Professional Project 1: Supply Chain Management Success or Failure?

This professional project investigates the multifaceted impact of supply chain management on business organizations. The project begins with an executive summary and introduction, setting the stage for an analysis of supply chain's role in contemporary business. It defines the project's aim and objectives, including a critical literature review that examines various perspectives on supply chain effectiveness. The methodology includes the use of secondary data to support findings and analysis. The research addresses the problem statement of why supply chains yield different results for different organizations. The project explores research questions related to the causes of supply chain losses, the effects of information management tools, and strategies to ensure business success. The critical literature review synthesizes insights from various researchers, highlighting the evolving understanding of supply chain dynamics and the importance of efficient business operations. The project delves into the benefits and challenges associated with supply chain implementation, including cost considerations and the significance of supplier relationships and the role of customer and consultative boards. The conclusion summarizes the key findings and insights, providing a comprehensive understanding of supply chain management's impact on business outcomes. The project is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

Running Head: PROFESSIONAL PROJECT
Central Queensland University, Melbourne
Assignment 1
Course name: Professional project
Course code: BUSN 20019
Student name:
Student ID:
Lecturer:
Course coordinator:

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction and Background of the Project....................................................................................3
Project Aim......................................................................................................................................4
Justifications................................................................................................................................4
Aims and Objectives....................................................................................................................4
Problem Statement.......................................................................................................................5
Research Questions......................................................................................................................5
Critical Literature Review...............................................................................................................5
Methodology..................................................................................................................................10
Secondary Data Used.................................................................................................................11
Findings and Analysis....................................................................................................................13
Discussion......................................................................................................................................16
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

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Executive Summary
Supply chain management is a subject of immense interest to the researchers due to its wide
ranging effects on business – both positive and negative. While some organizations have
experienced massive success from supply chain, some others encountered losses. There is a lot of
debate among the researchers about whether supply chain is actually beneficial for business or
not. Some researchers think that supply chain is a very successful in the current business system
while other researchers think business is actually encountering losses due to the use of supply
chain system. This project is based on conducting a research to find out whether supply chains
bring success or losses to a business organization.

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Introduction and Background of the Project
This project is based on the analysis of supply chain management and the causes of loss
and success of supply chain industry in the modern industry. Supply chain is referred to the flow
of products from the source (i.e. the place of their manufacture) to the customers through the
sellers, wholesalers and retailers. There is a lot of debate among the researchers about whether
supply chain is actually beneficial for business or not. Some researchers think that supply chain
is a very successful in the current business system while other researchers think business is
actually encountering losses due to the use of supply chain system (Lu & Swaminathan, 2015).
Various definitions have been proposed concerning the idea of "the supply chain" and its
management. The main significance of application of supply chain business to the existing
business system of the organization lies in the fact that it enhances the efficiency of the business
flow of the company starting from the manufacturer to the retailer. In this particular report, the
characteristics of a supply chain have been analyzed in order to determine its effects on different
business systems. Moreover, since, it has been found that supply chain has both positive and
negative effects on a business system, the main reasons behind these have been analyzed and
identified.
This project is based on conducting a research to find out whether supply chains bring
success or loss to a business organization.

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Project Aim
Justifications
Supply chain management is a subject of immense interest to the researchers due to its
wide ranging effects on business – both positive and negative. While some organizations have
experienced massive success from supply chain, some others encountered losses. There are many
factors behind these varying natures of supply chain system. Hence, this research is emphasized
on studying these varying natures and different aspects of the supply chain management.
Aims and Objectives
The main aim of this project is to conduct an extensive and critical research to determine
the main causes of success and loss encountered by business organizations using the supply
chain management system. Accordingly, the main objectives of the project are as follows.
 To conduct a critical literature review on supply chain management to find its
main features and its effect on present day business and market
 To research on various opinions of different researchers on whether supply chain
management brings losses or success to business organizations
 To conduct a survey on based on supply chain management among different
business managers and officials
 To compare the survey data with the data collected from the critical literature
survey
 To publish the analysis results and discussions in an online document form

