Supply and Demand Chain Management: The Effect of Adding Services to Product Offerings by

823 WordsJun 25, 20184 Pages
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…show more content…
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 eventually have to change the way that they manufacture and distribute their products to cater for the different consumer groups. With the re-design of a supply chain, firms may be able to accommodate the technological change, although this is a costly and time-consuming process and firms would have to consider the repercussions that it would have on the manufacturing and distribution of their goods. Operations strategy is not an aspect of operations management that is explicitly expressed throughout the article. Operations strategy refers to the way that firms use their resources to be able to support their long-term competitive strategy (SOURCE). In the context of the article,
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