Chapter 3and 4, To Be Commented
Chapter 3and 4, To Be Commented
Chapter 3and 4, To Be Commented
Findings
This chapter deals with presentations, discussion and interpretation of the data collected through
questionnaire and interview. The discussion particularly focuses on respondent’s profile, SCM
practices, and supply chain integration, challenges of SCM and Customer services.
Out of Eighty (80) questionnaires distributed to respondents, All of them were returned
(accepted). From the accepted responses non was found invalid whereas all eighty (80) responses
were found valid and used for the analysis. This accounts for 100% of response rate. Thus, based
on the responses obtained from the respondent’s data presentation and analysis were made as
follows.
The researcher conducted an interview with three department managers. These are procurement
and supply manager, Human resource manager and Production Manager.
All managers except the Human resource manager (who has First Degree) have Second degrees.
And their work experience in the organization is Four, Eight and seven Years respectively. The
two managers are Male except for the human resource manager who is female. Therefore, in the
organization the education level and tenure of managers is good.
The demographic profile of the sample respondents is presented and analyzed below. The
purpose of assessing respondents‟ age, sex, is that, to determine whether the researcher
considered heterogeneity of sample units. On the other hand, assessing the work experience and
education level of the respondents‟ is that, when the respondents are more experienced and
educated, they have better opportunity to understand the case and give better response than else.
The demographic distribution of respondents such as sex, age, years of experience in the
organization and educational qualification of respondents are discussed in table 3.1 below along
with possible discussion of each item.
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Table 3.1-Demographic Frequency Distribution of Respondents
S.N Cumulative
Variables Valid percent percent
Frequency Percentage
Male 32 40.0 40.0 40.0
1 Sex Female 48 60.0 60.0 100
10
complete 8 10.0 10.0 11.3
12
Educational complete 16 20.0 20.0 31.3
Qualification
certificate 6 7.5 7.5 38.8
4
Diploma 20 25.0 25.0 63.7
1st degree
26 32.5 32.5 96.3
2nd Degree 100
and above 3 3.8 3.8
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Gender frequency of the respondents shows that the numbers of female respondents were almost
3/2 times as male respondents. This is 60% of the respondents were female, while 40 % were
female respondents referring that the company has more female employees than males. The
above table shows that the age category of respondents starts from the age of 20-25 up to more
than 40 years. Respondents between the age 20-25 constitutes the higher percentage of 42.5%
followed by respondents between the age of 26-30 constituting 30%. Respondents below 20 and
above 40 age both have the least percentage of 3.8% from the category. Ages between 31-35 and
36-40 constitutes 15% and 5% respectively. The table indicates that most of the respondents are
in the age between 20-25 category so that they can work hard in their company.
Table 3.1 also clearly shows the frequency distribution of respondents work experience, the
largest of the respondents 36.3 % (29) have between 7-11 years of work experience. In the same
case, 32.5% (26) of respondents have between 1-3 years of work experience and followed by 4-6
years of experience, which accounts 22.5% and 8.8% (7) respondents represents having more
than 11 years of experience. This implies that in total more than 67.6% of the respondents have
more than 4 years of work experience with in the case company and it is sufficient to judge and
give views. This is because when the respondents are more and more experienced within the
organization, they have better opportunity to know more and more about the organization.
As shown above in table 3.1 the highest education level attained by most of the respondents were
first degree holders which represents, (26) 32.5% out of the respondents and closely followed by
diploma holders which accounts (20) 25%. Respondents who complete grade 8, 10 and 12
accounts 1.3%, 10% and 20%% respectively. Respondents who have second degree and above
accounts for only 3.8%. The table implies that respondents are quailed enough to be included in
the study of the supply chain management issue.
As it were revealed in the methodology part, the designed method is descriptive statistical
analysis to analyze the five components of the conceptual framework developed for this study. In
addition to the quantitative analysis, the qualitative information obtained through interviews from
managers used to analyze the following issues. The analyses were on: Supply chain management
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practices, Challenges of SCM, Collaboration /integrated supply chain management, and
Customer services.