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Problem Statement
The main problem statement that is to be investigated in this research is why supply chain
has different types of effects on different organizations based on the nature of business and the
organizational structure.
Research Questions
The main research questions considered in this project are as follows.
 What are the main causes of the losses caused by supply chain management in
business organizations?
 What are the effects of information management tools on the supply chain
management and inventory control? Are they positive or negative?
 How can supply chain management bring success to a business system?
Critical Literature Review
According to the works of Christopher (2016), current business organizations can no
longer disengage with the suppliers and the supply chain elements in the existing business
systems. Since the last two decades of the 20th century, the idea of supply chain has grown up by
the business research analysts. These researchers were trying to find an efficient business
operation method that will enhance the smooth flow of business elements from one entity to
another. The idea of supply chain was born in which, a system was proposed where there will be
a chain containing all the business entities. The chain would start from the product manufacture
and will end in the retailer who will finally sell the product to the customer. The intermediate
entities of the chain include wholesale suppliers, storage (for instance cold storage for vegetables
and fishes) and others.

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Figure 1: World Wide SCM Software Revenue from 2010 to 2017 (in billion $)
(Source: Christopher, 2016)
As per the works published by Stadtler (2015), most organizations choose to implement
the supply chain system so that they do not need to emphasize much on the supply of the
products. The main problem they want to avoid is the extra costs i.e. if they take care of the
supply themselves, they will have to pay extra wages to the workers as well as for transport
costs. However, in supply chain, the intermediate entity procures the products from the
manufacturer and supplies them to the organization. Now, the organization can have the option
to choose the cheapest supplier and can save significant amount of money. In simpler words, the
use of supply chain business system allows the organization to manage business operations
without having to deal with the entire system of procurement and supply. Hence, it can be

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concluded here that supply chain simplifies the business operations of procurement and supply
for any organization. However, there are several issues that come with the supply chain system.
According to Monczka et al. (2015), the main issue lies in the costs that are spent to procure the
products from the intermediary suppliers. According to the authors, most of the organizations
choose the cheapest suppliers who will provide the products at the least cost. However, in order
to do these, most of the organizations do not care to verify the identities of the suppliers. There
have been many cases of supply fraud where the supplier entities sign contracts, take contract
money and then flee from the picture. Hence, the company loses significant amounts of money
due to these fraudsters. Another issue in this respect is that while preparing the contract with the
supplier, many organizations ignore the importance of ensuring the quality of the supplies. In
most of the cheap suppliers, the qualities of the products are generally poor. As a result, the
business of the organization also gets significant drawback.

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Figure 2: Participants in Supply Chain Management
(Source: Dekker et al., 2013)
As discussed by Mangan and Lalwani (2016), the barriers to viable Supply Chain
execution are extensive. Surveying the Supply Chain Management writing together with the
execution writing for different cross-practical and asset serious key activities, various
apparatuses were recognized in regards to their effect on Supply Chain Management usage.
Managers in organizations over the supply chain appreciate the achievement of alternate
organizations. They cooperate to influence the entire supply chain that has been developed
within a business strategy of the organization. They have the certainties about the market, they
know a considerable measure about rivalry, and they organize their exercises with those of their
exchanging stakeholders (Brindley, 2017). They utilize innovation to accumulate data on
showcase requests and trade data between associations. Basic to dealing with the supply chain is
dealing with the connection between every hub inside the chain to synchronize the whole supply
chain.
In their works, Pagell and Shevchenko (2014) published that a few Supply Chain
organizations set up Supply Chain guiding advisory groups made out of senior-level managers to
increment cross functional collaboration and build up a suitable business strategy from particular
business related activities inside their own organizations. Additionally, most managers met were
persuaded that Supply Chain projects would not offer themselves without focused test cases
programs that can be utilized to record the estimation of Supply Chain Management. These
examples of overcoming adversity are expected to produce energy and to legitimize encourage
interest in Supply Chain endeavors (Seuring, 2013). While particular parts and duties of

