Shaktiraj Jena MBA Information systems University Of Wales
LODO COLLEGE OF BUSIESS
Affiliated By
UIVERSITY OF WALES
A report submitted in partial fulfilment of the requirement for the award of the degree of MASTER OF BUSIESS ADMIISTRATIO in IFORMATIO SYSTEMS
April 2010
IMPACT OF IFORMATIO AD COMMUICATIO TECHOLOGY O SUPPLY CHAI MAAGEMET
I
P C WORLD
BY
SHAKTI RAJ JEA
US: 0811866996842
UDER THE SUPERVISO
OF
Dr. GAJEDRA KADASAMY Ph.d
PROFESSOR
LCB, LODO
Shaktiraj Jena MBA Information systems University Of Wales
Table of Contents EXECUTIVE SUMMARY .......................................................................................................... 4 CHAPTER OE ........................................................................................................................... 6 ITRODUCTIO .................................................................................................................... 6 CHAPTER TWO ........................................................................................................................ 10 LITERATURE REVIEW ...................................................................................................... 10 The impact of ICT .................................................................................................................... 29 Internet based communication systems and supply chain management .................................. 31 Move to the market hypothesis ................................................................................................ 31 Move to middle hypothesis ...................................................................................................... 33 CHAPTER THREE ................................................................................................................... 37 RESEARCH METHODOLOGY .......................................................................................... 37 Data Collection ....................................................................................................................... 41 Customers ............................................................................................................................... 41 Respondent 1: ........................................................................................................................... 41 Respondent 2: ........................................................................................................................... 42 Respondent 3: ........................................................................................................................... 43 Respondent 4: ........................................................................................................................... 44 Employees ................................................................................................................................ 45 Respondent 1: ........................................................................................................................... 45 Respondent 2: ........................................................................................................................... 46 Respondent 3: ........................................................................................................................... 47 Respondent 4: ........................................................................................................................... 48 CHAPTER FOUR ...................................................................................................................... 49 AALYSIS AD FIDIGS ............................................................................................... 49 PC World Today ....................................................................................................................... 49 P C World and its Supply Chain Management Systems .......................................................... 50 Impact of ICT in P C World ..................................................................................................... 50 Impact on the Customer Services ............................................................................................. 51 The customers: ......................................................................................................................... 53 Suppliers: .................................................................................................................................. 54 The management: ..................................................................................................................... 54 Summary .................................................................................................................................. 55 CHAPTER FIVE ........................................................................................................................ 56 COCLUSIO AD RECOMMEDATIOS ................................................................. 56 Supply Chain Collaboration ..................................................................................................... 57 Why supply chain software? .................................................................................................... 57 Increasing the Usability of RFID ............................................................................................. 58 Steps To Be Taken For A Better Real Time Ict ................................................................... 59 Summary .................................................................................................................................. 60 BIBLIOGRAPHY ...................................................................................................................... 61
Shaktiraj Jena MBA Information systems University Of Wales
ABSTRACT
Many Regards to Dr Gajendran for his invaluable support throughout this project, and many thanks for his supervision and dedication towards helping students. I also want to thank him for the Idea about this topic on supply chain in PC World, and the feedbacks that he used to give me for this interesting project. I want to thank my Mother for her blessings and her emotional support without which my dissertation wouldnt be possible. The college support has been very good and their timely feedback was very important and helpful. My sincere regards to all the other professors and lecturers who helped me in understanding many other aspects of managements which were out of the scope of my course. Lastly I am very thankful to the Institution for providing me with such a good study environment and study material Thank you.
Shaktiraj Jena MBA Information systems University Of Wales
EXECUTIVE SUMMARY In the research, I analyzed the concept of Supply Chain Management in detail and the improvements the management of P C world can make with the pertinent use of Information and Communication technology systems. In the introduction, the importance and objectives of the study are explained in detail. The ethical issues involved in the study, project plans, limitations of the study and the contributions which can be provided by the research are also covered in the introduction part of research. The main resources of my research are given and my courtesy to the authors of my resources is conveyed in the theoretical review. This chapter covers an overall idea of the concepts of SCM and the impact of ICT systems in it. The characteristics, activities, scope, and problems of Supply Chain Management are explained in detail. The customer Relation Management and its relation with supply chain management are the other content of this chapter. The culture and attitude which is essential for the proper management of supply chain in an organization with the help of the best literatures available is also given in this section. In this part, slight information on importance of implementation of information and communication technology is given as it is a part of culture where supply chain management has its own significance. The supply chain control is the other important feature explained here. Various theories based on the views of different authors of the literatures on supply chain management are explicated in detail. Hereafter the sustainability of supply chain is studied and then the major developments happened through the eras such as creation era, integration era, globalization era, specialization era and second face of specialization era are thoroughly researched as part of these studies. I tried to go with the important components of supply chain management thereafter. The global supply chain and the customers of the supply chain are the next area of concern in the research. The research follows with the concept of Information and Communication Technology and its impact on the system of supply chain management in an organization in detail. The supply chain management is highly influenced by the internet based communication systems in this modern era and different views of that are given in the literature review. The third chapter involves the details of methods adopted for research. Both qualitative and quantitative methods are adopted in the research. Different ways adopted in qualitative methods such as participant observation, interviews, group meetings and historic research
Shaktiraj Jena MBA Information systems University Of Wales
are explained in the first part of this chapter. Second part of this chapter describes about the quantitative analysis which I have done for the research. In the fourth chapter, the whole analysis and findings of the research are explained. It includes the story of P C World till date and the operations of P C World. The supply chain management systems of the P C World are explained thereafter in the research. Different kind of information and communication technology systems used in P C World and its impact in the functioning of SCM and customer services in P C World is explicated in this section. The research concludes with the suggestions and recommendations for the improvements in P C World to accomplish the goals and objectives of the organization. These recommendations will guide the management to improve the quality and productivity of the organization.
Shaktiraj Jena MBA Information systems University Of Wales
CHAPTER ONE INTRODUCTION I am undertaking a study on the current Supply Chain Management Systems at PC World, United Kingdom. The study covers the processes in the organization, the value chain in the firm and its analysis. I made an analysis of the ambiguities in the processes of the system and put forth recommendations needed for the improvements in future. Relationship Management at the value chain, the customer services in the organization, its impact, Information and Communication Technologies (ICT) was given concentration in the studies. Objectives of the Study: There are multiple objectives for my studies of research. Mainly the supply chain system in PC World is analysed in detail. Improvements for the development of the system of supply chain in future is also aimed in my research as it has its own significance for a purchase led kind of business. Information and Communication Technology systems in PC World and Supplier Relationship Management in the work place are given importance as the secondary objective of the studies. An analytic thinking over the improvement of customer satisfaction with use of value chain has done as another objective of this research.
Why is this study important?
The economic crisis of 2009 was the most severe one after the Great Depression of 1929. The much expected GDP growth had not happened in the third quarter of 2009 and the growth was 0.3 in the last quarter of the year (statistics.gov, 2010). Most of other European countries have shown modest growth rates, UK is still in search of positive triggers. We have seen six consecutive quarters of negative growth and the crisis has affected the economy very dangerously. 5.7 per cent of the market capitalization has been wiped out in UK in the last 18 months. These numbers look worst when the economy faced inflation in the same time period. The doldrums in the job market and the virtually frozen consumer spending have affected many
Shaktiraj Jena MBA Information systems University Of Wales
industries in the country (guardian, 2010). Still we are not at all survived from the crisis and waiting for much horrific double dip recession. So the organizations which have better operating systems only can survive in market. The organizations who serve an improved customer service will be benefited in this situation. So the organizations are trying to improve the satisfaction of customers, reduce costs and improve their profitability. Companies are in search of synergies and positive triggers with restructuring and reorganizing their strategies and operations. The Information and Communication Technology systems come across a lot of developments in this period. This is the real opportunity for the companies to come up in the market with ideal strategies and improvements in the operations. My research will be a benefit for the companies which are eagerly in search of ways to improve their efficiency as it is done in the wake of these tough situations. Theoretical Framework I would be guided on mostly by the studies of Geoff Walsham, Professor in University of Cambridge. The series of publications of his works by University of Cambridge are well respected in this area of study. Globalization and ICT: Working across culture by Geoff Walsham would be the primary theoretical resources of my research. These works shows lights on the significance of Information and Communication Technology in the present status of the economies. Another resource for my studies is "Supply chain management: more than a new name for logistics", by M. C. Lambert and D. M. Pagh. These works are published in IJLM (International Journal of Logistics Management). They formed a primary thought for the subject of my proposed study. Introduction to e-supply chain management: engaging technology to build market winning business partnership by David Frederick Ross inspired me to work with the advanced methods of improvements for supply chain management systems and its operations. Problem of Research: The problem of the proposed research is insufficiencies and the opportunities of improvements for the improvements in the system of supply chain in PC World. Suggestions are made to improve the efficiency and productivity of the PC World as a part of this research. The research would be done concentrating on 3 dimensions. Implementation of Information and Communication Technology in the operations, customer satisfaction and Supplier Relationship Management are the three main points where the concentration has been given in this study.
Shaktiraj Jena MBA Information systems University Of Wales
The main questions raised for the purpose of this research are listed below: How is the organisation of Supply Chain at P C World? How is the value chain organized in P C World? What role does the ICT system have in value chain? How does the ERP system work in P C World and what is the impact of it on value chain? How does P C World manage the supplier relations of it? In what way P C World manage the relations with its key suppliers? How does the supply chain affect the satisfaction of customers? What improvements can be made in P C World? How can the proposed changes be implemented in P C World? How will this change improve the efficiency of business? Ethical Issues In conducting this study, I would be guided by the Guidelines set out in the British Educational Research Association (BERA) 2004 ethical issues for Educational research. The guidelines state that the researches are wholly responsible to their sponsors, the research community and participants of the research. The guidelines states that all research work must be conducted at the highest levels of honesty. Research findings are to be published without falsifying and misstating the work done. The guidelines set out the responsibilities of the researcher to participants of the research, sponsors of the research and the research community. (BERA, supply chain management is vital to provide the services and products to the consumers. It seems that the impression on the management of supply chain system may be indirectly affiliated with the issues of the behaviour of the surrounding consumer toward asserting and otherwise driving the satisfaction of customer. According to a number of publications, the role of management of supply chain is a significant factor in boosting the success of an organization. On a different perspective, the behaviour of consumer is also crucial element towards the viability of an organization. Qualitatively, basic researches have been done in concern with the connection between the satisfaction of customer and the consumer behaviour, in attempting to know the clear differentiation of each topic towards assuring the satisfaction of customers. This study tries to disclose the importance of the issues connected in relation to the satisfaction of customer. It is anticipated that the growing roles of the management of supply chain and behaviour of consumer in organizations are capable of improving the performance of organizations and its operations.
