Supply Chain Management Sample Assignment (Doc)

Running head: PROFESSIONAL PROJECT
Professional Project
Name of the student
Name of the university
Author note

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Executive Summary
This research had evaluated the relationship between supply chain management and revenue
generation among the top retail organizations in Australia. The retail industry in Australia has
been growing rapidly and supply chain plays an important factor in providing competitive
advantage in the market. Woolworths is the market leader in the retail industry in Australia
and has been able to majority of market share and Coles is the market follower. ALDI and
Metcash are right behind these companies. The findings of the study shows that there is
positive relationship between supply chain management and revenue management. The
conclusion drawn from the study has stated that organizations in the retail industry will have
to make improvements to the supply chain for gaining competitive advantage and marinating
sustainability.

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Table of Contents
Introduction................................................................................................................................3
Significance of the study............................................................................................................3
Research aim and objective........................................................................................................4
Research question.......................................................................................................................4
Research hypothesis...................................................................................................................5
Critical literature review............................................................................................................5
Methodology..............................................................................................................................8
Findings from your secondary data analysis............................................................................10
Discussion................................................................................................................................13
Conclusion, recommendations and limitation..........................................................................14
References................................................................................................................................16

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Project title: Relationship between supply chain management and revenue of Australian retail
organisations
Introduction
This research will evaluate the relationship between supply chain management and
revenue generation among the top retail organizations in Australia. The retail industry in
Australia is growing rapidly and supply chain plays an important factor in providing
competitive advantage in the market. Woolworths is the market leader in the retail industry in
Australia and has been able to majority of market share and Coles is the market follower.
There has been intense competition between these two companies until the arrival of
companies such as ALDI and Metcash. ALDI is a heavy discounter in the industry and is
known for their heavy discount on quality products. Metcash is another company having a
good amount of share in the market. However, Metcash has lost their share to ALDI due to
the change in the buying behaviour of the organization. The study will critically analyse
these companies and their supply chain processes to evaluate the current scenario and the
reason for it.
Significance of the study
The top retail organizations in Australia are Woolworths, Coles, ALDI and Metcash.
These companies have the majority of the share in the market and in the last decade, ALDI
has used backward integration in their supply chain to provide quality products at lower
prices. Competitive pricing is an essential component of business strategy in most of the
companies in the retail industry as they deliver similar kinds of products. Therefore, cost
reduction is an essential way of increasing profit margin and offering products at cheaper
prices. The study is significant in this context as retail industry is expected to reach a level of

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saturation after a few years and the research about the importance of supply chain
management in generating more revenue will be critically evaluated to provide valuable
insights for the future.
Research aim and objective
The research will aim to critically evaluate the importance of supply in revenue
generation among the retail companies in Australia. The different elements of supply chain
will be analysed to identify its impact on the revenue factors. The study will provide
recommendations for improving the supply chain management for the top organizations in
the Australian industry.
Research objectives
The objectives of the following research are as follows:
 To identify the different elements of supply chain management in terms of revenue
generation
 To identify the different factors affecting the revenue generation of different
organizations
 To evaluate the relationship between supply chain management and revenue
generation in Australian retail companies
 To recommend the suitable strategies for long term sustainability and competitive
advantage in the market.
Research question
 What are the different elements of supply chain management in terms of revenue
generation?

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 What are the different factors affecting the revenue generation of different
organizations?
 What are the relationship between supply chain management and revenue generation
in Australian retail companies?
Research hypothesis
H0: There is no positive relationship between supply chain management and revenue
generation in Australian retail organizations
H1: There is positive relationship between supply chain management and revenue generation
in Australian retail organizations
Critical literature review
As stated by Stadtler, (2015, pp. 3-28), different practices in business makes it
difficult in understanding the relation between supply chain management and revenue
generation. The supply chain management has been used by companies in manufacturing,
retail and grocery industries. Lean Management is a process in supply chain used for waste
reduction and removal of redundancy in business. The effective use of supply chain provides
opportunity for revenue growth which depicted the use of different tools and techniques to
reduce the operational cost of the organization. There are large number of companies using
green supply chain management measures to incorporate sustainability practices which
promotes reduction in waste. The supply chain process should be developed to mitigate the
demand of products in the market. Supply chain management is complementary to revenue
management as the demand of the product determines the revenue generation and the supply
of these products will determine revenue management.
Supply chain management

