Research Report on Supply Chain Management: Integration and Globalization in the Age of eBusiness

Running head: SUPPLY CHAIN MANAGEMENT
Research Report on Supply Chain Management: Integration and Globalization in the Age of e-
Business
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Abstract
The research study examines the supply chain management with integration and globalization in
the age of e-business in the business unit of Magnit Group. The business is situated across
Russia. The concept of supply chain management (SCM) is being examined based on quality of
materials, evaluation of supplier, logistics and inventory and purchasing of goods and services.
The facts are recognized by concept of the supply chain management to achieve continuous flow
of goods and products are considered as crucial for effectiveness of the business. The literature
study is based on supply chain management, Sales Operating Plan, e-business and collaborative
system. SCM requires managers to address risks by taking of positive measures to make sure that
the critical areas are to be highlighted as subject of higher importance. In order to obtain
information related to selected research topic, survey questionnaires and personal interviews
were conducted with employees and managers of Magnit Group respectively. The questions
were to be addressed based on specific areas of selected topic. The subjects are tending to agree
that the company is required to address basic needs of the supply chain. Particular areas require
improvement as the suppliers are required to address aspects of product delivery as well as
quality. The communication medium is user friendly as it requires implementing such that the
members of supply chain are being integrated. The findings of this study suggest that the
company is required to focus on improvement of areas addressed to use workforce to optimum
level of the long term business profitability.
Keywords: Supply Chain Management, Sales Operating Plan, Collaborative System, Logistics
and Inventory.

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Table of Contents
Elements of Problem Formulation Report.......................................................................................4
1.0 Background and focus...........................................................................................................4
1.1 Rationale for choosing the topic........................................................................................5
1.2 Problem definition and scope............................................................................................5
1.3 Explanation of research aims and objectives.....................................................................7
1.4 Practical organizational context.........................................................................................7
Elements of Research Report...........................................................................................................9
1.0 Literature Review..................................................................................................................9
1.1 Introduction........................................................................................................................9
1.2 Supply chain management (SCM) and Enterprise Resource Planning.............................9
1.3 Sales and Operations Planning (S&OP)..........................................................................12
1.4 E-business and E-commerce in Supply Chain Management...........................................13
1.5 Collaborative system based on supply chain...................................................................14
1.6 Conceptual model and framework for the research.........................................................17
1.7 Summary..........................................................................................................................18
2.0 Research Design..................................................................................................................19
2.1 Research design/methodology.........................................................................................19
2.2 Research approach...........................................................................................................20
2.3 Methods and procedures involved in data collection......................................................20
2.4 Methods and procedures involved in data analysis.........................................................21
2.5 Discussion of limitations of design proposed..................................................................22
3.0 Analysis of findings.............................................................................................................23
3.1 Introduction......................................................................................................................23

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3.2 Quantitative data analysis................................................................................................23
3.3 Qualitative data analysis..................................................................................................47
4.4 Summary..........................................................................................................................50
4.0 Conclusion...........................................................................................................................50
4.1 Conclusion.......................................................................................................................50
4.2 Linking with research questions......................................................................................51
4.3 Recommendations............................................................................................................51
4.4 Research limitations.........................................................................................................52
4.5 Implementation plan........................................................................................................52
4.6 Reflection summarizing learning’s from the research report..........................................53
Elements of Client Report.............................................................................................................54
1. Practical recommendations for decision making...................................................................54
2. Cost/benefits of key recommendations..................................................................................55
3. Key aspects of the study........................................................................................................56
4. Target audience......................................................................................................................57
References..................................................................................................................................58
Bibliography..................................................................................................................................62

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Elements of Problem Formulation Report
1.0 Background and focus
The rise of worldwide marketplaces along with practical companies is focused on the
competition among the supply chains. This paper presented an sympathetic of the supply chain
management (SCM) with highlighting the impact of integration as well as globalization1. SCM
avoids administration of the materials and data by which it is supported the production network.
From the inventory to the production network firm to the business competition is moved by
generating rivalry. There is growing complication of the supply chain, globalization of the
business, production diversity and shortening of the product life cycle forced the company to
draft innovative supply chain strategies2. The supply chain is a key factor to achieve both costs as
well as service developments in the business planning for successful organization.
In this paper, there is problem of integration of SCM which is caused by limiting the
human cognition, behavioral issues, and difficulty to align the goal of the individuals with the
organizational units3. The project manager can pursue with less complex platform of the supply
logistics is the supply chain integration. The main focal point of this research study is based on
the supply chain processes. Administration of the supply chain into the business environment has
major monetary impact on parties involved with the supply chain.
1 Christopher, Martin. Logistics & supply chain management. Pearson UK, 2016.
2 Jacobs, F. Robert, Richard B. Chase, and Rhonda R. Lummus. Operations and supply chain management. New
York, NY: McGraw-Hill/Irwin, 2014.
3 Mangan, John, Chandra Lalwani, and Chandra L. Lalwani. Global logistics and supply chain management. John
Wiley & Sons, 2016.

