Analyzing the Impact of E-Supply Chain Management in UK Retail Sector

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This project examines the influence of the e-supply chain management (e-SCM) framework on the retail sector, with a specific focus on Morrison's in the UK. The project begins with an introduction that outlines the aim, objectives, research questions, rationale, and significance of the study. Chapter 2 provides a comprehensive literature review, exploring the emergence and evolution of e-SCM practices, its contributions to better management in retail, and the challenges associated with its implementation. The research methodology, including research type, approach, philosophy, design, data collection, and analysis, is detailed in Chapter 3. Chapter 4 presents the data analysis, focusing on the implementation of e-SCM, its infrastructure, benefits, and the challenges encountered. The conclusion and recommendations are presented in Chapter 5, summarizing the findings and offering solutions based on the identified challenges. The project aims to evaluate the impact of e-SCM on Morrison's, identify challenges, and recommend strategies for improvement. The project covers the integration of online services, technological advancements, and their strategic importance in enhancing supply chain efficiency.
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THE EFFECT OF THE E-
SUPPLY CHAIN
MANAGEMENT
FRAMEWORK IN THE
RETAIL SUPPLY CHAIN
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Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Background............................................................................................................................4
1.2 Aim and Objectives...............................................................................................................4
1.3 Research Questions................................................................................................................5
1.4 Rationale................................................................................................................................5
1.5 Significance...........................................................................................................................5
1.6 Dissertation Structure............................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
Theme 1: Overview of the emergence of e- SCM practices and its evolution............................8
Theme 2: Contribution of e- SCM towards the better management practices in retail sector...10
Theme 3: Challenges raised in the implementation of e-SCM in retailer firms........................12
Literature Summary...................................................................................................................13
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
Research type.............................................................................................................................15
Research Approach....................................................................................................................15
Research philosophy..................................................................................................................16
Research design.........................................................................................................................16
Data Collection..........................................................................................................................17
Data analysis..............................................................................................................................17
Reliability and validity..............................................................................................................18
Ethical considerations................................................................................................................18
Research Limitations.................................................................................................................18
CHAPTER 4: DATA ANALYSIS................................................................................................20
Theme 1: Analysis of Morrison’s regarding e-SCM and information system architecture......20
Theme 2: Implementation of e- SCM SI in Morrison’s............................................................22
Theme 3: Use of SI in Morrison’s, its infrastructure and implementation benefits..................24
Theme 4: Challenges in implementation of e- SCM.................................................................26
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS1500...........................................29
REFERENCES................................................................................................................................1
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CHAPTER 1: INTRODUCTION
Topic: To analyse the influence that e- supply chain management framework has in the
management of retail companies of UK and their supply chain management. A study on
Morrison’s.
1.1 Background
sThe concept of e- supply chain management basically indicates the integration and use of
internet and online services in order to manage the manufacturing activities and carry out
flawlessly the process of converting raw material to finished products. The retail industry of UK
is very extensive and addresses multiple requirements of the customers by meeting their various
needs accordingly. Recently, there are multiple organisations which have integrated their supply
chain operations with the online networks and mediums where they are used to cater to the
requirements of the customers in a better manner and also increase the efficiency and
organisation of the entire system altogether (Schniederjans Curado and Khalajhedayati, 2020).
This dissertation basically aims to analyse that how the overall supply chain management gets
facilitated by the use of internet and other online services especially in the retail sector
specifically of UK. Further, in this dissertation, the technological advancement aspect will also
be discussed and analysed accordingly. This will indicate the use and implementation of e- SCM
as a key strategic tool for improvement and better implementation of systems and techniques.
The dissertation study will mainly help in analysing the implementation of digital aspects in
SCM and its critical contribution.
1.2 Aim and Objectives
Aim:
To ascertain the impact of e- supply chain management towards the overall management
and facilitation in Morrison’s.
Objectives:
To evaluate the emergence of e- SCM and its implementation.
To understand the contribution of e- SCM has towards the management functions of
Morrison’s
To identify the challenges that arises in the implementation of the e- SCM strategy in
Morrison’s.
To recommend appropriate solutions or strategies based on the challenges identified.
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1.3 Research Questions
The research questions for the dissertation study can be identified as follows:
How can the emergence and implementation of e- SCM can be mapped?
What is the contribution of e- SCM towards better management practices in Morrison’s?
What are the different implementation challenges of e- SCM?
Which solutions can be recommended accordingly based on the challenges identified in
Morrison’s?