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controlling boards of trustees can shift considerably, council individuals commonly meet to
consider and assess recommendations based on the benefitting measures of the supply chain. At
these gatherings, the advantages and weights of Supply Chain activities examined transparently
with the goal that suitable proposition can be all the more completely comprehended, refined,
and in this manner advanced. The mix of examples of overcoming adversity and experience
makes all around created test cases programs an indispensable extension to Supply Chain
achievement. The utilization of consultative boards is not bound to in-house utilize. Dynamic
Supply Chain organizations foundation provider gatherings for particular items or advances and
utilize them as sounding sheets for new thoughts (Dekker et al., 2013). The primary message
imparted by means of both the review and meeting information is that individuals management
through expanded correspondence, between group coordinated effort, and participation will not
just scaffold the present holes experienced in Supply Chain Management however permit center
and senior-managers to enhance their present achievement and receive more prominent benefits
of Supply Chain cooperation. Client counseling sheets are additionally used along these lines.
Agents from key clients are welcome to participate as dynamic individuals from sheets that gets
together at any rate yearly to give input into how the organization can better address their issues
as clients (Ahi & Searcy, 2013). None of the organizations met have founded consultative boards
from each of the three elements – the organization, its providers, and its clients. While Supply
Chain Management is empowered by present day data innovation, Supply Chain Management
achievement is established on individuals.
According to Yao and Minner (2017), most of the business leaders of the organizations
invest in business innovation research in order to invent new frameworks that will enable them to
gain most benefits from the supply chain system. The potential reason behind these activities of

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the business leaders owes to the fact that not all frameworks work in the existing business
systems of organizations. Hence, the organizational leaders need to accommodate at least two
different frameworks in the system. For instance, let there be two available frameworks namely
framework A and framework B. In an existing system, the organization leader applies framework
A. However, due to certain limitations and conditions, the framework does not work. In that
case, analyzing the limitations and conditions, he can accordingly prepare the framework B for
implementation in the place of framework A. Generally, supply chains are dependent on
different external factors like customer preferences, time specific demands, supply quality and
others (Ross, 2013). However, finding solutions for the supply chain issues also depend some
other internal organizational factors like organizational structure as well as culture, management
strategies and others. However, in cases of the human errors in the supply chain, these techniques
of development of different frameworks do not work. In that case, the organizations need to
develop their own management policies for maintaining their human resources within a certain
work limit. On the other hand, the organizations continue to invest in innovation research on
development of new frameworks for the implementation of the supply chain system. However, it
is recommended that the organization leaders should not ignore the effects of other external and
internal factors on the supply chain in order to ensure the success of the developed frameworks.
Methodology
To understand the different aspects of supply chain management and its effects on
different business organizations, qualitative secondary research method has been used.
Moreover, online surveys have been utilized to interview different business leaders to get their

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views on supply chain management and whether it had positive or negative effects on their
organizations.
Secondary Data Used
For the collection of the secondary data, some organizational data were used along with
variables. These are as follows.
Variables with Independent Effect:
H01: Core competencies have no independent effect on firms’ performance.
H02: Core capabilities do not have independent effect on firms’ performance.
H03: Strategy does not have independent effect on firms’ performance.
H04: Strategy implementation does not have independent effect on firms’ performance.
Variables with Joint Effect:
H05: The joint effect of core competencies, core capabilities, strategy and strategy
implementation on firms’ performance is not greater than the sum total of the independent effects
of the same variables on firms performance.
The mathematical model that has been used in this research is to analyze the performance
of large private manufacturing firms from antecedent of linkages between different factors that
include “SC core competencies, SC strategy, the strategy implementation process, SCM core
capabilities and firms’ performance, using linear regression analysis.”
The following equations comprise the regression model.