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Introduction - Optimizing Supply Chain Management through Automation: A Case Study of Uniqlo
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Operation management in the business organization is concerned with designing and controlling various processes in the organization to meet the business goals of the organization. The role of decision-making is most important for the operational management process of the company. This is a challenging process for the organization to take effective decisions to improve the internal and external operations of the company. This report will be providing brief information about the decision management process for the supply chain management process of the company. Different value choices of the organization related to the decision making process for the supply chain management on the operational management process. Operational choices of the organization will be critically analysed in the report with help of the 4 V’s of the supply chain (Koptev, 2017). Various implementational factors will be analysed in the report that is related to the supply chain process of the company. Organizational fit will be analysed in the report for the choices of the organization. This is how the importance of decision-making will be analysed for the supply chain and operational management process of the company. This report is based on Uniglo From Fast Retailing. The company was established in the year 1963 and it is considered the largest retailer in the Asian market. This report will be analysing the challenges that are faced by the organization in the supply chain management process. The process and effectiveness of the decision-making process will be analysed in the report.
Value Choice of Organization
As Uniglo From Fast Retailing company has faced major issue in the supply chain process due to the unexpected weather conditions. The organization has faced major failure in the supply chain management process due to the logistic failure. To overcome the issues in the supply chain management process, organization have developed a plan to implement automation technology in organization to reduce the chances of failure in the supply chain process of the company. From the various perspectives, change that is proposed by the management of the organization can be assessed to evaluate the effectiveness of the decisions that are made by the company.
Speed
The challenges that are faced by the organization is related to supply chain management of the company is related to the unexpected weather condition. To avoid this challenge in the supply chain management of the company, automation technology can be considered as a most effective technology to increase the process of supply chain management process and automation technology do not have any impact of weather condition (Gölzer and Fritzsche, 2017). Automation technology can help the organization to effectively manage the inventory of the company. Automation also can help the organization to complete all the tasks related to the supply chain management process in the company.
Quality
Quality is a major factor in the supply chain management process of the company. Automation technology is the most effective techniques to maintain consistency within the operations. Automation technology is consists of high precision and consistency in performance. To maintain quality in the supply chain management process, Automation technology can be considered an effective choice of the company.
Cost
This is most important for the organization to keep the operation cost low to maintain higher profitability in the target market. Cost-saving can help the organization to develop strong financial capital. The initial cost of implementing automation can be high for the organization but it can be considered as a one-time investment for the company. This technology can reduce the labour cost of the company and it also can help the organization to save cost by reducing chances of error in the operations. This is how the choice of organization related to Automation can be considered as an effective decision to improve the overall performance of the organization in the target market.
Dependability
For the organization, this is important to reduce the dependability of the supply chain process on the various internal and external process of the organization. By reducing the dependability of supply, chain management process organization can reduce the off time in the supply chain management process in the company (Ting and Shouzhong, 2018). Automation in the supply chain can reduce the dependability of company operation on various external factors. Automation can improve the supply chain management process of the company.
Flexibility
Operations that are performed in the supply chain management process of the company is depended on the demand for products and the inventory condition of the company. This is challenging for the organization to maintain flexibility in the supply chain management process. Automation technology can be considered an effective process to improve the flexibility in the supply chain management process. By implementing automation in the supply chain management process flexibility of the supply chain management process can be improved.
From a Different Perspective, the decision that is taken by Uniglo From Fast Retailing is effective to maintain their supply chain process in the area of operation. Automation is also effective technology to reduce the off time of the company. Inventory of organization also can be managed with minimum chances of failure.
Operational Choices of Organization
The operational management process mainly consists of a process that is used by the organization to transform the raw material into the ready to sell goods. This transformation process can be explained by organization in different ways. 4 v’s of operation management are considered as ways that are used by the organization to transform the goods into the final product.
Volume- Uniglo From Fast Retailing is considered a speciality store. So, the main purpose of the organization to maintain the volume of the special goods in the effective quantity to meet the quantity of business organization (Wei and Yang, 2018). This is important for the organization to ensure the availability of its goods in retail stores. In this case, automation can be supportive for the organization to maintain inventory effectively.
Variety- As a retail store in the Asian market this is most important for the organization to provide a range of products and services to the customers. This can help the organization to gain a higher performance rating in the company. Uniglo From Fast Retailing Company is focusing on providing high-speed services to the customer. So, Automation technology can be attached to the information technology of the organization to analyse the customer behaviour to manage the inventory of the company effectively.
