Supply Chain Management Literature Review

This assignment requires a comprehensive literature review of supply chain management. Students must examine various scholarly articles and texts to understand the fundamental concepts, evolution, and current trends within the field. The review should also delve into emerging areas like sustainable supply chain management, big data analytics, and the role of technology. A thorough analysis and synthesis of the reviewed literature are expected, culminating in a well-structured and insightful document.

Running head: SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
Name of the Student
Name of the University
Author note:

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ABSTRACT
In this paper a detailed literature review has been done taking Supply Chain Management as
the subject and the food delivery company Food Panda as the case study. Different aspects of
supply chain management including its importance, limitations, issues, theories, scope of
improvement and optimisation methods have been discussed in the light of various researches
and articles. The findings include issues of the company in the case study, majority of which
are the persisting unsustainable mode of transportation of food, managing the delivery
executives at a finer level, dealing with big data analytics, and making decisions that are
balanced and logical and not just periodical. These gaps and limitations have to be fulfilled
by the company by better strategic decision making and more fluid and effective supply chain
methods.

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Table of Contents
INTRODUCTION......................................................................................................................3
LITERATURE REVIEW...........................................................................................................3
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT AND THE REASONS
CUSTOMERS WILL CHOOSE FOOD PANDA.............................................................3
THEORIES AND MODELS OF SUPPLY CHAIN MANAGEMENT................................4
VALUE SUPPLY CHAIN PROCESS AND HOW THE COMPANY MAY DELIVER
VALUE PROPOSITION.....................................................................................................6
OPTIMIZATION METHOD OF SUPPLY CHAIN MANAGEMENT...............................7
SUPPLIER RELATIONSHIP ISSUES WITH GLOBAL CUSTOMERS............................8
ISSUES WITH SUPPLY CHAIN MANAGEMENT AND GAPS..................................9
SUGGESTIONS FOR SUPPLY CHAIN IMPROVEMENT........................................11
CONCLUSION........................................................................................................................12

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INTRODUCTION
The activity of, services, products and goods flowing through different stages of
production, starting from procurement of raw materials- storage of the raw materials,
inventory processes- processing and development of finished goods- storage of the finished
or processed goods- transportation of goods or mediums of service to the consumption point,
this whole process is known as the supply chain management (Heckmann, Comes & Nickel,
2015). The objectives of the process include increasing the efficiency of production, faster
dispersal of goods or service, production of quality products or service, and increased
productivity for the company.
The objective of this research is to understand the process of supply chain
management in details with the help of a case study and then comparison with appropriate
literature and articles on the subject. The organisation that has been chosen for the case study
is Food Panda. Food Panda is a supply chain based company that has an online portal through
which customers can book food online from the restaurant of their choice (Foodpanda.com,
2018). The process includes ordering in the Food Panda portal and the delivery executive will
pick up the order and deliver duly within time.
LITERATURE REVIEW
IMPORTANCE OF SUPPLY CHAIN MANAGEMENT AND THE REASONS
CUSTOMERS WILL CHOOSE FOOD PANDA
As stated by Shyam (2015), Supply Chain Management as per its name is the
management of the supply in the chain of stages that take part in the completion of service or
delivery of product. The author has stated that there are primarily three stages of supply
chain, “procurement, production, and distribution”. In the case of Food Panda the

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procurement of order takes place from the websites part, and the procurement of the raw
materials to prepare the ordered food takes place from the restaurant’s side. The food is
produced. In this case, there is another stage of procurement when the prepared food is
procured by the delivery executive. In the next step, the delivery executive produces a service
where he transports the food to the customer. In the case of Food Panda the service and the
distribution happens consecutively, as distribution is their main service. Supply and
distribution along with logistics are not new concepts in human civilisation, as these have
been happening from the very beginning (Christopher, 2016). It depends on the business how
innovatively the concepts are utilised in a new way that can give an edge to the business over
its competitors.
The undeniable importance of the supply chain management in businesses have been
duly recognised not very long ago (Christopher, 2016). Food Panda has utilised the
innovation in supply chain management and used it in favour of its business. According to the
authors of the article “The role of management in the evolution of the company's supply
chain” supply chain managers has to ensure a high degree of co-ordination and
synchronisation to keep the system running (Sorbi et al., 2017). This is especially true in the
case of Food Panda where the team receiving the order has to co-ordinate the same with the
delivery boy, and the restaurant who will start preparing the order. The delivery boy then
picks up the order co-ordinating with the restaurant and then connects with the customer to
complete delivery, this needs high precision, and synchronisation to complete.
THEORIES AND MODELS OF SUPPLY CHAIN MANAGEMENT
Supply chain management is a dynamic process and there are no fixed and bound
rules or theories to be followed in this regard. There is a “resource based view” theory which
gives importance to the resources which may take forward a firm’s ability of competition
according to the article “Supply chain management: An overview. In Supply chain