Shaktiraj Jena MBA Information systems University Of Wales
Limitations I would be attempting the research in a much comprehensive way as possible, following limitations may be underlying in the research Time Constraints: A detailed and exhaustive study was not allowed by my course semester as few significant areas are there where I was forced to leave out. However, most of the significant disciplines would be covered in the research. Security Issues: a supply chain in an organization, information on ERP and key supplier contracts are very sensitive kind of company information and it would be too tough to reproduce them. So I foresee myself as not being capable of publishing a few of my findings. The support of management which I had secured beforehand for the research would allow me to bring most of the findings out in the studies. Financial Constraints: Some suppliers of the organization are located overseas. So it would not be feasible for me to cover all major suppliers of the organization financially. Thus the major suppliers who have their physical operations in UK are confined in my research. Contributions of the research A dynamic and innovative concept of Supply Chain Management systems are anticipated as my study is chiefly a research led exercise. Fast growing systems of ICT in Supply Chain and management of Supplier Relationship would be invaluable resources academically. Different paths would be shown for P C World to strengthen their existing not so good supply chain, consolidate their supplier relations and to construe its customers needs in the research as a sense of business, for increasing the efficiency of processes and profitability of business. Project Plan of Research The proposed work for research would be conducted within a period of ninety days. The studies for research have being got worked since mid December and would be finished by March. The first month of my studies has been utilized for background studies and literature review. Over the next two months, twenty hours a day would be allocated for my work of research. The SCM systems and various practices in the work place, the Information and Communication Technology systems used, will be analysed in the actual company locations. Structured questionnaires would be prepared for the empirical studies of my research and to interview the customers of P C World and the suppliers of it. The last month of research would be used to analyse the findings and data, bring up recommendations for the improvements of supply chain and to get it slimmer and efficient, and to report the entire studies of research.
Shaktiraj Jena MBA Information systems University Of Wales
CHAPTER TWO LITERATURE REVIEW
Literature Review Other than the theoretical resources we discussed above, the following resources are also added to the knowledge related to this study. Transition to B2B e-Market place enabled supply chain: Readiness Assessment and Success Factors by Movahedi B., Lavassani, M K, Kumar V would be the principal resource material of the research. A great gamut of management of supply chain, role of information technology and recent development in the area of supply chain management, and numerous case studies are discussed in the book. This book allowed me to grasp a clear picture on the subject of research. Knowledge management systems: information and communication technologies by Ronald Maier provided more detailed technical aspects for the research. The latest developments and happenings in the field of research are updated with the Journal of Supply Chain Management and Journal of E Commerce. Supply Chain Management Supply Chain Management is effective management by planning, implementing and controlling the activities in the supply chain system in an organization. Activities from warehousing the inventory to movement of products to the consumer are controlled and co-ordinated by the supply chain management. Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities, it includes coordination, cooperation and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers - APA (American Professional Association). Thus a non managed and static supply chain Can cause a severe Bull Whip effect on the supply chain of a company
Shaktiraj Jena MBA Information systems University Of Wales
Characteristics of Supply Chains The management of supply and demand in and across the companies are integrated by supply chains It coordinates the network of business operations which provide the products and services. The logistics and supply chain management are distinguished by some researchers. At the same time some of them consider them as similar terms. The management of supply chain can be used as a software also A study on supply chain event management allows knowing how the system of supply chain is coordinated in an organization and how resolutions are produced for the problems that occur during the effectuation of supply chain in an organization. Problems of Supply Chain Management The management of supply chain should cover the following problems,
Distribution of Network Configuration: the location, number, facilities of production, suppliers network mission, warehouses, centres of distribution, customers and cross docks.
Strategy of distribution: questions of control of operation (shared, centralised or decentralised); Scheme of delivery such as pool point shipping, direct shipment, cross docking, closed loop shipping, and direct store delivery; transportation modes, e.g., automotive carriers which includes the truckloads, railroad, parcel, LTL, intermodal transport which includes trailer on flat car(TOFC) and container on flat cars(COFC), airfreight, ocean freight, strategies of
Shaktiraj Jena MBA Information systems University Of Wales
replenishments and control of transportation( e.g., private vehicles, owner operated carriers, contract carrier or common carrier).
Tradeoffs and activities of logistics: the activities above said should be organized well to accomplish the total cost of logistics. The total cost may be increased by tradeoffs if one of the processes is optimised, such as a full truck load. The rates (FTL) are less expensive than shipments of truckload (LTL shipments) on expense per palette basis. However, if a product of a full truckload is ordered to lessen the costs of transportation, there will be a growth in holding costs of inventory by which eventually might cause an increase in the Gross cost of the Logistics. So it is better to opt a systematic approach while planning the activities of logistics. Thus these are one of the most vital things to be kept in mind for an effective Supply chain. Information: This integrates the business processes by sharing information which are valuable including forecasts, Logistics, demand-management, inventory-management, potential- collaboration, etc. Management of Inventory: location and quantity of inventory involving the raw material, finished goods and work in progress. Cash-Flow: Arrangement of methodologies and terms of payment for fund exchange across various stages of supply chain. Supply Chain Execution: This is a bidirectional process which deals with the proper flow of the information, cash, material and other entities across the supply chain Activities involved in SCM SCM is an approach which is Bi directional, the first including the management of raw-material movements into a firm, the SCM is pretty much dynamic in nature since it includes all the process staring from the collection of raw material, transformation of this raw material into useful goods, and then movement of these goods to the outlets to reach the customers. The firms endeavour in concentrating the important competencies and becoming more malliable, their capability lessens in the possession of sources of raw materials including the channels of distribution. The logistics part of the supply chain is increasingly being outsourced to different companies who are now concentrating on their core competencies. The organisation can now improve their internal channels and leave the rest of the chain to other specialists. It is extremely important part of the supply chain since a speedy logistics can only link the company supply chain to the exits which is the final goal. This is greatly driven by the zeal to achieve a better interaction
Shaktiraj Jena MBA Information systems University Of Wales
with the customers and their relationship can remain healthy by improving the supply chain since it connects directly the organisation with them. Various models have been aimed to understand the processes which manage the movements of material within functional and organizational margins. SCOR is an SCM model encouraged by the council of supply chain. Other model is the supply chain management model promoted by the Global Supply Chain Forum. A SCM model projected by the GSCF (Global Supply Chain Forum) demonstrates that the activities in a supply chain can be characterized as strategic, operational and tactical activities. Strategic Activities The optimization of strategies of an organization like number of warehouses, locations, centres of distributions, locations and facilities of warehouses etc are included in strategic activities. Strategic activities include the communication network creation among the supply chain members and it must develop an improvement in the activities of supply chain such as shipping, docking, transport, and logistics etc. The organization of designing of the products and development are included in strategic activities of an organization and the strategic activities must integrate the new and existing products into the supply chain. It should support all the activities in supply chain. All the activities of supply chain must be integrated with overall activities of the organization by the strategic activities. Tactical Activities It includes decisions concerning to purchase of inventory and contracts. It includes decisions pertained to production such as the location, schedule, contracts, plans and definition of processes of production etc. Decision making in relation with the quality, transport, quantity, location, and use of inventory. The strategy formulation in concern with freight like the transport frequency, the cost, routes, contracts and logistics etc are included It involves the best process benchmarking in the industry throughout its operations.
Shaktiraj Jena MBA Information systems University Of Wales
Operational Activities It includes decisions and activities in relation with day to day activities connected to production and planning at each levels of supply chain. It involves forecasts of production facilities and necessities in supply chain in every instant. It involves forecasting and planning of Demand and converting the overall demand into supply and share it with every the members of the supply chain. Forecasting, coordinating and planning the demand forecast of each and every customer and share bode with all suppliers. Inward operations, such as movement and transport of goods and stocks in the supply chain. It involves operational decisions and planning from ingestion of inventory to the current of finished goods in the chain of supply. It includes the promises of orders, accounting for all processes in the supply chain from suppliers to consumers or end users. Scope of Supply Chain Management To stand in the global arena, companies rely on effective networks of supply chain According to Peter Drucker, business networking concept covers beyond the conventional enterprise limitations and broadens to coordinate the all the business processes within the value chain which includes all the companies related to it. Outsourcing of Information Technology has enabled the organizations to be processed in such a way that each partner of business concentrates in the few significant areas in which he is specialized. This inter organizational network is the innovative trend which enables achieving complex activies. Structure of network is not a hierarchical structure or a market structure. It is ambiguous of what kind of performance level impact that various supply network structures could have on organization, and little is known about the conditions of coordination and tradeoffs that may subsist among the whole players. Conventionally, organisations within the supply chain network focuses on the various incoming and outgoing process, with little matter of concern for the internal management of the firm working on other individual players. Therefore, an internal management choice control structure is known to make a major impact on performance of local companies (Mintzberg, 1979).
Shaktiraj Jena MBA Information systems University Of Wales
There have been large changes in environment of business which has contributed to the supply chain networks developments. Primarily, as a result of globalization and with the increase of big multi-national companies, strategic alliances, joint ventures and business partnerships, have found to be making important factors of success, following the earlier practices of Just in Time, Agile Manufacturing and Lean Management.
