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CHAPTER - 1
INTRODUCTION
INTRODUCTION
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Supply chain management is the integration process of any firm for its successful
strategy in this competitive world. Evolution of global trend sets firm to adopt efficient and
effective management of flow of goods and services right from suppliers to consumers with
right price, quality, and quantity. With these considerations of factors, a firm or enterprise can
achieve profit and survive for long term.
Information is the key to success of integration in Supply chain management where
the firm or enterprise has to consistently upgrade itself whether the information flow is proper
and useful for decision making. Hence the role of information and I.T. plays a critical role in
todays business model in which how the top management took decision on consideration of
I.T. and its impact of overall business and profit.
Traditional method of SCM helps to achieve ones firm goals and objectives of the
business? Why the firms hesitant to utilize the I.T and its infrastructure effectively to
maximize its profits as well as market share to survive in long term run? Did cost made
constraint or the human efficiency is insufficient to handle the information or other factors
made impacts of decisions?
With these issues putting in front of top management, tactical level decision makers as
well as operational people, this thesis conducts the study of Strategic use of I.T. in SCM
and bringing better suggestions in front of the desk to make use of these suggestions as a
strategies to implement in their SCM process and makes better. Thesis includes all types of
industries/firms whose handling SCM as crucial strategy for their business such as FMCG,
automotive sectors, consumer durables, etc.
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CHAPTER - 2
LITERATURE REVIEW
SUPPLY CHAIN MANAGEMENT
2.1 DEFINITION
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Mentzerdefines SCM as The management of upstream and downstream relationships with
suppliers and customers to deliver superior customer value at less cost to the supply chain as
a whole in order to achieve a more profitable outcome(1).
Supply chain management encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third party service providers, and customers. In essence, supply
chain management integrates supply and demand management within and across companies.
2.2 DRIVERS OF SCM
SCM is about integrating business processes to gain competitive advantage while providing
customers with superior value. This integration of customer focus with business processes is
evidence of the emergence of supply chain management as a core business discipline aligned
with corporate strategies. We will explore the key drivers of SCM and how they have
fashioned this new business model.
Competition and supply chain management(2)
Competition in the business world is more intense than it was anytime in the past.
Globalization has opened up world markets, and companies with traditional approaches have
found it extremely difficult to survive in this new world.
Lee observes that the 1970s was the era when business focused on quality issues, whereas the
competitive landscape in the 1980s shifted to lean manufacturing focusing on concepts such
as just-in-time (JIT) inventory management. In the 1990s, market globalization, shortening
product life cycles, and the disintegration of many industries created the race to improve the
supply chain.
Metz gives numerous examples of gains made by companies implementing supply chain
management, including supply chain total cost share of revenue reduced by 20 percent and
increase in revenue by 17 percent. According to Copacino and Byrnes, companies which
have successfully mastered their supply chain have realized documented gains measuring up
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to 35% in market share. We can look at three not so distant developments at three major US
corporations for the impacts of supply chain management on modern businesses.
Dell Computer
Founded on a vision of customer-responsive order fulfillment, has seen its stock price
mushroom nearly 200 fold since 1990. 'We already have a quick- ship plan for large
customers where we can deliver a machine within 48 hours of an order,' Michael Dell
explains. (Fortune, Sept.8 1997)
Boeing Aircraft
One of Americas leading capital goods producers and top exporters was forced to announce
write downs of $2.6 billion in October. It is blaming 'raw-material shortages, internal and
supplier part shortages, and productivity inefficiencies. (Wall Street Journal, Oct. 23, 1997)
Procter and Gamble
Long revered for its marketing acumen, also drives its supply chain hard. The company
estimates it saved retail customers $ 65 million through logistics gains over the past 18
months. 'According to P & G, the essence of its approach lies in manufacturers and suppliers
working closely together...jointly creating business plans to eliminate the source of wasteful
practices across the entire supply chain. (Journal of Business Strategy, November/December
1997)
2.3 KEY ISSUES IN SCM
The supply chain management issues concern activities of the firm at various levels of
decision making, ranging from operational level to strategic level via tactical level.
Strategic level
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The decision making at this level is made with long term objectives and with long lasting
effects. These include decisions regarding location of various facilities, including the
manufacturing plant, distribution warehouses and the structure of the distribution channel.
Tactical level
Decision making at this level is concerned with purchasing and production functions,
inventory policies and transportation strategies. These decisions will be usually updated on an
annual basis.
Operational level
Decision making at operational level will concern day to day management of activities such
as scheduling, routing and vehicle loading etc.
The various other key issues concerned in Supply Chain Management are
Configuration of distribution network
This issue deals with the design of a distribution network to serve a specific market. This will
consist of a set of warehouses and retail outlets, together with the manufacturing plant and
supply sources. The design will be based on consideration of location and capacity of each of
these elements. The total network cost will include the costs of inventory at various levels
and costs of transportation between various facilities. This will also determine the level of
service available to the customers.
Inventory control
This is concerned with the levels of inventory to be held at various points in the supply chain.
As inventory represents costs, the sensible approach is to hold as low an inventory as possible
but businesses are forced to hold inventories as a buffer to counter the affects of an uncertain
demand. How to minimize the uncertainty and therefore the necessity of holding unnecessary
inventory which increases the cost at the end
Distribution strategy
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The distribution strategy is concerned with the distribution of the firm's products. There are
several strategies available such as cross-docking, the classical distribution strategy or direct
shipping. Which one is the best suitable for the firm to achieve its supply chain and corporate
goals?
Supply chain integration and strategic partnering
This is concerned with the complex issue of strategic inter organizational partnership for
achieving competitive advantage. This is about sharing of information and efficient use of the
information for coordinating business processes to deliver a superior value to the customers.
How to achieve this and what are the challenges? This is one of the emerging issues in supply
chain management.
Product design
This is concerned with the design of the product and its impact on total cost of the product.
How does the design of a product affect the various cost elements within the supply chain? It
is possible that the design determines the strategies to be followed regarding inventory or
transportation. The design may also determine the length of the product life cycle and the
extent of uncertainty associated with demand for this product. How to leverage design to
achieve supply chain management objectives?
Information technology and decision support systems
The enabling role of information and communication technologies has been identified. The
concerns of contemporary supply chain management are the efficient use of modern
technology including the Internet and computerized decision support systems. The
technology allows acquisition of vast quantity of data, information and their subsequent
processing in accordance with selected decision criteria. Will these technologies emerge as
key determinants of success in the management of supply chains?
Customer value
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The key issue is the definition of customer value in an age of increasing consumer power.
How supply chains will be designed to provide value to the customers and how will firms
define value?
