Supply Chain and Operations Management

215 views 11 pages ~ 2919 words
Get a Custom Essay Writer Just For You!

Experts in this subject field are ready to write an original essay following your instructions to the dot!

Hire a Writer

Caterpillar has been supplying electricity to its customers all over the world, including remote areas and harsh climatic zones, for more than eight decades. Caterpillar is bridging the gap between numerous critical demands and the existing customer's requirements. The organization put in motion the industries that control numerous global economies, such as agricultural research, forestry, excavation and drilling, manufacturing and assembly, as well as servicing, gas compression, and power generation. The computers are widely distributed in the multinational dealer's association, with 49 associated firms based in the United States and 123 based outside of the country. The dealership of the locomotives market is chiefly linked with the suppliers with the different producers for product consumption. Caterpillar Incorporation holds a multifaceted collection of brands whose responsibilities and contacts boost the development and achievement of the business aims. Branding in Caterpillar employs communication to represent the firm within the investing society, workforces, public legislators, as well as other crucial investors. Notably, the Caterpillar brand is the canopy that accommodates all the entire brands in the collection including the Perkins, Turner, Solar Turbines, Mak, Olympian, Pyronan, Prentice, to name a few. Moreover, Caterpillars’ merchants do not entirely deal with goods, in most scenarios retailing and products servicing are the suppliers’ prime dealings. Selected merchandises, mostly turbines and engines, are retailed straight to final consumers over sales representatives hired by the corporation (Gereffi & Fernandez, 2016). On occasion, the personnel are aided by self-governing sales agents. Although the greater margin of our global suppliers is externally possessed and run, Caterpillar controls and at the same time manages the Japan dealership that shelters nearly 85% of the Japan market share. There are three autonomous suppliers in the Japan-South Zone. The report reviews market functionality of the Caterpillar, skill and managerial competencies and plans approaches that will improve overall business competitiveness. This paper gives a focus on sustainability of Caterpillar Corporation to the ever-changing technological environment advocating the best practice to keep up with trend

Operations strategy

Operational plans indicate approaches that business organizations incorporate to attain their goals. By fostering the policies, organizations survey and employ appropriate and resourceful techniques for utilization of incomes and capitals, human resources and the procedures of work. Most organizations that are focused on services delivery apply straightforward, practical policies to connect high and temporary business goals and generate an operational team management team. Under operational strategy we have the following plans:

Corporate Strategy

Corporate policies comprise viewing a company as a system of substantial segments (Jones, 2010). Simply as the heart muscle is reliant on the brain functions in a human anatomy, the respective subdivision in an organization is crucial to remain wholesome and attain projected outcomes corporate business strategy needs (Gereffi & Fernandez, 2016). The additional principal approaches that a business employs must reinforce the company’s policy and utilize transversal management functional communications.

Customer-driven Strategy

Operational procedures would comprise of customer-centered methods to sustain the demands and requirements of the target market. In the direction of organizational sustenance, a firm should grow tactics that assess and familiarize to shifting atmospheres, unceasingly improving the primary proficiencies and advance to renewed potencies on a continuing foundation. During the assessment of settings, a firm must observe trends in the market to seize benefit of other prospects to avert conceivable risks.

Developing Core Competencies

Core skills are the strengths and resources of an organization. Although greater competencies can differ by productiveness and profession, the organization can embrace developing a well-trained workforce, optimum business settings and trade and industrial skill. By categorizing vital talents, a company can develop courses, such as the satisfaction of customers, development of products and creating a professional connection with the investors (Giri & Sharma 2016).

Competitive Priorities

The economic change of urgencies derives from the corporate policy making, market examination, definition of core procedures and performing a demands study (Jones, 2010). In generating competitiveness, a firm assesses the operative expenses, the product quality or provisions, the period that is required to improve and supply commodities or services and the goods or services flexibility with regarding the range, bulk, and customization (Huo & Prajogo, 2016). Competition priority must consist of the ability to deliver a quality merchandise or provision at a generous prize that continually intersects the customer needs.

