A Case Study on the Impact of Supply Chain Management on Woolworths

This research proposal investigates the impact of supply chain management on the business performance of Woolworths, a prominent retail company. The study aims to understand the concept of supply chain management, identify key influencing factors, and evaluate its effects on Woolworths' performance. It explores the application of the SCOR model, factors affecting supply chain management, and its impact on customer relationships, competitive advantage, and overall business success. The research employs a detailed methodology, including a literature review, research approach, design, data collection methods, sampling, and ethical considerations. The proposal outlines expected outcomes and aims to provide recommendations for improving supply chain management within Woolworths to enhance its business operations. The study highlights the importance of effective supply chain management in achieving competitive advantages and addresses challenges faced by Woolworths in this area, such as inventory management issues.

Running head: RESEARCH PROPOSAL
Impact of Supply Chain Management on the performance of the organization: A case study of
Woolworths
Name of the Student:
Name of the University:
Author’s Note:

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Table of Conte
1.0 Introduction................................................................................................................................5
1.1 Background of the Study...........................................................................................................5
1.2 Research Aim.............................................................................................................................6
1.3 Research Objectives...................................................................................................................6
1.4 Research questions.....................................................................................................................6
1.5 Research Purpose.......................................................................................................................7
1.6 Research Rationale....................................................................................................................7
2.0 Literature Review......................................................................................................................8
2.1 Concept of the supply chain management.................................................................................8
2.2 Application of SCOR model in supply chain management.......................................................9
2.3 Factors affecting supply chain management............................................................................10
2.4 Impact of the supply chain management on the business performance of the organization. . .11
2.4.1 Management of Customer relationship.............................................................................11
2.4.2 Competitive advantage.....................................................................................................11
2.4.3 Fulfillment of the order and return management..............................................................12
2.4.4 Development of the product and commercialization........................................................12
2.4.5 Improvement of the organizational performance.............................................................13
2.4.6 Challenges regarding the supply chain management........................................................13
3.0 Research Methodology............................................................................................................13

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3.2 Research Approach..................................................................................................................14
3.3 Research Design......................................................................................................................14
3.4 Method of the data collection..................................................................................................15
3.5 Method of Sampling................................................................................................................15
3.6 Sample Size.............................................................................................................................16
3.7 Reliability, validity and accessibility issues............................................................................16
3.8 Ethical consideration...............................................................................................................16
3.9 Time Table...............................................................................................................................17
4.0 Expected Outcomes.................................................................................................................17
References......................................................................................................................................20

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1.0 Introduction
Supply chain management is a process through which the raw materials are transferred
from suppliers to the manufacturer and the finished materials is reached to the wholesaler and
finally to the consumers (Wang et al. 2016). Supply chain management includes integration and
the coordination of such business flow both inside and outside of the company (Gilling and
Ulmer 2016). The main purpose of the supply chain management is to reduce the volume of the
inventory in order to make the product available to the con summers when it will be needed. This
present study will deal with the impact of supply chain management on the business performance
of Woolworths. However, in this study importance of the supply chain management will be
discussed. Apart from this, the research rationale will be addressed in this study.
1.1 Background of the Study
Supply chain management refers to the flow of service or goods from inside to outside of
the business. Movement, storage, and procession of the goods within the inventory are the major
components of the supply chain management. Woolworths has been taken in this study as it is
reviewed as the best retailers besides the Tesco and Wal-Mart for the implementation of the
effective supply chain. In the year 2005 Woolworths has got 12th position and in 2006 13th
position for its better supply chain management (Wahyuni 2012). Woolworths focuses on the
direct supply chain management and tends to reduce the cost and to take own control over the
supply chain management.
Different channels that are involved in the supply chain management are important for a
business. In the context of Woolworths, they use trade stone service for their supply chain

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management. Approx 6000, suppliers are connected to Woolworths. Different studies reveal that
supply chain management is beneficial for the corporate organization to improve their service. In
order to obtain the competitive advantages, it is important to manage the linkages that occur
between their different activities in value chain analysis. By evaluating the case study of
Woolworths, advantages of the supply chain management will be revealed through gaining the
competitive advantages. In the recent year, the business market is more competitive. As a result,
the retailers in worldwide strive to get sustainable advantages in the global market. However,
supply chain management of Woolworths has been growing rapidly that lead them to get the
competitive advantages. There is a close relationship between the supplier, organization and the
consumers (Tatoglu et al. 2016).
1.2 Research Aim
This research study aims to identify the impact of the supply chain management on the
business performance in the context of Woolworths.
1.3 Research Objectives
 To understand the concept of the supply chain management
 To identify the factors influencing supply chain management in business
 To critically evaluate the effect of the supply chain management on the business
performance of Woolworths Ltd
 To suggest the way to improve the supply chain management in context of Woolworths
1.4 Research questions
 What are the significances of the supply chain management in the business performance?