Secondly, changes of technology, in particular the remarkable decrease in the outlay of ICT, which is a predominant element of expenses of operation, have caused a change in the supply chain network (Coase, 1998). The exceptional transformation towards activities of integration from managing functions of individuals with processes of key supply chain in place could be the first significant step in establishing a successful supply network. For example; the department of purchasing places orders as necessities become appropriate only, when Department of Marketing responding to consumer demands and convey the same with all the distributors and retailers across to go with the demand of customers. The overall integration process leverages the whole shared information among partners of supply chain of an organization towards its advantage. The key to Successful consolidation of Supply chain business process is by employing the collaborative work across suppliers and buyers, common systems along with the shared information and joint product development. In 2000, the Lambert and Cooper expressed their view as the whole as The continuous information flows in the integrated supply chain process supports an organization to achieve best product flows. Despite such expression, there subsists an opinion among organizations and networks of management, that product channelling cannot be optimised without the implantation of the process access to respective businesses. The supply chain significant processes by Lambert (2004) are listed below: Customer relationship management Management customer service, management of demand, fulfilment of orders, management of flow of manufacturing, management of returns, management of supplier relationship, management of returns, development of a product and commercialization, management of returns are the processes explained by Lambert as significant in supply chain. Procurement, outsourcing and partnerships, measurement of performance and physical distribution are the other significant keys in supply chain according to Lambert. Some of the important processes are explained below.
Shaktiraj Jena MBA Information systems University Of Wales
1. Management of customer service process As the information of customer is the basic source for service of customers, the important aspect of Customer relationship Management is between the organization and its customers. This real- time information makes customers cognisant on various details such as product availability, product information, probable delivery dates through multiple interfaces of information about the company's operations of production and distribution. Steps to build an efficient relationship with customers: Establish goals which are commonly rewarding between organization and customers Customize and invest efforts to preserve customer resonance and support always create positive outlook with customers in the organization b) Process of procurement In laying good strategic plans for process of procurement, the interests, opinions and support of the suppliers is very important; because their confidence in the plans lay foundation for newly build manufacturing flow management and it is the same in case of a development of a new product. When activities are global and far reach across, the companies need to accommodate processes to manage and source them accordingly. For achieving success in creating the preferred product, it is significant to have mutually beneficial relationship, cut down times cycles in design and development of the new product play very important role. Communication systems can be boosted by deploying tools like Internet connectivity and electronic data interchange (EDI), of the purchasing function of a firm to drive activities. These powerful systems of communication streamlines a lot of processes in managing, obtaining and tracking information about products and materials and products, which supports organization in dealing with issues successfully; supply sources, inbound transportation negotiation phases, resource plans, order placement, delivery status, storage capabilities, handling and quality assurance. Also, it actuates the organizations to handle the responsibility and to organize commitment with suppliers over supply continuity, delivery scheduling, misrepresentation, and research support studies in creating new product and sources of programs.
Shaktiraj Jena MBA Information systems University Of Wales
c) Development of new product and commercialization This helps organizations to reduce time cycles of development of product with aspects of customers, suppliers so as to capture markets better by being competitive, innovations of products, and scope to be ahead of competitors in exceeding expectations of customers. Following points are suggested by Lambert and Cooper to Managers of product Development and Commercialization: Abreast management of customer relationship with real needs of customers by making right choice of suppliers and materials in line with procurement, and by developing practices in evolving different potential production technologies to improve manufacturing flows in integrating them with best flows of supply chain of product-Market contexts. d) Manufacturing flow management process The earlier forecast mechanism and its whole information and details help in a great way in designing better flexible manufacturing process procedures and supply efficiencies with channels of distribution. Thus mass customized and Flexible processes to market changes, operating processes to order processes on just-in-time (JIT) basis of band sizes and reduce the time cycles of process of manufacturing flow with improved efficiency in responding to demands of customer. So the organization can easily develop efficiencies in work stream lining operations, planning, scheduling, and inventory transportation, and scales the elasticity across geographies in meeting production and distribution assemblies. e) Physical distribution In the context of physical distribution, the consumer standout as the final end of marketing channel movement for any finished product or service, in continuous offers with the availability of the product or service in each channel of distribution. Also, the space time of customer service is of high value consolidation in the process of extending its customers like manufacturers, wholesalers and retailers. f) Outsourcing and partnerships The basis of the concept of outsourcing by organizations has changed from typical procurement of materials to employing different channels and sources to hand over the services too, thus concentrating on areas of value chain and the advantages of it. This trend is well comprehended in logistics domain, where organizations have picked and create partnerships with transportation leaders, warehousing and control of inventory to measure in the control collective partners and suppliers networks. This strategy allows the organizations
Shaktiraj Jena MBA Information systems University Of Wales
to monitor effectively over performance issues of supplier and managerial command on the logistics partners on a daily basis. g) Measurement of performance The organization draws the best of profits and ascendances the market share is a direct result of integration process of supplier and customer. It helps organizations to frame emphasis for management of performance setting about competencies in logistics with the capabilities of supplier and invests in long- term goals of customer relationships for advantages in the competitive environment. The researchers along with A. T. Kearney Consultants noted that firms equipped with broader measurements of performance have delivered consistent results and below are some analysed internal measures for any organization: Cost Quality Customer Service Levels of Productivity Asset measurement The major and significant integration elements of SCM are Standardization Postponement Customization The integration and management elements of SCM: To construe the level of management and integration of business process is a calculation of function of number and level with drifts of low and high and the link of added constituents (Ellram and Cooper, 1990; Houlihan, 1985).The third component of the four square circulation model displays the components of supply chain management. Application of the percept is in amalgamation of more components of management or increasing level of each component can enhance the level of integration of any process of business. Lambert and Cooper in 2000, proposed the below listed components, in balancing concept of the literature on engineering of business process, buyer-supplier relationships and attract the management attention to different possible components of SCM. Planning and control, structure of organization, work structure, Structure of product flow facilities, structure of organization, structure of product flow facilities, information flow facility structure, risk and reward structure, methods of management and structure of power and leadership are the components (Lambert and Cooper).
Shaktiraj Jena MBA Information systems University Of Wales
Culture and attitude: A close look on the literature which is available will provide us more information about what produces the best structure with clear details on branches and components for a process of business related to customers and suppliers. Bowersox and Closs expressed their view that Great heights of joint achievement can be represented by the synergies exchanged mutually in establishing the cooperation (Bowersox and Closs, 1996). The chief participant is acute to achieve responsibilities of ownership of stocks or in accepting the risk of finance along with other components of primary level (Bowersox and Closs, 1996). The Secondary participant is more specialized, who is keen to perform services which are essential for primary participants, along with constituting channel relationships, inclusive of components of secondary level. The Third level channel participants includes the branches and components of the participants of primary and secondary level channel. Literature of The Lambert and Cooper do not help us to understand the specialized primary and secondary level components of the supply chain comprehensively (Bowersox & Closs, 1996). This expresses about the emphasis which is absent in understanding how these different components should be considered, structured and analysed to lay an effectively integrated chain of supply. Reviewing the literature by Baziotopoulos to bring out components of supply chain and some significant suggestions of the study are listed below: Benchmarking, Customer service management and order fulfilment comprises the top priorities for both the components of primary and secondary level. The primary and secondary level components for Product Data Management (PDM) are; development of product, commercialization customer satisfaction, profit margins, market share and stakeholders ROI respectively. The primary and secondary level components for enterprise resource planning (ERP), are; physical distribution, manufacturing support, procurement, management of warehouse, management of material, planning of manufacturing, personnel management, and postponement or order management respectively. The primary level components of logistics must be linked with facility of information flow through internal structure of organization for measurement of performance. Variant, direction, decision and measurement of policy level constitutes the four aspects of the components of secondary level and in particular, total cost analysis , asset management and customer profitability analysis , are carefully analysed.
Shaktiraj Jena MBA Information systems University Of Wales
The outsourcing constitutes of the management methods, and the objectives of strategy for specific initiatives in significant areas of information technology, capabilities of manufacture and operations as primary level components and logistics as component of secondary level. The conceptions of reverse logistics are well known as "Aftermarket Customer Services", where on any given time, the budgets of Warranty Reserve or Service Logistics allow withdrawing money. The whole process of Reverse logistics is aspired to generate a purpose in recovering value or pertinent authorization of information by planning, implementing, monitoring and controlling the capable and valuable of inbound flow with storage of secondary goods. Significant Changes from the Traditional Concept of Supply Chain Management: Cut down life cycles of product. Shorter cycles of product change-over Scope for increased rate of new product development Pint sized cycles of production process cycles. Zero- defect integration of productivity and Quality. Total Quality Management (TQM). Possession of strategic resources like process technology and Equipment. Adaptable Manufacturing Systems (FMS) Rising importance for practices of project management. Embracing changes of technology over needs of information and automation. Deploying Computer Aided Design (CAD), and Manufacturing (CAM). Depart employees strategic training on Technology work inputs, accountability and performance. There is a drastic development in the use of information and communications technology (ICT) in logistics and management of supply chain. ICT is today being used in many organisations in a broad range and areas of operations. It has provided new ways to store, process, exchange and distribute information both within companies and with customers and suppliers in the supply chain. ICT used to exchange information in the supply chain is often named inter organisational ICT or inter organisational information systems (IOIS).In supply chain management, ICT has especially been recognised as an enabler for information sharing which companies in the supply chain can use for eliminating the so called bullwhip- effect (Lee et al., 1997). Information-sharing is also a key component in many of the recent automatic replenishment programs (ARP) (Daugherty et al., 1999). Initiatives such as vendor managed inventory (VMI) and forecasting and replenishment , collaborative planning are based on an increased level of automation in both the flow of physical materials
Shaktiraj Jena MBA Information systems University Of Wales
and goods and the flow of information between companies to improve the efficiency in the entire supply chain. In a operations management perspective, companies seek to further improve the efficiency in the supply chain by sharing information related to matching demand and supply such as short- and long-term production planning, demand forecasting and materials and capacity planning. Information that can be relevant to share between customers and suppliers typically includes point-of-sales data, forecasts and inventory levels. There is a significant amount of research demonstrating a positive impact of ICT in the supply chain. As companies seek to develop the supply chain efficiency through increased integration, ICT can be considered as a key enabler for supply chain management through its ability to support information sharing and shortening information processing time. Supply chain integration can however be expressed in a wide range of dimensions such as integration of processes, information, organisations and systems (Bowersox et al., 1999; Mouritsen, et al., 2003). Similarly, the impact of ICT can be demonstrated in terms of for instance changes in relationships, inter organisational changes and performance (Wilson and Vlosky, 1998). The many dimensions in which supply chain integration can be expressed and the wide variation of factors in which the impact of ICT can be defined in terms of integration indicates that previous researches have been limited to studying a few dimensions and variables relationships at a time. The aspect of how to control and coordinate the activity between the companies in the supply chain, and how ICT affects the level of control integration in the supply chain is a poorly developed area. We propose in this paper a research model for further research exploring the impact of ICT on integration in supply chain control. The model is primarily based on theory within supply chain integration and the impact of ICT. It also incorporates the supply chain control perspective, which defines the scope of application of the model. In contrast with previous research, this model does not intend to limited to a few pre-defined dimensions or variables for investigation but can be used to examine situations involving any type of integration dimension and influencing factor.
