Time Priority In A Company

Published Date: 02 Nov 2017

1.0 Introduction

This report split to 2 parts. Part 1 is talk about time and quality priority in the company. Under this part we will know that what is the time and quality priority to affect the operation in company. The second part is about supply chain in e-commerce. Under this part we will know how the e-commerce affects the supply chain, how it changes and the benefit.

2.0Strategy operation management

Every company has their own operation management to operate their organization. In this part is about time and quality priority how to use in an organization to make their company more productivity and earn money.

2.1 Time priority in a company

According to Hadden (2011, pg470) from the book name as Small Business Management: Entrepreneurship and Beyond mention that "company that make significant profit from handling charges and that reduce cost by completing more orders will use short processing time priority dispatching rule." Based on this statement, company can gain more profit with using the strategies to deliver their services very efficient in a limited of time.

2.2 Domino’z pizza

According to Pradhan (2009, pg 523) from the book name as Retailing Management 3E mention that "Domino’s Pizza is the recognized world leader in pizza delivery, operating a network of company-owned and franchise-owned stores in United Status and international market." The writer claimed that Domino’s Pizza is the fast food company who has made the pizza delivery to their customer with quick and efficient. Besides, it is known as the world-wide company in any branch around the world.

2.3 Strategy Domino’s Pizza to use

According to Verma (2012, page 495) from the book name as Services Marketing: Text and Cases, 2/e mention that " Domino’s delivery time of 30minutes is a finite and certain and it seems to run faster than a delivery restaurant that does not specify the delivery time though may not take any longer than 30 minutes to deliver services." The author claimed that Domino’s Pizza is using time strategy in their company because they want to use time delivery not longer than 30 minutes with the purpose of guarantee to the consumer to become their competitive advantage compare with other fast food restaurant. In other words, it shows that how fast they made the food and gave services to the customer in order to attract more customers.

According to the Domino’s official website, it show that Domino’s has provide 15 minutes guarantee to the consumer however they will give a free pizza voucher to the customer if they failed to do so. Based on the statement, Domino’s Pizza wants to deliver the time perception to the customer from their promises. So, it helps the company increase the customer satisfaction by adopted this strategies. Furthermore, the company have more loyal customer if their services which are better compared to their competitors.

The purpose of Domino’s pizza using the time priority one of the competitive strategies due to the people nowadays needs to have a good services and faster delivery. So, as the operation manager of Domino’s Pizza, he or she should concern more about on how to make their services and delivery to be much more efficient in order to keep improving in their customer relationship. Lastly, the time priority not only applied in the fast food industry but also can apply to others industries in order to increase the customer loyalty and customer satisfaction.

2.4 Quality in a company

According to Porter (2009, pg 13) from the book name as Operation Management mentions that "quality cover both the quality of the product and service itself and the quality of the process that delivers the product and service." Based on the definition, quality can be meant by the standard of quality of the product itself which is the durability or function ability and the quality of the service offered by the product such as after-sales services or warranty.

2.5 Honda

According to Evans and Lindsay (2008, pg 313) from the book name as Managing for Quality and Performance Excellence mention that "innovation, branding, customer satisfaction, and efficiency are central to Honda success; therefore, quality is at the core of everything they do." The authors claimed that Honda is concern about their quality of the product and successfully lead to Honda’s became well-organized in terms of innovation, customer satisfaction, and branding.

2.6 Strategy Honda to use

According to Daft (2008, pg 770) from the book name as New Era Of Management mention that "the key factor was a systematic discipline for measuring quality, correcting procedure to improve quality and making sure every employee knew that quality was Honda biggest priority." The writer claimed that Honda is concern about quality of their product and the main point of quality was quality control, make alteration of the procedure and employee well known in their product was the biggest priority.

Besides, Monczka, et al. (2008, pg307) from the book name as Purchasing and Supply Chain management mention that "A Quality-Up program targets suppliers with lower quality. Honda works directly with the supplier’s top management team to ensure that the supplier produces a 100% quality product." The authors emphasized that Honda need to confirm that upper level of the management team to make sure that supplier produced the good quality of car in order to prevent a lower quality of their products.

The purpose of Honda using the quality priority due to the customer also concerns more on the quality of the products. So, as the operation manager, they should take quality control of the product into consideration in order to increase the customer satisfaction to buy on their product. In other words, the quality control not only will increase the customer satisfaction but also it helps the reputation of the company would be improve further.

2.7 Compare time and quality priority

In contrast, time priority plays the important role in Domino’s Pizza however the quality of the Domino’s cannot says that is a good quality product compared to others industries. Nevertheless, other industry like Honda is produced the quality of good car around the world but it consume a lot of time, so it might increased the production cost and the sales are not perform well compared to the time priority company. Furthermore, the time priority company concern about their customer relationship but sometimes cannot make their customers to have a good satisfaction. In other words, the company which adopted the time priority strategies cannot says that 100 % will get customer satisfaction but efficient on the delivery time compared to quality priority. Moreover, quality priority is not going to have faster period of time when we produce any product, it consume a lot of time and might increase the production cost so they might need to seek for the richer man to buy of their product. Therefore, the company only can choose either time priority or quality priority because they need to offset any one of the competitive priority if they choose to adopt another competitive priority.

2.8 Conclusion

Nowadays, many companies want to apply these two priorities because it can improve the productivity in their company. Unfortunately, it is hard to achieve because it need fast and provide good quality for consumer. When a company need provide good quality, it need some time to check the quality either good or bad.