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According to Subramanian and Gunasekaran, (2015, p. 216-233), Supply chain
management deals with the enhancing the effectives of the business processes of the
organization. The level of competition in the global market is high and companies can gain
competitive only through their superior supply chain management, mostly in cases where the
rival companies have identical products in the market. The tradition management functions
have been moulded and have been included into the supply chain activity of the organization.
The conceptual components that constitute all the supply chain practices and activities are
supply chain relationship, supply chain configuration and supply chain coordination.
Supply chain configuration will determine the extent of the consecutive activities
within the supply chain process. Therefore, the vertical integration within the organization is
defined by the configuration process which provides the relevance of the different processes
within the organization. On the other hand, Govindan, Muduli, Devika and Barve, (2016, p.
185-194), supply chain relationship describes the relationship with the consumers, suppliers
and other stakeholders in the supply chain process. Companies form strategic and operational
alliances based their goals and objectives and developing an effective relationship with the
other stakeholders is essential for improving the performance of the organization. The
companies and their respective suppliers will have to be well coordinated in order to attain
efficiency in the supply chain process. Supply chain coordination is key for inventory
management, forecasting, production capacity management, scheduling and consumer
service.
The above mentioned factors are the supply chain management elements which are
managed by the companies to improve their profit margin. As opined by Skippari,
Laukkanen, and Salo, (2017, 108-117), the volatility in the market trends are changing the
industry standards and consumer needs at a rapid rate so the companies are making drastic
changes to their supply chain management policies for long term sustainability. Therefore,

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technological development and innovation in product development is a means of adding
value to the products offered by the companies. Therefore, the companies will have to
increase their adaptability if they want to cope up to the fast changing nature of the supply
chain features. As stated by Hardgrove and Starr, (2017, 85-91), the technological dimension
holds more importance as balancing the right technology into the organization is challenging
as the developed technology will have to be sustainable for the companies. The innovative
disruption has failed many companies as the incorporation of the new technology will destroy
the competency of the product and may be the consumers may not be ready to take this
change in dimension of the product.
Revenue Generation
As stated by Pullman, Longoni and Luzzini, (2018, 3-20), the prime objective of any
company is profit maximization as it is main source of maintaining sustainability in the
market. Revenue management is linked by supply chain management as the quality of the
product or the service offered by the companies’ increases the consumer base and revenue
generation. The retail companies in Australia generate more revenue by developing new
innovative products in the market which will provide them with competitive advantage and
increase in sales volume for a short period of time. There are varied impact of the different
supply chain processes on the revenue generation of companies. The supply chain revenue
curve shows the nature of correlation between the variables that is the correlation. According
to Strauss, Klein and Steinhardt, (2018), Supply chain management is essential for improving
the loyalty and satisfaction of the consumers into the market. Therefore, the increase the
curve represent increase in consumer satisfaction and revenue generation. This is because of
the fact that increase in the satisfaction level of the consumers is responsible for enhancing
the repeat intention of the consumers. Cross buying intention, purchase frequency and

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willingness to pay for the consumers leads to increase in consumer loyalty and revenue
generation.
The elasticity of revenue generation for the companies are responsible are affected by
the lead time, delivery quality, and delivery flexibility and delivery reliability. The elasticity
of revenue generation is highly affected by the supply chain management which can be
understood by the Sigmoid function, f(p) where Euler’s number and ɳ defines the alteration
in consumer orientation affecting the revenue. Supply chain affects the customer intention
directly and this has an influence on the revenue generation of the companies (Neutzling,
Land, Seuring and do Nascimento, (2018). The organizations aim to streamline the
organizational activities to make improvements to the supply chain components.
Impact of Supply chain management in Revenue generation
Supply chain is a crucial component of revenue generation and influences the
elasticity of the revenue curve. The supply and revenue curve of the organization determines
the different factors responsible for improving consumer loyalty and consumer satisfaction.
As stated by Petljak, Zulauf, Štulec, Seuring and Wagner, (2018, p. 1-15.), competition
among companies has become more of a competition between the efficiency of the business
processes and companies having better supply chain management process generates more
revenue and better financial results. The majority of the companies are using supply chain as
a strategic asset and has been used by the companies to outperform the rival companies.
Methodology
Research methodology is used to determine the framework, theories and models used
for collecting and analysing data. This is an applied research as the research topic has
provided a conclusive statement so the final conclusion in the study is predetermined (Lewis,

