Comprehensive Report: Supply Chain Management and Business Performance

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This report provides a comprehensive overview of Supply Chain Management (SCM) and its impact on organizational performance and productivity, with a specific focus on the retail sector, using Marks and Spencer as a case study. The report discusses the significance of SCM in reducing inventory, enhancing product delivery speed, and increasing revenue by meeting customer demands efficiently. It explores the differences between traditional and sustainable SCM, highlighting the importance of environmental considerations. The report delves into the benefits of SCM, such as securing access to raw materials, reducing costs, and improving product quality and customer satisfaction. It also examines the direct relationship between SCM practices and organizational performance, emphasizing the positive impact on financial metrics, market share, and customer relationships. The report references various studies and viewpoints to support its arguments, providing a detailed analysis of how effective SCM can lead to a competitive advantage and improved business outcomes, including enhanced productivity, reduced inventory time, and increased profitability.
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Part 1
Please provide a description of the background with references to relevant literature
(250 words)
Supply chain management is regarded as the oversight of information, material and
overall finance which moves from supplier to manufacturer of enterprise. It takes into
consideration proper coordination along with integration of flow both within and among the
companies. The main reason behind carrying out this study is to know the overall impact of
sustainable supply chain management practices on market performance of company where
Marks and Spencer has been chosen as one of the organization which operates in retail sector
and well known in the market for range of products it offers to its target market (Christopher,
Peck and Towill, 2006). One of the main objective of effective supply chain management
system is to reduce inventory and it directly assist in efficient utilization of key resources of
the firm. In the modern era every organization has adopted the process of managing supply
chain so that overall productivity of the business can be enhanced easily. In short it allows
business to carry out the production process in more effective manner and has positive impact
on brand image also. One of the major difference between supply chain management and
sustainable supply chain management is that supply chain is the flow of goods and services in
and outside the organization whereas sustainable supply chain flow of good and services in
such a manner that less harm is created to environment. This can be done by approaching the
suppliers and consulting them to use more sustainable raw materials.
Supply chain of any organization takes into consideration key intermediaries which
are supplier, manufacturer, retailer, wholesaler, consumer etc. All these play significant role
in the supply chain of enterprise. Further, ultimate objective of every business is to deliver
products to its target market in short period of time so that customers may not have to wait
for longer period of time. Therefore, adoption of supply chain management has become must
for every business and through this business can easily deal with the range of challenges
present in the business environment (Green Jr, McGaughey and Casey, 2006). Moreover,
competition level in every market is rising at faster pace due to which corrective actions are
taken by every enterprise so that commodity offered can reach to customer in short period of
time. Supply chain management relies on three main goals which are to reduce inventory, to
enhance the speed of supplying products and increasing the level of revenue by meeting
customers demand in most efficient manner. Through this technique it is possible for business
to easily meet with the changing need and requirement of target market in the modern era.
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Part 2
Literature to support background setting and positioning of further requirements for
research.
Impact of supply chain management on organizational productivity
As per view of Srivastava, (2010) supply chain management is regarded as one of the
effective way for business in order to perform better in the competitive market. It allows
business to respond towards the changing need and requirement of target market in efficient
manner. Further, it is the one of the main objective of every business to perform efficiently in
the market where ample of opportunities are present and this can be accomplished if higher
efforts are applied by management in providing range of products to target market on time
and in appropriate manner. In short technique of managing supply chain has positive impact
on the productivity of business and it becomes easy for business to gain competitive
advantage which is regarded as one of the main objective of business behind carrying out
operations in the market. Further, it supports in maximizing value linked with target market
and assist in accomplishment of desired aim along with objectives. However Kleindorfer,
Singhal and Wassenhove, 2012 argued that management of every business has started to take
initiative for effective management of supply chain and in short it has boosted performance of
company in the market. Main motive behind adoption of this concept is to deliver proper
products to target market as per their expectation level and this enhances overall satisfaction
level of customers which is must for every business in the modern era.
