Impact Of Supply Chain Management Concepts Commerce Essay

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Supply chain management (SCM) as a strategy for competitive advantage has gained prominence in both large and small organisations. This research aims to investigate the impact of supply chain management on the growth of small and medium enterprises (SMEs) in Nigeria It will examine the approaches that can be undertaken by small businesses to overcome their constraints, in order to gain competitive advantage both for themselves as well as the entire supply chain concepts. .

1.2 Problem to be Studied

Small and medium sized enterprises have limited power in the supply chain and limited resources to invest in advanced management systems. This makes it difficult to cope with the latest challenges such as mass customisation which puts higher demands on the companies' ability to attune its production planning to customers' wishes and their suppliers. The research will presents possible types of supply chain solutions to SMEs in Nigeria.

1.3 Objective(s) of the Proposed Research Project

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• Identify and analyze state-of-the-art supply chain integration concepts.

• Define the requirements for successful participation by SMEs in integrated supply chains in Nigeria.

• Identify the gaps between integrated supply chain requirements and the capabilities of SMEs in Nigeria.

• Suggest strategies to assist SMEs in developing the capabilities required for successful supply chain management in Nigeria.

This research is intended for the owners and managers of small and medium-sized manufacturing enterprises in Nigeria and for the manufacturing extension centres and technical resource providers, World Bank, IFC and NGOs.

1.4 Major Research Questions

Research questions are on and not limited to

1. How to determine appropriate measures of supply chain performance.

2. Do Supply chain management concepts have effect on the growth of SMEs in

Nigeria?

3. What are the structure and temporal factors that influence supply chain

performance in Nigeria.

Minor Research Questions

What are the effects of e-business to the adoption of supply chain management concepts by SMEs in Nigeria.

1.6 Significance of the Problem and Justification of the Investigation

Interest in the role of small and medium-sized enterprises (SMEs) in the development process continues to be in the forefront of policy debates in developing countries including Nigeria. The advantages claimed for SMEs are various, including: the encouragement of entrepreneurship; the greater likelihood that SMEs will utilise labour intensive technologies and thus have an immediate impact on employment generation; they can usually be established rapidly and put into operation to produce quick returns; SME development can encourage the process of both inter- and intra-regional decentralisation; and, they may well become a countervailing force against the economic power of larger enterprises.

More generally the development of SMEs is seen as accelerating the achievement of wider economic and socio-economic objectives, including poverty alleviation. Staley and Morse (1965, p.318) identify a 'developmental approach' to SME promotion which has as its objective the creation of 'economically viable enterprises which can stand on their own feet without perpetual subsidy and can make a positive contribution to the growth of real income and therefore to better living levels'. This approach emphasises the importance of efficiency in new SMEs. Small producers must be encouraged to adopt new methods, move into new lines of production and in the longer-run, wherever feasible, they should be encouraged to become medium- or even large-scale producers.

More recent concerns associated with the growth and efficiency of smaller enterprises have also become prominent (Mazumdar, 1997). Using the case of Northern Italy, Piore and Sabel (1984) have argued that small enterprises are more efficient because they have adopted a flexible specialisation approach. Correspondingly, there has been growing interest in whether this model has or can be replicated in developing countries (Schmitz, 1989; Pederson, 1994; Schmitz and Musyck, 1994; Schmitz, 1995).

Today customers place increasing demand for customised products, reduced delivery time and reduced price. Together with the general development towards globalisation and shorter product life cycles, companies are forced to take action within several areas to compete on price and flexibility. This calls for new investment in flexible production systems, increased use of outsourcing and optimised supply chain (supply network) activities to improve external coordination and to achieve fast flows of high quality products to customers. In this research the focus will be on impact of supply chain management concepts on the growth of small and medium sized enterprises in Nigeria.

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In addition, recent increased interest in supply chain management has led to recognition of the interdependencies which exist between firms in the supply chain and subsequent emphasis on relationships among them. Both the logistic and behavioural aspects of these relationships have been the focus on research in marketing, manufacturing and logistics.