2.4 ROLE OF I.T. IN SCM
The combination of computers and telecommunication provided the fastest device of
communication in the form of Internet. Internet today is becoming the reliable link between
the suppliers and customer. It turned the whole world into a global village. Liberalization and
globalization have changed the whole concept of nationalism. Due to globalization all
geographical barriers are being broken. With the help Internet customers get free information
about the world market. They keep track of the products being produced in the market. They
have easy access to the world class quality and respective price. Hence, competition in the
market is very high. Monopoly has become the matter of past. It allowed the better utilization
of existing facilities and minimized the amount of materials in the stock at any time and
reduced the wastage. Manufacturer has to be very flexible to reorient the manufacturing
process to meet the frequent design changes resulting from the frequent change in the
customers choice. Now the customers satisfaction is not the only criteria for selling theproduct in the market but customers delight has also to be taken care off. Earlier producers
use to fix the price of the products keeping profit margin, now prices are fixed by the
customers market and to earn profit producers have to reduce the manufacturing cost. In this
changing environment conventional system of planning, manufacturing and delivery of
finished products becoming irrelevant. Information Technology offers many opportunities for
companies to cut cost and improve responsiveness to customers needs. Some of the positive
points of I.T. enabled services are:
1. Information technology is comparatively less capital intensive.
2. It is environment friendly and clean.
3. It is not location specific and can be undertaken from anywhere (large cities, small towns
or even remote locations with Internet facilities)
4. It does not require expensive infrastructure facilities like roads, rail heads, etc.
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As a result, there has been phenomenal growth of I.T. applications all over the globe. Indian
industries are also reaping substantial benefits from the adoption of I.T. enabled services.
Information Technology in Indian Context
In mid-eighties the government of India in its industrial policy resolution put emphasis on the
use of computer. Indian Industries also quickly realized that the use of computer could
provide correct, quick and reliable information and could have significant impact on a firms
performance. The total Indian information technology industrys turnover that was of the
order of Rs. 20 billion only in 1991 has now reached a level of Rs. 295.13 billion in March
2000. This signifies a compound growth rate of about 35% per annum over the 9-year period.
The then chairman of the Reliance group of Industries, Mr. Dhirubhai Ambani had this to say
New Internet-based technologies are changing peoples lives and the way business is
conducted. Fundamental shifts are occurring in the global economy, owing to revolutionary
advances in technology. These have led to the convergence of the communication and
information business. There is one time opportunity for the Indian economy to leapfrog from
its current inadequate infrastructure to a world class one
Various I.T. Solutions:
i) Communication
Internet is currently an important resource for business to conduct activities ranging from
basic communication to data exchange. Application of radio frequency, satellite
communications and image processing technologies has become useful. Instead of solely on
catalogs, suppliers are delivering product information to customer as data via Internet,
making it more convenient to buyers.
ii) Electronic mail (e-mail)
Electronic mail provides medium for communication throughout the globe, any time, within
fraction of second at virtually negligible cost. Electronic mail usually occurs over the
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Internet. The electronic mail market is a multi billion-dollar business. One of the main
reasons for the growth in e-mail, in addition to the speed and accuracy of its data
transmission is cost saving. With e-mail, the cost of ordering has been reduced. Instead of
relying on the post, mail or courier the inventory manager prefer to use Internet for sending
information.
iii) Electronic Data Interchange (EDI)
The communication system with suppliers on the supply side and customer on the
distribution side exchanged the data through Internet at very low cost. For safety, electronic
data exchange information is only available to those who have a dedicated electronic data
interchange link. Location tracking of cycle inventory or process inventory can also be done.
This technology requires a combination of the Global Position System and wireless
communication.
iv) Enterprise Resource Planning (ERP)
Using Enterprise resource planning information can be gathered from across all of companys
function. ERP system monitor inventory throughout the channel of a business system. The
ability to keep track of inventory at different level has become more important as business
system became more complex. But this is useful OEM where many components are handled.
Survey of I.T. Solutions
Our observation of implementation of above mentioned I.T. solutions in five OEM, eight tier-
I suppliers (have their own R&D and own product) and thirty-two automobile ancillary
industries or tier-II suppliers (manufacture as per the order received either from OEM or from
tier-I supplier). We observed that the Indian automobile industry has entered the new
millennium on an encouraging note. The automobile market is booming. Internet is being
utilized in automobile industry in a big way. The application of Just in time and information
technology in the field of management control, decision-making, planning, communication,
accounting and inventory is gaining ground The companies run by foreign investors are
implementing Internet wherever possible, especially in business. They are trying to interlink
suppliers, manufacturers, wholesalers and retailers to have better control on inventory at
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various levels of supply chain. It allowed the better utilization of manpower. It was also
observed that although Internet plays an important role in keeping track of inventory,
sometime it creates problems also as bad system increases the risks and subsequently wastage
of capital and time. At the same time it needs investment every year because new software
comes in the market frequently with new ideas. For component manufacturer it is difficult to
switch over to new system as frequently as changes are taking place in the field of computer
software. Even though, most of the component manufacturers are enjoying the benefits of
new technology along with new information technology in the form of Internet. Internet has
reached to the every nook and corner, we observed that in India it still under utilized even in
the industries like automobile where considerable awareness is there and competition is cut
throat. The scope of inventory management is limited to one organization. There is no
cooperation between the supplier and the customer firms. We can call it none integral
inventory management. There is opposition between organizations. Integral inventory
management by domination of one organization over others is also found in certain area
where few organizations have realized supply chain by one organization dominating the other
organizations in the supply chain. But it is fact that Internet has influenced the whole business
strategy whether it is policy decision or it is physical implementation. Some of the areas
where its greater effect felt are given below:
i) Communication
(a) Twenty four hours communication throughout the year all over the world. Because of
Internet communication there are saving in manpower, stationery, postage and journey fare.
(b) Quick exchange of views with suppliers or customers, quick exchange of ideas and
expertise, customers feedback collection becomes easier and quicker, quick delivery of
drawings and specifications in digital form etc. are possible.
ii) Selection of vendor or partner
a) Suitable vendor selection from many vendors from any part of the world, at the same time
vendor development is also easier.
(b) Since whole world is connected through Internet, it becomes easier to select business
partners for joint venture.
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iii) Cost Saving
a) Reduce inventory, reduce cost of preparing letters and sending letters, saves postage cost
and saving in journey fare. There are saving under different heads to all level of supply chain.
(b) Achieving order and placing order become less costly and also reduces cost of
distribution.
iv) Reduction of lead time
(a) Reduces lead-time of material supply.
(b) Reduces retrieval time of documented information.
v) Improves product Promotional Activities
(a) Reduces expenditure for market expansion and also reduce market mediation
(b) Customers feedback can be collected easily, improves relation with customer and helps
in promotion of products in the form of advertisement.
vi) Limitations
(a) Lack of managers awareness with the system and lack of managements full
commitments.
(b) Development of electronic data interchange is a costly affair.
(c) Problems of security and privacy.
(d) Since no face to face contact is there hence, lack of trust.