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The selected organization for this paper is Magnit which is leading grocery Retail
Company in Russia. The company manages its supply chain by implementation of technology
throughout market region for its grocery stories, family store along with hypermarkets. The
grocery supply chain is difficult as it comes to manufacture. The grocery industry is largest and
important industry in the modern world. Magnit grocery store has evolved in suitable as well as
diverse business in the world. The evolution of the grocery business is not possible without
proper supply chain management. With increase in availability of the information system, SCM
in grocery industry becomes effective tool helps the business to grow. Magnit suggested services
which will enhance supply chain with rich in information about customer requirements, behavior
and identification of product in the store.
1.1 Rationale for choosing the topic
The rationale of this study is to analyze integration and globalization of SCM as the
companies are challenged to meet with customer’s expectations at manageable costs. The supply
chain is encompassed the companies as well as business activities to plan, carry and employ of
product in addition to service. The businesses based on supply chain offer them with what they
are required to live. Each of the business is fitted in one or more supply chain. In order to
become competitive in the market, the company is required to align the supply chains by means
of demands of the markets as it can hand out.
1.2 Problem definition and scope
The materials management practices into the small scale industries are performing on
fragmented basis with the unstructured statement in addition to no such clear responsibilities
among the parties concerned. The fragmentation is created in informational flow which can
affect decision making processes and direct to delay in ordering of materials furthermore

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receiving. The researcher requires realizing that decisions are taken at one stage in procedure
will provide an impact on other activities in addition to procedures in the supply chain.
The materials management in the supply chain is a key problem of the supply chain
management. It is defined as underlying the network construction of the supply chain as well as
interrelated with the problems like logistics, purchasing4. The scope of supply chain management
accounts for social functions, political as well as economic implications for development of
supply chain. The scope to address the research gaps are considered with following research
questions such as:
1. What are best practices of supply chain integration processes and policies in the context
of globalization?
2. How can such best practices be effectively deployed to improve cost effectiveness and
customer services at Magnit retail chain?
Related problem to focal industry
The business environment requires mobilizing the suppliers as well as customers to
cooperate and reduce unnecessary costs along with inefficiencies among them. It ensures to
provide best charge for final customers. The focus point on SCM is maximizing the value of the
customer within the supply chain as an alternative of the management for promotion of parties
within the supply chain. It is rational that the problem is division of the supply chain which can
influence workings along with competence of the system or the supply chain as whole5. This
4 Wang, Gang, Angappa Gunasekaran, Eric WT Ngai, and Thanos Papadopoulos. "Big data analytics in logistics and
supply chain management: Certain investigations for research and applications." International Journal of
Production Economics 176 (2016): 98-110.
5 Schönsleben, Paul. Integral logistics management: operations and supply chain management within and across
companies. CRC Press, 2016.

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particular study found that the problems which are practiced at one place into the supply chain
provide negative impact through the supply chain.
1.3 Explanation of research aims and objectives
The aim of this research study is to evaluate and analyze effects of globalization on the
integration of supply chain management. It will reveal the supply chain management with
various drivers like inventory, transportation, information and location.
Following are the research questions for the research study such as:
1. What are best practices of supply chain integration processes and policies in the
context of globalization?
2. How can such best practices be effectively deployed to improve cost effectiveness and
customer services at Magnit retail chain?
The selected research topic is justified as it will examine how the selected organization is
approached implementation of e-business for proper improvement over globalization and
implementation of supply chain management. The study is justified as it will set up whether the
supply chain integration is recognized goal for the firms to be concerned and evaluated degree of
integration gained throughout the project.
1.4 Practical organizational context
The selected organization for this research study is Magnit, which is leading grocery
Retail Company in Russia. The logistics as well as transportation are the critical components of
the supply chain management. Management of transportation is critical component of the supply
chain. Inventory management is a procedure to direct flow of the goods within the supply chain.