Frankton Fresh: Supply Chain Management and Business Profitability

This report presents a case study on Frankton Fresh, examining the effects of supply chain management (SCM) on its competitiveness and profitability. The research investigates the extent to which Frankton Fresh understands and implements SCM practices, including strategic supplier partnerships, customer relationships, and information sharing. The study employs both qualitative and quantitative data analysis methods, including questionnaires and interviews, to assess the comprehension and practical application of SCM principles. Key findings reveal the level of understanding of SCM practices, the degree of implementation, and the relationship between SCM practices and business outcomes. The report analyzes demographic data, including respondent profiles and business characteristics, to provide a comprehensive understanding of the context. The report also explores the extent and quality of information sharing and strategic supplier partnerships, offering valuable insights into the practical application of SCM in a real-world business setting.

Running head: Matching Demand and Supply to Increase Profitability. 1
Matching Demand and Supply to Increase Profitability: A Case Study of Frankton Fresh.
by
Course:
Tutor:
University:
Department:
12th October 2017

Matching Demand and Supply to Increase Profitability. 2
Table of Contents
INTRODUCTION......................................................................................................................5
1.1 Research Aim...................................................................................................................5
1.2 Research Questions..........................................................................................................5
LITERATURE REVIEW...........................................................................................................6
RESEARCH METHOD.............................................................................................................8
RESULTS..................................................................................................................................9
3.1 Introduction......................................................................................................................9
3.2 Analysis of Descriptive Statistics.....................................................................................9
3.3 Demographic description of respondents and the business..............................................9
3.3.1 Specific profile description of respondents...............................................................9
3.4 Analysis of the Study Variables on the extent to which Frankton Fresh implements
SCM......................................................................................................................................12
3.4.1 To explore the level of comprehension of the implementation of the SCM practic12
3.4.2 Assessment of the degree of practical implementation of the SCM practices in
Frankton............................................................................................................................13
3.4.3 Level of business profitability.................................................................................13
DISCUSSION..........................................................................................................................14
4.1 Introduction....................................................................................................................14
4.2 The level of comprehension of SCM practices implementation....................................14
4.3 The practicality level of the SCM practices implementation.........................................14
4.4 Extent of information sharing.........................................................................................15
4. 5 Practises of Quality information sharing.......................................................................15
CONCLUSIONS......................................................................................................................16
RECOMMENDATIONS.........................................................................................................18
References................................................................................................................................19
Appendices...............................................................................................................................23

Matching Demand and Supply to Increase Profitability. 3

Matching Demand and Supply to Increase Profitability. 4
List of Tables
Table 3.1 Job position of the respondents..................................................................................8
Table 3.2 Level of Education of the respondents.......................................................................9
Table 3.3 Respondents’ Work experience...............................................................................10
Table 3.4 Level of comprehension of the SCM practises........................................................12
Table 3.5 Degree of practical implementation of the SCM practices......................................14
Table 3.6: Level of business profitability................................................................................16

Matching Demand and Supply to Increase Profitability. 5
List of Figures
Figure 1Figure 3.1 Level of Education of Respondents..........................................................10
Figure 2Figure 3.2 Respondents’ Work experience.................................................................12

Matching Demand and Supply to Increase Profitability. 6
INTRODUCTION
1.1 Research Aim
This research aims to examine the effects that supply chain management has on the
organization's competitiveness and profitability. Additionally, the study seeks to ascertain
how these factors affect customer relationship and loyalty.
1.2 Research Questions
The research aimed to investigate and provide solutions to the following questions:
1. What is the Extent of the understanding of the implementation of Supply Chain
Management (SCM) by Frankton Fresh?
2. Does Frankton Fresh implement SCM and to what levels?
3. What is the relationship between SCM practices and the competitiveness and profitability
of the organization?

