Supply Chain Management : Assignment Solved
Added on 2021-06-14
45 Pages3934 Words66 Views
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Effect on Customer Loyalty due to ineffective Supply Chain Management in WoolworthsBy
Introduction, background and management problem•The main benefits of the supply chain are to attain high efficiency rate, reduce the overall cost, enhancing business output and business profit level (Christopher 2016). •Myerson (2012) also stated that effective supply chain management also reduces the delay in the business processes and increase the level of satisfaction among the employees. •Tayur et al. (2012) on the other hand stated that some of the most advantageous aspects of the supply chain management improved product and material flow, enhanced financial flow and seamless information flow.•However, Wisner et al. (2014) argued that the common problem of the supply chain management are quantifying the functions by the amount they spend in supply chain which arise low satisfaction among the stakeholders, who spend more order of lesser amount. •Ptak and Schragenheim (2016) moreover stated that short signed risk management are also the common factor that give rise to delayed days of delivery, sudden increase in demand that cannot be fulfilled efficiently, supplier issues and shortage in supply.
Background of the Research•79% of companies are benefited with greater revenue growth than average on incorporating high-performing supply chains. Stadtler (2015) also stated that if a company has poor supply chain performance, the probability of facing corporate business failure gets high. •Ross (2013) thus suggested companies not only to focus on the supply chain start but also bring improvement in supply chain network design, supply chain service performance, supply chain cost, relationship with supplier and ethical procurement and corporate responsibility. •The major problem arises when the impact of ineffective supply chain management put negatively on the customer services. •Govindan et al. (2014) highlight that some of the negative customer experience experienced by the users are long delivery lead times, poor order fill, delays in response to customer service and poor product or service quality.
Research Objectives•To identify the factors that enhances effectiveness in the supply chain management in Woolworths•To investigate the aspects of supply chain management that triggers customer’s loyalty in Woolworths•To evaluate the impact of the supply chain management and Woolworths’ customers loyalty•To recommend strategies for improving Woolworths’ supply chain management services
Research Questions and Hypothesis Research Question •What are the factors that enhance effectiveness in the supply chain management? •What are the different aspects of supply chain management that triggers customer’s loyalty?•What is the impact of the supply chain management and customer’s loyalty?Research Hypothesis •H1: There is impact of the ineffective supply chain management on customer loyalty•H0: There is no impact of the ineffective supply chain management on customer loyalty
Summary of the Literature reviewThis chapter aims for analyzing research papers based on the supply chain management issue and its effect on the loyalty of the customers for addressing the developed research objectives. This chapter comprised details of factors that make the supply chain management ineffective, different aspects of supply chain management that triggers customer’s loyalty and the impact of the supply chain management and customer’s loyalty.
Summary of the Literature review contd.Porter’s Five Forces •Competitive rivalry- Woolworths is an established organization hence implementing new supply chain models or hiring a third party provider is relatively easy for the company. •Bargaining power of suppliers- The supplier power are lower as other prodders for delivering an efficient supply chain management system are always ready to collaborate with a successful organization. •Bargaining power of customers- The customer’s power is medium to high as they have other options like Coles and ALDI if they are not satisfied with the work of Woolworths. •Threat of new entrants- The threat of new entrants low to medium as implementing effective supply chain management is cost consuming and hard to implement as required in-depth knowledge for aligning the existing business operation with the newly implemented system. However, new organizations like online services already use effective supply chain networking system. •Threat of substitute products or services- This risk is high as all companies plan for obtaining greater effeteness in supply chain management system.
Summary of the Literature review contd.Significance of Porter’s Five Forces •This assessment helps Woolworths to identify their company's competitive environment to formulate effective supply chain management process. •Woolworths will also able to assess the advantageous aspects of the rivalry organization and make proper change in their existing process for overcoming the ineffective procedures in the supply chain process. •Woolworths can also segregate their target customer out of the entire people base in the community. •Woolworths can also evaluate the number of suppliers so that they can choose the one that charges them with lesser cost.•Woolworths can also identifying the aspects that can act as a barrier for making improvement in the supply chain effective and can use the same for innovating new procedures for making improvement in the supply chain
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