The above listed items are the most critical parts of the conceptual framework and basic research
variables of this paper. Therefore, the discussion of the above conceptual framework components
will answer the basic research questions and meets the stated objectives of this study. For the
analysis of all these variables, mean, variance and standard deviation is used. Particularly mean
value of the respondents has considered as an important indicator to the extent of the company’s
practices on each item. To conclude, the overall performance of the case company’s practices on
each variable, group mean was calculated and used.
The mean and group mean statistical values approaching to 2.00 and less indicates the poor
performance, 3.00, average/moderate while 4.00 and 5.00 indicates higher and very
high/excellent performance of the company on that particular item and variable respectively.
This study focused on the case company’s SCM practices from these five perspectives. For each
practices different items were developed and measured based on their mean and group mean
values.
Customer and Supplier relationship have the same goal i.e., to satisfy end user. The better the
supplier quality, the better the supplier’s long-term position, because the customer will have
better quality. Because both the customer and the supplier have limited resources, they must
work together as partners to maximize their return on investment. (Own thought)
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Under this part joint product planning, level of cooperativeness and compliance is discussed as
follows in table 3.2.
Table 3.2 above indicates the extent of relationship that exists between suppliers, Customers and
the case company. Accordingly, the group means of suppliers and customers‟ relationship is 3.76
which resembles to high performance with respect to the overall measures taken into
consideration. Specifically, Joint product planning with major customers, and the level of
cooperativeness with suppliers, shows the mean value of 3.93, and 3.73 respectively. These,
mean values imply that K.O.J.J food processing complex has good relationship with its
customers and suppliers particularly, on joint product planning.
Whereas Compliance with customers‟ delivery in full requirement and Compliance with
customers‟ delivery on time requirements represents mean values of 3.61 and 3.76 respectively.
This implies the case company is meeting the most requirements of the customers as per their
desire.
The level of cooperativeness with suppliers scored mean value of 3.73. In order to experience
successful relationship with customers and suppliers, there has to be a joint production and
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product planning. This is because, according to Lee, (2002) Coordinating operational activities
through joint planning with suppliers and customers results in inventory reduction, smoothing
production, improve product quality, reducing supply uncertainty and lead-time.
Therefore, the mean value of joint product planning with major customers reveals a high
performance of such practice (3.93). The group mean value result implies that SCM practice
from the perspective of suppliers and customers‟ relationship of the case company is very good
that is 3.76.
Along with this issue the procurement and supply manager say that sometimes the company the
uncertainty in the market leads to change of plans and directions which is because sometimes
suppliers are incapable to supply the full need of the company. The manager also underlines that
establishing strategic and long-term relationship with suppliers have the following advantages,
reduced costs, increase efficiency and communication, pricing volatility mitigation, supply chain
consolidation, outsourcing and continual improvement in support of this the current practice of
K.O. JJ is satisfactory with this respect according to him the company is doing great in this
aspect.
Thus, good relationship of the case company with its suppliers resulted in satisfying its customers
adherence requirement on time.
The researcher intends to look at the integration between the case company with its suppliers and
customers hereunder,
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Effective collaboration with supply chain partners requires that your organization share valuable
information in real time. You are trying to create, through near transparent communication, a
network of collaborators to act as an extension of your efforts to get the right product to the right
customer in the right market at the exact time they want and need it. Based on this, the researcher
has tried to see the extent of integration of the case company with suppliers, customers and cross
functional units within the company.
Integration with suppliers
Supplier integration is a close alignment and coordination within a supply chain, often the use of
shared management information system. A supply chain is made up of all parties involved in
fulfilling a purchase, including raw materials, manufacturing the product, transporting completed
items and supporting services.