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2015, p. 473-475). In this current study, Saunders’s research onion has been followed and
the different layers of the research onion will be explained in context to the present project.
Research philosophy defines the assumptions in the study and there are mainly four
types of research philosophy. They are pragmatism, realism, intepretivism and positivism. In
this current study, positivism has been chosen as the current research methodology (Mackey
& Gass, 2015). Positivism facilitates in quantitative analysis of data as the data collected is
discrete and objective in nature. Therefore, statistical analysis is one of the prescribed way of
analyzing data in positivism and facilitates in reaching a conclusion.
The research approach used in the study is deductive as it will help in proving the
theories depicted in the literature review. Moreover, the hypothesis testing can be conducted
using the deductive approach. The research design used in the study is the conclusive
research design which will facilitate in deriving significant conclusion from the study which
will have real life implications in the business world (Flick, 2015). Therefore, the results
derived from the research will be used my managers in retail organizations to improve their
supply chain processes so the revenue streams can be increased.
In this current study, secondary data analysis is the method of collecting data from the
annual reports of different companies. The study will collect only quantitative data about the
four main organization evaluate the relationship between supply chain and revenue
generation in the organization (Humphries, 2017). The secondary data collected will be
analyzed in Ms Excel using statistical techniques such as regression analysis. This will
provide insights regarding the degree and nature of relationship between both the variables.
Sampling is a method of reducing the sample population for ease of calculation in the
study. In this current study, the data collected will randomly selected using simple random

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sampling (Csikszentmihalyi, & Larson, (2014, pp. 35-54). Initially data from last five years
will be collected which will be then minimized and only data for 1 year will be used.
Reliability and validity of the data has been maintained in the study. The study has
used different data sets to evaluate the results. This will test the reproducibility of the
research design in the study (Palinkas, Horwitz, Green, Wisdom, Duan & Hoagwood, (2015,
p. 533-544). On the other hand, construct validity has been used to check the appropriateness
of the methods that has been used in the study.
Ethics in research is key for the success of the study and in this study, the data
collected form the different journals are authentic and none of the data has not been
manipulated. The data results are in accordance to the annual report and the implications of
the data protection act has been followed to the fullest (Wallace & Sheldon, 2015, p. 267-
277). The participants in the survey are recognizable and the study has taken adequate
permission to use the data form the different companies for the analysis.
Findings from your secondary data analysis
The data has been collected from different organizations in the past few years from
the annual report. The data consists of investments in supply chain management of the four
big companies in ALDI, Metcash, Coles and Woolworths along with the earnings before
income tax. The market capitalization shows that higher the investment in supply higher is
the market capitalization of the organization. However, the effectiveness of supply chain
management is also essential for gaining majority of the shares in the market. Metcash has
made more investment on the supply chain however, the market capitalization of the
organization is less than the other companies in the market. ALDI being a heavy discounter
and relatively smaller when compared to the industry giants they have emphasized on their
supply chain immensely from the very start. This is the very reason that the market

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capitalization of the organization is very high even though there their annual spending on
supply chain is less due to the incorporation of the backward integration.
Retail
Companies
Investment in
SCM ($ million)
EBIT ($
million)
Market
Capitalisation ($
billion)
Market
capitalization
(%)
Aldi Ltd $75 $269 $11.90 13.20%
Metcash Ltd $100 $296.70 $8.40 9.30%
Coles
(Wesfarmers
Ltd )
$811 $1,609 $30 33.20%
Woolworths
Ltd
$958.60 $2,132.40 $32.20 35.50%
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.995
07204
9
R Square
0.990
16838
2
Adjusted R
Square
0.985
25257
3
Standard
Error
114.3
21008
3
Observations 4