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 What are the potential factors of the supply chain management?
 What are the major impacts of the supply chain management in the context of
Woolworths?
 What are the recommendations to improve the supply chain management to enhance the
business of Woolworths?
1.5 Research Purpose
The majo purpose of this current study is to highlight on the importance of the supply
chain management to enhance the performance of a business. However, supply chain
management is the core area of the business as based on which the success of the entire business
depends (Mangan and Lalwani 2016). This study will make an analysis over the Woolworths to
identify the issues of the supply chain management and the importance to gain competitive
advantages. The ways through which Woolworths utilizes its supply chain management to gain
competitive advantages will be addressed in this study.
1.6 Research Rationale
Woolworths is the only one organization that got position on the top 25 list for its supply
chain management. However, despite such strong supply chain management Woolworths has
faced issues in their supply chain management. Woolworths invested more in the Australian
super market and developed high volume inventory despite the slower growth in the fashion
retailing (Businesslive.co.za 2017)). This is a big issue for this organization however, large
inventory often affects the business is these are not sold due to the proper time. In the context of
the fashion market, huge inventory leads the business towards the loss (Wang et al. 2016).
However, in the recent years, inventory management is a big issue for the food as well as the

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fashion retailers in the supply chain management as large inventory is associated with the
wastage of products and makes the product out of date. This hampers the sales of the
organization as seen in the case of Woolworths.
2.0 Literature Review
2.1 Concept of the supply chain management
The basic concept of the supply chain management is based on the notion of the
management of value chain. However, the value chain is a major component of the supply chain
management. Various activities involved in the value chain management in order to develop the
product value (Zhou et al. 2016). The entire process includes the supply of the raw materials to
development of the finished products. However, supply chain not only focuses on the internal
scope of the firm but also the external competition. The management of the relationships with the
suppliers, wholesalers and the consumer define the way through which the supply chain can be
managed. Technology plays an important role in the supply chain management to improve the
communication between the stakeholders (Gilling and Ulmer 2016).
The value chain is associated with the competitive advantages. It is important for the
business organization to manage the supply chain properly otherwise, they may fail to deliver the
products to the consumer (Burgess et al. 2016). On the other hand, a business needs the effective
flow of the goods from its origin point by managing the supply chain properly. In the case of
fresh food supply chain, the retailers should detect the current demand and the potential issues in
their supply chain management.

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2.2 Application of SCOR model in supply chain management
SCOR or supply chain operation reference model is one of the important models, to
improve the supply chain process in any business. In order to improve the communication
between the stakeholders in the supply chain management, this model has been using rapidly by
many organizations. Supply council has developed this model by accumulating the reviews of 70
world's leading manufacturers. This model is considered as the most promising model to make
the strategic decision in supply chain management. This framework includes five areas like the
source, make, plan, deliver and return of the goods, as these are the major elements of the supply
chain (Dey and Sinha 2016). Plan makes a balance between the requirements and the present
resources in a supply chain management. Source focuses the areas from which the raw materials
are accumulated. Make or manufacturing includes, transportation, product life cycle and
packaging of the products. Deliver includes the export and the import of the finished products.
Return allows the companies to handle the product that is rejected by the customers after its
delivery.
SCOR model enables the organization to understand the way through which they can
manage their supply chain in a proper way (Aitken et al. 2016). On the other hand, the retailers
get an idea about the advanced supply chain management. By the application of this model, the
organization can utilize the five elements of this model to bring improvement in their supply
chain management. This model is beneficial for the organizations that use this model to identify
the issues regarding the supply chain management. A complete average of the capital investment
can be created by this model. Therefore, development a road map of supply chain management
and alignment of the business activities are another benefits of such model in business during
their supply chain management.

