Operations Management

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How does Operations Management Support the Organisation’s Supply Chain?

Covid-19 has put unprecedented demand on supply chains around the globe.  With procurement and supply professionals being recognised now more than ever for the essential role that they play in delivering efficiencies and keeping supply chains operational in today’s challenging environment, its never been a better time to take a closer look at the operations management areas in your organisation and identify areas of savings and increased efficiencies to ensure your organisation remains as efficient as possible and fit for the future.

Operations management is the business function responsible for designing and managing products, processes, services and supply chains.

The operations management team will oversee the use of materials and work alongside key stakeholders within the organisation, such as buyers, production planners and the manufacturing cells, to oversee the supply chain process, from the initial stages of production forecasting and demand planning through to inventory arriving into the warehouse.

Efficient business operations ensure finished goods or services are delivered on time and in full to meet customer needs most effectively.

Operations management within a manufacturing facility will often oversee the warehousing facility to manage accurate levels of inventory management and efficient use of space for both inbound components and outbound finished goods.

Operations managers need to be skilled at building relationships with key stakeholders, co-ordinating internal business operations and up-to-date with agile management techniques to reduce waste and improve efficiency.

Top Five Operations Management Tips

  • Focus on the right business metrics with the customer in mind
  • Use data to identify key problems and measure effectiveness in the supply chain
  • Stay up-to-date with the latest technology and automation tools
  • Continually develop and refine business processes
  • Deliver updates to the business and key stakeholder groups

CIPS Knowledge-related topics, best practice guides and white papers include warehousing; stock control; manufacturing; forecasting and capacity requirement planning.

Download the CIPS Operations Management Tools

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Demand-driven supply chain (DDSC), is a system of technologies and processes that sense and react to real-time demand

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Pareto Analysis

The Pareto principle serves as the basis for ABC analysis, also known as the 80/20 rule.

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