Operation Management

Introduction

In supply management, strategies and operational management are key decisions that define the success of a supply chain. The main areas in supply chain are location, production, distribution, and inventory. Location relates to the choice of geographical location of both distribution and produce facilities. Production and distribution are focused on the wants of the customer (what, when, how, and how much). Wegmans is one of the leading supply chains in the United States. This paper aims at analyzing its operation and, thereafter, introduces better approaches of improving the operations.

Some of Wegmans stores are very big, about 100,000 square-feet; this requires an efficient inter-departmental operation (Stevenson, 2014). The workers within such large stores should be equipped with relevant communication gadgets. Moreover, smooth communication is the basis of smooth operation. The operation manager should ensure that the employees deliver goods and services in accordance with the established rules (Muller, 2011). The operation manager should, therefore, be in constant communication with the staff so as to make sure that the norms are followed. For instance, when there is an abnormal purchasing of a given product, replenishing is done through a fast communication channel.

Furthermore, ordering services should be categorized on a departmental basis. The total sales are usually projected at the checkout points but they should not be the core for replenishing stock (Rostogi, 2012). Wegmans can improve ordering services by encouraging the combination of departmental insight and the sales exhibited at the checkpoints. In addition, the operation manager should analyze the trends and advise the supply chain. There are reported cases when some of the Wegmans stores have replenished goods due to the excessive shopping during the peak seasons and holidays, which affects the orders given by the customers. Scanning the environment, increasing the number of delivery services, and goods replenishment are some of the factors to be addressed. Consequently, a clear and strict rule on quality and timely delivery of the goods by the suppliers is the crucial factor that Wegmans stores lack (Stevensons, 2014).

Smooth operation of Wegmans stores over the years resulted in their rise to one of the leading supply chains in the United States. With the technology advancement, the level of inventory should also be improved. Therefore, by increasing the holding capacity of the warehouses, enough space is created, so the transfer of goods to and from the supermarket is enhanced. The concept of warehouse changes significantly while dealing with perishable goods.

In addition, Wegmans stores have taken a good initiative of educating their staff on meat handling. The employees attend Wegmans meant University. Nevertheless, this does not address the whole aspect of perishable goods. Flowers, unlike meat, cannot be preserved in the fridges. Moreover, since this is one of the leading supply stores in America, additional measures should be taken to ensure customers’ satisfaction. Wegmans stores have a policy that guarantees the clients are served with alternative goods in case of purchasing the ones that are not in good condition. This is a sales strategy to keep the consumer satisfied (Stevensons, 2014). However, in reality this could have been stopped through a proper operation.

The quality of perishable goods is a product of timely delivery from the producers, a factor determined by efficient operation management. Wegmans stores receive their goods from a number of suppliers so the quality of the products is based on the word of the supplier. Another way of improving the quality of perishable goods lies in removing the doubt posed by the supplier. I would advise the Wegmans operation department to develop an internal produce system instead. The large stores usually make more than 10 replenishment of fresh produce a day. When the produce is within the control of the store, the operation challenges involved with supplying perishable goods are reduced. If the store in not able to grow its own produce, then its managers can come into agreement with local farmers who can directly supply the stores, thus, bypassing the warehouse (Stevensons, 2014). As a result, the holding inventory costs are lowered and the produce gets to the stores quickly.

As illustrated in the operation tour, Wegmans have stores that supply the stores with grocery and the other items. The management of the warehouses and the stores that they supply are under the same management, which might lead to operational stagnation. The management of the stores and the warehouses should be separated to encourage the cross-departmental monitoring. These two departments should, however, report to the Wegmans area management. Consequently, providing substantial power to the supply system would increase the supply chain.

Besides, additional replenishment policies should be incorporated. Wegmans stores are composed of many products and the complexity of the goods demand a well-organized replenishing method. The rate of replenishment is bound to change with such factors as growth in sales. Additionally, location should be considered in the replenishment. A store in the rural setting is likely to get access to direct farm produce compared to a store in the urban region. Moreover, it is prudent to remember that inventory and replenishment in the process are closely related.

Thus, the following inventory planning methods should be established: replenishment and reordering. Reordering needs to define the ordering period and the quality of ordering. The inventory parameter will advise whether the replenishment should be done at the time of the review or not. Reordering should be implemented considering such factors as continuous and periodic review, order quality, and order up to the level and option for reordering process. To conclude, the above processes serve to ensure easier management of a manual process when the number of items involved is large or when the constrains on ordering day occur.