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management and advanced planning” the author has pointed out (Stadtler, 2015). The theory
states not all the resources are of equal importance and must be judged wisely.
Touboulic & Walker, (2015) have pointed out that there are not enoughnumber of
theories about the Supply Chain Management process and the ones existing have gaps in their
structure. The article also defines the sustainable theory of Supply Chain management.
Monczka et al, (2015) have discussed about the channel coordination in the SCM
process, which has an objective of aligning and synchronising the strategies of individual
enterprises. There might be a number of multiple decision making horizons and information
which is asymmetric and unstructured. There are multiple decision making situations in the
case of Food Panda as well, when priorities in orders have to be understood when there is less
number of delivery executives but more orders flow in. In the article “The role of marketing
channels in supply chain management” the authors have pointed out that the lack of
centralisation in decision making often leads to a situation of dilemma and doubt in various
quarters and the overall performance may be affected (Kozlenkova et al., 2015). In the article
“Competition and Coordination in a Two
‐Channel Supply Chain. Competition and
Coordination in a Two
‐Channel Supply Chain” the authors have pointed out the duality in
coordination and competition in cases where the supplier is same but the retailers may
compete in order to gain profit. In the case of Food Panda various restaurants and Fast food
shops may compete to get the first priority in the category of the same food.
In supply chain management process the theory of constraints is also applied and
researched in many articles. In the article “Applying Goldratt’s Theory of Constraints to
reduce the Bullwhip Effect through agent-based modelling” the bullwhip affect is identified
as one major reason for ineffectiveness in supply chain management. Bullwhip affect is the
increased movement in the inventories of businesses in response to the demands of the

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market which may be increasing or decreasing. In the case of Food Panda the bull whip affect
is a major probkem because even if there is less number of orders they have to maintain the
same number of delivery executives and work force.
In the article “Quantitative models for sustainable supply chain management:
Developments and directions” the authors have pointed out to the quantitative models of
Supply Chain Management process and how can they be used in sustainable supply and
distribution. The triple bottom line (TBL) or the integration of social aspects with other
variables like the environmental aspects taking consideration of economic situation. SCM has
evolved with time into not just a physical flow of gods but into complexities of decision
making. In the case of Food Panda this is very evident because even the delivery executives
have to take part in certain decision making.
VALUE SUPPLY CHAIN PROCESS AND HOW THE COMPANY MAY DELIVER
VALUE PROPOSITION
The best value chain concept in supply chain management is enforced by the speed,
quality, cost, and flexibility. All these aspects are important for the theoretical perspectives.
The organization always wants to deliver proper value to their customers. The value may be
in terms of product, quality, cost, availability, and choice. The market extension can create
competitions and prominent theoretical aspects of strategies models enhance better business
chances for the organization. The behavioral change, in theory, can also mould the product
dimension and supply chain management has taken this responsibility to open up the business
market for contingency categories. As mentioned by Muysinaliyev & Aktamov (2014), There
are different theoretical perspectives allocated for the business. The transaction cost
economic theory is one of the best values in supply chain process and ensures customers to
buy their products. Agency theory is another aspect of cultural enhancement that aligned with
the business opportunism so the market enhancement can sustain. As narrated by Martínez-