Shaktiraj Jena MBA Information systems University Of Wales
Supply Chain Control The supply chain control is a very important process which allows an organisation to plan, implement and control the entire supply chain process. The control process consists of six views towards an organisation operations, with each view having various attributes to it The views are on the aspects of resources, materials involved, information flow, business process, organisation and controlling of the processes. And these views are aggregated to show the overall control perspective of a company. We have taken two examples of control and planning to explain the relationship of the supply chain and its relevance in supply chain. We will see firstly, (Vollman, 2005) MPC standing for manufacturing planning and control (MPC) system and then we will see the materials and capacity planning perspective (Mattsson and Jonsson, 2003). The MPC framework basically means Manufacturing planning and control Consisting of the front end, engine and back end.
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Front end phase of the framework considers all the actions and related operations towards the establishment of the companys overall planning and controlling. The aspects of Managing Demand, sales and operations planning (SOP), resource plan and master production scheduling (MPS) etc are taken into consideration. The demand is subjected to the customers trend, hence this management allows to forecast the demand depending on customers choice.
The engine phase deals with the capacity of production and the resources available based on the MPS. Material requirement planning (MRP) determines the time and quantity constraints for the components and other parts required for the manufacturing of the products.
The back end phase plans the orders and provides them to the factories and vendors for the carrying out of material and capacity procedure. Finally a detailed array and control of scheduling the activities at shop floor and vendor management is met.
The planning outline is analogous to the MPC framework. The only difference being the overall center of attention on planning mostly. In MPC both planning and measurement are held important but in Planning framework the material and capacity planning are performed. In the material perspective, planning deals with decisions regarding the deliveries in terms of product types, quantities and timing while in a capacity perspective, decisions regarding the capacity needed to produce required quantities and what capacity is available are dealt with. The planning framework is based on four levels:
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The sales and operations planning (SOP) deals with the overall planning of the sales and production. Future demand are forecasted at an operational level and the sales are analysed for taking decisions regarding purchasing and utilisation of resources and other decisions on the current operations. The master planning process uses the information provided by the customers purchase orders to make the forecast, since customer orders are specific and vary in product types and depends whether products manufactured are required to stock or to orders. Master planning deals with the establishment of sales and production planning showing quantity and the type of various products which will be produced in a specified time. The order planning executes the plans which have been defined on a strategic and tactical level. The Material flow is controlled based on the operational level within a defined production and distribution structure. Workshop planning demands the superior levels to establish the production orders which are then planned in detailed and executed. This planning balances the available production capacity with the current order and operations capacity needs. With the obvious need of these frameworks in the overall division of the available frameworks, time dimension is the most valued in both the cases
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Theories of SCM Presently there is a break in the available literature on the studies of supply chain management, as there is no support of theory on explanation of existence and the limits of the management of supply chain. Authors like Lavassani (2008) have attempted to furnish theoretical foundations for various areas associated to supply chain by applying organizational theories. Such theories include, knowledge based view, resource based view, strategic choice theory, and transaction cost analysis, agency theory, network perspective, institutional theory, network perspective and systems theory.
Supply Chain Sustainability Supply chain sustainability is an issue of business which affect the supply chain of an organization or network of logistics and is often measured by comparison with the ratings of SECH. SECH ratings are determined as social, cultural, health and ethical footprints. Customers have got more known about the impact of environment of their purchases and organizations SECH ratings and across the nongovernmental organizations, are making the schedules for conversions to locally produced goods and anti-sweat shop labour that support independent businesses. As supply chains often account for more than 75% of an organizations carbon footprint, many companies are exploring how such organization can reduce this and hence improve their rating of SECH. Developments in Supply Chain Management Six significant movements can be discovered in the introduction of studies on supply chain management; creation, integration and globalization (Lavassani, 2008) Specialization phases 1, 2 and SCM 2.0 1. Creation Era The term of supply chain management was coined first by an industry consultant in U.S in the early years of 1980s. The idea of supply chain management was of great significance long before in the starting stage of 20 th century however, particularly with the introduction of assembly line. The features of this age of supply chain management include the necessity for large scale changes, downsizing and re- engineering determined by programs of cost reduction and far-flung attention to the management practice in Japan.
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2. Integration Era This era of studies on supply chain management was spotlight with the growth of systems of Electronic Data Interchange in the 1960s and grown through the 1990s by the evolution of Enterprise Resource Planning systems. This era has extended its development into the twenty first century with the development of collaborative systems based on internet. This supply chain evolution era is characterised by increasing the addition of value and reductions of cost through integration. 3. Globalization Era The next movement of development of supply chain management is the era of globalization. This era can be characterised by attention provided to global systems of relations with suppliers and the elaboration of supply chain over the boundaries of nations and even into other continents. Though the application of global sources in the organizations supply chains can be hounded back various decades such as of the industry of oil, an appreciable number of organizations began to incorporate global sources into their main business. This era is featured by the globalization of the supply chain management in firms with an objective of improving their competitive advantage, cost reductions and value adding with the help of global sourcing. 4. Specialization Era- Phase One Industries started to concentrate on core competencies and used a specialisation model. Organizations abandoned integration in vertical manner, sold off operations which are noncore and outsourced those activities to other organizations. This altered the needs of management by continuing the supply chain well outside the walls of the organization and management distribution all around the specialised partnerships of supply chain. This conversion also re- concentrated the basic perspectives of every separate organization. OEMs have become the brand owners that required good visibility to their supply base. The total supply chain had to be controlled by them from above rather than from within. The manufactures of contract had to bring off bills of goods with different schemes part numbering from various OEMs and support customer calls for the visibility of work in process and vendor managed inventory. The specialisation model produces networks of manufacture and distribution composed of various individual supply chains particular to products, customers and suppliers who work along to design, manufacture, and market, distribute, service and sell a product. The group of partners may change in accordance with a given market, channel, or region, leading in a proliferation of environments of trading partner, each with its own peculiar features and demands
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5. Specialisation Era- phase 2 The supply chain specialization started in the 1980s with origin of warehouse management, transportation brokerages and non asset based carriers and has full blown beyond logistics and transporting into the facets of planning of supply, execution, collaboration and management of performance. The forces of market could demand alterations from logistics providers, suppliers, customers, locations and from these various specialised participants as elements of networks of supply chain. This unevenness has important effects on infrastructure of supply chain, from the layers of foundation of managing and establishing the electronic communication among the partners of trade to more complex needs including the constellation of the activities and flows of work which are crucial to the network management itself. Specialization of supply chain modifies organizations to develop their overall competences in the similar way which outsourced distribution and manufacturing has executed; it helps them to concentrate on their core competencies and set up networks of particular, partners who are best in class to contribute to the whole value chain itself, thus by increasing the expertise of supply chain without improving and maintaining a whole complex and unique competence in house is the main reason why the specialization of supply chain is acquiring popularity. Hosting of outsourced technology for solutions of supply chain introduced in the late 1990s and has accepted primarily in collaboration and transportation categories. This has developed from the model of application service provider from about 1998 through 2003 to the on demand model from about 2003 to 2006 to the software as a service model presently in concentration today. The Management Components of SCM The components of SCM are third component of the framework of four squire circulation. The level of management and integration of a business process link is a purpose of number and level ranges from high to low, of elements added to the link. Eventually, addition of more management elements or altering the level of each element can increase the integration level of the process link of the business. The researches on reengineering of business process, relationships of supplier and buyer, and supply chain management suggest different components which should receive the attention of management while managing the relationships of supply chain. Lambert and Cooper (2000) gave the importance of concepts of planning and control, product-flow-facility structure, importance of structure in work, methods of managing, organizational structure, the structure of leadership, risk and rewarding structure and information-flow-facility structure.
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A detailed analysis gives the effect and the relationship between all the business processes and examines the impact on the roles of the business processes, it broadly explains the relationship of the customers with the suppliers and the effect each other have, this forms a vicious cycle in which both parties tend to depend heavily on each others action. Bowersox and Closs elucidate that the strain on carrying out of a group work denote the synergy which leads to the highest level of joint undertakings (Bowersox and Closs, 1996). A participant in primary level channel is a business which is leaving to participate in the ownership responsibility of inventory or assume other expressions of risks of finance, thus including the components of primary level (Bowersox and Closs, 1996). A business is said to be an expert contestant in a of secondary level which takes part in channel dealings by presenting diverse important services to the participants which lie in the main level. The global supply chain management has got its own issues to solve which include, Different currencies and valuations in different countries Different protocols of trading Different tax laws Lack of transparency of cost and profit Customers of a supply chain Supplier and organization are seen as two important peers who depend on each other for a healthy growth. Supplier produces and supplies goods to the organisation who tell the suppliers of their requirements. So to meet each others needs they need to operate very closely and should know about each others constraints, because the customers needs can be met only from each other support. These two peers of the supply chain have their own internal and external customers. Organizations, governments, etc constitute the external suppliers of the suppliers who buy goods from them and their employees are the internal suppliers. For meeting the demands of the external customers internal customers must be satisfied as we can see what can happen if the supplier does not meet the needs of its employees, which may be appropriate training or rewarding or culture, there may be a sense of dissatisfaction and can lead to deterioration in the quality of work achieved and henceforth the External customers who depend and feed the supplier wont be happy about it if the goods received is not upto the standard. If the organisation starts selling inferior quality of products without knowing that the suppliers are giving the goods of low grade can result in dissatisfaction in the customers who might conclude not to buy the goods from that organisation anymore so this will result in theloss for the organisation leading to the loss of the suppliers, so it is evident that the dissatisfaction of the internal customers which are the employees resulted in the failure of the whole organisation .
