customer and reducing risks by identifying and eliminating non-value added activities and consequently strengthening product quality and sales growth. Therefore, strategic integration as a strategy in operation and supply chain management is important in giving a firm a chance to focus on its areas of expertise and competencies. Research shows that the knowledge of strategic integration helps reduce costs and the overall design effort of a company (Liu, Kee, Wei and Hua, 2013).

Article Summary

He, Y., & Lai, K. K. (2012), Supply chain integration and service-oriented transformation: Evidence from Chinese equipment manufacturers. International Journal of Production Economics, 135(2), 791-799.

The article develops a model that can be used in describing the relationship between strategic integration and operational integration of supply chain management, customer action based service, and product based service in organizations. He and Lai (2012), address integration strategies of supply chain and how the strategies influence firm performance and service orientation. The article provides empirical and theoretical supports that show that customer based services and product based services are necessary transformation strategies for organizations. Product based services and customer based services are essential in the performance of an organization. Supply chain integration strategies are critical in implementing strategic choices like service transformation. Product based service is instrumental in achieving a competitive advantage while customer based services are essential in improving organizational performance. Operational integration on organizational performance and service-oriented transformation has a positive impact on product customer based service and based service that include cost savings, customer service, improved quality, accelerated delivery times and inventory reductions, which can enhance organizational performance and market share. Supply chain integration strategies should be managed carefully because it determines the competitive advantage and success of the organization. The organization needs to reexamine, redefine, and change their approach. The philosophical outlook of the transformation process is that it should have a remarkable achievement.

Application

Strategic integration strategy in operation and supply chain management is inherently strategic and a source of multiple competitive advantages for some organizations. The interdependence of every partner in the supply network is a major factor in effective integration. Organizations can implement integrated supply management strategies to manage their dependence and leverage it to their advantage. For successful implementation of the strategic integration strategy, it is important to assess the value, risks, and the method adopted by the company to balance the value and risk. Thus, organizations that implement integrated supply management strategies can create value within the firms operations. Enabling innovation and achieving real agility require integrated supply management strategies to improve service-oriented transformation to meet customer needs.

Annotated Bibliography

Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology, and sharing, and logistics integration. International Journal of Production Economics, 135(1), 514-522. Retrieved from: http://www.sciencedirect.com/science/article/pii/S0925527311003872This article investigates the integration of material and information flows among partners of supply chain management and their implication on organizational performance. The major focus is on the role of supplier and retailer relationship as the primary driver of integration. Prajogo and Olhager (2012) argue that supply chain integration is considered an important in supply chain performance. The study results show that logistic integration directly influences organizational performance. The long-term relationship with customers and suppliers also has significant effects on performance. Thus, operational performance is positively affected by information integration and material integration. Prajogo and Olhager (2012) conclude that strategic supplier relationship has both indirect and direct effect on organizational performance.

Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3), 290-305. Retrieved from: http://www.emeraldinsight.com/doi/abs/10.1108/13598541211227126The aim of this study is to contribute to empirical investigations on green supply chain management practices on organizational performance. The article also empirically theories and assesses comprehensive green supply chain management performance, model and model. The practices used in the research link manufacturers, customers, and suppliers in the supply chain. Green, Zelbst, Meacham and Bhadauria (2012) uses data from manufacturing managers who reflect how they work with customers and suppliers in improving their organization through supply chain strategies. The study results show that supply chain management practices increase organizational performance. Thus, supply chain management practices have a direct impact on performance.

Liu, H., Ke, W., Kee Wei, K., & Hua, Z. (2013). Effects of supply chain integration and market orientation on firm performance: Evidence from China. International Journal of Operations & Production Management, 33(3), 322-346. Retrieved from http://www.emeraldinsight.com/doi/abs/10.1108/01443571311300809The article looks into the impact of supply chain management in organizational performance in companies in China. The study further analyzes the relationship between the integration of supply chain management and performance of an organization. The study results show that operation and supply chain management is positively linked to organizational performance and operational performance. Sharing information only influences operational performance, and it has no effect on the performance of an organization. The paper further provides ways of moderating the implication of market orientation in the performance of an organization and supply chain integration. Therefore, the study provides knowledge on supply chain management by presenting the relation between market orientation, supply chain integration, and organizational performance.

Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596-610. Retrieved from http://www.emeraldinsight.com/doi/abs/10.1108/13598541211269210

Huo (2012) in his study analyzes the implication of supply chain integration on organizational performance based on the view of organizational capability. He looks at the relationship that exists between financial performance, customeroriented performance, supplieroriented performance, supplier integration, customer integration, and internal integration from the view of organizational capability. The study findings indicate that internal integration can improve external integration, which in turn can directly increase the performance of an organization. The study further identifies the effects of supply chain management on the performance of an organization and explains the results from past researches on the implication of supply chain management on organizational performance.

References

BIBLIOGRAPHY Green Jr, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2012). Green supply chain management practices: impact on performance. Supply Chain Management: An International Journal, 17(3), 290-305. Retrieved from: http://www.emeraldinsight.com/doi/abs/10.1108/13598541211227126He, Y., & Lai, K. K. (2012), Supply chain integration and service-oriented transformation: Evidence from Chinese equipment manufacturers. International Journal of Production Economics, 135(2), 791-799.

Huo, B. (2012). The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596-610. Retrieved from http://www.emeraldinsight.com/doi/abs/10.1108/13598541211269210

Liu, H., Ke, W., Kee Wei, K., & Hua, Z. (2013). Effects of supply chain integration and market orientation on firm performance: Evidence from China. International Journal of Operations & Production Management, 33(3), 322-346. Retrieved from http://www.emeraldinsight.com/doi/abs/10.1108/01443571311300809Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships, information technology, and sharing, and logistics integration. International Journal of Production Economics, 135(1), 514-522. Retrieved from: http://www.sciencedirect.com/science/article/pii/S0925527311003872