Essential Components of Operation Management
Lidl UK employs smaller components for its smooth operations. The company has been effectively applying the concept of effective operations management to achieve client satisfaction and at the same time be profitable. The components of operations management that Lidl UK has been making use to achieve efficient operations management are global competition, ecommerce, productivity, ecommerce and quality (Selen and Soliman, 2002).
Lidl UK has been making use of ecommerce to achieve effective operations management. Lidl employs over 20000 people and has a considerably large and sophisticated supply chain that is reliant of ecommerce technology in ensuring smooth operations of the company’s activities. As a matter of fact, the e-commerce is one of the fastest growing channels in the UK. The impact of the growth of the e-commerce channel has put the UK grocery retailers out of business because experts have described it as a very effective way of conducting the grocery business. Everybody is going digital nowadays to the extent that even groceries are shopped online. Though e-commerce comes along with added costs, still it has managed to stay relatively cheap and convenient thanks to another concept called discounting. This then means that the idea of click-and-collect is very cheap and convenient at the same time for Lidl UK and the customers. E-commerce as a component of operations management has also contributed significantly towards the creation of unique delivery methods. This methods of delivery still fall in the larger picture of operations management. E-commerce as embraced by Lidl UK has created convenience and ease of shopping which in the end has helped achieve the goals of the organization which is to ensure smooth operations and making money. As a matter of fact, empirical studies on the effects of e-commerce on the profitability of stores and food companies have shown that there is a general increase in the amount of sales when a company incorporates e-commerce management as a component in its operations management strategy.
Profitability is not the only positive effect that comes as a result of e-commerce as an operations management strategy. For a large store that employs over 20000 people, one expects a complex supply chain. If then e-commerce is incorporated in the picture, this means that the supply chain process will be more efficient and ultimately, there would be smoother operations in Lidl UK. Therefore, e-commerce is a critical component of operations management for the Lidl UK. E-commerce can take pride in the smoother operations in Lidl UK’s smoother operations and overall profitability.
Another key operations management that Lidl UK makes use of is productivity. Productivity in this respect refers to that ration of the outputs to the inputs of any organization. Employee productivity for instance, is a very crucial component of operations management that is taken seriously in Lidl UK. It is common knowledge that productivity, which is a crucial component of operations management, must be at its utmost value for any business to experience profitability and smooth opera...