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Whereas, a good supply chain relationship will result in the growth of both the external customers and the employees, this will help in the growth of both the parties. Hence we can conclude that SCM model is successful only when other management issues are properly addressed.
The impact of ICT ICT stands for Information and communication management which is the backbone of almost all the management systems. It can-not be thought of running an organisation without an ICT. For us ICT is a mode of communication but for an organisation such as PC World it means more and is utmost imperative to have a good and a modern ICT as the possibilities are vast. If we think as how the organisations used to run in the past we can very well see how things have changed drastically over past years due to the changing trends. IT as an entertainment: It is seen and its apparent that the gaming sector is one of the biggest industries in the world with billions of dollars worths of profit. There is an ever increasing rivalry between the organisations like Electronic Arts and Activision which are trying to replace the top place, the devices like X-Box and Play station have revolutionised the approach to games and the arena has changed from 2d to 3d graphics. Television will be a thing of past as the companies like Youtube will be offering the video streaming live on TVs thus giving a wide range of options for the customers, people can watch youtube on their mobile phones, ps3s etc and thus the demand will eventually move from a plain television to youtube television on a mobile. ICT as a service: Internet is such a boom for mankind as it connects the world literally from anywhere. A company like Wall-mart couldnt have become such a company like it is today as the vision would be myopic, they would have never be possible to maintain their organisation across the borders. E-bay is such a hit, because it offers a marketplace which is completely online and the customers can sit in ease and buy and sell their goods. Thus it is very convenient and has changed the very perspective of business.
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ICT in management: ICT has played a very vital role in todays business arena. PC world is today relied on its Software systems so heavily that the company would come to a grinding halt without it. It allows people to buy things online on the internet and on the other hand provides the managers with vital information on how the things are to be done by showing the sales statistics and the other important facts which provides a very good insight in the position of the company and thus there is a very little room of mistake in the forecasting. ICT thus has changed the way things were done by allowing us to do things better and quicker, as they are lot better and they have a very deep impact on us. Supply chain operations can be improved by improving the Five aspects of Operations management which are Speed, Cost, Dependability, Quality and Flexibility
Prices Low, Margins are high
Short Timing Delivery Delivery is reliable
Properties As-per the Specification A good range of products
Cost
Speed Dependability
Quality Flexibility
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ICT Can improve these properties with a highly accurate and quick service, thus is considered as a bridge between all the nodes of management in a company, It is the bridge between the customers and the organisation. It provides better control and planning, it provides better response, provides the fastest way to share information as EDI(Electronic Data Interchange). The ICT is thus the most important invention of the 21 st century.
Internet based communication systems and supply chain management Move to the market hypothesis The chief argument of this hypothesis says that reduction in the costs of transaction with the use of new communication technology would change overall mechanisms of governance from either hierarchical or cooperative relationships to a market system which is decentralised. Malone, Yates and Benjamin (1987) had done a research and it is regarded as the basis of the debate on the technology of communication and mechanisms of governance under the TCA paradigm. There has not been any important explication of the move to market claim as it itself appears self evident. Wigand and Benjamin (1995) defined a number of pre requisites for the electronic market like high connection rate, high bandwidth connection, cheap and fast computer capability, and absence of market access favouritism. Picot, Bortenlaenger and Roehrl (1997) appended that fully fledged transactions in electronic market need changes in market organizers like price discovery institutions, transparency institutions, access institutions and settlement institutions. The most prominent weakness of the move to market hypothesis consists in the assumption that a reduction on costs of transaction would adopt the introduction of internet. Malone and his co workers identified major transaction course sources to be asset specificity, coordination costs, product description and complexity. Their prediction was that the new communication technology will reduce all these costs. The position of these scholars on this issue was again affirmed later (Malone, Yates and Benjamin, 1989). The same problem can be observed in the argument of Picot (1997). Picot and his co-workers believed that asset specificity reduction was one of the basic changes leading towards the market. Their argument was the acceptance of the tends of internet to accelerate knowledge diffusion and so reduce the goods specificity, which prefers the market as a mechanism of coordination. These scholars could have experienced more credit for their arguments in both the cases, if they had watched the specificity of asset more closely. Transaction of specific asset bears on the assets which cannot be deployed again to alternative purposes without significant sacrifice of productive
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value (Williamson, 1991). As the advocates of this hypothesis specified, some of them are anticipated to lose their specificity of transaction to a significant degree with a wide acceptance of the internet in supply chain management. Communication technology itself is one type of specific asset transaction. Network of inter organizational communication were believed transaction specific assets before the introduction of internet. Internet is likely to make other closed networks of communication highly, disuse eventually, though there were some delays. Another class included the services and products for which the production depends to a great extent on specialized skills and knowledge. The transaction specificity will be lost by these assets because of drastically grown information transferability and duplicability. Temporal specificity is type of specificity in which timely reactivity by on site human assets is significant (Williamson, 1991) will also be reduced to a great extent by fast and accurate exchange of information. Since the heavy dependence on information is common in all these assets, they may be called information based specific assets jointly. Other than these, most of transaction specific assets are based on more physical capitals however. The five transaction specific assets out of six identified by Williamson are considered as not to be specific assets which are information based. Site specificity cites to a condition in which stations which are successive are situated in near proximity to each other to economise on transportation and inventory expenses. Human asset specificity includes both experienced sales staff and skilled labour in a peculiar product or area of service accomplished personal connections. Discrete investments are dedicated assets made for a peculiar consumer in plants for general purpose and brand name capital cites to investment made to brand products exclusively or services together with a partner of transaction. These types of assets are not likely to be affected by internet in any vital way. This hypothesis was only acceptable partially. The researchers appeared to have been known the problems in the scholars arguments. Paradoxical to the chief theses somewhat, Malone(1987) allowed room for electronic hierarchies and fully organized inter organizational relationships Wigand and Benjamin (1995) too mentioned briefly that low specificity of asset and easiness of description are needed for goods to be tradable in markets of electronics and it makes the overall process simple and easy.
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Move to middle hypothesis The main idea of the move to middle hypothesis was the new technology of communication would call organizations into a middle base from both the end (decentralised or hierarchy market). According to this concept, close organized inter dependent organization would be commanding mechanisms of governance in supply chain management. Other than the move to market hypothesis, there were however a number of various reasons for backing the same diagnosis. Various organizational and economic theories were employed in some cases. Business networks are the base of one of furcates of move to middle hypothesis. Though every sub unit of the network of business is highly incorporated dynamic relationship, a network could be differentiated from a relationship which is dynamic as groups of connected relationship moving above the dyad (Anderson, Johanson and Hkansson, 1994). Johnston and Lawrence (1988) debated that partnerships which are value adding groups of small scale companies which shares information freely emerged rapidly and eventually would become much prevalent mode of coordination of organization. The idea of network was arisen further by a number of other researchers. Steinfield (1995) anticipated that organizations would be using the networks of inter organization to construct close relationships with their partners of trade than to use spot markets. Nouwens and Bouwman(1995) also debated that the new technology of communication would get rid of the conventional dichotomy between hierarchy and market and finally lead to the growth of organization of network, a group of firm which are independent that organize to carry off the flow of services and products in the value chain. Another concept has originated from the observation that with the wide acceptance of new technology of communication, the supplier basis for the organizations in many industries lessened rather increased, in contradiction to what had been anticipated by Malone (1987). Bakos and Brynjolfsson believed various alternative explanations intrigued by this phenomenon and eventually developed a conclusion on the basis of incomplete theory of contract( Bakos, 1991). New information technology contributed more importance to investments which are noncontractible by the suppliers, like quality, innovation and responsiveness. Successively, when such kind of investments was specifically needed, organizations would employ less number of suppliers. On the basis of a continuum of the theory explanation of the incomplete contract, (Brynjolfsson, 1994) developed a model depicting the influence of new technology of communication would make smaller firms and less integration by reducing the specificity of assets. Other than other exponents of the move to middle hypothesis, Clemons and his colleagues examined each component of costs of transaction one by one(Clemons, Row and Reddy, 1993 and Row, 1992). Their analysis says the selection of mechanisms of governance
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was dependent on the expenses of the categorisation and risk of transaction associated with the categorisation. Generally decreases in the costs of coordination would result in increase in the risk of transaction. However the new technology of communication would make a unique environment where the related risk of transaction and coordination costs could be lessened simultaneously and so two extremely coordinated, interdependent organizations would be commanding the mechanism of governance in supply chain management. Since this hypothesis developed from various perspectives, every thought lines had their own problems in the argument. Followers of networks of electronic business had a same dilemma with the followers of the hypothesis of move to the hierarchy. Even though they powerfully argued that the organizations with networks would be the future of choice of organisational governance, they were known about the possibility that innovation of technology might make opportunity for deconcentrated pure market (Nouwens and Bouwman, 1995, Stenfield, 1995). They allowed an opportunity for hierarchy by mentioning the attributes of product briefly. Their care for attributes of product was not fully incorporated in those scholars argument. Even though bakos and Brynjolfsson (1993) captivated components of the reality and their logical thinking seemed unlined, they did not explicate why they believed that new technology of communication would step up the importance of non contractible investments. In contradiction to their assumption, many forms of non contractible investments got more procurable with new technology of communication in reality. Brynjolfsson (1994)s explanation was especially concerned with assets of information, contradicted to other sorts of specific assets like physically specific assets and site specific assets. Therefore, practical application of the model of him must be limited to positions where specific assets which are information based are included. The studies by Clemons and friends were on basis of a notion that the affect of new communication technology on coordination of firms must be anticipated by decomposing the costs of transactions. Clemons and Row (1992) collapsed the costs of transaction as formulated below: The costs of transaction = coordination costs + transaction costs Risk of transaction = Transaction specific capital + resource loss Firstly, Clemons and Row (1992) debated that new communication technology would bring down the costs for coordination. They also expressed that the costs of coordination are highly independent of whether an interaction happens within a single organization or the boundaries across the organization. They concluded new communication technology would bring down the risk of transaction by bringing down the degree of transaction specific capital and by cutting down the cost of control and monitoring among different firms. Afterwards Clemons, Row and