Variation- As per the customer behaviour and past information, an organization can develop an effective plan to manage the inventory of the retail store to keep the organization profitable. In this process, an organization can manage the inventory as per the predicted demand of the products and services in a specific market. It can be helpful for organization to reduce losses of the company. Automation technology and approaches that are developed by the organization are effective to meet customer demands within time.
Visibility- All the services that are provided by the organization to the customer are highly focused on customer satisfaction. This is the main purpose of the organization to meet the demands and requirements of the customers to get maximum profitability in the target market. This approach also can help the organization to develop a positive brand image in the global market (Matthews and Wrigley, 2017). Automation technology can help the organization to improve in the supply chain management process to increase the productivity of the organization in the target market.
This is how 4 v’s of operation management can be considered by the organization to maintain the internal and external operations of the organization on a global level. Automation technology also can help the organization to maintain effective operation management activities in the workplace.
Implementational Factors
For the effective operation management process, this is most important for the organization to consider various factors that are related to the supply chain process of the company. By analysing and considering these factors, an effective business strategy can be developed by the management of the company to fulfil organizational objectives within time. The Factors that are considered by the Uniglo From Fast Retailing are- Structure, Location, Capacity, Inventory, Layout in Supply Chain. All these factors can be considered by the organization for improvement to gain higher productivity in the target market.
Structure
The structure that is used in the organization is based on the approach of the company in the global market. The organization is focusing more on technology rather than fast fashion and it is helping the organization to grow (Kotarba, 2018). The business structure that is used in an organization is- flat internal organizational hierarchy. This business structure is effective to meet the innovation approach of the organization.
Location
Uniglo From Fast Retailing organization is a Japan-based company that is performing business in the Asian market. All the business of the organization is located in the Asian market. Headquarter of an organization is located in Yamaguchi, Yamaguchi, Japan. All the operations of the organization in the Asian market are controlled from headquarter.
Capacity
As per the current performance of the organization, their business capacity has been reduced with prior losses in business but the organization is capable of performing all its business operations in the Asian market. The company is also able to perform in new market with its advanced level technology and fast production capability.
Inventory
As all the operations of the organization are based on innovative technology and business approach, the organization can effectively manage its inventory. The organization has planned to use automation in its supply chain management system to increase control of the inventory management process.
Layout in Supply Chain
The layout of the supply chain process is completely dependent on the technology of the organization. The organization is using a digitalization approach to control its operations on a global level. The organization is planning and implementing all the supply chain management process from the digital system. The proper combination of automation and digital technology is used to manage the supply chain effectively.
Organizational Fit with Choices
As the organization has faced major failure in the supply chain management process due to unexpected weather change. Uncertain winter has affected the supply chain of the company. It has majorly affected the logistics of the organization. This is the major reason for the financial loss of the company in the target market (Kotarba, 2018). To avoid such issues in future, the organization has planned to implement automation technology in its supply chain management. In the strategy development process, all the decisions that are taken by the organization are effective. As per the operation management process of the company, Automation technology is the most effective process to manage the supply chain process effectively. According to the current supply chain management system, automation technology is compatible. All the business choices that are made by the organization through an effective decision-making process are effective for the organization to meet the business objectives.
Conclusion
This report is concluding the importance of an effective decision-making process. Various aspects related to the decision-making process has been analysed in the report. Various factors that can affect the supply chain of the organization also has been studied in the report. Decisions that are taken by the organization also has been evaluated for their business goals in the global market.
References
Books and Journals
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational implications of the digital transformation in industrial practice. Production Planning & Control. 28(16). pp.1332-1343.
Koptev, V.Y., 2017, February. Improving machine operation management efficiency via improving the vehicle park structure and using the production operation information database. In IOP Conference Series: Materials Science and Engineering (Vol. 177, No. 1, p. 012005). IOP Publishing.
Kotarba, M., 2018. Digital transformation of business models. Foundations of management. 10(1). pp.123-142.
Matthews, J. and Wrigley, C., 2017. Design and design thinking in business and management higher education. Journal of Learning Design. 10(1). pp.41-54.
Ting, Z.H.A.N.G. and Shouzhong, H.U., 2018. Study on garment enterprise buyer operation mode based on the grounded theory. Journal of Silk.
Wei, L. and Yang, S., 2018, December. Based On Big Data Technology Analysis On The Mode And Countermeasures Of Smart City Construction Operation Management. In 2018 3rd International Conference on Smart City and Systems Engineering (ICSCSE) (pp. 184-186). IEEE.