(e) Customers also need awareness for effective utilization of Internet in the business.
2.5 CHALLENGES
The challenges imposed by I.T. goals are quite stiff. Most firms have developed I.T. systems
over the years in a piecemeal basis for each functional or departmental unit with focus on
their specific needs. Software and hardware systems were developed and built as a reflection
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of the needs of each core function of the firm such as warehousing, transportation, inventory
management, purchasing, manufacturing, sales, marketing, product development,
communication etc.
All these different 'specialist' systems, known as legacy systems, work independently and
technically do not 'speak' the same language. These systems, whether supported by vendor-
provided or custom made hardware and software, provide the great challenge for information
integration. Think about the type of data with which any accounting system deals, and
compare this with the technical and engineering data with which most manufacturing systems
are concerned. One of the main challenges of supply chain I.T. systems is to make these
isolated systems 'talk' to each other so that relevant data becomes visible and operable in real
time to all units. Add to this the complexity of integrating data from trading partners,
customers and suppliers, and the challenge becomes awesome indeed, with serious technical
and financial implications.
It is therefore obvious that to achieve the goals, the following issues need to be addressed:
Disparate I.T. systems belonging to different departments and firms have to make
compatible by establishing common communication standards.
The I.T. infrastructure, which includes the network, databases and processors, must be
capable of linking and processing information as required by the firms in the supply
chain.
The role of e-commerce in the firm's business needs to be appreciated, with cost and
business gain implications.
The specific supply chain management issues at all levels of planning need to be
supported by the I.T. system through interfacing with human input for information
analysis and decision making.
2.6 DECISION SUPPORT SYSTEMS (DSS)
The DSS is a computerized decision aid and it represents a good balance between human
abilities and the processing power of the modern computer for problem solving. It is because
the nature of each problem is different and some problems are solved more efficiently by
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computers while humans solve other types of problems more efficiently. Modern computers
can solve a problem very efficiently when the problem is very well structured and when it can
formulated in logical terms by decision rules. On the other hand, unstructured problems are
solved better by humans.
In real business life most problems are semi structured and a DSS is a suitable tool for
bringing human expertise to interact with the computer for effective decision making.
(Source:http://www.marcbowles.com/courses/adv_dip/module4/module2/m2five.htm)
The characteristics of decision support systems
Decision support systems have a number of characteristics that allow them to be effective
management support tools.
Handle large amount of data from different sources.
Provide report and presentation facility.
Offer both textual and graphical orientation.
Support optimization, satisficing and heuristic approaches.
2.7 INFORMATION AND SUPPLY CHAIN INTEGRATION
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The new and emerging business models are based on inter-firm collaboration and integration.
And in today's competitive marketplace, with increasing consumer power, it is competition
between supply chains which matters. This understanding calls for an integrated approach
towards management of critical supply chain functions and information is a key to this
integration. Information transparency is a prerequisite for optimum performance of the supply
chain, because it enables firms to take decisions which are aimed at superior supply chain
performance.
One major obstacle to integration is the way in which firms are traditionally managed and
owned. Traditionally, firms are inward looking, with business processes aligned towards the
corporate goal of profit maximization or greater market share. Additionally, as firms grow in
size, the organizational structure gets complicated with different functional silos, often in the
forms of departments, developing within the firm. The usual consequence is a very
fragmented organizational structure with very little inter-functional communication or
synergy.
Supply chain integration requires firms to build bridges within the firm between different
departments and across to other firms in the supply chain. Such bridge building is not
particularly easy to achieve because it requires a fundamental shift in customary ways of
thinking. The 'bullwhip effect', which has been recognized as one of the main sources of
inefficiencies associated with supply chains. This effect has received considerable attention
from academics and industry experts in recent years.
2.8 THE BULLWHIP EFFECT
(Source: http://www.marcbowles.com/courses/adv_dip/module4/module2/m2five1.htm)
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We know that a supply chain is made up many firms and each is unique in the way its
configured. However, all chains end up with customers or consumers at the downstream end.
The business purpose of all firms in the supply chain is to serve these end customers. In a
conventional supply chain, the downstream entity acts as the interface between the supply
chain and the customers.
To keep this analysis simple, let us consider a simple supply chain with a manufacturer, a
distributor and a retailer at the downstream end. We know that the retailer will keep an
inventory to serve its customers and will initiate a replenishment order according to the
inventory policy when the time is right. The distributor receives the orders from the retailer
and initiates its own replenishment order to the manufacturer when its stock reaches a certain
reorder point.
This practice of order processing by firms at each level in the supply chain gives rise to a
phenomenon by which demand information gets distorted as it travels upstream and this is
known as the bullwhip effect. The direct result of this effect is wrong perception about the
state of real demand, and uncertainty. This results in excess inventory at different levels in
the supply chain. The indirect effects are costs, waste and poor customer service.
The reasons for bullwhip effect
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(Source: http://www.marcbowles.com/courses/adv_dip/module4/module5/m5two1.htm)
The four major causes of bullwhip effect as:
demand forecast updating
order batching
price fluctuation
rationing and shortage gaming
Measuring bullwhip effect: The practical issues
In many supply chains demand data is not available at the level of detail necessary for a goodanalysis. Instead, data are sometimes incomplete or only available at a highly aggregated
product or time level. As supply chains are complex, data co-relation is often difficult. A
wholesaler may give an order to its supplier based on several retailers' orders. It will be
impossible to disaggregate the wholesaler's order to study the relationship with respect to
orders made by one retailer.
The measurement of total bullwhip effect should provide insight into the specific causes of
the bullwhip effect. Specifying which part of the total bullwhip effect can be attributed to a
specific cause can be problematic because of:
Unavailability of real demand data which requires separating out the effects of price
fluctuations and of shortage gaming from sales figures. Such real data are often not
available.
Unavailability of real demand data when shortage occurs and price changes as sales at
that time do not represent real demand.
Reducing bullwhip effects
The demand amplification or bullwhip effect in the supply chain is system induced and is
directly affected by both information and material delays in the supply chain and the
feedback process in the decision making process.
In practice, any effort to reduce the bullwhip effect is likely to be difficult and challenging.
They describe the order aspect of the bullwhip effect as the replenishment dimension
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affecting the flow of materials and information throughout the system. There are two other
prime dimensions which make it difficult to identify and reduce the effect. These are
geographical (since activities take place in different locations) and temporal (since activities
take place at different times).
Reducing uncertainty by information visibility across the supply chain as this will
reduce the bullwhip effect. Practices that support an effort to reduce uncertainty
involve the implementation of systems such as electronic data interchange (EDI) and
extensible markup language (XML). Both these technologies allow companies to
share information (such as consumer sales) with partner companies in the supply
chain. EDI uses specific network services with an agreed information protocol while
XML supports information sharing over the Internet. POS (point of sale) data can be
transmitted to all chain operators, which will enable them to have a clear picture of
consumer demand.