1.4 Rationale
The dissertation topic that has been selected helps in gaining the necessary insight
regarding the optimisation of sales, revenue, increase in efficiency etc. of the organisation by the
implementation of electronic SCM practices and techniques (Reza-Gharehbagh and et.al., 2020).
The research issues being discussed here are related to application of e- SCM practices in the
retail industry and how the key aspects will influence the overall working pattern and efficiency
of the organisation. This research issue will mainly help in understanding what are the key
factors that are affected by e- SCM and how the management of Morrison’s will lead to better
policies for meeting the customer needs. The research issues will also focus on the technological
advancement in Morrison’s where the recent policies that have been adopted will be key
highlights of the research. Further the reason that this research has been selected now is because
of the fact that in the recent times, the technological integration and advancement has increased
diversely and this has also influenced the overall practices in the organisation. It has become
important to understand how different factors and their implementation lead to the overall
betterment in the work efficiency and productivity (Meherishi, Narayanaand Ranjani, 2019).
Mainly, the research will focus on these aspects only and address the concept of e- SCM and the
benefits that arise due to its implementation.
1.5 Significance
The significance i.e. importance of this research can be understood using multiple contexts
and aspects. The research will also help in critically identifying that how the entire process of e-
SCM can be applied in Morrison’s and what are the different aspects that influence the results
and efficiency of e- SCM practices (D'Eusanio, Zamagni and Petti, 2019). The description of the
e- SCM practices will help in understanding that how integration of e- SCM is beneficial for the
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retail sector companies further detailing that what are the challenges that can arise and how
evaluation practices can also be affected. Another important aspect of this research is that it helps
in indicating that how business process optimisations gets heavily facilitated due to the
integration of the entire manufacturing process with online platforms. The architectural pattern
of the entire systems behind e- SCM and its facilitation of the different components indicates that
what are the different challenges that can arise in the implementation of the electronic SCM
practices in Morrison’s (Chang, Chen and Lu, 2019). The most important aspect however would
be the identification of the entire network system that is to be implemented and the challenges or
consequences that arise accordingly.
1.6 Dissertation Structure
The dissertation will be completed in a particular structure following proper chapter
distribution:
Chapter 1: Introduction
In the introduction chapter i.e. chapter 1, overview of the research will be presented and the aim,
objectives and research questions that will help in achieving the key objectives that have been
developed for the research. The rationale behind selection of the research topic and its
importance i.e. significance was also highlighted and presented accordingly.
Chapter 2: Literature Review
This is the second chapter of dissertation and in this the earlier published research
articles, journals, books etc. will be referred. Then, critical analysis will be done on the themes
formulated highlighting the positive and negative aspects accordingly. The existing research gap
if any will also be identified and presented accordingly.
Chapter 3: Research Methodology
In the third chapter, the different research tools that are to be used will be analysed and
presented accordingly and the aspects such as research type, philosophies, data collection
techniques, analysis and sampling will be described in detail relating to the research.
Chapter 4: Data Analysis and Findings
The chapter of data analysis and findings basically uses different data collection
techniques and tools to identify the relevant results and understand the opinion of the selected
sample. Different themes and graphs will be used and presented in order to interpret the data
collected and also use these to present the findings accordingly.
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Chapter 5: Conclusion and Recommendation
This is the last chapter where conclusion will be drawn from the research that has already
been completed and the key results will be presented and justified. Further, based on these
appropriate results, recommendations will be made before the company and readers presenting
different solutions against the problems that have been identified.
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CHAPTER 2: LITERATURE REVIEW
Literature review chapter in dissertation helps in critically analysing the various research
points that have been presented and discussed where the view point of different authors will be
identified and selected. Based on the different themes that have been developed, viewpoint for
every research will be obtained and positive aspects will be compared with the negative one.
Further, in this section, the previously published articles, journal etc. are detailed and relevant
insight will be gained on the potential viewpoints. Further, these themes will be developed
mainly on the basis of the research objectives that were developed in the introduction chapter.
The critical analysis will mainly help in obtaining the relevant judgement about the previous
research that has already been done and the different aspects of research that were discussed.
Theme 1: Overview of the emergence of e- SCM practices and its evolution
According to the research paper published by Ripanti and Tjahjono (2019), it is evident
that goods, services and information are integrated with online services so that goods and
services will be presented and discussed in a more efficient manner and context. The authors
further state that there are some key players in the maintenance of SCM i.e. manufacturers,
supplier, logistics, customers, distributors etc. The coordination between the different players in
the SCM such as retailers, suppliers, customers and other such parties indicate that whether the
key activities have been successful or not. Further, the authors also state that the coordination of
every party is essential in order to ensure the success of entire organisation altogether.