Matching Demand and Supply to Increase Profitability. 7
LITERATURE REVIEW
SCM practices are a group of activities undertaken in the organization to increase the
efficiency of the supply chain management. Prajogo et al. (2012) examine the current
development of SCM practices to comprise of supplier partnership, non-stop process flow,
sharing of information technology, and outsourcing. In the empirical study by Golicic &
Smith (2013), they have represented the SCM practices by the use of variables like
purchasing, customer relationship, and quality. Sarkis, (2012) recognize six aspects of SCM
practice by use of factor analysis: sharing of information, characteristics of the supply chain,
customer service management, supply chain integration, JIT capability and proximity
(geographical). Therefore, the existing literature recognizes the SCM practices from diverse
angles with a common objective of improving the profitability of the organization. After
reviewing various previous researches, the researcher settled on four specific variables of
SCM practices which include extent and quality of information sharing, customer
relationship, and tactical supplier partnership.
Strategic supplier partnership has been described by many scholars as the abiding association
amongst the suppliers and the organization. It is calculated to improve the competences of the
contributing agencies and to aid them is achieving sustainability (Cao & Zhang, (2011) and
Sambasivan et al., (2013). Gopal & Thakkar (2012) assert that the emphasis of strategic
partnership is a direct lasting affiliation that motivates joint forecasting and efforts to finding
solutions for specific issues. Therefore, strategic supplier partnerships will allow businesses
to collaborate competently with the limited suppliers who have the desire to participate in
role sharing for the products’ success. Initial supplier participation can help in making
product designs that are cost-effective and can help to eliminate time wastage and energy
(Sarkis, 2012)
Customer relationship entails the whole sets of activities applied majorly for the management
of customer grievances, establishing lasting connections with consumers and enhancing their
gratification ( Golicic & Smith 2013).Barney (2012) and Prajogo & Olhager (2012) consider
customer relationship as a significant element of the SCM practices. Peppers & Rogers,
(2016) assert that committed relationships are characteristic of natural barriers to competition
and hence have the most sustainable advantage. Healthy relationships will the supply chain

Matching Demand and Supply to Increase Profitability. 8
partners inclusive of the customers are necessary for the effective implementation of the
SCM practices (Wathne & Heide, 2013)
Extent of the shred information in supply chain management has dual consideration; quality
and quantity. These components are significant in the study of SCM practices and have been
studied in the past literature independently (Wathne & Heide, (2013) and Sambasivan et al.,
(2013). The quantity of information sharing is the degree to which vital and exclusive
information is disseminated to the supply partners (Sambasivan et al., 2013). The solution to
the continuous supply chain has been suggested by most of the researchers to be the
availability of factual and timely marketing data at each stage of the supply chain (Tayur,
Ganeshan & Magazine, (2012) and Barnes & Liao, (2012).
Quality of information sharing is comprised of the components of precision, timeliness,
sufficiency, and reliability of the shared information (Wathne & Heide, (2013) and
Sambasivan et al., (2013). As much as sharing of information is critical, the importance of its
effect on the SCM practices relies on the kind of the shared data, how, when and with whom
(Hines, (2014) and Janvier-James, (2012). Some studies on the operational effects of out-of-
date or distorted information in the supply chain have been conducted (Bray, & Mendelson,
(2012) and Kristianto et al., (2012). The quality of information across the supply chain can be
affected by the varying interests and opportunistic behaviors amongst the supply partners
(Inderfurth, Sadrieh & Voigt, (2013). Prajogo & Olhager (2012) propose that organizations
are likely to distort information intentionally if such information can be accessed by
competitors, suppliers as well as their customers. It is necessary that organizations consider
their data as a strategic asset and make sure that its flow is least affected by distortion and
delay (Inderfurth, Sadrieh & Voigt, 2013).

Matching Demand and Supply to Increase Profitability. 9
RESEARCH METHOD
The primary method of data collection will be literature reviews, questionnaires and
interviews and will be analyzed using qualitative and quantitative data analysis methods
(Creswell, 2013).
- Quantitative Data:
Numerical/qualitative data will be acquired from the questionnaires and interviews and will
be used to quantify the responses from the employees. Descriptive data analysis method will
be used to describe, review and present raw quantitative data in the form of tables, charts, and
graphs.
- Qualitative Data:
Non-numerical data will be obtained through interviews and the literature reviews with the
aim of comprehending the underlying opinions. Descriptive data analysis methods will be
used (Miles, Huberman, and Saldana, 2013). This method was chosen by the researcher with
an aim of arriving at the established conclusions and the observed behaviours
- Mixed method:
Mixing method will be used to gather data in order to attain the breadth and depth of
comprehension and validation, at the same time minimizing the weaknesses associated with
using qualitative and quantitative methods only. The specific mixed method to be used is
triangulation. This method will enable the researcher to identify the various aspects of the
phenomenon in a precise way by approaching the vital points from angles (Teddlie &
Tashakkori, 2011).