Reducing demand variability is an effective approach to reducing the bullwhip effect
as this variability causes the forecast error which in turn is the principal cause of the
effect. How can we do reduce variability? As demand at the retailer often fluctuates
with the price attached to a particular product, an unvarying price such as EDLP
(everyday low price) should reduce demand uncertainty. By eliminating price
fluctuations a retailer can eliminate much of the demand variability associated with
the product.
Decreasing the lead time between each level of the supply chain will aid in reducing
the bullwhip effect. In fact it has been recognized that time compression is the key to
supply chain excellence. Supply chain lead time is made up of the delays in
information processing and materials processing. While in the short term the material
flow lead time can be reduced by transportation techniques like cross docking,
information pipeline lead time can be reduced by effective information sharing using
technology.
The reduction of the overall supply chain lead time is treated with the utmost priority
in contemporary supply chain management. This has resulted in rapid response
manufacturing practices which are built on the concept of agile manufacturing. This
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has been made possible by integrating the physical transfer process with information
system integration. This enables an agile enterprise to respond rapidly to customer
demand, reducing the lead time. These developments have been seen as a new
dimension in supply chain management, often referred to as demand management.
Eliminate echelons in the supply chain: This involves the elimination of echelons and
functional interfaces. This reduces time delays and information distortion which
precipitate demand amplification. This can lead to a substantially different channel of
distribution.
2.9 EFFECTIVE FORECASTS AND SUPPLY CHAIN INTEGRATION
One of the main causes of uncertainty in the supply chain has been identified as the
forecasting error which is inherent in any forecasting system. The problems associated with
this uncertainty are well appreciated by firms. They recognize that these problems directly
impact their fundamental business issues of timeliness, market share, margins, sales and
customer service levels. Effective forecasting has been found to be strongly co-related with
superior supply chain management practice. The organizations working with accurate sales
forecasts almost always employ three techniques. They are,
use historical data to develop their forecasts
support historical data with predictive mathematical models
hold weekly planning sessions where they make buying, hiring and other
commitments
Employing all three techniques in parallel allows managers to make incremental, rather than
abrupt adjustments. The second most important indicator of success is the degree of
collaboration and integration with other departments within the company and with outside
partners. This is about information integration about sales promotion, price discounts and
shortages in the market which would allow all supply chain actors to take these factors into
account when forecasting the anticipated demand in a future period.
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CHAPTER - 3
RESEARCHMETHODOLGY
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RESEARCH METHODOLOGY
3.1. Problems Definition/Hypothesis
The role of I.T. in SCM was increasing over the years in Automobile and Retail
sectors in India which contributed for the growth of economy. The business process is
improved in efficient and effective way to achieve their goals by utilizing the benefit of
growth in communication and internet technologies. The critical part of this statement is
whether the organizations are flexible to adapt the changes in implementation of those
technologies and certain organizations are finding difficult to utilize it because of cost.
Because the overall growth is mainly depends on small and medium enterprises (SME) which
mainly concern about the cost of technology.
Is it cost really stops organizations to implement or other factors are involved it? Yes, there
are other factors are to be concern over these issues and hence am trying to give better
suggestions and recommendations on these issues.
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3.2.Research Methodology
Data survey
Primary data
The Primary data are the responses from the managers, supervisors and staff of various
Retail/ Automobile companies.
Questionnaire method is used to collect primary data. The questionnaire contains both
quantitative and qualitative questions. A sample size of 100 was considered for this purpose.
Secondary dataSecondary data obtained from the official websites as well from dailies, journals, newspapers
and articles related to the companies which are under the scope of this study.
3.3. Sample Design
Sampling Type
Simple Random sampling
Sampling Size
A sample size of100 respondents in the ratio 10 managers: 20 supervisors: 70 Staff members,
taken for the purpose of the study.
Data Analysis
The collected data, Coded, Tabulated in different tables and analyzed, using different
parameters in questionnaire.
Data Interpretation
By adapting chi-square method of testing hypothesis absence or presence of bias of opinion
has been established.
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3.4. Justification for Choosing This Particular Research Project
The Indian economy is growing faster than any other countries because of technology
revolution in business process which makes an edge among top economies. Hence it is verycrucial to discuss about the impact of technological changes in business process especially
Information technology over the organization performance. There are lots of factors to be
concern for top management to implement the technologies to have a better performance and
stay in top among their rivals.
Indian I.T. sectors are exploring among the world faster which impacts the growth of other
business sectors by supporting with their process like SCM, ERP, Outsourcing, etc with cost
effective and efficient services.
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CHAPTER - 4
DATA ANALYSIS
4.1 PART 1
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1. SEX:
Table 01:Table showing gender
Figure 1 GENDER:
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MANAGERS SUPERVISOR EMPLOYEES TOTAL
MALE 7 13 43 63
FEMALE 3 7 27 37
TOTAL 10 20 70 100
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2. AGE:
Table 02:Table showing Age
Figure 2 AGES:
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AGE MANAGERS SUPERVISOR EMPLOYEES TOTAL
LESS THAN 20 YEARS 0 0 0 0
20-25 YEARS 0 4 56 60
25-30 YEARS 3 14 9 26
30-35 YEARS 6 2 4 12
MORE THAN 40 YEARS 1 0 1 2TOTAL 10 20 70 100
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3. DEPARTMENT:
Table 03:Table showing Department
Figure 3: DEPARTMENTS:
4. EXPERIENCE:
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DEPARTMENT MANAGERS SUPERVISOR EMPLOYEES TOTAL
PROFESSIONAL 8 16 58 82
MARKETING 2 1 7 10
CUSTOMER SERVICE 0 2 3 5
OTHER 0 1 2 3
TOTAL 10 20 70 100
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Table 04:Table showing Experience
Figure 4 EXPERIENCE:
5. MONTHLY INCOME:
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EXPERIENCE MANAGERS SUPERVISOR EMPLOYEES TOTAL
LESS THAN 1YEAR 0 1 44 45
1-3 YEARS 3 15 20 38
2-5 YEARS 5 4 6 15
MORE THAN 5 YEARS 2 0 0 2
TOTAL 10 20 70 100
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Table 05:Table showing Monthly income
Figure 5 MONTHLY INCOMES:
6. QUALIFICATION:
Table 06:Table showing Qualification
29
MONTHLY INCOME MANAGERS SUPERVISOR EMPLOYEES TOTAL
LESS THAN 10,000 0 0 4 4
10,000-19,999 0 4 43 4720,000-29,999 4 16 20 40
MORE THAN 30,000 6 0 3 9
TOTAL 10 20 70 100
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Figure 6 QUALIFICATIONS:
4.2 PART 2(A)
1. The types of systems are currently in use in your company to support SupplyChain Management is effective?
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 0 3 5 8
Strongly Agree 1 5 7 13
Agree 6 8 18 32
Disagree 2 1 24 27Strongly Disagree 1 2 12 15
30
QULAIFICATION MANAGERS SUPERVISOR EMPLOYEES TOTAL
BELOW UG 0 1 5 6
UG 3 12 43 58
PG 7 7 22 36
TOTAL 10 20 70 100
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Very Strongly Disagree 0 1 14 15
TOTAL 10 20 70 100
HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
1 1.3 -0.3 0.09 0.069
6 3.2 2.8 7.84 2.450
2 2.7 -0.7 0.49 0.181
1 1.5 -0.5 0.25 0.166
3 1.6 1.4 1.96 1.225
5 2.6 2.4 5.76 2.215
8 6.4 1.6 2.56 0.400
1 5.4 -4.4 19.36 3.585
2 3.0 -1.0 1.00 0.3331 3.0 -2.0 4.00 1.333
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5 5.6 -0.6 0.36 0.064
7 9.1 -2.1 4.41 0.485
18 22.4 -4.4 19.36 0.864
24 18.9 5.1 26.01 1.381
12 10.5 1.5 2.25 0.214
14 10.5 3.5 12.25 1.166
TOTAL 16.131
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 16.131
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence the types of systems are currently in use in your company to support Supply ChainManagement is effective.
2. Supply chain management adds value to the customers.
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 2 3 2 7
Strongly Agree 1 4 4 9
Agree 4 5 24 33
Disagree 1 7 16 24
Strongly Disagree 1 1 16 18
Very Strongly Disagree 1 0 8 9
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
2 0.7 1.3 1.69 2.414
1 0.9 0.1 0.01 0.011
4 3.3 0.7 0.49 0.148
1 2.4 -1.4 1.96 0.816
1 1.8 -0.8 0.64 0.355
1 0.9 0.1 0.01 0.011
3 1.4 1.6 2.56 1.828
4 1.8 2.2 4.84 2.6885 6.6 -1.6 2.56 0.387
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7 4.8 2.2 4.84 1.008
1 3.6 -2.6 6.76 1.877
2 4.9 -2.9 8.41 1.716
4 6.3 -2.3 5.29 0.839
24 23.1 0.9 0.81 0.035
16 16.8 -0.8 0.64 0.038
16 12.6 3.4 11.56 0.917
8 6.30 1.7 2.89 0.458
TOTAL 15.546
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 15.546
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence Supply chain management adds value to the customers.
3. The company is flexible with respect to new changes with technologies in SCM.
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 2 8 9 19
Strongly Agree 4 2 12 18
Agree 2 4 24 30
Disagree 1 4 12 17
Strongly Disagree 0 1 7 8
Very Strongly Disagree 1 1 6 8
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
2 1.9 0.1 0.01 0.000
4 1.8 2.2 4.84 2.688
2 3.0 -1.0 1.00 0.333
1 1.7 -0.7 0.49 0.288
1 0.8 0.2 0.04 0.050
8 3.8 4.2 17.64 4.642
2 3.6 -1.6 2.56 0.711
4 6.0 -2.0 4.00 0.666
4 3.4 0.6 0.36 0.105
1 1.6 -0.6 0.36 0.2251 1.6 -0.6 0.36 0.225
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9 13.3 -4.3 18.49 1.390
12 12.6 -0.6 0.36 0.028
24 21.0 3.0 9.00 0.428
12 11.9 0.1 0.01 0.000
7 5.6 1.4 1.96 0.35
6 5.6 0.4 0.16 0.028
TOTAL 12.157
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 12.157
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence the company is flexible with respect to new changes with technologies in SCM.
4. The company is really benefited with implementation of supply chain management.
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 4 5 5 14
Strongly Agree 3 7 12 22
Agree 2 4 19 25
Disagree 1 2 24 27
Strongly Disagree 0 1 7 8
Very Strongly Disagree 0 1 3 4
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
4 1.4 2.6 6.76 4.828
3 2.2 0.8 0.64 0.290
2 2.5 -0.5 0.25 0.100
1 2.7 -1.7 2.89 1.070
5 2.8 2.2 4.84 1.728
7 4.4 2.6 6.76 1.536
4 5.0 -1.0 1.0 0.200
2 5.4 -3.4 11.56 2.140
1 1.6 -0.6 0.36 0.225
1 0.8 0.2 0.04 0.0505 9.8 -4.8 23.04 2.351
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12 15.4 -3.4 11.56 0.750
19 17.5 1.5 2.25 0.128
24 18.9 5.1 26.01 1.376
7 5.6 1.4 1.96 0.350
3 2.8 0.2 0.04 0.014
TOTAL 17.136
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 17.136
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence the company is really benefited with implementation of supply chain management.
5. SCM is used as an effective strategy for long term growth of the company.
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 2 2 5 9
Strongly Agree 2 1 7 10
Agree 3 12 20 35
Disagree 2 2 25 29
Strongly Disagree 1 2 7 10
Very Strongly Disagree 0 1 6 7
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
2 0.9 1.1 1.21 1.344
2 1.0 1.0 1.00 1.000
3 3.5 -0.5 0.25 0.071
2 2.9 -0.9 0.81 0.279
1 1.0 0 0.00 0.000
2 1.8 0.2 0.04 0.022
1 2.0 -1.0 1.00 0.500
12 7.0 5.0 25.00 3.571
2 5.8 -3.8 14.44 2.489
2 2.0 0 0.00 0.0001 1.4 -0.4 0.16 0.114
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5 6.3 -1.3 1.69 0.268
7 7.0 0 0.00 0.000
20 24.5 -4.5 20.25 0.826
25 20.3 4.7 22.09 1.088
7 7.0 0 0.00 0.000
6 4.9 1.1 1.21 0.246
TOTAL 11.818
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.H1: Not as stated above.
The calculated value is: 11.818
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence SCM is used as an effective strategy for long term growth of the company.
6. Supply chain can be managed with these factors?
40
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Close partnership with suppliers 2 3 5 10
Close partnership with customers 2 4 9 15
JIT supply 1 5 11 17
e-procurement 1 3 9 13
EDI 0 1 7 08
Outsourcing 1 0 8 09
Vertical Integration 1 2 9 12
3PL 0 0 3 04
Holding safety stock 2 2 9 12TOTAL 10 20 70 100
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1 1.6 0.4 0.16 0.1
2 2.4 -0.4 0.16 0.067
2 2.4 -0.4 0.16 0.067
5 7 -2 4 0.571
9 10.5 -1.5 2.25 0.214
11 11.9 -0.9 0.81 0.0689 9.1 -0.1 0.01 0.001
7 5.6 1.4 1.96 0.350
8 6.3 1.7 2.89 0.458
9 8.4 0.6 0.36 0.042
3 2.8 0.2 0.04 0.014
9 8.4 0.6 0.36 0.042
TOTAL 5.738
Where,
O Values from table; E (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 5.738
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence Supply chain can be managed with these factors.