In this part the researcher reveals the integration of the case company’s practice with the
suppliers as follows;
Table 3.3- Company Integration with Suppliers
Standard
S/N Item N Mean Deviation
1 The level of strategic partnership with suppliers 80 4.11 0.968
2 The establishment of quick ordering system 80 4.15 0.969
3 Stable procurement through network 80 4.11 0.928
Group Mean 4.13
As illustrated in the above table 3.3 the researcher prepares three items to analyze the company’s
integration with its suppliers. As the table reveals the establishment of quick ordering system has
the highest mean value which is high i.e., 4.15. The level of strategic partnership with suppliers
and stable procurement through network comes next with a mean value of 4.11.
Furthermore, the group mean shows that 4.13 mean value. The group mean value reveals as, high
integration between K.O. JJ food processing complex and its suppliers. In addition to this, an
interview was conducted with procurement and supply manager of the case company to
consolidate the information obtained through questionnaire. According to the interview response,
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the company has common suppliers from abroad and domestically. but domestically the company
most of the time apply a procurement method of bidding i.e., any supplier who fulfills the
specification and requirement set by the company can come up with its products.
According to the response of procurement and supply manager, managing relationships with
suppliers is an essential component of obtaining a long-lasting supply advantage and the
supplier’s incapability has contributed a lot for making long term relationship with suppliers. The
reason from suppliers no to work at the highest level is inflation, government laws, seasonal
fluctuation of production and so on. Although there are those factors K.O.J.J has established a
good relationship with its suppliers.
Table 3.4 depicted below reveals the level of the case company’s integration with its major
customers. To analyze the issue, the researcher prepares four questions for the respondents so
that can generally express the practice of customer integration.
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On following-up customers feedback the company achieves high performance with a mean value
of 4.11. this clearly shows that the company tries to fix problems when feedback comes from
major customers.
Monitoring and measuring customer service level has a mean value of 4.09 which is also a high
rate. In understanding the level of customer service, the company scores high. According to the
procurement manager of the company monitoring and assessing customer service level has
advantage of increased customer satisfaction, increased customer retention, customer loyalty,
efficiency in service delivery and so on.
The level of market information sharing has a mean value of 4.06. in sharing market information
about product demand and supply, market prices, new government regulations and others are
sufficiently shared by the company. A value is therefore a clear indicator that the company do
almost good in communicating with customers in conditions that directly concern them.
And lastly, frequency of contact with major customers has a mean value of 4.18 the highest
performance registered by the company according to respondents. A strong bond between major
customers and manufacturers is vital in business, since every business needs a customer who
purchase products in larger quantity. Taking major customers in to consideration in every activity
has a lot of advantage as pointed out by functional managers of the company. The company is
striving to fill and is filling the information gap between them and major customers. The group
mean value of 4.11 also shows there is a good performance in the company when integrating
customers.
B- Internal Operation
As table 3.5 below illustrates that ten items were used in order to see the extent of the internal
operation of the case company.
The mean value of respondents‟ reveals that Management Know-how regarding supply chain
effectiveness and extent of automated quality control is 3.98 and 4.11, respectively.
Table 3.5- Internal Operation Practice of SCM
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Standard
S/N Items N Mean Deviation
1 Up-to-datedness of production 80 3.78 0.968
2 Flexibility of production system to handle order pattern 80 3.84 1.084
3 The extent of production process automation 80 3.83 1.088
4 The extent of innovation in product 80 4.00 0.994
5 The extent of continuous and instantaneous product and service 80
improvement 80 3.84 1.012
6 Management Know-how regarding supply chain effectiveness 80 3.98 1.031
7 Flexible production system to market change 80 3.81 1.068
8 Efficient utilization of resources 80 4.05 0.940
9 Extent of automated quality control 80 4.11 0.928
10 The extent of internal logistics flow 80 3.89 1.019
Group Mean 3.91
Furthermore, continuous and instantaneous product and service improvement and internal
logistics flows have almost similar mean value that is 3.84 and 3.89 respectively. In order to
make an internal operation effective and efficient, logistics flow plays an important role. Thus,
the current performance of the case company in product and service improvement is almost high,
3.84. It implies that, K.O. JJ has taken corrective actions compared to the previous, to meet the
customers preferences. Finally, the overall group mean value of K.O. JJ‟s SCM practice from the
perspective of internal operation is 3.91 which is good performance (almost high).