Further elaborating on this concept, Reza-Gharehbagh and et.al. (2020), have presented in
their research paper that there are three main activities that are necessary to be completed in the
overall supply chain management flow. Product flow, information flow and financial flow are
the three important aspects of this activity flows. Product flow can be ascertained as the moving
or transition of goods from supplier to the customers and in some specific cases good returned
back by the customers as well. Similarly, information flow indicates the transmission of orders
and also getting updates regarding the delivery status of the products manufactured and in
process. Lastly, the financial flow indicates the availability of credit, its terms and conditions, the
payment schedules and terms that have been entered into, consignment details, title ownership
etc.
Also, the research paper published by Nair and Reed-Tsochas (2019), details the multiple
advantages or benefits that have arisen due to the implementation of e- SCM in organisations
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specifically at a wider level. It is a huge contributor in reducing the overall costs of the
organisation i.e. storage, transit, maintenance etc. and the amount of inventory being held
unnecessarily also decreases. Further, the competitive advantage that can be gained due to the
implementation of this process is immense as the overall customer satisfaction and its
optimisation increases ultimately. This leads to improvement in the fulfilment of orders and their
management, its decision making, forecasting, planning of demand, distribution of warehouses
etc. The paperwork also gets reduced when the company goes online in the implementation of its
SCM components and participants. All of these are the contributors in the improvement of the
performance of the organisation and improving their overall operations and delivery process
optimising the entire process altogether.
However, in contradiction to the above positive aspects detailed, there are a variety of
challenges or disadvantages as well that have been presented by the authors accordingly.
Meherishi, Narayanaand Ranjani (2019), state that the most prominent threat that the
implementation of e- SCM activities present is of cyber security. There is a huge exchange of
data through electronic mediums and if any loophole or breach in the security arises, then it acts
as a potential threat to the business and its customers i.e. clients as well. There are multiple
aspects which can not only lead in the loss of sales or revenue for the business but it can also
tarnish the potential goodwill that a company has established of themselves.
Additionally, Mees-Buss Welch and Westney (2019), have also stated that another major
flaw is in the network reliability i.e. the investment in installing and developing a secure and full
proof network can be a costly and tiring affair. Not only installation, but its maintenance is also a
serious aspect where although using cloud storage, on- site backups can help company in saving
and storing all the relevant data but sudden power cuts or networks turning down can cause
serious disruptions in the implementation of the entire supply chain altogether. If a company
solely relies on the data that is stored in digital formats only and is fully automated than in the
situation of crisis, i.e. when there is power cut or issues of networking, then company might be
unable to access the relevant information which has been stored in a digital only mode.
Therefore, the network reliability and efficiency is also one of the key issues that have to be
considered while implementing e- SCM.
The last demerit that was identified most commonly as per the D'Eusanio, Zamagni and
Petti (2019), is the return or consideration against investment being made in e- SCM. Some of
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the companies are able to exercise efficient utilisation of the system and its implementation and
on the other hand some organisations are able to gain only negligible improvements. The best
strategy is to first evaluate the current SCM that is being implemented and then evaluate that if
the option of e- SCM is opted for, then will it lead to the better and quantified returns and results
or will it be mostly negligible in the contribution being made.
Therefore, in this manner the evolution of the e- SCM technique can be critically analysed
and discussed accordingly.
Theme 2: Contribution of e- SCM towards the better management practices in retail sector
The research paper published by Chang, Chen and Lu (2019), detail the multiple
contributions that the implementation of e- SCM presents before the retail companies
specifically. The foremost contribution is that it helps in the optimisation of the storage space in
any company. The technology helps in identifying that how much stock is available in every
category of products and also helps in learning that whether there is too much space that is being
covered or if the company is paying unnecessary money to the maintenance staff of the store.
Further it also helps in ascertaining that how the storage space as well as the personnel being
implemented on it can be optimised and stored correctly so that ultimately the profitability and
productivity of the company can increase. When the entire warehouse data gets optimised, it not
only improves the prospective chances of the better management but it also improves
collaboration and layouts in the company.
Contributing to the point above, another research paper published by Bressanelli, Perona
and Saccani (2019), states that implementation of e-SCM helps in gaining the coordination with
multiple suppliers rather than relying too much on a single or very limited number of suppliers.