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ANOVA
df SS MS F
Signifi
cance
F
Regression 1
26324
86.462
263
248
6
201.4
25316
2
0.004
92795
Residual 2
26138.
58586
130
69.2
9
Total 3
26586
25.048
Coeffi
cients
Stand
ard
Error
t
Stat
P-
value
Lower
95%
Uppe
r
95%
Lowe
r
95.0
%
Uppe
r
95.0
%
Intercept
96.07
25772
2
89.678
20823
1.07
130
3
0.396
16753
2
-
289.7
8161
481.9
2676
5
-
289.7
8161
481.9
268
Expenditure
on SCM ($
mn)
2.017
28360
1
0.1421
37912
14.1
924
4
0.004
92795
1
1.405
71353
2.628
8536
8
1.405
7135
3
2.628
854
$0 $200 $400 $600 $800 $1,000 $1,200
$0
$500
$1,000
$1,500
$2,000
$2,500
f(x) = 2.0172836013121 x + 96.0725772221227
R² = 0.990168382003764
EBIT ($ million)
EBIT ($ million) Linear (EBIT ($ million))
Regression analysis
Regression analysis

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The regression analysis is used to define the relationship between the independent
variable and the dependent variable. The regression analysis between Earnings before
income tax and investment on supply chain shows a positive linear relationship. In the
present study, the value of multiple R is 0.995072049 which is defines the correlation
between both the variables. The value of multiple R is almost equal to 1, which means that
there is perfectly positive relationship between both the variables. The value of R² is 0.9902
which is greater than 0.8 which means that goodness of fit of the regression model is high
and majority of the data points will lie on the regression line. Moreover, this also signifies
that supply chain management can explain the characteristics of revenue generation by
99.02%, which is very high. Therefore, the explaining capability of the study is very high and
there is a deviation of 0.98% which is very common in studies of these nature.
The F- value of the study is 0.00492795 which is less than .05 so the null hypothesis
in the study can be rejected. Therefore, there is positive relationship between supply chain
management and revenue generation in Australian retail organizations.
The regression equation in the study is y = 2.0173x + 96.073, which depicts the
positive relationship between supply chain and revenue management. In context to the
regression equation, if the value of x s put as 1 the value of y becomes 98.09. This means that
1 unit increase in spending in supply chain will result in 98.09 unit increase in the revenue of
the organizations. Therefore, this shows the positive relationship between both the variables.
Discussion
The findings of the study has been able to establish a relationship between the supply
chain management and revenue generation. The findings in the study has provided an in
depth analysis of the fact the different components of supply is the only effective way of
improving market capitalization. The market has been rapidly growing and is reaching a state

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of saturation. Therefore, for the global companies in the market, innovation in supply chain
processes are necessary for gaining sustainability and competitive advantage. The best
example in this segment is ALDI has been rapidly increasing their operations in Australia by
using superior supply chain processes and aggressive marketing strategy. They have even
managed to gain a large portion of the market share due to their backward integration and
cost leadership strategy which enables them to offer products at lower prices than the other
companies in the market. In the past decade the market capitalization of ALDI has increased
by almost 10% which shows their superiority in supply chain. However, Woolworths and
Coles have been able to hold on to their position in the market due to the use of extensive
marketing strategy and supply chain. The supply chain processes of Woolworths and Coles
are focused on providing the consumers fresh products plucked fresh from harvest. These
examples are positive enough to throw a light on the emphasis on supply chain by the top
retail companies in Australia.
Conclusion, recommendations and limitation
The objectives of the study will be linked to the findings to develop relevant findings
in the study.
Objective 1: To identify the different elements of supply chain management in terms of
revenue generation
The findings of the study shows that supply chain configuration ,supply chain
relationship and supply chain coordination are the different elements of supply chain
management having an impact on the revenue generation of the companies. These factors are
essential for developing an effective supply chain process and facilitates increase in revenue
generation among the companies.

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Objective 2: To identify the different factors affecting the revenue generation of different
organizations
The different factors of revenue generation are lead time, delivery quality, and
delivery flexibility and delivery reliability. These factors affect the revenue generation of the
companies and are the means of gaining competitive advantage in the market.
Objective 3: To evaluate the relationship between supply chain management and revenue
generation in Australian retail companies
The regression analysis shows that there is positive relationship between supply chain
management and revenue generation. The companies in the retail industry have increased
their revenue generation by increasing their level of investment in the retail industry. The
regression equation shows perfectly positive relationship in this scenario where it can be seen
that increase in supply chain investments are essential for generating more revenue in the
market.
Objective 4: To recommend the suitable strategies for long term sustainability and
competitive advantage in the market.
The organizations will have to use innovation of technology and product to provide
the consumer with services and products. The use of innovation is the only way that the
organizations can gain competitive advantage. However, in order to maintain the advantage
there should be continuous process of innovation so that the organization maintains
advantage.

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References
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