7. How successful do you think is your company in managing its supply chain ingeneral?
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 1 0 4 5
Strongly Agree 3 3 7 13
Agree 2 8 21 31
Disagree 3 5 23 31
Strongly Disagree 1 3 7 11
Very Strongly Disagree 0 1 8 9
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
1 0.5 0.5 0.25 0.500
3 1.3 1.7 2.89 2.223
2 3.1 -1.1 1.21 0.390
3 3.1 -0.1 0.01 0.003
1 1.1 -0.1 0.01 0.009
3 2.6 0.4 0.16 0.061
8 6.2 1.8 3.24 0.522
5 6.2 -1.2 1.44 0.232
3 2.2 0.8 0.64 0.291
1 1.8 -0.8 0.64 0.355
4 3.5 0.5 0.25 0.0717 9.1 -2.1 4.41 0.484
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21 21.7 -0.7 0.49 0.022
23 21.7 1.3 1.69 0.077
7 7.7 -0.7 0.49 0.064
8 6.3 1.7 2.89 0.458
TOTAL 5.762
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 5.762
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence company was managing its supply chain in general is successful.
8. The following factors that your company needs to do in order to manage its supply
chain better?
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Effective 3 5 19 27
Improve 1 2 13 16
Start Implementing 3 7 17 27
Satisfied 3 3 11 17
Ineffective 0 1 4 5
Not appropriate 0 2 6 8
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
3 2.7 0.3 0.09 0.033
1 1.6 -0.6 0.36 0.225
3 2.7 0.3 0.09 0.033
3 1.7 1.3 1.69 0.994
5 5.4 -0.4 0.16 0.029
2 3.2 -1.2 1.44 0.450
7 5.4 1.6 2.56 0.474
3 3.4 -0.4 0.16 0.047
1 1.0 0.0 0.00 0.000
2 1.6 0.4 0.16 0.100
19 18.9 0.1 0.01 0.000
13 11.2 1.8 3.24 0.289
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17 18.9 -1.9 3.61 0.191
11 11.9 -0.9 0.81 0.068
4 3.5 0.5 0.25 0.071
6 5.6 0.4 0.16 0.028
TOTAL 3.032
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 3.032
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence the following factors that company needs to do in order to manage its supply chain arebetter.
9. Does your companies separate logistics department will be effective?
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 4 11 13 28
Strongly Agree 3 3 5 11
Agree 3 3 29 35
Disagree 0 1 12 13
Strongly Disagree 0 2 5 7
Very Strongly Disagree 0 0 6 6
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
4 2.8 1.2 1.44 0.514
3 1.1 1.9 3.61 3.281
3 3.5 -0.5 0.25 0.071
11 5.6 5.4 29.16 5.207
3 2.2 0.8 0.64 0.290
3 7.0 -4.0 16.0 2.285
1 2.6 -1.6 2.56 0.984
2 1.4 0.6 0.36 0.257
13 19.6 -6.6 43.56 2.222
5 7.7 -2.7 7.29 0.946
29 24.5 4.5 20.25 0.82612 9.1 2.9 8.41 0.924
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5 4.9 0.1 0.01 0.000
6 4.2 1.8 3.24 0.771
TOTAL 18.064
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 18.064
With 95% level of significance and degree of freedom 10 the table value is: 18.3
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence companies separate logistics department will be effective.
10. Does your company have a clear logistics strategic plan?
RATING MANAGERS SUPERVISOR EMPLOYEES TOTAL
Very Strongly agree 2 3 5 10
Strongly Agree 3 2 7 12
Agree 1 5 18 24
Disagree 3 4 12 19
Strongly Disagree 1 3 14 18
Very Strongly Disagree 0 3 14 17
TOTAL 10 20 70 100
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HYPOTHESIS TESTING:
O E O-E [O-E]^2 (O-E)^2/E
2 1.0 1.0 1.0 1.0
3 1.2 1.8 3.24 2.7
1 2.4 -1.4 1.96 0.67
3 1.9 1.1 1.21 0.64
1 1.8 -0.8 0.64 0.36
3 1.7 -1.3 1.69 0.99
2 2.0 0 0 0
5 4.8 0.2 0.04 0.008
4 3.8 0.2 0.04 0.01
3 3.6 -0.6 0.36 0.1
3 3.4 -0.4 0.16 0.055 7.0 -2.0 4.0 0.57
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7 8.4 -1.4 1.96 0.23
18 16.8 1.2 1.44 0.08
12 13.3 -1.3 1.69 0.127
14 12.6 1.4 1.96 0.155
14 11.9 2.1 4.41 0.37
TOTAL 8.06
Where,
O Values from tableE (RT* CT)/GT
H0: The given statement is true.
H1: Not as stated above.
The calculated value is: 8.06
With 95% level of significance and degree of freedom 10 the table value is: 18
Since calculated value < table value so, accept NULL HYPOTHESIS.
RESULT:
There is no bias of opinion.
CONCLUSION:
Hence the company has a clear logistics strategic plan.
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CHAPTER 5
DATA INTERPRETATION
AND
FINDINGS
FINDINGS
The findings of the study and the discussion are presented according to the following researchquestions:
The profile of target audience in terms of gender, age, nationality, marital status, department,experience, present salary rate, and educational attainment are used for analysis.
Profile of Target Audience
Table 07:Profile of Target Audience
PROFILE OF TARGET AUDIENCE
BY DESCRIPTION TOTAL %
1) SEXMale 63 63
Female 27 27
2) AGE
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More than 30 years 2 2
3) DEPARTMENT
Production 82 82
Marketing 10 10
Customer service 5 5
Other 3 3
4) EXPERIENCE
Less than 1year 45 45
1-3 years 38 38
2-5 years 15 15
More than 5 years 2 2
5) MONTHLY INCOME
Less than 10,000 4 4
10,000-19,999 47 47
20,000-29,999 40 40
More than 30,000 9 9
6) QUALIFICATION
Below UG 6 6
UG 58 58
PG 36 36
5.1 FINDINGS FROM PROFILE OF TARGET AUDIENCE:
Survey is carried out among three categories of job; manager, supervisor and employee
in the ration of 1:2:7. In our survey 63 of our respondents were male and remaining 37
were the female respondents (Table 01).
In our survey 60 respondents were in 20-25 years age group and 26 respondents were in25-30 age groups remaining 12 were from 30-35 age group and 2 were from above 40
years age group (Table 02).
Also analysis reveals that 82 respondents were from Production while 10, 5, 3 were from
marketing, customer service and other department respectively (Table 03).
Most of the respondents were fresher's; they have less than one year experience. In oursurvey 42 of our respondents have less than one year experience and other 38 have 1-3
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years of experience and remaining respondents have more than 3years of experience.