Matching Demand and Supply to Increase Profitability. 10
RESULTS
3.1 Introduction
In this section, the main findings from which the researcher does the analysis are presented.
The results were analyzed by the researcher about the research questions. This segment
considers the descriptive statistical analysis of which was done using Microsoft Excel.
3.2 Analysis of Descriptive Statistics
Under this area, preliminary data out which descriptive statistics were generated was
analyzed by the use of percentages and frequencies and the quantitative data presented in the
form of charts and tables to give the demographic description of the participants in Frankfort
Fresh. Additionally, the mean and standard deviation were calculated to determine the level
of the implementation of the SCM practiced by the firm and its similar profitability.
3.3 Demographic description of respondents and the business
The profile information of both the respondents and the store were provided for in the
demographic section. This individual information included the education level, job position,
and experience, while the business profile included the number of full-time workers and the
categories of items sold.
3.3.1 Specific profile description of respondents
All of the respondents (25%) equally indicated that their work positions were associated with
the SCM practices, for instance, the shop manager, part-time worker, assistant manager and
the owner. All these accounted for (100%) of the respondents which further improved the
reliability and validity of the investigation because their roles include the general profitability
of business operations and thus must be informed about the SCM functions that the
organization practices. Considering the fact that the business is new and thus the
organizational structure and roles are not clearly demarcated, hence the reason for the
equality of the association with the SCM practises of all the employees irrespective of their
position and level of education. Thus, the business will have five positions with four
employees overlapping in roles whenever need arises. These positions include the manager,
one full time and part-time worker, the owner and the assistant manager. The owner will
sometimes work as the manager; the shop manager will also act the owners role and both the
full time and part time workers as administrators in addition to their respective roles.

Matching Demand and Supply to Increase Profitability. 11
Education level of the participants
Table 3.1 Level of Education of the respondents
Education level
Frequenc
y percentage
High school 1 25%
College Diploma 1 25%
Bachelor’s degree 1 25%
Doctoral degree 1 25%
Total 4 100%
Source: Survey, 2017
Figure 3.1 Level of Education of Respondents
High school College Diploma Barchelors
degree Doctral degree
0%
5%
10%
15%
20%
25%
25% 25% 25% 25%
Education level
Percentage

Matching Demand and Supply to Increase Profitability. 12
Table 1Table 3.2 Level of Education of the respondents
Figure 3.2 Level of Education of the respondents
25%
25%25%
25%
Educational level of respondents
High school
College Diploma
Barchelors degree
Doctral degree
Form figure 3.1 and 3.2 it is clear that 25% of the respondents had bachelor’s degree just like
those who had a second degree (25%) as well those with high school (25%), and college
diploma qualifications (25%). Therefore, 50% of the respondents were well educated and
were capable of understanding the questions asked in the questionnaires.

Matching Demand and Supply to Increase Profitability. 13
Respondents’ Work experience
Based on the findings, workers with work experience of below 2 years were 25%, and then 3
to 5 years were also 25%, while 6 to 10 years had similar percentage of 25% and over 10
years being represented with 25% as well (Appendix 1:Table 3.2). Thus, because most of the
participants possess work experience of more than three decades, this further affirms that they
are accustomed to the business transactions that take place within the company and hence are
in a much better position of providing an explicit representation of the supply chain
management functions implementations and their corresponding effect on firms profitability.
3.4 Analysis of the Study Variables on the extent to which Frankton Fresh implements
SCM practices and business profitability (Means and Standard Deviations).
This part will show the implementation level of the SCM practices in Frankton Fresh and its
respective business profitability. The primary aim was to find the mean, percentage and SD
of the phenomena under study. The respondents were confronted with various questions
which in turn gave their answers on a scale of 1 to 5 with one representing not practiced at
all, 2- minimally practiced, 3- moderately practiced, 4- practiced to a great extent and five
practiced to a very great extent (Appendix 1:Table 3.3).
3.4.1 To explore the level of comprehension of the implementation of the SCM practices
in Frankton Fresh.
Six SCM practices were listed out of which the sample participants were required to reveal
their comprehension level of each. These incorporated strategic supplier partnership,
customer relationship, level and quality of sharing information. According to the outcomes
shown in table 4.4, based on the means of the variables, the concept of customer relationships
was understood to a ‘great extent’ (4.0). The considered variables of SCM practices like
strategic supplier partnership, quality and level of shared information were understood
moderately with a mean range of 3.6 to 3.8. However, most of the respondents from
Frankfurt Fresh have demonstrated low levels of understanding in most of the essential SCM
practices. For instance low levels of 1.5%, 1.8%, 4.6%, 6.4% and so on. Thus it is clear based
on the outcomes that most of the senior employees of Frankfurt Fresh do not properly
comprehend the SCM practices and hence their implementation (Appendix 1:Table 3.3).

