Operations Management - Supply Chain

Operations Management - Supply Chain

1. Infomediaries are basically e-service businesses, or information providers, that concentrate on providing information for users that request the information. Information providers are divided into two main categories: infomediaries that concentrate on solely providing information, on the one hand, and infomediaries that integrate this information providing into the value added to their main business. In order to accomplish this, information must be provided on three different levels, or more, if the case. The first level provides general information regarding the company's financial status. In this case, the information provided is free to users. This way, anyone can be informed on any company's financial performance, in order to get a better idea on future financial trends that will affect the company's activity. The value added by the second level consists in segmenting or sorting the information in order to suit the requirements made by individual users that request the information in exchange for a fee paid for this kind of service. The third level is a more complex one, focusing on providing custom searches that are especially designed in order to fit special requirements of certain individual customers. One may observe that the complexity of providing certain information is proportional with fees that must be paid for each specific service of this kind. In addition to this, most companies that provide information integrated in the total offering to users, also focus on providing chat rooms. This way, customers that use this free service can relate with other users and discuss matters of importance for them and the company in case. This is also a good way for the company to monitor customers' needs, preferences, and opinions. 2. The issue refers to disintermediation. Disintermediation consists in eliminating as many steps in the supply chain as possible, like hiring one's own employees to perform certain tasks in the manufacturing operation instead of having a vendor's employees perform the specific tasks. This way, a company strengthens its relationship with both customers and suppliers, by eliminating a series of intermediaries. This way, the supply chain becomes significantly more flexible. This strategy was used by Wal-Mart, when the company built large distribution warehouses in order to store certain products for restocking retail operations. The direct result of this operation was the fact that important amounts of capital were used for the facilities and inventory. This movement led to another: cross-docking. For Wal-Mart, this meant scheduling the vendor's truck arrival at the receiving dock. This way, products can be immediately uploaded and carried across to trucks on the shipping dock. As a consequence, in addition to saving time, the company managed to increase the number of outlets without increasing the number and size of distribution facilities. Furthermore, disintermediation can be observed in airlines' activity. In this industry, the company's relationship with its customers and customer satisfaction are very important. Therefore, airline companies are trying to work directly with their customers as much as possible. Due to the Internet, airline companies have managed to eliminate travel agents in many cases. The immediate result consists in saving commission fees. 3. Given the tough competition and the globalization nowadays, manufacturers must come up with new strategies that will help them gain more ground and more customers. One of these strategies relies on integrating services into manufacturers' products. In order to be successful at implementing such a strategy, certain factors must be taken into consideration. The most important factors that must be taken into consideration by manufacturers in the service integration process are probably availability and customization. Basically, availability is represented by time and location. For example, through service integration, the delivery activity has been modified. Many companies provide a 24/7 service for their customers in order to gain competitive advantage. Other modifications regarding availability include the combination of automated Internet services and telephone access for certain domains of activity where this possible and useful. Customization refers to flexibility and directing it externally towards the customer, and not directing it internally on the production process. Basically, customization focuses on modifying the standard product so that the new, modified product suits better with individual requirements that customers have. Therefore, the production process must be flexible enough to allow the accommodation of several individual customer specifications. Although integrating services into manufacturers' products requires financial investments and time, one must take into consideration the positive aspects brought by the process, like: improved product performance, customer training, and expanded product capabilities. 4. Given the new service innovations' dual framework, involving the end product, on the one hand, and the service delivery method, new services can be categorized as window dressing, breadth of offerings, revolutionary, and channel development. Window dressing services refer to services that do not differ very much from other products of the company. Also, these new services are delivered in almost the same manner. Such window dressing services are represented by new items on restaurant menus, new routes or destinations for airlines, or new courses at colleges and universities. Given the fact that such new products are similar to other products offered by the company, their impact cannot be an important one. However, the advantage is that such new products can be brought to market quite quickly. Breadth of offering services category includes services with a visible design change, but with similar delivery process. For example, a company that owns a hotel or a restaurant starts with one location, but than expands to a greater number of locations, each new location having particular traits that the other locations do not have. Therefore, the design is different for each product variant, but delivery is the same. Revolutionary services are more complex. They incorporate very new content, on the one hand, and very new delivery method, on the other hand. They have certain disadvantages, as revolutionary products take longer to bring to market, and they also require important investments. Channel development services refer to services that are no different to the company's current services, but are provided through a new channel. Such new services include automated teller machines, or products sold through the Internet, and not only in traditional shops. Service quality is one of the factors that must be taken into consideration by the company when delivering its products through a different channel.