3.0 Role of e-commerce

E-commerce playing a important role in an organization because it bring a lot of benefit to an organization. It makes an organization changes traditional to e-commerce and it will affect the supply chain management and economy.

3.1 E-commerce

According to Schniederjans and Cao (2002, pg4) from the book name as E-Commerce Operations Management mention that "E-commerce is exchange transactions which take place over the internet primarily using digital technology." The authors claimed that the e-commerce define as the online transaction by new technology rather than internet with interchange the both side information.

3.2 Supply chain

According to Porter (2009, pg 26) from the book name as Operation Management mention that "Activities in the supply chain include sourcing materials and components, manufacturing product, storing products in warehousing facilities and distributing products to customers." The writer claimed that this statement is about the supply chain activities which are incorporated with the industrialized products, and store in the warehouse then deliver to the end user through supply chain management.

3.3 Changes of e-commerce

According to Calder and Watkins (2012, pg205) from the book name as It Governance: An International Guide to Data Security and Iso27001/Iso27002 mention that "e-commerce world changes rapidly. Organizations are changing, become more open; they are also become more complex." Based on the definition above, e-commerce world changes fast to make organization become more open in information sharing and more complicated.

According to Skjott-Larsen (2007, pg 153) from the book name as Managing the Global Supply Chain mention that "e-commerce has created major changes in the structure and processes of distribution. The value chain is oriented towards two market processes: business-to-business (B2B) and business-to-consumer (B2C)." Based on this statement, business to business is a business gets a supply such as raw materials from a company who are provide it. While business to customer is mean a company sell direct to the customer.

According to Reynold (2009, pg206) from the book name as Information Technology for Manager mention that " A web site can be used as an information tool to draw informed customers into stores, saves money on marketing material and attract suppliers." Based on this definition, e-commerce can use a website become an information tool to attract customer and suppliers in store so it can help company save marketing material. For example, Dell Company uses their website to put all the information product so consumer can log into their website see the information and purchase. In this process, they are save cost in middle man.

3.4 E-commerce affects

According to Button and Stough (2006,pg 118) from the book name as Telecommunications, Transportation, and Location mention that "There is a traffic generation effect because e-commerce leads to greater efficiency in the overall production process and is a trade facilitator and in this role stimulates economic growth and with this greater demands for transportation services." Based on definition above, e-commerce make a company becomes efficiency in production process and this role can improve the economy and demand of transportation services. For example, Dell Company has provides shipping for their customer so they are using e-commerce in their business. By doing so, consumer can tracking where the product is and how long it can be reach to the house.

According to Kamel (2006, pg68) from the book name as Electronic Business in Developing Countries: Opportunities And Challenges mention that "the most important way in which e-commerce can affect functioning of the economy is through its impact on prices of products and services." The author claimed that the way commerce to affect the economy is through the price of products and services. For example, companies are able to uses e-commerce as a medium to carry out business so they can eliminate the middle man hence being able to directly sell to their consumer. Hence, the price of goods and services will still be cheap and it will be attractive for many customers to purchase.

A recent article (Screenives, 2007) states that "E-commerce impacts supply chain management in a variety of keyways. These include cost efficiency, changes in distribution system and customer orientation." Based on definition above, e-commerce impacts the supply chain management by using cost efficiency, change in distribution and customer orientation.

3.4.1 Cost efficiency

Another added advantage of E-commerce is that it allows transportation companies of any size to exchange their cargo documents electronically through and over the Internet. For example E-commerce has enabled transporters such as shippers, freight forwarders and trucking firms to streamline the document handling process without the usual monetary and time investment which are normal required by the traditional document delivery systems.

By the usage of e-commerce as a medium, companies and corporations are not only able to reduce costs, improve data accuracy, streamline business processes, accelerate business cycles, but also enhance their customer service and relations. For example, for Ocean carriers and their trading partners they can now exchange their bill of lading instructions, freight invoices, container status messages, motor carrier shipment instructions, and other documents with the added advantages such as the increase in accuracy and efficiency by the elimination of the need to re-key or reformat of the necessary documents. Last but not least, one of the greatest advantages of E-commerce is that the only tools required to take advantage of this solution are a personal computer with an Internet browser.

3.4.2 Changes in the distribution system

Businesses which are carried out through E-commerce will have more flexibility in the area of managing increasingly complex movement of products and information between businesses, their suppliers and customers. This is because E-commerce will be able to shorten the link between customers and suppliers or distributors. Hence the customers are now able to manage the increasingly delicate distribution of products and information within the supply chain itself.

3.4.3 Customer orientation

Another core function of E-commerce in the business model is that it serves as the vital link in the support of logistics and transportation services for both internal and external customers. For example, E-commerce not only helps companies to deliver better services to their customers, but it also accelerates the growth of the e-commerce initiatives which are equally critical to their business, and lowering the overall operating costs. By utilizing the Internet as a tool of e-commerce, customers are now able to access valuable information such as the place delivery orders, track shipments and even the ability pay for their freight bills and charges.

3.5 Conclusion

E-commerce will affect the supply chain management in distribution, storing product because they can skip the middle man and direct give the product to the customer so it will make the company operate faster.

4.0 Conclusion

In part 1, we can know that the time and quality priority is hard to combine together and both of it has their own advantage to bring out the company productivity. In part 2, supply chain management affect by e-commerce nowadays. So, we can know it is can an organization operate more easy.