This type of composition with freshers and experienced will give good results to survey
(Table 04).
Since majority of them were freshers 47 of our respondents were earning Rs.10, 000-
19,999 monthly as their income and other 40 respondents were earning a sum of Rs.20,
000-29,999 and remaining respondents were earning more than 30,000 per month
(Table 05).
From our analysis we can infer that 58 of our respondents have educational qualification
of U.G and other 36 of our respondents have P.G education qualification (Table 06).
Strategic use of I.T. in supply chain management is effective
Table 08:Table showing Strategic use of I.T. in supply chain management is effective
DESCRIPTION
1
VSA
2
SA
3
A
4
DA
5
SDA6
VSDA Total
1) The types of systems arecurrently in use in your companyto support Supply ChainManagement is effective
Managers 0 1 6 2 1 0 10
Supervisors 3 5 8 1 2 1 20
Employees5
7 18 14 1214
70
2) Supply chain management addsvalue to the customers
Managers 2 1 4 1 1 1 10Supervisors 3 4 5 7 1 0 20
Employees 24 24 16 16
870
3) The company is flexible withrespect to new changes withtechnologies in SCM
Managers 2 4 2 1 0 1 10
Supervisors 8 2 4 4 1 1 20
Employees 9 12 24 12 7 6 70
4) The company is really benefitedwith implementation of supplychain management
Managers 4 3 2 1 0 0 10
Supervisors 5 7 4 2 1 1 20
Employees 512 19 24 7
370
5) SCM is used as an effectivestrategy for long term growth of
the company
Managers 2 2 3 2 1 0 10
Supervisors 2 1 12 2 2 1 20
Employees 5 7 20 25 7 6 706) Supply chain can be managed
with these factorsManagers 3 3 3 1 0 0 10
Supervisors 5 4 7 3 1 0 20
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Employees 5 9 16 11 13 16 70
7) How successful do you think isyour company in managing itssupply chain in general
Managers 1 3 2 3 1 0 10
Supervisors 0 3 8 5 3 1 20
Employees 4 7 21 23 7 8 70
8) The following factors that yourcompany needs to do in order to
manage its supply chain better
Managers 3 1 3 3 0 0 10
Supervisors 5 2 7 3 1 2 20
Employees 19 13 17 11 4 6 709) Does your companies separate
logistics department will beeffective
Managers 4 3 3 0 0 0 10
Supervisors 11 3 3 1 2 0 20
Employees 13 5 29 12 5 6 70
10) Does your company have a clearlogistics strategic plan
Managers 2 3 1 3 1 0 10
Supervisors 3 2 5 4 3 3 20
Employees 5 7 18 12 14 14 70
Total 140 140 298 209 114 99 1000
Managers =100, Supervisors = 200, Employees = 700 Total Agree = 578 Total disagree = 422 1000
Where, 1) Very strongly agree, 2) Strongly agree, 3) Agree 4) Disagree5) Strongly disagree 6) Very strongly disagree
Strategic use of I.T. in supply chain management is effective based on category
Table 09:Table showing Strategic use of I.T. in supply chain management is effective based on category
Statement
Manager Supervisor Employee
TotalAgree Disagree Agree Disagree Agree Disagree
1) The types of systems are currently in use in your
company to support Supply Chain Management is
effective
7 3 16 4 30 40 100
2) Supply chain management adds value to thecustomers
7 3 12 8 30 40 100
3) The company is flexible with respect to newchanges with technologies in SCM 8 2 14 6 45 25 100
4) The company is really benefited withimplementation of supply chain management
9 1 14 6 36 34 100
5) SCM is used as an effective strategy for longterm growth of the company
7 3 15 5 32 38 100
6) Supply chain can be managed with these factors 9 1 16 4 30 40 100
7) How successful do you think is your company inmanaging its supply chain in general
6 4 11 9 32 38 100
8) The following factors that your company needs todo in order to manage its supply chain better
7 3 14 6 49 21 100
9) Does your companies separate logisticsdepartment will be effective
10 0 17 3 47 23 100
10) Does your company have a clear logisticsstrategic plan
6 4 10 10 30 40 100
TOTAL76 24 139 61 361 339
100076% 24% 69% 31% 52% 48%
5.2 FINDINGS FROM EFFECTIVE STRATEGIC USE OF I.T. IN SCM BASED ON
CATEGORY
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Survey reveals that most of the managers (76%) were satisfied compared to supervisors
(69%) and employees (52%)
From the survey of 100 respondents it is evident that about 58% of employees satisfied
with their job Survey indicates that employees (67%) were not personally committed to the changes
implemented in the company
Analysis shows that 64% of the employees says company is not flexible to their
responsibilities
Also analysis reveals that 70% of employees in the IT/ITeS companies were not
enthusiastic about the change in the company
CHAPTER - 6
RECOMMENDATIONS
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RECOMMENDATION 1:
BASIS FOR THE RECOMMENDATIONS:
EXPECTED CONTRIBUTION:
56
Management should concentrate on relationship with customers andsuppliers to progress effective SCM
Majority of the respondents hinted that Relationship with customers
and suppliers & Just in Time supply is important by giving first and
second rank to that statement. (Part 2(b))
Since customers and suppliers are major source of key information,
improving relationship with them improves overall effectiveness of
SCM
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RECOMMENDATION 2:
BASIS FOR THE RECOMMENDATIONS:
57
Management should start implement the Key factors to improveoverall effectiveness of SCM
Majority of the respondents hinted that Start implementing many key
factors by giving first rank to that statement.
(Part 2(b))
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EXPECTED CONTRIBUTION:
RECOMMENDATION 3:
BASIS FOR THE RECOMMENDATIONS:
EXPECTED CONTRIBUTION:
58
Creating better IT infrastructure improves overall effectiveness of
SCM
Start implementing the key factors increases the productivity with
best quality which highlights the effectiveness of IT in SCM
Majority of the respondents hinted that Better IT infrastructure plays
a key role of enabling higher efficiency (Part 2(C))
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CHAPTER - 7
Conclusion
59
Better IT infrastructure improves better handling of key information
in turns improves effectiveness of SCM
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7. CONCLUSION
The emerging issue in supply chain management is about sharing of
information and efficient use of the information for coordinating business processes to deliver
a superior value to the customers and hence I did hypothesis testing based on information
collected from the target audience involved in day to day operations which has huge impact
of supply chain management.
From the information I have collected from the target audience states very clearly that role of
I.T. and key information are very crucial part in SCM and I pointed out the problems
associated with the implementation of better I.T. infrastructure in those industries and came
out with better suggestions and recommendations.
From the analysis part of data interpretation of key information collected from target
audience, it was clearly identified that investment in I.T. infrastructure and handling those are
the critical issues associated with the industries, especially among employees whose handling
the key information.
