OUTLOOKS FOR OPERATIONS MANAGEMENT IN THE NEXT FUTURE
From the decade of the 60’s of the last century changes take place in the tendencies of the two forces that converge in the markets. On one hand the Offer that due to the technical innovations in the production processes, is wide in variety and quantity. This determines that the unitary costs diminish and in consequence a strong competition arises, that implies that one of the keys of the success in the commercialization of products is the access to the markets.
At the same time the Demand becomes more selective as consequence of a bigger purchasing power and permanent information due to the publicity. As stockout doesn’t exist the consumers acquire smaller quantities but more frequent.
This economic landscape drives the companies to look for their profitability through the decrease in the operation costs and distribution that, on the other hand, gains in efficiency for arriving quickly and to be able to present the products in an attractive way with high quality at the same time that the distribution gets more complicated.
Operations management has three levels of applicability in the supply chain: the retail level, the wholesale (warehouse) level, and the manufacturing level. Two factors common to all operations environments are close contact with people and the need for a consistent, well-defined planning and control system. Operations provide many different of management in areas such as supervision, materials planning, scheduling, purchasing, inventory control, and management consulting.
In these circumstances, when building a competitive advantage, the principal underlying concern is to avoid doing the same battlefield as your competition. If your competitor volume-focuses his factory, you volume-focus yours; if the competitor cuts the price, you cut yours. Such tactics never work very well for very long. Operations management is considered the best way for implementing strategy to avoid reciprocal head-on competition”.
Ramón Martín-Andino
EOI Operations Management Teacher