Matching Demand and Supply to Increase Profitability. 14
3.4.2 Assessment of the degree of practical implementation of the SCM practices in
Frankton Fresh (Appendix 1: Table 3.4).
Strategic supplier partnership
Under this SCM practice, five variables were considered, out of which the priority of quality
in the selection of suppliers was exercised to a great extent with a mean of 4.21. The
variables of providing the solution to common issues with suppliers, product quality
improvement had means of 3.30 and 3.75 respectively, while the rest of the variables had
means of 2.60 and 2.93. Thus from the investigation it is true that Frankton Fresh does not
inclusively practice strategic supplier partnership
Customer relationship
All the variables under customer relationships were implemented to a moderate extent with
means ranging from 3.30 to 3.87. The close relations of the mean of these variables imply
that they were practiced equally. The long-term agreement with loyal customers wan not
practices at all with 21.7%.
Level of information sharing
The means of the most of the variables ranged between 3.02 and 3.58 which were practiced to
a moderate extent. Although some respondents indicated higher levels of SCM practices such
as notification of the supply partner in time of the different need and exchange of proprietary
information between themselves to have 36.0% and 36.9% respectively. Knowledge sharing
of critical business information between supply chain partners was exercised to a small extent
of 12%, and 23.4% never practiced completely.
Quality of information sharing
Under this section, all the variables in consideration exhibited moderate extent of sharing of
quality information with a mean range of 3.58 and 3.85.
3.4.3 Level of business profitability
Under this section, the level of business profitability was determined. Indicators for the
market operation were employed as evident in table 4.6. From table 4.6, all the market

Matching Demand and Supply to Increase Profitability. 15
variables under consideration scored a mean range of 3.19 to 3.94, and thus in a general
sense, the profitability of Frankton Fresh was at moderate extent (Appendix 1: Table 3.5).

Matching Demand and Supply to Increase Profitability. 16
DISCUSSION
4.1 Introduction
This chapter discusses the outcomes of the previous section to obtain significant information.
The discussion was done in cross-reference with the existing literature. The analysis focuses
on the specific research questions in which the first part discusses the outcomes in the
comprehension of the SCM practice implementation, then the next section on the degree of
SCM practice implementation and lastly the link between the SCM practices and
organizational profitability.
4.2 The level of comprehension of SCM practices implementation
Based on the research findings, most of the employees of Frankton Fresh reported a low
understanding of the SCM practice implementation. The mean value for SCM practice of
sharing of quality information, strategic supplier partnership and level of information sharing
was between 3.08 and 3.68 which accounted for a ‘moderate extent.' On the contrary, some
variables within the SCM practices scored relatively higher percentages but were
insignificant to the weakness of understanding as is evident from the means values.
4.3 The practicality level of the SCM practices implementation
To find out the level of the actual implementation of the SCM practices in Frankton Fresh,
the researcher considered five significant SCM practices that is customer relationships,
strategic supplier partnership, and quality and level of information sharing. The previous
studies confirmed the choice of the measures of SCM practices by the researcher as valid and
reliable (Bratic, (2011), Merschmann & Thonemann, (2011) and Hussain et al. (2014).
Frankton Fresh had a weakness in engaging supplier in the planning and goal setting actions.
Thus the business included strategic supplier partnership practices in its operations, but it
needs to increase the implementation extent to achieve the general business profitability. The
mean values of customer relationship practice showed that the organization had high levels of
implementation of customer relationship practice. This was regarding interaction frequency
with the customers and assessment of their satisfaction, regular determination of consumer
expectation among others. This can be attributed to the extensive massive customization and
personalization of products and services which has compelled companies to exercise
excellent relationships with customers for sustainability. According to (Bratić, 2011)
customer relationship facilities product differentiation which foster loyalty. However, the