Based on the overall analysis of the case company’s internal operation practice the researcher
concludes that it is good. However, this does not mean very excellent and needs a little
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improvement, because of the internal operations criticality for creating integration or relationship
with external participants or supply chain partners. According to Lazarevic et al., (2007) internal
operation is the most critical factor to measure organization’s potential to go for external
integration. These writers state that companies should be internally efficient and effective before
embarking on external integration. Therefore, it implies that, the case company has a verry small
assignment on improving its internal operation to create effective relation with external partners.
To support these, issue the researcher looks in to the integration between each functional units in
the case company as follows;
Eng (2005) reported that a cross-functional orientation in SCM has positive effects on customer
satisfaction and supply chain responsiveness in terms of improved efficiency among different
functions in the supply chain. Integration plays a decisive role for successful SCM (Kenneth and
Brian 2006). To realize an effective internal operation functional integration plays a great role.
As illustrated in the above table Team work and intra-organizational coordination, Extent of
integration between production and sales department, and Periodic intra departmental meetings
have a mean score of 4.14, 4.11 and 4.16 respectively.
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Information system integration among internal functional units has the highest mean value with
4.25 followed by data integration among internal functions trough networks with a mean value of
4.15. from IT perspective the company’s performance of integration between different functional
units is high and that is fortunate. Technology based integration always allow to have a positive
impact.
Relatively, information system integration among internal functional unit has the highest mean
value with 4.25. this shows that there is a good integration in the internal functional unit and they
work together.
C. Information Sharing
The theoretical evidence confirms that supply chain management rides on the back of
information in order to meet the required resources at the right time, and at the right place,
seamless and instantaneous information flow should exist across the value chain (Russell, 2006).
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Table 3.7 above indicates, the mean value of each item and group mean that can generalize the
information sharing practice of the case company with its up and down-stream supply chain
partners.
The sales forecast information sharing with customer status of the case company accounts for a
mean of 4.05. This indicates that the company is doing great in information sharing with
customers in determining the sales forecast. A mean value of 3.91 represents the company’s
performance towards sales forecast information sharing with suppliers. This implies that the
company has a good sales forecast information sharing practice more of with customers.
It can be noted that the company’s product information sharing practice with supplier’s accounts
3.98 which is nearly a high performance.
In SCM, information sharing is another important practice that should have to be given due
attention in order to make the SC robust. Because, when there is distortion, inadequacy and lack
of accuracy in information flows with in the SC partners, it will negatively affect the SC
participants. The mean value of the respondents on adequacy and quality of information sharing
(4.03) throughout the SC implies that, there is information sharing among the SC partners and it
is sufficient.
Parties involved in the supply chain includes producers, suppliers, wholesalers, retailers, agents
and so on. As the above table reveals the Sense of trust and confidence along the supply chain is
average that is a good performance. If there is trust and confidence among the SC participant’s
information will flow freely between them that can help the successful implementation of sound
SCM practice.
Therefore, based on the analysis, empirical study and the current (21 th) century real practice and
importance of information sharing and its impacts on any kind of organization, even if the group
mean value shows moderate mean value, with respect to these stated issues the result is not
sufficient to create effectiveness and efficiency in SCM activities.
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As table 3.8 reveals that, four items were used to measure IT application of the case company.
Out of four items developed to see the extent of IT application in K.O.J.J food processing
complex.
The adequacy of IT throughout the supply chain accounts a mean value of 4.00 and the level of
IT-based automated ordering from major customers represent mean value of 4.00. On the other
hand, the mean value of Up-to-datedness of IT throughout the supply chain, and IT-based
automated ordering to major suppliers revealed that 4.08 and 4.05 mean value respectively.