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Reddy (1993) slightly altered their former argument and examined the costs of transaction as follows Cost of transaction = cost of coordination + operations risk + risk of opportunism They determined cost of coordination as the exchanging information cost and comprising the information into processes of decision in an extensive sense. The risk of operations was determined as risks that the other parties in the dealing wilfully manipulate themselves recoup information, or underachieve their accorded upon duties. They appended that the risk of operations stems from deviations in goals among interacting parties and is affirmed by asymmetries of information between the parties or by troubles in imposing agreements. The final element of costs of transaction, risk of opportunism was cited to as the danger associated with a deficiency of power of bargaining, resource control loss. The ideas under this analysis of costs of transaction were the same. New communication technology would contribute to more closely coupled inter organizational relationships all around different industries by bringing down costs of coordination while not increasing risks of transaction previously obtained by high categorization. So this impression comprises a great deal of truth. However we cannot assist disagreeing on four significant points. Firstly we affirm that costs of coordination are not autonomous of whether the interaction happens within a single organization or all around the boundaries of the organization. In contradiction to that costs of coordination are affected by whether an organization purchases in-house or purchases in a market. If costs of coordination were not different in both the cases appreciably, outsourcing would be much suited for any organization as long as its dealings with suppliers do not include a vital amount of transaction specific assets. Secondly opportunism is not at all limited to a little part of costs of transaction. Instead, opportunism is one of the two main assumptions of behaviour of TCA and spread widely all around the process of activities of transaction (Williamson, 1985). Thirdly they did not demonstrate how new technology of communication could depress asset specificity rather than asset specificity which is information based. Therefore their anticipation could be genuine only within a fixed range. Finally, it appeared that they were breaching a main assumption of TCA. In accordance with their logical thinking, the most suitable mechanism of governance was a middle field between hierarchy and market, a well known cooperative relationship which was inaccessible only because of higher costs of coordination and risks of transaction. In this assumption, the largest contribution of new communication technology would be reducing the costs of coordination and transaction which modifies cooperative relations between buyers and suppliers. Rather differently, TCA considers a market as the choice of ideal governance. Only when procurance through mechanisms in market becomes also costly as chances of great
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uncertainties and specificity of asset will be the search firmly for more beneficial alternatives like tightly coordinated cooperative bond or hierarchy. While most of the debates supporting the move to the middle hypothesis were on basis of theoretical hypothesis or conceptual modelling, Stump and Sriram (1997) checked the move to the middle hypothesis with empiric data. They failed to demonstrate a direct bond between an investment of a buyer in a new communication technology and the overall closeness of the relationship between buyer and supplier. A mediating variable associated indirectly with the two variables, the percentage of transactions of purchase using new technology. The troubles in these hypothesises should be attributable to the different directions that growth of communication technology have adopted since the establishments of the hypothesis.
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CHAPTER THREE RESEARCH METHODOLOGY I undertook methodologies which were qualitative and quantitative for understanding the Supply Chain Management system and its functioning within P C World. Though great importance is given to the analysis of secondary data collected for the purpose of research, the real crux of my studies would be the primary research which I had done. Certain areas necessitated the collection of secondary data instead of primary as I assume it will be more helpful for the analysis of my findings towards the improvement of the Supply Chain Management and the relation of it with the Information and Communication Technology.
Qualitative Analysis For the examinination, primarily the main source of the information was qualitative in nature. I took every care to be aloof as much as possible since I know upto what extent the qualitative values can vary. I applied the shadowing mode to observe the business functioning. I examined the Supply Chain Management System in P C World by using my time for discussion with different staff within the organisation to figure out the supply chain in the organization and the pertinent use of I C T in that system. In addition to this, I have applied various other methods of which helped me in the analysis and finding out the issues, some of the methods used are as follows. Participant Observation: People performing various roles were chosen, for which I had to find people randomly with different nationality, different locality, different usability and different preferences. This was very important to be as random as possible because if I were to collect data in one locality, the chances of me drawing a similar conclusion were more. Group Meetings: They were undertaken with the PC World staff and the normal populace who are the customers. I went to various stores located at different places which obviously had different type of customers with different choices, also the People were preferred from different locations to get a more vivid results
.
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Interviews: The interviews that were of the staff and the public which were highly structured and unstructured in nature, It was very important to get a clear and unbiased result which wouldve be possible only be taking both informal and a formally structured interview. The Unstructured interview helped me to get the minute details which were obtained from the staff mainly and the structured interview was mainly taken from the public and the staff.
Historic Research: The observers views were very much of a skeleton of my whole research. I read various journals which speak of various aspects of the supply chain and the various methods that were applied and resulted in the success of supply chain management were followed. It gave me an insight of the happenings and what possibilities apply to a regular management change. And for the analysis of data I had to use the following methods
Coding: I made it clear that the data is to be maintained and shown properly as they are the backbone of any research. This had to be done by applying a holistic approach. The conclusion were drawn from the extrapolation of various parties which provided with different results while the interviews.
Personal Judgement: I also had to apply my personal judgement, as my views were based on my experience. I also decided to undertake different locations and different people for the data collection on my intuition. Hence some of the outcomes are concluded by me.
Recursive Abstraction: Pc World is an MNC with having various stores, but the way of doing things varied slightly due to the change and effect of their organisation culture. Its departments were randomly chosen which were preferred abstractly. Also no two departments from the same store were chosen to get a sense of abstractness.
Quantitative Analysis For collecting quantitative value I had to conduct Unstructural and structured ways, different people which included the staff and the customers were asked with a premeditated set of questionnaire, the results were then mapped against the overall number of people interviewed. This provided me a much insight and the understanding of the organisation. These results helped in my study of the importance of the cause of SCM and ICT systems in P C World and it identified ways to improve its functions.
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Primarily the research was taken to analyse the relationship between the customers and the organisation. It thus greatly emphasises the role of services on the response of the customers. Tech Guys which just started as a kind of Repair and maintenance service was a great hit among the customers. This thus greatly drove to a conclusion that a good relationship between the organisation and the customers are absolutely vital. Hence I undertook interviews from the staff and also the customers who are impacted by P C World with their extra ordinary trouble shooting and services to the customers. The people interviewed were asked questions to find out the effect of, A price increase and bundled more items A price increase without any extra offerings A price decrease with lesser items A price decrease for the same product I used statistics for the analysis of the response and the effect. This helped me gain an insight required in the supply chain management. I used the following methods for interviews with the consumers and suppliers of P C World to get the Structured and unstructured data. Face to face interviews Electronic interviews Telephonic interviews I used statistics for the analysis and conclusion of the data collected and this was applied to examine the data primarily, I had to use the Z-Statistics as I undertook interviews from more than 25 people. The analysis of the data first revealed the relationship between the data with the current practices and problems. This helped me to give the recommendations towards the findings. There were different dimensions which were sometime irrelevant and bore little usability in the improvement of the business. My motive was to find the current practice in the supply chain and the ways it can be improved. This explained me the concept of SCM and the role I C T can play in reshaping it, Finally I have examined the effect of the implementation, the difficulties that the organisation will face, this was conveyed by the senior members who provided the data required.
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I would be addressing the issues relating the following issues and we can see that supply chain is such an inevitable field
Problem Function attributed to. Intended item out of stock Supply Chain malfunction Delivery outside acceptable timelines Supply Chain malfunction Home delivery too pricey Supply Chain malfunction Problems with making online purchases Supply Chain malfunction (ICT), Corporate Tech Team Did not receive confirmation Supply Chain malfunction (ICT), Sales Service Limited choice Supply Chain malfunction, Product Planning, Inventory Management Website not user friendly Supply Chain malfunction (ICT), Corporate Tech Team Non Competitive Prices Supply Chain malfunction, Marketing/ Assortment Not enough Gift items/ Value adds Supply Chain malfunction, Promotion Web site doesnt have enough product information to induce a sale. Supply Chain malfunction (ICT), Corporate Tech Team
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DATA COLLECTION
I had to collect data by conducting interviews as that is the best way to gain an internal aspect rather than collecting information arbitrarily
CUSTOMERS
Respondent 1:
What is your designation? Doctor, I am a General practitioner in NHS
Do you own any PC or Laptop and engage yourself in Technology? Yes I have a Desktop which is custom made by Dell, Two laptops made by Sony and Advent, also I have bought my kids an Xbox Recently
Where have you bought most of your IT stuff from?
I have bought mostly from Pc world and Maplins but I normally buy my things online by online shopping. It is more convenient for me with exceptions of some technical glitches on their websites.
Which company has a better customer service? I personally prefer PC world as they have larger stores and they provide extended services and they have a really good team of technicians like the Tech-Guys, their service is impeccable
Would you prefer in store purchasing or online? I am a busy man so my preference would be online
Are you happy with the service? Frankly speaking I am happy but there is always a room for improvement especially their prices are expensive sometimes compared to other companies
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Respondent 2:
What is your designation? I am a Software Engineer in Accenture
Do you own any PC or Laptop and engage yourself in Technology? I have two laptops, Mac and IBM; Also I am a game Geek so you would find many gaming stations in my house
Where have you bought most of your IT stuff from? I have bought my IT stuff from E-bay and Maplins
Which company has a better customer service? I personally like E-Bay as they are cheap and I can buy my goods online and they are secured. PC world service is good but their prices are a bit steep, but no doubt PC world values their customers more
Would you prefer in store purchase or online? Online definitely
Do you like their service? Yes but obviously there service is not comparable to PC World and you hardly find any complain as their marketed products are best valued and they provide
Shaktiraj Jena MBA Information systems University Of Wales
Respondent 3:
What is your designation? I am a Shopkeeper
Do you own any PC or Laptop and engage yourself in Technology? Yes I have a Desktop, one laptop, one projector, Broadband Modem Router, I pod etc
Where have you bought most of your IT stuff from? Pc world and currys
Which company has a better customer service? PC world as they have well trained and Dedicated Customer advisors, I dont have much knowledge in technology, these advisors are highly trained and are a great help for people like me who are not that technically sound.
