Overview of the article
Various operations management facts and theories are objectively presented throughout the article of “Supply and Demand Chain Management: The Effect of Adding Services to Product Offerings” by Oscar Bustinza, Glenn Parry and Ferran Vendrell-Herrero. These theories include supply chain management and competitive advantage, operations strategy and technology. The main purpose of the literature being reviewed is to address the research question of “How does changing the offering affect the supply and demand chain management?” (Bustinza, Parry. & Vendrell-Herrero, 2013, p. 618). They achieve their research objective through a study of the music industry and demonstrate how the digitization of the creative industries has affected the supply and demand chain management approach when new services are added to traditional product offerings.
Operations Management (OM) explores numerous theories on how to improve the processes and design of a supply chain. OM can be defined as “the science and art of ensuring that goods and services are created are delivered successfully to customers” (Collier and Evans, 2012, p. 1). The content of BX2062 predominately studies the seamless integration of logistics, operations and the customer. The literature covers a wide variety of themes that repeatedly emerge within the subject content of BX2062, Operations Management. Although the literature presents these themes in an array of different contexts, this paper will primarily focus on their application and relevance to the subject content of BX2062.
Operations Management continually studies methods to find the best supply chain processes to be able to serve each customer and each product at a given point in time (Thomas, 2012). The article likewise explains how supply and demand chain management are sizeable factors that work simultaneously to contribute to a firm’s customer satisfaction and competitive advantage. It is stated in the article “DCM allows the firm to achieve real competitive advantage…and satisfies the existing customer requirements” while “SCM focuses on the creation of offerings and their transfer, flowing from suppliers to consumers.” (Bustinza, et al. 2013, p. 619)
Technology is a key component of the supply chain, and can completely alter the way that firms manufacture and distribute their finished products. The digitization of the creative industries is a significant factor disrupting the way that firms manage their supply and demand chain. To support this idea, the authors present the findings of a study that was undertaken on the consumers of the music industry. The findings show that the digitization of music has “effectively ‘broken’ the traditional manufacturing supply chain” (Bustinza, et al. 2013, p. 625). With technology becoming a growing factor throughout the world, firms may find that they will...