2 The level of IT- based automated ordering to major suppliers 80 4.05 0.967
3 Up-to-datedness of IT throughout the supply chain 80 4.08 0.897
4 The adequacy of IT systems throughout the supply chain 80 4.00 1.006
Group Mean 4.03
As per the above table, the researcher can conclude that the Level of information technology in
facilitating different tasks such as ordering, information exchange and up-to-datedness is to the
extreme of high performance. The group mean also reveals IT application of the company in the
process of supply chain management is good (4.03).
In addition to the data collected through questionnaire, interview was held with the general
manager and production manager of the case company. According to the interview there are
adequate information technology facilities within the company. And the company has
implemented intra-network connection facilities (outlook) to connect marketing, purchasing,
production and administration departments.
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Therefore, based on the mean value of each item, group mean and interviews, the SCM practice
of IT in the case company is high and conveys that a lot has been done to bring about change in
the IT system.
Inventory fluctuation due to bullwhip effect has a mean value of 4.00. This indicates that due
bullwhip effect i.e., the distortion of information with the supply chain which lead to an
increment of inventory fluctuation that really expected. Here information distortion or bullwhip
effect has an impact of high.
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On the other hand, manufacturing uncertainty is the greatest challenge for the case company,
followed by demand uncertainty, which represents 3.98 and 3.91, mean values respectively. The
groups mean value for challenges of supply chain management of the case company is nearly
high which is, 3.99. The reason for manufacturing uncertainty weighted more than other
challenges is that, it was affected by both internal and external factors. Some of the internal
factors are breakdown of machineries, ineffectiveness of employees, electric power interruption
and external factors are change in demands of customers‟, and suppliers‟ inability to provide the
required inputs according their promises. So that, manufacturing uncertainty of i.e., is victimized
with these factors.
For further, consolidating quantitative analysis and qualitative information were collected
through interview from procurement, human resource and production managers. These
management bodies also confirmed that manufacturing, supply and demand uncertainties are
their major problems. According to the production manager’s response, there are greater
possibilities of stoppage of production due to shortage of inputs and absence of orders from
customers. Particularly, for pasta and macaroni products, there is shortage of supply. Sometimes,
there is also system failure and power interruption, which enforces to stoppage of production.
They underline that most of the raw materials for the company’s production are agricultural
outputs that are highly dependent on natural rain fall.
Finally for triangulating the analysis, procurement and supply manager was interviewed for
supply uncertainty. According to his response, there is a shortage of supply for the above-
mentioned products, and the reason is that domestically there are few sources of supplies for such
products (i.e., pasta and macaroni). Furthermore, importing these inputs from abroad at the
current situation is costly. In addition, the case company has no common sources supplies or
long-term suppliers. This is because, the company most of the time buys its inputs through
bidding and always the company that wins the bid will supply the items.
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CHAPTER FOUR - SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS
This chapter presents summary, conclusion and recommendations of the study on assessment of
the supply chain management of the case company as follows.
4.1-Summary of Findings
The K.O.J.J’s orientation of SC was evaluated through five SCM practices and numerous
challenges or barriers of efficient SCM implementation such as demand and supplier uncertainty,
manufacturing uncertainty, sense of trust between the involved parties and so on. Based on the
quantitative and qualitative data analysis, discussion of results with respect to the basic
questions, the following are the summary of major findings of this study.
The degree of relationship across the supply chain of K.O. JJ is levelled to be
transformational, which is characterized by high joint product planning with suppliers
and customers‟ and dependent decision making across the SC. The descriptive analysis
and interview with management bodies has verified the prevalence of these characters of
good relationship.
With regard to internal operation, the descriptive data and interview analysis conveys
that, the extent of continuous and instantaneous product and service improvement and
extent of innovation in product has high mean values of 3.84 and 4.00 respectively.
Overall, it tells us there is a verry good internal operation in the case company.
