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.