Matching Demand and Supply to Increase Profitability. 17
preliminary analysis indicates moderate level of practice due to the mean range of 3.30 and
3.87. Hence the implication that the customers are not currently fully satisfied with the
products of Frankton Fresh.
4.4 Extent of information sharing
The outcomes showed the weak level of information sharing practice in Frankton Fresh. This
was about the supply chains not adequately informing the business of issues that affect it;
they never shared critical business knowledge among other considered variables. These
outcomes showed that the suppliers of Frankton Fresh did not share relevant information
among the supply chain partners at all levels of the supply chain. The exchange of
information lowers the intensity of uncertainty and waste of products in the market reduces
(Woldemichael, 2012).
4. 5 Practises of Quality information sharing
The quality of information sharing was moderate among the supply partners regarding
precision, dependability, complete and timely. This implies that most of the supply chain
partners of Frankton Fresh did not sufficiently regard sharing of quality information as
significant to the success of the organization. They did not appreciate the fact that it is the
nerve of supply chain without which the business can’t perform (Awino,(2011)

Matching Demand and Supply to Increase Profitability. 18
CONCLUSIONS
This project gives the empirical justification of proof to support the previous researchers
concerning the effects of SCM practices on the profitability of an organization. The
investigation found out some significant aspects of the implementation of the SCM practises
in Frankton Fresh that is, the extent of comprehension of the implementation of the SCM
practices was not understood to a large extent in a manner that could enable the business to
exploit the advantages of the SCM concept on the profitability of the organization. This was
evident in situations where the implementation of most of the SCM practices was not
implemented at all or to a small extent. Irrespective of that, the study concluded that the
efficient and effective understanding and implementation of the SCM practices directly affect
the profitability of an organization and vice versa.
This research considered the modern trends of the understanding and implementation of the
SCM practices in Frankton Fresh and its impact on the general profitability. However, the
results were only restricted to Frankton Fresh business only. Further studies are necessary to
widen the scope of the review by including other companies. Furthermore, the shortage of the
literature studies of the impact of the SCM practices for new businesses in India should be
studied. Future research should also consider other dimensions of SCM practices.
The validity of the research outcomes was of high levels because triangulation concept was
used. Yeasmin & Rahman, (2012) defines triangulation as the use of more than a single data
source or method in the research of a problem so that the results can be cross-examined. In
the study, triangulation was evident in the sampling methods with the aim of overcoming the
biases and weaknesses in the choice of respondents which is common in case only one
technique is used.
The research used two tactics of reliability to guarantee uniformity of the scores when
measuring the phenomenon on the ground. These include:
Internal consistency - is where many objects are used to measure one concept. The stronger
the relationship among distinct items and the higher the number of issues included the more
significant the scale of reliability.
Inter-rater reliability - this is where multiple observers rate the same respondents, activities or
places, and inter-rater is their objective. If the observers employ similar research instrument

Matching Demand and Supply to Increase Profitability. 19
to measure the problem of study, then their rating should not differ. The higher the similarity
of the outcomes the more elevated the scale of reliability.

Matching Demand and Supply to Increase Profitability. 20
RECOMMENDATIONS
Regarding the outcomes of the research, it was clear that Frankton Fresh requires many
implementations of SCM practices to improve its general competitiveness and organizational
profitability. Thus the following practical and applicable recommendations are provided by
the researcher to Frankton Fresh:
The significance of the implementation of SCM practices should be emphasized
among the senior management first through training, and the other staff can be
incorporated with time.
The business should create a department of supply chain management that is
responsible for the implementation of the SCM practices because it was regarded
by most of the respondents as under the general manager.
The business operations officer should adopt system of stock taking to enable
prompt replenishment of the shelves and to detect commodities whose expiry date
is due and put them on discount. This will also ensure that there is no wastage of
goods.