Sense of trust and confidence along the supply chain and other information sharing
practice with customer has a mean value of 4.06 and 4.04 which is high. also the
company’s information sharing practice regarding sales forecast is high represented by a
mean value of 4.05.
Regarding the information technology practice of the case company, it is summarized as
being strong. The level of IT-based automated ordering from major customers, the level
of IT- based automated ordering to major suppliers, Up-to-datedness of IT
throughout the supply chain and the adequacy of IT systems throughout the
supply chain have a mean value of between 4.00 and 4.08.
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Especially Up-to-datedness of IT throughout the supply chain with a mean value
of 4.08.
The company’s supply chain practice from the training and development angle has low
performance. Especially training for downstream supply chain members is the lowest of
the other parameters among others. This adversely affects good SCM implementation
even though adequacy of training and development for management is moderate with a
mean value of 2.72.
Among the possible challenges of SCM, manufacturing and demand uncertainties
appeared as the major headache of the case company with mean values of 4.03 and 3.91
respectively. Inventory fluctuation due to in accurate information (bullwhip) effect is also
another challenges of the case companies SC. And the highest of all is a risk in sense of
sharing risks and benefits which has a mean value of 4.10. This implies that the
employees and management bodies of the case companies has major problem in sharing
risks and benefits in the Supply chain path. This section highly contradicts the other
results of the research paper.
In addition, supporting elements for internal operation (Cross Functional Integration with
in the Company) and SCRM (company’s integration with customers) practices identified
by the researcher are summarized hereunder;
Information system integration among internal functional unit and periodic intra
departmental meeting have the highest mean values. Compared to the others extent of
integration between production and sales department has the lowest mean. Even though,
all of them reflect a verry good practice in the case company.
Company’s integration with customers is assessed via four parameters and the company’s
performance on them is high. Follow-up customers for feedback, and monitoring and
measuring customer service level has mean scores of 4.11 and 4.09 respectively.
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4.2-Conclusions
Based on the results of the study obtained and summary of findings the following conclusions are
given
With respect to supplier and customer relationship management practice K.O.JJ has
performed greatly. Especially Customers' delivery adherence requirement and joint
production planning with major customers are highly noticed.
From the angle of internal operation, the descriptive and interview analysis reveals that
the company thrives to be innovative as much as possible by looking the market needs.
Tries to fill and are filling the gap from the management body in addressing these needs
by noticing the external environment.
The primary reason for the good performance in information sharing practice is that the
company has invested in information technologies that can simplify communication
between different functional units in the case company like portal and outlook addresses.
Viewing the companies experience from the angle of information technology practices,
as mentioned earlier the performance is great. high investment on IT infrastructures
together with high number of IT professional employees helps the company to achieve
the desired need of efficient supply chain management.
Regarding the challenges and barriers of supply chain management practice challenges
such as Supply uncertainty (supplier inability to carry out the promise), Institutional trust
to share confidential data, Willingness to share risks and benefits, Inventory fluctuation
due to bullwhip effect, Manufacturing uncertainty and extent of demand uncertainty are
all experienced in large amount in the company among others.
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4.3 Recommendations
Depending on the findings and conclusions reached, the following recommendations were
forwarded in order to improve the Supply Chain Management of the case company.
The company needs to maintain its performance on the following areas; integration with
suppliers, integration with customers, cross functional integration within company,
information sharing practice and information technology practice.
In the case of supplier and customer relationship management practice and internal
operation practice the company is doing great. But they need to exert a verry little effort
to make it more effective.
In controlling the challenges and barriers especially Supply and demand uncertainty,
Institutional trust to share confidential data, and manufacturing uncertainty all these
needs immediate alleviation from the company. Generally, risks in the supply chain can
be minimized and eliminated by identifying and assessing current risk, identifying
supply and delivery alternatives, empowering partners and members, jointly plan and
collaborate with members (though they are doing great on these aspect) and being
proactive can enable the company to control challenges and barriers in the supply chains.
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