However, this extensive study of supply chain relationships has been largely biased towards po1icies which large companies do, or should, follow for developing the supply bases and channel relationships. The perspective of the SMM who is often an upstream player is largely underdeveloped, although specific industries (e.g., automotive) have received some attention. This work adopts the perspective of the SCM and focuses on how supply chain concepts affect the growth of SMEs in Nigeria.

Feasibility of proposed Study

The study is aimed at examining the role of business management concepts on growth of small and medium enterprises in Nigeria, with emphasis on supply chain management. The concepts that the researcher wants to study relying on supply chain management as a key competitive weapon.

Section 2.

2.1 Literature Review

Hausman W.H. 2002 Supply Chain Performance metrics. In: Correy Billington,Terry Harrison,Hau Lee and John Neale

How to master cross enterprises collaboration "Supply Chain Management review July/August 2003; volume 7 No 4, 18 - 27

Kurt Salmon Assocs. (1993) 'Efficient Consumer Response: Enhancing Customer Value in the Supply Chain.' Washington.

Lamey,J. (1996) 'Supply Chain Management: Best Practice and the Impact of New Partnerships.' Financial Times Retail and Consumer Publishing, London.

(2005)Surviving Supply Chain integration-Strategies for Small manufacturers

Vokurka RJ, Zank GM, Lund III, CM (2002) Improving competitiveness through supply chain management. A cumulative improvement approach. Competitive Review 12 (1)

14-28

D. MacFarlane, Y. Sheffi, The impact of automatic identification on supply chain operations, The Int. J. of Logistics Management 14(1): 1-17 (2003).

V.G. Narayanan, A. Raman, Aligning incentives in supply chains, Harvard Business Review: 94-102 (November 2004).

Asian Productivity Organisation -Asian cases for supply chain management for SMEs (2002)

Which Supply Chain Design Is Right for YOU? Supply Chain Management Review, May/Jun2005, Vol. 9 Issue 4, p50, 8p; (AN 17041093)

Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. By: Kannan, Vijay R.; Tan, Keah Choon. Omega (Oxford), Apr2005, Vol. 33 Issue 2, p153, 10p; DOI: 10.1016/j.omega.2004.03.012

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Section 3

RESEARCH METHODOLOGY

3.1 Research Design

The state of current knowledge about the nature and role of supply chain relationships in the growth of SMEs calls for adoption of a mixed research methodology -the complementary tools of case studies and a general survey. The research will begin with a set of semi-structured interviews with SMEs, designed to help confirm and identify key issues for SMEs in managing supply chain relationships. From the analyses of these interviews, case studies will be developed; analyses of these data will also contribute to the design of the planned sample survey of integrated supply chain management in SMEs in Nigeria

Research Instrument

To address this question, a primarily qualitative approach would be most appropriate, combining a number of key elements: literature review, expert interviews, and interviews with SME entrepreneurs, questionaires and discussion fora.

Data Analysis Technique

The analytical technique is to be used in this research, which is by means of Quota sampling. It will be analysed and interpreted by using chi-square

General characteristics of the Study Population

The population with consist of interviewing of 600 SMEs Manager/owners, experts and six regional SMEs discussion fora will be organised in the six geo-political zones of the country

The Location of Setting in which the Study is to take place

The first year will be course work in The Netherlands, the 2nd and 3 rd will be for fieldwork and data collections in Nigeria, while the forth year will be used for writing and defending the research in The Netherlands.

3.6 Calendar of Events in carrying out Study

YEAR 1

Coursework literature review seminars in four common management

and research areas:

• Quantitative Methods

• Research Methods

• Behavioural Sciences

• Economics

Literature study in such fields as logistics and coordination in supply chains, design of planning methods incorporating monitoring data, and e-commerce in supply chains in order to obtain a precise focus and context for the ensuing research stages. Some case studies will be explored in parallel.

YEAR 2

Theory Development

Writing and submission of publication

Hypothesis Development

Preparation of survey study

YEAR 3

Field work and Analysis of survey study

Writing of and submission of publication

YEAR 4

Writing and submission of publication

Realisation of publication and thesis defence

Ethical Considerations

The research will be my own work and will conform to the University regulations on plagiarism.