Product and Service Development

Management of goods and services development must deliberate on proposal, modernization and value addition (Gereffi & Fernandez, 2016). After the invention of new consumer products, a firm can resolve to introduce new merchandise or services, anticipating for the innovation preface on the market further watching out the impact of innovation on the market to analyze whether the company's invention is useful before embarking on other business ventures. Once service development has been done, firms ought to ponder on promoting it with instantly visible and self- induced values for its sustenance (Dai & Tayur 2016). By creating product or service, the organization must study the consumers’ wants, how it is positioned contrary to the product competitiveness as well as how its effective procedures link to the needs of customers.

Assessment of Managerial Skills and Competencies

In the fast changing commercial and technological setting, a company should acquire the best management practice to keep up with today’s competitive business atmosphere and remain relevant. Caterpillar should design an efficient communication system that would serve the company since communication is fundamental to business operation in any phase (Abbey & Guide, 2017). The distribution of raw materials and already finished goods, workflow processes and human resource management entirely depends on active communication (Kim et al., 2013). Managers should have proficiency in communication and pay attention to the employees’ concerns, acclimatize their communication based on each worker’s character quality, and conflict management in a manner that both interest groups receive an agreeable consensus (Gaur et al. 2016).

The Perception of Workforces Multigenerational Trends

The domination of the earlier generation workforce is subsiding. The millennial phase of the young labor force is currently dominating and it is to form the largest unit in the job market environment. The Millennials will not have the same working pattern as the previous work groups. The management should identify the changing needs of the diverse workforces to acclimatize correspondingly (Huo & Prajogo, 2016).

Furthermore, offering a high- end operation response is important to support employees to exploit their abilities to full capacity; experienced leaders see the need for providing regular and productive feedback in a manner that equally stimulates the excelling and average workforces (Dai & Tayur 2016). Focusing on workers career’s developmental needs is a compelling motive for high performers in the organization to stick to their jobs since they have the prospect to acquire knowledge as well as develop. Competent administrators promote career advancement strategies with their workers and watch through to assert the plans are realized (Gaur et al. 2016). Maximizing management control and influence on a supervisory style centered leadership affirms strength to the manager's, thereby focusing their energies on the personnel plus the team management to make the most of out of their efforts (Fischer, 2016). Efficient management is always interested in the strengthening of their workforces and purposefully initiates development of the prospects that capitalize on workers’ potentials. Promoting the organizational change is critical for developing and retaining up most talented individuals (Sparrow & Cooper, 2015). Organizations often need to make acclimatization in their constitution as well as strategies for growth and retain high-end performing personnel. Successful administrators are proficient at facilitating superior control to recognize the necessity to address reforms that fulfill worker demands and form a flourishing company (Crandall et al. 2014).

Every group, either the economic diversity or a non-interest, needs to be accurately and efficiently run in the organization. The firm should aim for the management team that can succeed in plans and objectives to be drawn against those of previous years to achieve success (Walters, 2014). Objectives of every single member play a specific role, therefore contribute toward particular input in the ultimate success of goals and targets for the entire company. For a manager of the Caterpillar, planning should be put first on the priority lists. The duty of an operation manager is to generate transparent organization’s goals, which are achievable, and guide workforces towards them at the same time (Gaur et al. 2016). Certainly, it is a difficult job, from putting together ideas and resources to executing the actual business strategies, so everybody formulating plans in management has to ensure that they are adequately qualified in an attempt to gain proficiencies and abilities that will make them a perfect candidate for such a challenging position. Most managers attend specialized courses to equip themselves with the superior managerial skills and best management practices (Sparrow & Cooper, 2015). Theories learned ought to be used in the real-life application. A prolific manager should employ such talents and expertise in actual work settings, where the success of the organization depends to the larger degree on their efforts.

In addition to having the proper knowledge, an individual should similarly have inherent personality and qualities which make a person a leader, in this case, communication skills are vital (Crandall et al 2014). Excellent communication skills have a weighty outcome on each of the organizational activities. The management cannot be entirely totalitarian, and managers have to give directions along with precise instructions that encourage the organization to accomplish its purposes wholly (Walters, 2014). An additional central administration skill is correct planning. Projecting the exposure of companies to external pressures, for example, competition, boom, and recession on the economy and political interferences is positively imperative (Dai & Tayur 2016). This prediction puts more emphasis on the business’s weak spots and strengths to be able to take appropriate measures.