Would you prefer in store purchasing or online? Online if I am busy or if I have to buy something expensive then I prefer going to the shop
Are you happy with the service? Excellent service, I dont like the online service though as it is complicated for me, they should make the website more simpler.
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Respondent 4:
What is your designation? I am a House Wife
Do you own any PC or Laptop and engage yourself in Technology? Yes I have a Laptop and an I Pod
Where have you bought most of your IT stuff from?
Pc world and Currys
Which company has a better customer service? Both are good
Would you prefer in store purchasing or online? I would go for in store purchasing as I can See and evaluate the product, I can get a good idea of the product by interacting the customer advisors who are very professional and very helpful
Are you happy with the service? Excellent service
Shaktiraj Jena MBA Information systems University Of Wales
EMPLOYEES Respondent 1:
What is your Designation? Store manager, I have to monitor what all is happening in the store, All the staff including the customer advisors, the middle managers and the technicians have to report me and I have to report to the managers in Head-Quarters What is your Experience in this field? I have worked as a store manager for almost 10 years
Do you think there is a need of improvement in the Supply chain process? Our company is no doubt the leader in customer services, We have utmost respect for our customers, Business customers are valued and are served by our specialised Business managers, Earlier we had difficulties in serving the customers as the Demand for goods fluctuated and hence the warehouse management had extremely painful and difficult times, but now its been changed with the application of Warehouse management systems and Eclipse which is linked to the Warehouse management systems
Are there any changes in customer Behaviour? Customers always remain customer and for us they are every thing as we rely on customers for our wages at the end of the day. And the customer behaviour is Tech Savvy as they tend to move on with changing technology
If you were able to modify the system what changes would you suggest? I cant think for any change as for me managing the store has become more and easier with the ever changing technology.
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Respondent 2:
What is your Designation? I am an inventory manager and my job is the management of Inventory and report regarding the same to the store manager. What is your experience in this field? I used to work as a Customer advisor for 3 years and recently I got promoted as an Inventory manager Do you think there is a need of improvement in the Supply chain process? Yes especially handling of goods, as it is very time consuming to count the pallets. We use Scanning guns for scanning the bar codes during the Auditing which we normally organise in Sundays and then we match them against the sales and the demand. Overall speaking the supply chain is good. Are there any changes in customer Behaviour? My job description doesnt tell me to interact to customers as I spend most of the day in inventory management, Replenishment of the stock on the floor and reporting to my Senior Inventory manager
If you were able to modify the system what changes would you suggest? I would go for increasing the speed of inventory management which often takes hours and hours for counting.
Shaktiraj Jena MBA Information systems University Of Wales
Respondent 3:
What is your Designation? I am a senior inventory manager. I contact our suppliers and the Sales staff directly, there is a team who works below me and I report to my Store manager frequently
What is your experience in this field? I have worked for over 10 years and 5 years as an Inventory manager.
Do you think there is a need of improvement in the Supply chain process? PC World has a very good business and the demand increases day by day. I opine that the company should increase the speed of delivery maybe by sharing the Transportation routes with other companies hence reducing the trips and increasing the speed. Apart from that rest is going good
Are there any changes in customer Behaviour? Customer behaviour has recently shifted to online purchasing hence we need to be dynamic in our service which changes accordingly to the increase and decrease in demand. If you were able to modify the system what changes would you suggest? I would try to increase the delivery speed due to the ever increasing demand of goods may be by streamlining the transportation and reducing the trips and increasing coordination between all DSGI companies for increasing the operational speed
Shaktiraj Jena MBA Information systems University Of Wales
Respondent 4:
What is your Designation? I am a Sales manager my duty is to manage the day to day sales and monitor the interaction with customers What is your experience in this field? I have about 10 years of experience in this field of sales, As a manager i have recently been promoted to this rank, but I have experience in Business 2 Business (B2B) too. The B2B experience was much shallow compared to this consumer perspective as they have a different tendency. Do you think there is a need of improvement in the Supply chain process? Yes, I think the changing trends of technology should be more precise and clearly be conveyed to our management, As sometime we dont have the required stock maybe due to a delay in logistics? Also we had complaints of faulty products for some time as The new entrant supplier companies must be rigorously checked for compliance with our standard Are there any changes in customer Behaviour? I have observed that customer behaviour is changing hugely and dramatically. A reason could be booming technological advances, new competitors in the market, a demand for latest gadget and so on. Customers are also sensitive to a good customer service which we provide. If you were able to modify the system what changes would you suggest? I would like to have Software services playing a bigger role on which the whole management system is to be linked to the external interfaces like the websites which allows the customers to virtually enjoy the benefit of in-store purchasing on a computer.
Summary From the research, we understood the overall concept of supply chain management, Information and communication technology and the relation between them. Let us find out how these systems are used in P C World in further analysis.
Shaktiraj Jena MBA Information systems University Of Wales
CHAPTER FOUR ANALYSIS AND FINDINGS
PC World Today
In 1993, DSGi plc bought VTA (Vision Technology Group Ltd), who had the ownership of four P C World Stores. P C World stores were based on Croyden, Lakeside Retail Park at West Thurrock, Staples Corner at North London, and Brentford. It was a period of successive growth for P C World from there. It was from 2000, the name of Dixons Group plc renamed as DSG International to reflect its growing status in international market better. PC World UK acquired the management control of its French subsidiary in September 2006. PC World was undergone a change of style at the beginning of 2008, including a new logo, staff uniforms and store layouts for re-branding its image. In 2009, P C World and Currys opened first dual branded megastore in Fulham on October 15 th which provided a better experience for the customers. DSGi announced in November 2009 that 162 stores were reformatted in UK and Nordics and it has confirmed its plans to reform its stores all over Europe. P C World has its operation in different countries. The operation of P C World extends to UK, Ireland, Italy, Spain, and Sweden. In Italy, Spain and Sweden, the retailer is known as P C City. PC world works under the DSGI which is the supplier. DSGI supplies to Currys, PC World and Comets.
DSGI (Supplier) PC World (Reseller) CURRYS (Reseller) CURRYS DIGITAL (Reseller)
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P C World and its Supply Chain Management Systems
P C World has got an efficient system of management of supply chains. It has been maintaining good relation with its customers and suppliers. It is the success of the organization and it allows them to compete with the rivals in the competitive business environment. Efficient supply chains are the way to success in a business of an organization where products in the stores are immediately replaced by new upgraded products. One way to make efficiency from a environmental and logical standpoint is to share routes of supply with corporate partners. P C World is focused on renewable and more on sustainability, such as creating ways in which they can use networks and bases (locations which are away from the company's main distribution center) with Curry's stores (another electronics retailer owned by the same conglomerate as PC World), so they only need one vehicle between us, Christian Brown, Manager of P C World, Croydon says. ''We have managed to achieve a substantial increase in supplier backhaul, which has both reduced empty running and allowed us to take more control of the inbound process.'' Other sustainability initiatives at PC World include powering road fleets with biodiesel, redesigning delivery trucks to improve aerodynamics, using more roll-cages to reduce the need for cardboard, and returning delivery pallets to suppliers for re use. Impact of ICT in P C World I would be analysing the various systems used by PC World in the Supply Chain process, will be presenting their basic architecture and discussing their prominence. At this stage, I concentrate mainly on the activities downstream of the value chain. Online purchases account for over 30% of PC Worlds top lines. The customer satisfaction is given great priority by the top management of P C World. The online services and the telephonic services of P C World keep them top on the market. The success of P C World is related mainly to the adaptation of highly advanced systems of information and communication technology. I would be concentrating on the virtual books are affected by these activities. P C World is much focused on new technological advances in relevant field and keen to implement them according to the requirements of the organization for the better performance of the supply chain management.
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Impact on the Customer Services The customer services of P C World were criticised critically by the customers in the past. With the improvement in their supply chain management and the information and communication technology systems, the customer services are better nowadays. The large queues when they open new shops shows the change in the concept of consumers and they are attracted rather than before towards the P C World. Now the services of this company had been bettered according to the opinions of the Customers. Today, P C World tries to make every effort to resolve the queries of the customers speedily and smoothly. The P C World has a team called Tech Guys to help its customers with all kind of technical aspects related to their products and services such as to install, to connect and to repair goods if they go wrong the telephone team of P C World has been awarded for their performance in 2009. They handled 3.6 million calls previous year and more than 80 per cent of problems of callers were resolved over the phone itself. Service hotline number with the products of P C World allows the customers to call twenty four hours to solve their problems and advices. Still in the interviews with structured questionnaires, a lot of customers are unhappy with the customer services of P C World. Some customers opt Currys instead of PC World for purchasing the same items. This shows the insufficiency of their system of customer services. Now the new combined show rooms of Currys and P C World is a boon for its customers. In this modern era, if a company could not satisfy the demands of the customers, it cannot survive in the market even if the products of the organization are the best in market. The satisfaction of customers should be well maintained in P C World. The approach of P C World towards its customers is getting better day by day with their improved Information and Communication Technology. This is a good sign for the company and the facet of P C World is changing now with better customer services. Improvements are necessary as the company should maintain the satisfaction of customers and should create a loyalty in their customers towards the firm.
Shaktiraj Jena MBA Information systems University Of Wales
The questions designed for customers in the group meeting Are they satisfied with the services of P C World? What makes them unique in comparison with the competitors? Is there any suggestions by which the service of P C World can be improved? Questions designed for suppliers in the group meeting What approach does P C World follow with the suppliers? How P C World maintains their relationship with the suppliers? How P C World upgrade the standards of facilities to develop the supply chain? Questions framed for the management in the group meeting How the management maintains the relations with the suppliers and customers? How vital is the satisfaction of customers and suppliers for the organization? How they upgrade the technology to improve the supply chain management? What is their style of operation with their customers and suppliers?