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2.3 Factors affecting supply chain management
Several factors are associated with the supply chain management in a business one of the
most important factors is the design and type of product. However, the supply chain
management varies based on the product type. As for example, solid products need the supply
chain management that is different from the supply chain management of liquid products (Kamal
et al. 2017). In the case of food retailers, the hygiene is the valuable element of the supply chain
management. Product decision is another factor of the supply chain management. Type of the
plant of product development and the manufacturing schedule are the major components of
product decision. Inventory control is the major factor of the supply chain management in an
organization (Luthra et al. 2016). Three types of elements are present in the inventory control
include raw materials, semi-finished product, and the finished product. Proper management of
the inventory is vital for any business as it identifies the production cost. Appropriate
management of the inventory allows the organizations to minimize the effect of excess or lower
inventory in their business.
Distribution strategy influences the supply chain process in a business. However,
distribution strategy builds a connection between the warehouse managers and the suppliers
(Tatoglu et al. 2016). The aim of the distribution strategy is to improve the supply chain
management. A proper distribution strategy leads the products towards the customer directly.
Integration of the supply chain management integrates the information that is available in the
system. Integration process integrates the suppliers, inventories and the manager within a single
system. This is a vital factor of the supply chain management in a business to enhance the
operation of the supply chain management.

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2.4 Impact of the supply chain management on the business performance of the
organization
Management of the supply chain is an essential part of the business to maximize its
performance, however, the customer relationship and the stakeholder relationship can be built by
managing the supply chain properly.
2.4.1 Management of Customer relationship
Development of a good relationship with customers is a crucial part of the business. The
expected benefit of the business can be achieved if the supply chain management is done
properly and if the essential activities are neglected then profitability is affected (John 2012). It is
a universal concept that a successful business has built a good relationship with their customers.
Through the establishment of an effective supply chain, the brand-centric marketing approach is
transformed into the customer-centric approach. However, the demand of the current market can
be identified by the supply chain management.
Not every consumer contribute equally in a business hence, the supply chain management
detects the loyal customers those need special treatment by a business. This improves the
customer relationship. Supply chain management includes technology that develops effective
communication between the customers and the organization. Customer relationship management
or CRM application involves in the data management that develops the competitive advantages
by evaluating the acquired data to meet the consumer demand (Mohd Yusoff et al. 2016).
2.4.2 Competitive advantage
Competition drives the success or the failure of an organization. Supply chain
management allows an organization to achieve competitive advantages in the global market.

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Based on the nature of managing the supply chain in an organization can develop them unique
from their competitors. Competitive advantages attract the customers towards an organization.
However, the demand of the customers can be met by the establishing a proper supply chain
management (Ross 2016). Supply chain management is associated with the manufacturing of and
delivery of the product. Hence, development of quality product and deliver it quickly allow an
organization to gain competitive advantages.
2.4.3 Fulfillment of the order and return management
Order fulfillment or OF can be done by managing the supply chain properly. The
customer put an order and often the suppliers fail to deliver the products according to the
customer expectation (Quarshie et al. 2016). However, a proper supply chain management
enables the organization to process the order form starting to the delivery of the product within
the scheduled time. In order to handle the customers, the suppliers should handle the order.
Quality information reaches to the firm from the customers by order fulfillment process. In order
fulfillment process, the customers and the suppliers depend on each other. After handling the
order, it is essential for the suppliers to manage the return order. They need to provide proper
goods according to the customer's demand through the supply chain management.
2.4.4 Development of the product and commercialization
Supply chain management sets a structure in order to develop and bring the market
products for the customers and the suppliers (Dahl 2016). Supply chain management influences
the product development and to commercialize the products in the market. It designs the network
and the firms become capable to reduce the delivery cost and to meet the customer needs.

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2.4.5 Improvement of the organizational performance
Organizational performance includes financial performance and the operational
performance (Pishvaee 2017). A proper supply chain management enables the organization to
obtain the financial goal and the market-oriented objectives. Hence, by producing the good
quality product and reducing the cost the companies are able to maximize the performance of
their organization in the global market.
2.4.6 Challenges regarding the supply chain management
Cost control is a big challenge of managing the supply chain. Due to the rising cost of the
fuel transportation cost is high that affect the profitability of the business. On the other hand,
freight cost, increasing the cost of the labor and technology cost hinder the supply chain
management (Gilling and Ulmer 2016). Therefore, the partner relationship management is
another big barrier to the supply chain management in a business. However, often-poor
communication between the partners in the supply chain management affects the entire service.
Apart from these it is crucial to deliver the right product at the right place within a right time that
often neglected. This is a big error of the supply chain management.
3.0 Research Methodology
Research methodology highlights on the problem statement in the study. Based on the
research aim and objectives the appropriate methodology will be selected in this study. A proper
methodology will address the study properly. Every component of the research methodology has
equal significance to conduct a study.
3.1 Research Philosophy