An organization has various potencies and being a manager one should know how to place them into active practice. Personnel displaying interest and the above average performers must be appropriately consequently acclaimed as a kind of motivation. It surmounts to why performance regulation has an essential role for any management (Abbey & Guide, 2017). Appropriate coordination and interaction are further important factors that go together with the assumption. Additional importance for management practice stands for regulation, which involves the establishment of policies that are accurately designed for each worker for them to know their duties (Gaur et al 2016).

Personnel ideas and evaluations should always be regarded and appreciated. It drives to the point that a thriving administration has to guarantee that they do not accept undeviatingly command assignments to their juniors, or stay locked in their offices all day long. Gatherings and reviews are the key steps to make management friendlier to their workers (Crandall et al. 2014). They need to work together to create a positive working atmosphere, which considerably helps to secure a real work space and great employee's relations. Each of the abovementioned proficiencies in the managerial team will sequentially drive to the realization of the objectives along with favorable results. Moving towards efficiency and productivity is fundamental a step to boost achievements, prosperity, and gains of a company. The primary duty of managers is to direct the path to success (Fischer, 2016).

Classification of Production Systems

Methods of arrangement and procedures that encompasses all the process of accumulation, outputting, assembling and manufacturing to create finished products include the following ones.

Job Shop Production

The job shop is one of the workflow processes which are categorized by the production of single or limited products quantity (Netland, 2013). Products are invented or manufactured according to the customer's specification in a stipulated limit and time frame. The distinctive attribute of this is minimal capacity and high product assortment (Fischer, 2016) and wide-ranging physical machines, organized into various subdivisions. Every single job requires exclusive technical rations, necessitates machines processing in a specified categorization (Abbey & Guide, 2017).

Batch Production

Batch production is outlined by American Production, and Inventory Control Society (APICS) as the production method where the work distributes over the operational sections of masses or consignments and proper proportion may have a different steering (Crandall et al 2014). Such kinds of production are categorized by the creation of restricted quantity of goods made at regular intervals and stock pending retailing.

Mass Production

Assembling of separate fragments or masses of raw material into finished goods with standardized procedures is known as mass production. Such a creation arrangement is acceptable in the substantial volume of output volume (Nielsen et al, 2014). The arrangement of the machines in a straight or output design, standardization of product and process occurs in mass production, and all outputs stay on the similar route.

Continuous Production

The arrangement of the production services is according to the production operations chain from the opening processes to the end product (Gaur et al 2016). Such products are fashioned to flow through the operations sequence over the objects operating machines for instance conveyors, transfer devices.


The success of Caterpillar business relies on the capacity to grow, create quality commodities that satisfy the customers’ demands. The organization is reliant on the constant international need for the quality brands and products. In order to attain such organizational aims, a firm should create and offer goods or services that would attract suppliers, manufacturers, and final consumers. It is determined by many aspects: incorporating the capacity to uphold important supplier contacts, our capability to create products that meet the standards, operation and price expectancies of the clients, development of profitable sales, publicity and promotion plans. Furthermore, to ensure constant accomplishment in marketing products that the customers are interested in, an independent, leading-edge invention is required, for both goods and operations. Also, the accessibility and efficacy of authorized safety for the innovation should be deliberated upon (Dai & Tayur, 2016). The continued failure of delivering high-quality, innovative, competitive products to the marketplace should be guarded by adequately cautious rationale possessions privileges and supply products that meet valid supervisory divisions. In the CAT engine exhaust emission, regulation comprises necessities or the prediction of market demands which sequentially obtain market reception of the product that might have an undesirable effect on the business, operations results, and economic state.

