Investigating Supply Chain Integration In Manufacturing Companies Commerce Essay


Supply Chain Management has become a buzz word among organizations and professionals and has captured their interest. Today organizations have realized that SCM is vital for performance excellence, as well as, for competitive edge. Fierce corrival in modern global market, launching products with shorter product life cycle and extensive expectation of consumers have pressurized business to look for better supply chain. Rapid progress in technologies like management systems, communication technologies and transportation technologies (e.g. ordering Material VIA mobile devices, usage of internet for managing material and automatically alert for short inventories). On a single button we can have list of various suppliers with their histories and background or we can have annual forecast on our screens and many more. In short, modernization in business leads to severe competition, time and intense competition motivates business continuous improvement of supply chain techniques to manage more and more efficiently. In distinctive supply chain raw material and products are made at one or more than one factories, shipped to retailers and consumers. In order to reduce cost and develop standardized level of services, various effective strategies must be taken into consideration, such as, interaction at almost all levels of supply chain. Supply chain typically consists of suppliers manufacturing centers, warehouses, distribution centers and retail outlets. But the foremost for finest supply chain and integration system is not possible without smooth flow of information, material, finance. If any one of the flow lacks the whole business can be collapse. Integrated supply chain is basically systematic approach to administer the flawless flow of information, material and finance apparently the services from procuring raw material from supplier to the end consumers. Figure 1-1 demonstrate clear understanding of integrated flow and supply chain,

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Figure 1-1: The Information, Material and Finance flows in SCM (Supply Chain Management)

2. Background

Lambert et al. (1998) Defines SCM as the:

"Integration of key business process from end user through original suppliers that provides products services and information that add value for customers and stakeholders".

In 1998 lamberts et al highlight the importance of integrated process and the one of the flow that is information flow. Over a past few decades, firm have rapidly stretched across international borders as domestic markets have become inundated and mature. Expanding outside their residence countries, global firms draw on many of the strengths that create domestic success. Some examples include product and process innovation, competitive brands, marketing expertise and supply chain management capabilities. Companies start following new paradigms which would lead to competitive advantage for intense, Total quality management (TQM) and Just in Time (JIT) are examples of which companies adopt as a strategies which helped companies to enhance their process, cost reduction and compete in a variety of business environment. From very starting the concept of consumer and supplier integrative relation gained an enormous attention particularly in FMCG companies. Organizations in manufacturing and retail industries are striving continuously to increase profit and reduce costs or overall expenses. These industries have made tremendous improvements in their product quality and process efficiency by utilizing new technologies and automation.

With the widespread adoption of automation and technology, fierce competition and economic globalization has led these industries to look into their supply chains for a competitive edge.

3. Research problem

Still companies

Studying Operations and Supply Chain Management will enable you to solve complex business problems related to the journey of products and services from the manufacturer or provider to the end customer.

You will gain an understanding of the techniques required for managing and improving the integration of design, resources, processes and customer requirements.

4. Problem Statement

5. Objectives of study

The objective of this study is to understand the relationship between supply chain process integration and firm's performance.

3. Scope:

The aim of study is to identify the integrated supply chain processes specifically in FMCG's and its impact on firm's performance. Furthermore, the study attempts to uncover challenges and obstacles of supply chain integration faced by organizations in Pakistan.

4. Hypothesis.

H0 The supply chain process integration has significant impact on firm's performance.

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H1 The supply chain process integration has no impact on firm's performance.

H2 The information flow has more impact on firm's performance than material and financial flows.

H3 The material flow has more impact on firm's performance than information and financial flows.

H4 The financial flow has more impact on firm's performance than information and material flows.

Dependent Variable

Firm's performance

Independent Variables

Supply chain processes (Information, Material and Financial flows)

5. Methodology

5.1. Sample:

Sample size would be 10 from 5 different FMCG's. Minimum age of the sample will be 18 however there will be no constrain on the maximum age. Participant would be selected from different departments to test the level of integration level of the organization

5.2. Design

The study is mixed design and comprises of both quantitative and qualitative methods

5.3. Materials

Questionnaires would be our material to gather the data

5.4. Quantitative study

Sultan work on it please,

5.5. Statistical Analysis:

Once all data is collected, the researcher will input all results from questioner in to SPSS and perform a measurement analysis, ANOVA and Regression analysis along with descriptive to conclude how integrated process of supply chain impacts performance of organization.

5.6. Theoretical study

The qualitative study would be done by secondary data, observation, interviews and comprise of primary data. Observation will be compiled using thematic analysis to determine both consistency and variation in supply chain process. The aim of qualitative analysis is to detect important themes of supply chain process and its integration on firm's performance.

5. Research implications

The findings of this study will provide insight to supply chain professional and organizations on the importance of Supply chain integration.

6. Limitation

This study hold some limitation, the focuses only on supply chain process particularly of FMCG companies, study may not implacable on other industries for instance service oriented companies.