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Jurado & Moyano-Fuentes (2014), Resource dependency and competitive alignment is the
key aspect of the strategic development of the organization. The social capacity theory is
another aspect shared the goals, value, and experiences of improved product performance. If
products can create a better place in the market and socially acclaimed by the people then it
would be easier for the company to promote that product in the market. The basic blend of
performance and strategic values are important for strategic changes in the organization. In
case of improved values, better goal and circumstances are the key factor in this process and
that creates a good chance for business opportunities.
OPTIMIZATION METHOD OF SUPPLY CHAIN MANAGEMENT
There are some traditional methods and techniques for supply chain management
process. These traditional methods are basically focused on the financial measures and return
on investment. The rate of return and net present value has been declared in that optimization
method and that evaluation method suited for the newer generation. Flexibility is service
system is important for business operation perspective and will likely enhance the customer
expectations for innovative products and service (Jain et al., 2010). Customers always want a
better quality of the product so better financial support is also needed for the perspective.
Innovative technology is also needed for that process and strategic planning is the main thing
that better supply organization. As commented by Stadtler (2015), Information must be
readily accessible to all companies in the supply chain process and the business procedures
should be organized in a mode to make full use of this information. However, as these are
problematic to amount or practice as a guideline to monitor development, more effective
dimension methods, and indexes were advanced (Beliën & Forcé, 2012). On a more operative
level, the key presentation indicators are total costs, excellence and central times in the
supply chain. Survey of presentation measures presented that cost and customer receptiveness
to rule as the most frequent declared measures. The outline and practice of supply change

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framework help companies to improve presentation across the whole supply chain process in
an efficient method and so that key performance indicators develop the fields in a positive
way.
SUPPLIER RELATIONSHIP ISSUES WITH GLOBAL CUSTOMERS
Customer satisfaction is an entire presentation for staying well-informed in a modest
environment that can be attained only by rapidly answering to customer requirements.
Effectual consumer response (ECR) is a supply chain management approach that endeavors
to discourse the inadequacies in the supply chain are important for this occasion. Customer
relation is the most effective issue for supply base management practice and produces some
competitive edge for better customer drove driving policy (Ashby, Leat & Hudson-Smith,
2012). For the long-term relationship, companies performance matters and effective
performance productivity is the key aspect of that designing method. There are some issues in
logistic like planned routes, environment policies, iterative approach for distribution and
making a good relation with supply chain management is important for the development of
the relationship with global customers (Touboulic & Walker, 2015). Global customers are
important for the company to stretch their business market externally. Trading issue and
market competencies can be judged by the organization if strategic benefits are aligned with
outsourcing decision. As discussed by Fayezi, O'Loughlin & Zutshi (2012), Sometimes
franchises are taking this responsibility to channelize their market and company is also
flexible to make them control over then business partially. They can take the brand name of
the company and deliver only those products that manufactured by the company and also
promise to maintain the brand image of the company and this is going to be the biggest
outsourcing for the organization to make a good profit from different sections of business and
this would be happened only because of effective supply chain.
SUSTAINABLE SUPPLY CHAIN MANAGEMENT

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In the article “Sustainable supply chain management and the transition towards a
circular economy: Evidence and some applications” there has been a detailed discussion
about the importance and necessity of sustainability in supply chain management (Genovese
et al., 2017). Environmental concern is another issue for sustainable development in Supply
Chain Management (Dubey et al., 2017). Food Panda has reduced the need of paperwork in
billing of food and hence given a better environmental and eco friendly option for supply
chain management. However certain concerns like pollution caused by the bikes of the
delivery executives still persist.
Formentini & Taticchi (2016) in their article “Corporate sustainability approaches
and governance mechanisms in sustainable supply chain management” shows by evidence
how sustainable leaders can induce the practice of sustainability in their followers. This can
be adopted by the organisation in case study, Food Panda to induce sustainability all over the
organisation structure.
ISSUES WITH SUPPLY CHAIN MANAGEMENT AND GAPS
In the article “Logistics and retail management: emerging issues and new challenges
in the retail supply chain” the authors have noted how there have been emerging issues in
terms of logistics in food procurement and distribution. The author has taken example of
Tesco which has transformed from a small store to a full fledged retail chain selling grocery
and home requirements (Fernie & Sparks, 2014). Although there is a certain difference in the
type of business that Food Panda does, but the similarity is both of the companies have grown
from small to big. The main issue has been the increasing complexity that comes with
growth.
In countries, which are dominated by Islamic faith, there is a issue of serving Halal
food. In the article “Halal supply chain management training: issues and challenges” the

