Operations Management Auckland Transports

Question: Discuss about theOperations Managementfor Auckland Transports. Answer: Introduction The motive of the present discourse is to make fruitful answers of several distinct questions associated with the Auckland Transports (AT) decision to give license to a convenient provider of coffee in future. In this respect, the aspects, which would be elaborated, include identification of five major factors for reaching an apt decision regarding the location of the coffee service. Additionally, the elaboration include analysis of the probable negative and positive sides of the simulated coffee catering service and using different external suppliers for this individual purpose. Nevertheless, a recommendation is going to be prepared for having a cohesive understanding about whether the selected organization Johnny wray would prove successful for AT or not. Examining Five Key Factors Important in Deciding the Location of Coffee Service According to the decided project of City Rail Link, there would be an extension of the passenger rail line and procuring new stations at locations like Aotea Square and the road of Karangahape. For this decided purpose there will be built a long tunnel of 3.4 km under the streets of city centre (at.govt.nz, 2016). Keeping in consideration of the proposed project, factors those catch the eyes for deciding a perfect location for coffee catering are accessibility of the customer, supply availabilities in terms of power and water, options for resupply, flow capacity and costs. Information regarding customers or probable passengers of three of the proposed stations is a potential factor to evaluate prior to decide a suitable location for coffee catering. As per the information broadcasted in the project of City Rail Link (CRL), the supposed program will successfully allow a minimum of 30,000 of people in each hour of peak. Therefore, it is understandable that there will be lack of shortage for target market. Supply availabilities of water and power is an essential aspect to give priority before moving to decide a convenient location as the CRL already has the vision for using the renewable power resources (Strang, 2014). In terms of using renewable resources, Auckland is enriched with water resources like groundwater and river resources (Salmond, 2014). On the other hand, the place enjoys both a wide range of power supplies in terms of both renewable and non-renewable resources (watercare.co.nz, 2016). Cost for the entire planning is another facet that should be taken into concern. It is because the location for the catering will be placed in a location which itself is going to be constructed. Therefore, the estimated cost for setting up the site will be critical to decide. Along with these premises, two more factors to be prioritized are options for resupply and flow capacity of the trains. As both of the options for locations will be newly constructed, there should be occasional shortage of power supplies. On the other side, flow capacity of the trains and their frequency is a considerable factor too (at.govt.nz, 2016). It is fortunate that the new project of CRL will raise the frequency of the trains and will allow pick up facility in every ten minutes. Analyzing the Positive and Negative Sides of Providing own Catering Service The possible sides for providing catering services include - The internalize profit margin would be high as per the decision to extend the business ventures from transport to catering. There will be abandoned of customers as per the frequency of the trains and advanced pick up facility, therefore it will be easy to attract more customers AT may find it cheap to establish the business as per the abundance of power resources and customer accessibility. On the contrary, AT would have to face problems regarding AT does not have a good experience in catering service as it serves as the transport service. It would prove difficult to acquire convenient suppliers because as a new entrant the bargaining power of the giant suppliers will be too high to afford. Additionally, there will be chances for internalization risks as per lack of experiences to gain proper workforce resources and relevant management system. Identification of the positive and negative sides of using different external suppliers If the decision will choose the different external providers in terms of supply then there will be both positive and negative circumstances related to this. Positive Premises The company will have the opportunity to switch suppliers anytime if requirements are not met. There will be less scarcity for acquiring raw material. The bargaining power will be stable based on which the enterprise have the scope to have more options. There will be chance for convenient product development because of easy access of resources (Wisner et al., 2014). Negative Ones It would be difficult to have a well-managed supply system as with too many suppliers there will be too many suppliers requirement which for a start up business is hard to manage (Christopher, 2016). There will be lack of chances for building a strong supplier-buyer relationship as it would be difficult to decide which particular one should would to reliable. Recommendation for Deciding /Partnership with Johnny Wray Johnny wray is considered as one of the leading enterprise for providing convenient coffee services to events by having mobile carts and kiosks of coffee. The most interesting part of the companys business operation is they provide their service in relatively less time and the quality of their supplied coffee is considerably rich. On the other hand, it seems that Johnny wray has barista staffs and facility of stand-alone kiosks, which hold the capability to serve near about 50,000 guests (johnnywrays.co.nz, 2016). Furthermore, the coffee kiosks and mobile carts provided by the enterprise can be customized according to the different requirements of events. Most fortunately, the company has their own stand-alone generators for and their coffee carts generally consume less power. Therefore, it can be recommended that AT should hire Johnny wray for their proposed venture as Johnny wray has self-contained facility like having their own stand-alone generators for power supply. If AT prefers to make partnership with Johnny wray, it would be possible to gain quality performance, as the enterprise is known for giving high quality beverage. Most importantly AT would have to pay less cost for power supply as Johnny wray has their own device for power supply and the business venture would be scalable as Johnny wray has records to work under pressure and heavy demand. On the other hand, Johnny wray has the ability to work flexibly in any kind of environment as they sell their products through mobile carts in place of vans. These carts and Kiosks are designed to be customized as per different requirements. Sustainability Issues and the Way Johnny Ray Manage them Most frequent issues faced by Johnny wray in terms of sustainability are to recycle their cups and coffee wastes. Being an innovative coffee service supplier, the company possesses several strong tactics to mitigate sustainability issues. To reduce wastage of cups, the organization only carry an estimate number of cups according to their estimated number of guest based on any event. The organization prefers to use double wall and paper made cups with eye catchy design, which are easily disposable. To reduce issues regarding power, they carry their own generator that is designed to consume less power as their coffee beans are slow roasted. Conclusion Considering all the recommendations and assumptions regarding the proposed business venture, it can be concluded that two of the stations would be preferable location to place the coffee catering service. It is because both of the stations will have considerable frequency of trains and a huge amount of passengers. Most important to note that partnership with Johnny wray will be a fruitful idea as the company uses location friendly coffee kiosks and mobility carts with a personalized power generator. Moreover, the enterprise uses double wall and paper made cups to avoid sustainability issues. References Christopher, M. (2016). Logistics supply chain management. Pearson Higher Ed. City Rail Link. (2016). Retrieved 26 October 2016, from https://at.govt.nz/projects-roadworks/city-rail-link/ Johnny Wray's. The Corporate Coffee Experts. (2016). Johnnywrays.co.nz. Retrieved 26 October 2016, from https://www.johnnywrays.co.nz/ Salmond, A. (2014). Tears of Rangi: Water, power, and people in New Zealand. HAU: Journal of Ethnographic Theory, 4(3), 285-309. Strang, V. (2014). The Taniwha and the Crown: defending water rights in Aotearoa/New Zealand. Wiley Interdisciplinary Reviews: Water, 1(1), 121-131. Water Sources. (2016). Retrieved 26 October 2016, from https://www.watercare.co.nz/about-watercare/our-services/water-sources/Pages/default.aspx Wisner, J. D., Tan, K. C., Leong, G. K. (2014). Principles of supply chain management: a balanced approach. Cengage Learning.