Matching Demand and Supply to Increase Profitability. 21
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Matching Demand and Supply to Increase Profitability. 25
Appendices
Appendix 1
Table 3.2 Respondents’ Work experience
Work experience
Frequenc
y Percentage
Below 2 years 2 10%
3 to 5 years 8 40%
6 to 10 years 4 20%
over 10 years 6 30%
Total 20 100%
Table 3.3 Level of comprehension of the SCM practises
Variables
Not at
all (%)
Small
extent
(%)
Medium
extent
(%)
Great
extent
(%)
Very
great
extent
(%) Mean SD
Strategic Supplier partnership 12.0 1.5 16.0 38.9 27.8 3.8 3.89
Customer relationship 8.2 6.4 4.6 25.4 51.0 4.0 3.39
Level of information sharing 12.3 1.8 25.6 38.9 17.8 3.6 2.70
Quality of information sharing 12.3 4.9 14.9 49.0 18.0 3.8 3.11
Table 3.4 Degree of practical implementation of the SCM practices
Variables
Not at
all(%)
Small
extent(
%)
Medium
extent(
%)
Great
extent(%
)
Very
great
extent(
%) Mean SD
Strategic Supplier
Partnership
Prioritizes quality in supplier 16.0 1.7 0.0 6.4 74.5 4.30 1.522

Matching Demand and Supply to Increase Profitability. 26
selection
Frequently solves issues with
supplier jointly 16.0 6.7 0.0 42.0 33.0 3.67 1.385
constant improvement of
programs with crucial
suppliers 16.0 8.9 14.9 29.9 28.0 3.40 1.435
assists suppliers improve
quality of product 23.0 1.8 21.9 29.0 16.0 2.93 1.517
Welcome crucial suppliers in
planning and goal setting 33.0 8.9 25.0 21.8 6.8 2.60 1.373
Customer relationship
Active association with
customers to set standards 14.8 8.9 0.0 33.0 42.0 3.87 1.373
Continuous measure and
assessment of customer
satisfaction 16.0 10.0 1.0 36.8 35.0 3.72 1.392
Enhance customers to gain
help from us 6.7 10.0 10.0 48.9 21.0 3.64 1.162
Determine customer
expectations frequently 16.0 1.7 10.0 42.3 25.2 3.60 1.364
Extended contracts with
loyal customers 21.7 25.3 0.0 25.6 23.5 3.30 1.449
Level of information
sharing
Notify supply chain
members in case of varying
needs 12.3 14.5 3.7 36.0 33.0 3.58 1.42
Partners of supply chain
share proprietary information 6.4 23.4 14.4 36.9 14.0 3.26 1.195
Share information critical to
business planning 17.8 14.0 25.6 31.2 12.0 3.02 1.323
Supply chain partner
constantly informs us fully
14.0 14.0 25.6 31.2 12.0 3.09 1.244

Matching Demand and Supply to Increase Profitability. 27
on business issues
Supply chain partners share
critical business knowledge 23.4 12.0 25.6 25.4 12.0 2.91 1.377
Quality of information
sharing
Valid information shared
between supply chain
partners 2.9 5.8 19.2 42.0 29.1 3.85 1.027
Sufficient information
exchange between supply
chain partners 1.8 8.9 27.5 38.1 23.1 3.70 0.992
Complete information
exchanged between supply
chain partners 4.0 4.0 27.3 38.9 23.8 3.68 1.07
Timely information
exchanged between supply
chain partners 4.2 12.0 14.3 55.9 11.1 3.64 0.982
Accurate information
exchanged among supply
chain partners 4.2 8.9 28.1 39.6 18.0 3.58 1.008
Table 3.5: Level of business profitability
Variables
Not at
all(%)
Small
extent(%
)
Medium
extent(%)
Great
extent(%)
Very
great
extent(%
) Mean SD
Quality of product and
service 2.7 10.1 10.1 33 38.9 3.94 1.151
Accuracy forecasting 2.7 12.3 14.5 40.1 27.6 3.74 1.112
Sales growth 2.7 10.1 19.1 50.4 14.5 3.62 1.004
market share growth 8.9 4.8 23 46.7 14.5 3.53 1.12
Reliability of delivery 2.7 12.3 23 50.4 8.9 3.49 0.973