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author has discussed about the challenges with receiving Halal certification and and
maintaining the standards (Hashim & Shariff, 2016). Food Panda operating in a number of
Islamic countries has to keep strict vigilance on the Halal standards.
According to Wang et al, (2016), the supply chain management has to deal with big
data processing systems. Big data can be useful and complicated both at the same time. There
has been separate departments and whole consultants dealing with big data. In the case of
Food Panda the company has to constantly deal with orders coming in from various
platforms, and then distributing the orders to the concerned delivery executives in the right
time. Zhong et al, (2016) have also pointed out in their article “Big Data for supply chain
management in the service and manufacturing sectors: Challenges, opportunities, and future
perspectives”, that how information from service sectors as well as manufacturing sectors
have been becoming huge in volume and complicated by the day. In the article, it was found
that many managers in the upper level of the organisations are often oblivious about big data
analysis and its outcomes, there is also need for better optimisation at different levels like
operational, analytical and strategic.
In the article “A hybrid framework for the modelling and optimisation of decision
problems in sustainable supply chain management”, the authors have stated the altering and
optimising the decision making system of the companies that deal with supply chain
management that can lead to better decision making. In the article the author have proposed a
combination of “mathematical programming and constraint programming” (Sitek & Wikarek,
2015). Food Panda may well consider the proposed solutions to optimize the business it deals
with.
In the article “A new fuzzy DEA model for evaluation of efficiency and effectiveness
of suppliers in sustainable supply chain management context” the issues with developing a

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sustainable supply chain management process has been detailed (Azadi et al., 2015). In order
to develop a sustainable model of supply process the “Data Envelopment Process” (DEA) is
proposed to be utilised. Purchasing and distribution process becomes more complicated with
the pressures from various agents of the environment and a sustainable process helps in
avoiding these. Big data is an emerging field of further research and it is undeniably
necessary for companies like Food Panda (Schoenherr & Speier‐Pero, 2015)
SUGGESTIONS FOR SUPPLY CHAIN IMPROVEMENT
The market conceptual map and the practical tools help to identify the policy issues of
supply chain management. This is a process that enhancing the quality standard and deliver
proper market information to maintain that chain in an effective way. There can be calamities
that disrupt supply chain and improvement has to be done to tackle such situations (Snyder et
al., 2016). There are four different areas of supply chain management and all these are
creating extraneous factors to influence the business enhancement. Process upgradation is the
first factor in the supply chain management and organization has to maintain their process in
an evaluative way so that better results can be extracted from that. Product upgrading is
another way the organization concerns about this and they can change the old product to a
new one so that customers also get attached to the innovative product. Functional upgrading
is a mix of operational activities that conducted by the organization and enhance the external
market of the company. As asserted by Shukla, Garg & Agarwal (2011), the functional
operation includes all the logistic facilities, resource management, and finance and
distribution issues to cover up. Hence, all the operational sections are co-ordinated by this
segment. The last section influences the entire chain or channel upgradation and this
enhances to switch the production from one end to another. The process also calculates the
new market entries and tries to channelize a new product in the business market. As
commented by Colicchia & Strozzi (2012), Improvement in food quality and meeting

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customer expectation is a major aspect of the company. The management network is
interconnected with the provision of product and service packages from the organization.
CONCLUSION
Food Panda has been very successful in transforming the system of food delivery on
earth. The company has redefined how the practice of supply chain management can be
utilised at an optimised level to give maximum productive value to the society and the
business. However from the above literature reviews that has been done certain issues have
been found major of which are the persisting unsustainable mode of transportation of food,
managing the delivery executives at a finer level, dealing with big data analytics, and making
decisions that are balanced and logical and not just periodical. These gaps and limitations
have to be fulfilled by the company by better strategic decision making and more fluid and
effective supply chain methods. The literature review discusses about various models and
theories of supply chain management and their implementation. These can be utilised in
various level of the organisation to give a lean but fit organisational structure to the company.

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