Incorporation of cost-cutting programs, money circulation enhancement plans, and productivity or output assessment schemes is essential for organizational success. The organization should be assertively engaged in numerous projects to raise the production, effectiveness, and cash movement systems to minimize expenses, that are assumed to bring about a long-standing constructive influence on the business, its competitive site, operational results, and financial position. For instance, such ideas are the implementation of constant signs of progress in the functional productivity and the processes of order-to-delivery so that our lead time is better ranged with the customer demands, besides to reducing the surplus, extended quality enhancement and maximization of value for the clients. Subsequently, there is no guarantee that such plans would remain valuable to the degree project, or that the assessed productivity enhancements, additional charges reserve or money circulation boosts will be achieved as predicted. Therefore, the schemes of a kind should be successfully implemented, to receive the maximum impact on the general management operations and competitive situation.


In conclusion, for Caterpillar to keep up with the constant fluctuating technology and the market trends, it should make itself more adjustable to change, utilize the technology in marketing and promotion of its products to expand the market and retain customers. Customer retainment strategy should be employed for the company’s basis as the primary aim of any business is find willing customer coverage to generate the sale and ultimately make profits. The firm should adapt business methodologies that favor the existence of the operation for instance proper production systems, best managerial practices and competencies and technological change.


Abbey, J. and Guide J., 2017. Closed-loop supply chains: A strategic overview. In sustainable supply chains (pp. 375-393). New York: Springer International Publishing.

Crandall, R., Crandall, W. and Chen, C., 2014. Principles of supply chain management. Florida: CRC Press.

Dai, T. and Tayur, S., 2016. The routledge companion to production and operations management. London, Routledge.

Fischer, E., 2016. The concept of change processes according to the rules of change management. Munich:Grin Verlag.

Gaur, J., Subramoniam, R., Govindan, K. and Huisingh, D., 2016. Closed-loop supply chain management: From conceptual to an action-oriented framework on core acquisition, Journal of Cleaner Production,  vol.142(1), pp. 371-384.

Gereffi, G. and Fernandez-Stark, K., 2016. Global value chain analysis: A primer. Review of International Political Economy, 21(1), pp. 9–37.

Giri, B.C., and Sharma, S., 2016. Optimal production policy for a closed-loop hybrid system with uncertain demand and return under supply disruption. Journal of Cleaner Production, vol.112, pp.2015-2028.

Huo, B., Gu, M. and Prajogo, D., 2016. Flow management and its impacts on operational performance. Production Planning & Control, 27(15), pp.1233-1248.

Jones, G.R., 2010. Organizational theory, design, and change. London: Pearson.

Kim, Y., Williams, R., Rothwell, W., and Penaloza, P., 2014. A strategic model for technical talent management: A model based on a qualitative case study. Performance Improvement Quarterly, vol.26(4), pp.93-121.

Netland, T., 2013. Exploring the phenomenon of company-specific production systems: one-best-way or own-best-way? International Journal of Production Research, vol. 51(4), pp.1084-1097.

Nielsen, S., Chambers, C. and Farr, J., Certusview, 2014. Management system, and associated methods and apparatus, for providing improved visibility, quality control and audit capability for underground facility locate and/or marking operations. U.S. Patent 8,731,999.

Pandey, J.P., and Guha, S., 2014. Enhancement of competence: An effective tool for change management. International Journal, vol.2(2), pp.255-263.

Petersen, K. and Autry, C., 2014. Supply chain management at the crossroads: Divergent views, potential impacts, and suggested paths forward. Journal of Business Logistics, vol.35(1), pp.36-43.

Sparrow, P., Hird, M. and Cooper, C., 2015. Managing beyond the organization. In do we need HR? Palgrave Macmillan UK, pp.111-147.

Walters, D., 2014. Market centricity and producibility: An opportunity for marketing and operations management to enhance customer satisfaction. Journal of Manufacturing Technology Management, vol.25(2), pp.299-308.

December 15, 2022


Number of pages


Number of words




Writer #



Expertise Company
Verified writer

I enjoyed every bit of working with Krypto for three business tasks that I needed to complete. Zero plagiarism and great sources that are always fresh. My professor loves the job! Recommended if you need to keep things unique!

Hire Writer

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Eliminate the stress of Research and Writing!

Hire one of our experts to create a completely original paper even in 3 hours!

Hire a Pro