Hence I concluded that investment in better I.T. infrastructure is not the only solutions to
those issues but to handling key information and implementation of better strategies to
improve overall efficiency of I.T. in Supply chain management.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Web:
Ref (1) - http://en.wikipedia.org/wiki/Supply_chain_management
Ref (2) - http://www.marcbowles.com/courses/adv_dip/module4/overview/overview.htm
Books:
Supply Chain Management : Strategy, Planning and Operation By Sunil Chopra and
Peter Meindl
Handbook of Supply Chain Management By James B. Ayers
Supercharging Supply Chains: New Ways to Increase Value Through Global
Operational Excellence By Gene R. Tyndall, Christopher Gopal, Wolfgang Partsch
(Editor), John W. Kamauff
Introduction to Supply Chain Management By Robert B. Handfield, Ernest L. Jr.
Nichols
No Boundaries : Moving Beyond Supply Chain Management By James A., Ph.D.
Tompkins, Jim Tompkins
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Ketchen Jr., G., & Hult, T.M. (2006). Bridging organization theory and supply chain
management: The case of best value supply chains. Journal of Operations
Management, 25(2) 573-580.
Larson, P.D. and Halldorsson, A. (2004). Logistics versus supply chain management:
an international survey
ANNEXURE
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QUESTIONNAIRE ON STRATEGIC USE OF I.T. IN SCM
IIPM, Chennai 2009
PART- 1
1. Sex:
A) Male [ ] B) Female [ ]
2. Age:
A) < 20 years [ ] B) 20-25 years [ ] C) 25-30 years [ ] D) >30 years
3. Department that you work now:
A) Production [ ] B) Marketing [ ] C) Customer Service [ ] D) Other [ ]
4. Experience with the company:
A) Less than 1 year [ ] B) 1-3 years [ ] C) 2-5 years [ ]
D) More than 5 years [ ]
5. Your Monthly Income:
A) Under 10,000 [ ] B) 10,000-19,999 [ ] C) 20,000-29,999 [ ]
D) 30, 0000 & above [ ]
6. Qualification:
A) Below UG [ ] B) UG [ ] C) PG [ ] D) Other [ ]
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PART- 2(A)
Please indicate your level of agreement with each of the following statements.
1- Very strongly agree
2- Strongly agree
3- Agree
4- Disagree
5- Strongly disagree
6- Very strongly disagree
11. The types of systems are currently in use in your company to support SupplyChain Management is effective?
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
12. Supply chain management adds value to the customers.
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
13. The company is flexible with respect to new changes with technologies in
SCM.
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
14. The company is really benefited with implementation of supply chainmanagement.
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
15. SCM is used as an effective strategy for long term growth of the company.
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
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PART- 2(B)
16. Supply chain can be managed with these factors? (Tick all that apply)
1 Close partnership with suppliers
2 Close partnership with customers
3 JIT supply
4 e-procurement
5 EDI
6 Outsourcing
7 Vertical integration
8 3PL
9 Holding safety stock
17. How successful do you think is your company in managing its supply chain ingeneral?
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
18. The following factors that your company needs to do in order to manage its supplychain better? (Tick allthat apply)
Effective ImproveStartIm leme
SatisfiedIneffective
Nota ro ria
Close partnership with suppliers
Close partnership with customers
JIT supply
e-procurement
EDI
Outsourcing
Vertical integration
3PL
Holding safety stock
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Other (specify)
19. Does your companies separate logistics department will be effective?
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
20. Does your company have a clear logistics strategic plan?
1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
PART- 2(C)
21. How satisfied are you with the use of I.T. in SCM?1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]
22. How important are the following future measures for supporting your company effortin SCM and I.T.?
Verystrongly
agree
Stronglyagree
Agree DisagreeStronglydisagree
Verystronglydisagree
(1) (2) (3) (4) (5) (6)
More education, e.g. formal
Easier access to vocational
More funding and financial
More inter-country regional
Better infrastructure e.g.
Improved information
Increased regional cooperationCloser cooperation between
Other (specify)
23. Please specify your personal opinion about the usage of I.T in SCM andrecommendations to improve in future?
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RESPONSE SHEET NO: 1
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesisStrategic use of I.T. in Supply chain Management
The outcome of the discussion: First part of the Questionnaire done by me was modified by
my external guide Mr.Azim
The Progress of the Thesis: My external guide gave few hints to do my second part of
questionnaire & I have started working with my second part of questionnaire.
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Date When the Guide Was Consulted: 18/04/2009
RESPONSE SHEET NO: 2
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesis
Strategic use of I.T. in Supply chain Management
The outcome of the discussion: My external guide replied to the Questionnaire which I sent
few days back with few corrections and told to modify it.
The Progress of the Thesis: My guide told to change the mistake made in the questionnaire
and told to send it back to get approved.
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Date When the Guide Was Consulted: 27/04/2009
RESPONSE SHEET NO: 3
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesis
Strategic use of I.T. in Supply chain Management
The outcome of the discussion: After modifying the Questionnaire, it was circulated for
data collection to various Employees, Employers in retail industries. My external guide
suggest me whom to target.
The Progress of the Thesis: The Questionnaire was given for data collection and waiting for
the respondent sheet for calculations.
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Date When the Guide Was Consulted: 30/04/2009
RESPONSE SHEET NO: 4
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesis
Strategic use of I.T. in Supply chain Management
The outcome of the discussion: I have circulated 100 questionnaires out of which only 47
have replied, after eliminating few improper responses, my guide told me to circulate more
questionnaires to few organizations & he told me to start with calculations by this week end
after getting sample size of 100.
The Progress of the Thesis: My external guide told me to circulate around 100
questionnaires to few organizations; I planned to meet the employees or employer this week.
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Date When the Guide Was Consulted: 04/05/2009
RESPONSE SHEET NO: 5
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesis
Strategic use of I.T. in Supply chain Management
The outcome of the discussion: From the collected responses, calculation has done and
reported to my external guide.
The Progress of the Thesis: My external guide has approved my calculations and guided me
to interpret the datas by hypothesis testing, with that comes out with appropriate
recommendations and suggestions.
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Date When the Guide Was Consulted: 15/05/2009
RESPONSE SHEET NO: 6
Details of student
Name : KARTHIK KUMAR G
Batch : SS/07-09/FINANCE
Specialization : Marketing & Finance
Mobile No : 9894107105
E Mail ID : [email protected], [email protected]
Thesis Id.: SS/00902/MKT
Title of the thesis
Strategic use of I.T. in Supply chain Management
The outcome of the discussion: Interpretation and data analysis was discussed with my
guide from the feedback from questionnaires.
The Progress of the Thesis: My external guide has approved my interpretations and its
recommendations and suggestions and finally appreciated my entire effort of this project
outcome.
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Date When the Guide Was Consulted: 22/05/2009