Shaktiraj Jena MBA Information systems University Of Wales
The findings from the group meetings and interviews with customers and suppliers The customers: B2B customers are suffering and the sales of PC world has declined to 6% a drop of nearly 13% in Curry's and a staggering 17% in PC Worlds reseller Branch. Recently this change of perspective has caused this severe drop. The SMEs which form the core and the backbone of the reseller arm have taken aback because of the lack of dependability. PC World was supposed to ease the supply chain between the Vendor and the customer. The chain can be seen as below.
Here we see the gaps between the Business customers and the vendors. PC World has much less options as the products are given away by the supplier and the local business dont have the same options available as the normal customers.
The B2C customers are highly satisfied with the services provided by the P C World. The purchases through online provides them great convenience and gratification. In an interview with a group of customers, most of the customers conveyed this kind of information. The current status of P C World is much convenient for the customers as everything can be done with finger tips. Exceptions were also there in the opinions. Some were having the suggestion that the services can be improved by the P C World. The services by the tech guys are a great advantage for P C World. The immediate services executed by the tech guys developed the brand image of P C World. Telephonic services done by tech guys have achieved a great appreciation by the consumers of the organization as it is being done in a much convenient and speedy manner. The combined retail shops by the Currys and P C World is also welcomed by the customers as they can enjoy a variety experience of shopping. The P C Worlds speedy up gradation of existing goods and introduction of new products makes the customers always happy and attracts towards the showroom and their web site again and again. Among all the services, the online applications of P C World are really comprehended by the customers. Dixons Group Plc The suppliers who supply to PC World and SMEs PC-World( The vendors who deal with Local Business, PCWB) Local Small and Medium Scale Industries Products are transported off to the SMEs
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Suppliers: According to the opinion of the suppliers of P C World, the management of P C World is keenly careful to maintain the relationship with them. The organization provides all requirements of the suppliers for timely delivery of the products. The suppliers of P C World are happy on the facilities provided by the organization. The strategies of logistics of P C World make the job of the suppliers easy and comfortable. The transportation is done by various methods. The modes of transportations are either arranged by the company itself and they render the service of suppliers or other private firms according to the demands of the situations. From these data, I analyse that the success of P C World is mainly counted on their effective relationships with the suppliers of the organization. The suppliers of P C World enable them for delivery of goods and other jobs within time, reasonable cost, and technical performance with a team work with the management of the organization. The management: The management of P C World is always careful in maintaining the supply chain management according to the needs of the organization. The significance of the management of supply chains increases as per the vision of management according to the changes in the highly competitive environment. The management believes the success of the organization firmly related to the satisfaction of the customers and suppliers. The relationship with the customers and suppliers are glorified as a basic culture in the P C World according to the management of the organization. All the components in the supply chain management are taken care of by the management for the beneficial operations of the system of supply chain. The top management is really careful in the innovative systems of information and communication technology. This observation on the technology allows the company to implement pertinent information systems as per the demands of the situations and this stands as the key element of success of P C World. Teaming up with customers and suppliers is the way of the processes of P C World in the words of management. They offer value added services to both customers and suppliers. These services are continued to be delivered till the satisfaction of them is guaranteed by the management for the accomplishments of the goals and objectives of the organization.
Shaktiraj Jena MBA Information systems University Of Wales
Summary The study on the supply chain management and the implementation of information and communication technology systems within SCM in P C World has done here with the qualitative and quantitative analyses and the findings as described above. The conclusions and the recommendations which I found out as the result of this research for the improvements of the supply chain management system and the processes of the organization are explained below.
Shaktiraj Jena MBA Information systems University Of Wales
CHAPTER FIVE CONCLUSION AND RECOMMENDATIONS The recent studies and implementation of successful supply chain strategies have earned respect and fame to some of the very famous companies like Wal- Mart, Dell, Procter and Gamble, and H-E-B. Supply chain is changing every day with the advent of new technology change od customer choices, better and fast ways to remove the excess costs and increase the speed of an organisations response to a change in its operating environment. This has shown how supply chain can become ones strength and how can it affect an organisations performance if it is ill managed. We have extensively researched about the impact of supply chain and how it is related to the marketing, operations, sales etc processes and we have established the leading role of ICT in their collaboration. Every business process we know has been shown with the effect of ICT. It is thus established that that the operation superiority can be achieved only by streamlining them, SAAS which stands for software as a service clearly shows the whole mechanism behind the operation of the company. The opinions and an exhaustive interviews with 15 professionals, 12 costumers and 2 suppliers were interviewed and examined and used for forming a hypothesis and then seeking an explanation for that view. The finding talks extensively of the need of a continuous upgrading of the ICT and shows the huge gap between the managerial and the Customer perspective. The models which are already in academics are either too unrealistic or are too ambitious which thus bars them from implementation into the field Literary findings suggest that price has a very deep impact on the customers and the organisations supply chain. The demand can decrease or surge abruptly and these fluctuations should be carefully managed by improving the response, this is possible only by ICT implementation which allows to monitor and implement the changes almost in real time. Price coordination is another such fact which should be carefully managed, price coordination with quantity discounts is a must as an unmapped quantity discount can cause uncounted change in the supply and demand which can cause the bullwhip effect as stated by Lee, Padhamanabhan, and Whang (1997), From the research, we have understood that PC World need to map the price and non-price mechanisms more accurately to reduce the Bull Whip. Similarly, the need for standardization of processes for success with the mechanisms with pertinent application of new and feasible information and communication technology systems is increased day by day in this competitive
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market. Managers established that a more deep involvement of the learning and implementing of supply chain management is needed for getting a better coordination of the channel. Managers view them as means to enhance the effectiveness of flow coordination mechanisms. So it is necessary to update the technological advantages and implement feasible ways to improve the supply chain management to be survived in market for P C World.
The P C World is undergoing a lot of reforming programs to make the efficiency and productivity of the organization. The results of them are clearly visible in the operations of P C World. Continuous improvements are essentially needed for maintaining this impact in the market. New technological advantages should be used to update the information and communication technology of P C world. The customer satisfaction should be given the most concentration. Supply Chain Collaboration The best example of the effect of a good supply chain network can be seen in the collaboration between Wall-Mart and Proctor & Gamble, Whenever product runs out of the wall mart store a software sent alarm in Proctor and gamble and the amount of items and the type and name of items, thus the replenishment of goods is continuous and there are no log-heads. I found that some of the areas can be looked into and the overall efficiency can be achieved. (Eggert and Helm, 2003) suggests the ways and benefits of sharing information, sharing The information by the local SMEs with PC World and Dixons will increase the speed and transparency. (Liker and choi, 2004, page 112) further state that Sharing too much information is will ensure the right information is unavailable when needed Why supply chain software? Normally how the supply chain worked was that the sales managers, the store managers and the warehouse manager analyse the performance of the items by conducting audits, a purchase order was made and the goods are sent by the headquarters, this traditional approach depends on the forecasts made precisely by the able managers automation now saves time, effort and increase the efficiency of the company, and will reduce the Bullwhip Effect and increase its response to the market fluctuations, well the supply chain software is no doubt one of the worlds most fractured softwares but one software like Advanced Planner and Optimiser by SAP is one such solution.
Shaktiraj Jena MBA Information systems University Of Wales
SMEs which form the business customers to PC World can share EDIs with PC World and Dixons group, sharing information should be done Clearly without allowing cluttering of excess information. This will improve the interaction between the suppliers, the vendors and the customers and a better analysis can be done on PC Worlds part.
Increasing the Usability of RFID RFID normally are used as a security feature which normally are put on the items as security tags, these tags after the item being sold are deactivated and thus the lifespan of the usability of an RFID is limited, but as a matter of fact the usability of an RFID is much more, the Storehouse can have all the pallets and goods tagged with the RFID reader installed on the gates, thus counting of goods will be very quick and efficient.The customer satisfaction should be given the most concentration.
SUPPLIERS, SMEs AND RESELLER SHARING EDIs (ELECTRONIC DATA INTERCHANGE) DIXONS GROUP (SUPPLIER) LOCAL SMEs PC WORLD (RESELLER)
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STEPS TO BE TAKE FOR A BETTER REAL TIME ICT According to Craig Conway, the CEO of PeopleSoft, there are twelve points which must be applied for a snag-free operation of real time ICT : 1. Business process should be standard: regardless of the geography or the location of the client the business process must be standardised 2. Pure Internet Architecture: This will make support even cheaper and flexible 3. Using Standard software: Using a standard software will promote sharing of EDIs easily, a little customisation must be allowed 4. Collaborating with Software Specialists: Using help from a good software vendor and their service will ensure continuity of service. 5. Sharing Databases: Using and sharing multiple Databases will ensure a good data sharing and a good disaster recovery 6. Applications must be Better Scalable: since millions of users will be directly connecting to business processes, the applications must be highly scalable 7. Multi Language and Currency based : If the company needs to expand throughout the globe the Online process must be done in Multilanguage and multi currency based 8. Vendors must be Interactive: All the vendors must increase their engagement with each other operations and must receive each others information in real time 9. Availability of Online Analytics: Analytics must be embedded which will allow customers and vendors for making better decisions and better interactions. 10. More products and Few vendors: Less vendors and broader product line should be available for ensuring a more reliable system 11. Managing Change: The change to be brought must be dealt sensibly according to the laws of change management for ensuring better acceptability 12. Tough CIO: Lastly it all depends on the Chief Information Officer to ensure the team is upto the mark.
Shaktiraj Jena MBA Information systems University Of Wales
Summary I conclude the research of Supply Chain Management System and Information and Communication Technologies in PC World, and what I have apprehended is that Information and Communication technology is one of the most Vital and Misunderstood areas of management, if they are to be ignored an organisation is zero, it is thus imperative for an organisation to keep itself in pace with the changing technology. The recommendations given will help to improve the productivity and efficiency of the organization. As we know as a fact that PC World is highly committed to a good service to its customers, it is imperative that the company maintains and improves its existing service quality. Eventually it will add to the profitability of P C World
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