Portfolio Project: Organization Kmart



Portfolio Project: Organization Kmart

Introduction

The term operation management can be defined as an area of business administration, which is dedicated, to both research and the implementation of all those actions that tend to generate greater value added products through the planning, organization, direction and control in the production of both goods and of services, all aimed at increasing quality, productivity, improve customer satisfaction for customers and reduce costs. Organizations often used information systems in operation management to increase their overall efficiency and for better management of routine activity (Hammett and McMeikan 1994, pp. 4-6). At a Strategic level, objective of the operations management involves finding a sustainable competitive advantage for the company. In this connection, this study is going to discuss one of the supply chain management functions of operation management of K-Mart. The study will also discuss issues in information system of K-Mart.

Supply Chain Trend in US

The basis of competition in US retail industry has been shifting towards supply chain (Hughes and Merton 1996, pp. 4-6). The US industry of grocery retail is very competitive and as many big names in the industry are competing to grab more customers. However, firms like K-Mart, Sainsbury, ASDA and others have incorporated their supply chains into their business strategies. They are no longer concerned about cost reduction and other strategies rather supply chain is the most paramount concern to them. Companies are striving for having differentiated processes and capabilities that are supposed to be the support of supply chain (Accenture, 2010).

Retailers are focusing on having better communication with their suppliers with greater and effective information sharing (Hammett and McMeikan 1994, pp. 4-6). This system works best when whole supply chain operates as a team instead of utmost effort of a single unit. Firms are supposed to be flexible and open to allow free communication and cooperation among different departments. A trend in US retail industry is a quick response (QR), supply chain partnership which gathers retailers and their suppliers to carry out effective management of the whole supply chain (Zairi 1998).

Retail Trade and Aggregate Planning

Retail trade is one of the world's largest economic sectors and is the final step in the distribution of merchandise from producers to consumers. The geography of retail trade is concerned with the spatial patterns of stores, the behaviours of consumers, and the spatial interactions between them. Research on retail trade contributes to a better understanding of economic processes (Blanchard 2010, pp. 56-196). For example, retail trade can be analyzed in terms of consumer demand and its behaviours, and store supply and its strategies can be examined in the context of various geographic scales. Retail studies show that there are significant demographic differences in the retail attraction of stores, each of which has a discrete distance decay effect (Croom, Romano & Giannakis 2000, pp. 67-83).

Different socioeconomic profiles of customers have also influenced retail trade. For example, income is a good indicator of store choice. The spatial dimension of retail trade is important since every ...