This not only minimises the potential chances of risk and losses but also makes a company and
its management prudent towards the losses that can be avoided. The company is also able to
exercise the advantages of bargaining and exercising economies of scale of the production is at a
larger scale. Amongst suppliers as well, there is a competition to serve excellent quality of raw
materials which in turn leads to the enhanced quality of products along with reduction in the cost
being incurred. This creates double benefits for the company accordingly.
Bai and et.al. (2020), also state that using e- SCM creates a faster movement in the
supply chain where quick bookings and notices to the relevant departments of a company helps
in obtaining the necessary budgets and permissions regarding raw material ordering very quickly
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and further the sales, accounts, purchase and production department can interconnect and
monitor each other in a very efficient manner. Not only it increases transparency and verifiability
amongst two or more departments but it also creates flexibility in the organisation where one
department can easily understand and monitor the activities of another department. This is the
most efficient way of increasing inbound rates and optimising pick up times in any company
along with reduction in the maintenance costs of the stock accordingly.
Supporting the above point, author Khosroshahi, Husseini and Marjani (2016), elucidated
that e-SCM is directly impacting the retailing management practices of well-known retailers. It
influences both direct and indirect procurement of goods and services. The various applications
of e-procurement such as Ariba, Commerce One and Right Works are used to enhance the
efficiency of the buying goods such as stationary and travel. E-procurement also helps in
managing change and compliance.
Author LAKHRIF and YOUSFI (2020), also elaborated this by mentioning that e-SCM
also helps in direct procurement which is able to represent much bigger size than indirect one.
The main benefits can be shown by integrating ERP, MRP and planning systems of demand and
supply which makes the procurement able to become visible and shows the business intelligence.
The scholar believed that the e-SCM has the ability to make the buyers smarter which also shows
many cost saving opportunities.
Though, e-SCM is providing high speed through the Internet in transferring the
information from all the sectors to the supply chain along with improving the efficiency but it
also faces certain problems such as cyber-attacks, access reliability to uncertain ROI. The author
Han (2018), explained that e-SCM basically works for transmission of large data from invoice to
inventory levels over the different networks. This leads to many threats related to security
breaches. Though the retailers do not take it theoretical but majority of them has faced the data
breaches which was observed by the Global Security Study focussed mainly on the media,
technology and telecommunication companies. This made the e-SCM a weakness of the retailers.
The above contradiction was supported by authors Cagliano, De Marco and Rafele
(2017), by highlighting that retailers which use e-SCM depends completely on the reliable,
persistent information transmission from supply chain elements which in turn is depended on the
broadband access which is reliable. Though some of the problems can be resolved by cloud data
storage, on-site and backup power supplies but there can be many serious disruptions due to
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network downtime or sustained power outages. The author mentioned that these can cause
various issues for the retailers as they need to access the information anytime being anywhere
because a small carelessness can lead a loss of large amount of goods and capital.
Furthermore, supporting the contradiction, the authors, Fatkhiyah and Parwati (2018),
described that implementing the e-SCM also needs a large investment regarding the
technological infrastructure. Though some of the companies earn a large profit by implementing
the e-SCM, others invest in this by making efficiency improvements. The author highlighted that
there must be careful monitoring of existing e-supply chain so that it can deliver sufficient
improvements in terms of efficiency and revenue for the justification of implementation costs.
For this a lower level of supply chain must be integrated including logistics and sales which can
provide sufficient improvements for justification of investment.
It was also contradicted by Pan, Pavur and Pohlen (2016), that the retailer companies cannot
assure that their products in the supply chain management are delivered safely to the customers
as they can be damaged, at the time of shipping, even the perishable items can be spoiled. Also,
the delivery can take a lot of time to reach the customers which can create a sense of distrust
among the customers for certain retail firms. The author also stated that e-SCM also lacks the
human and personal touch of shopping which makes this less-appealing. This forces the
companies to evaluate their target customers to decide that they must use automation or not in its
management practices.
Theme 3: Challenges raised in the implementation of e-SCM in retailer firms
According to Galipoglu and et.al. (2018), there are many challenges which can be raised
in implementing the e-SCM in retailers as their main priority is the customers whose needs and
demands are to be fulfilled. The author believed that the customers who are demanding and
techno-savvy are responsible for shaping the supply chains in retailers. It is observed that the
customers expect that they can get their order delivered in few days whether it is any retail
product which influences their decision to buy the item. This competitive reason becomes the
major challenge for the retailers.
Building blocks to the above point, authors Kamble and et.al. (2019), also elucidated that
the retailers have to face the challenge of implementing an online system which is safe and web
based with the customers because the customers want that along with the track numbers of the
orders, they must also have real time visibility. The expectations of the customers are becoming
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