Apart from this, when customers are offered products on time and as per their requirement
and it leads to rise in level of brand loyalty where business can easily survive in the
competitive market for longer period of time (Altay and Green III, 2014). Sector like retail is
getting competitive day by day due to which every business has started to search for new
ways through which it is possible to enhance productivity of the business in the market. In
short competition is not present in between the company but it is among supply chain of
business. Companies who are capable enough of managing supply chain are able to deliver
products to their target market on time and this has supported in enhancing their satisfaction
level. As per view of Vachon and Klassen, 2014 it is regarded as the key to build sustainable
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competitive advantage and has enhanced internal capability of the business to deliver
products to customers on time and as per their actual requirement.
Benefits of managing supply chain to companies
According to Berkes, (2010) supply chain management provides large number of benefits to
business. Securing access to the main raw materials, supplies and component is regarded as
one of the main advantage of supply chain management as through this businesses can easily
negotiate with its suppliers on long term basis and this also assist in saving overall cost.
Further, supply chain management allows business to save cost of obtaining supplies and
with the help of this procurement cost can be eliminated which is fruitful for business in
every possible manner. Moreover, it is ultimate objective of every business to save overall
cost which is only possible when entire supply chain is managed in appropriate manner and
in turn it is beneficial for business in every possible manner. However Zu, Fredendall and
Douglas, (2011) argued that quality is regarded as one of the main issue faced by business in
the competitive market and to enhance quality level of products supply chain management
practice is beneficial and through this it is ensured that quality standards adopted are as per
expectation level of the target market. Rise in level of customer satisfaction is one of the
main advantage of supply chain management practice where products are delivered to
customers on time keeping in view overall expectations of target market and this leads to
favorable outcomes for business in the competitive era. SCM allows companies especially
those operating in retail sector to better adopt and meet demand of target market in most
efficient manner. It assists in reducing the level of inventory and enhances inventory turns
across the network which can reduce overall cost associated with the business.
Further, company like Marks and Spencer operating in retail sector has undertaken the
concept of supply chain management through which business is able to build healthier
relationship with its trading partners and time period required for delivering the products to
target market directly reduces. Therefore, in this way practice of supply chain management
enhances organizational performance and leads to accomplishment of major goals of the
business (Auramo, Kauremaa and Tanskanen, 2013) No doubt benefits of supply chain
management practices are present in large amount but it depends on every organization the
ways adopted for management of supply chain and in case if its practices are ineffective then
it can have adverse impact on business performance.
Link between supply chain management and organizational performance
Their exist direct relationship between organizational performance and supply chain
management as when larger efforts are applied by company in managing its entire supply
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chain then it leads to improvement in overall performance and vice versa. As per view of
Fawcett, Magnan and McCarter, (2014) when firm is capable enough of delivering products
to its target market on time then it enhances satisfaction level of customers. Moreover when
customers are highly satisfied with the range of products offered to them then it supports in
improvement of performance of company in the market. Further, large numbers of challenges
are present in the market which business has to face and in case if supply chain is not
managed properly then cost of delivering products to target market enhances which is not at
all beneficial for the business. Further, rendering high quality services to the target market is
one of the ultimate objectives of every enterprise and same can be accomplished through
effective supply chain management practices and it supports business to become leader in the
market (Fawcett, Magnan and McCarter, 2014). Traditionally supply chain management is
regarded as logistics management but in real it is an important function in the development of
effective SCM. Main processes in supply chain involves customer service management,
timely order fulfillment, flow of manufacturing management, performance measurement etc.
Above diagram represents the relationship between practices of supply chain management
and organizational performance. Due to presence of effective SCM technique performance of
business improves with regard to market and finance. As per view of Harland, and et. al.,
(2015) in financial terms performance of company enhances where management is able to
earn higher revenue and market share also increases. Further, overall cost of delivering
products reduces and this assists organization in enhancing profitability level which is
regarded as one of the main aim of business behind carrying out operations in the competitive
market. Maintaining relationship with suppliers is necessary for every business as they are
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the key intermediaries with the help of which company can easily supply finished product to
the target market in lesser period of time (Supply chain management. 2015). So supply chain
management integrates all the key intermediaries present and through this needs of target
market can be satisfied in efficient manner (Altay and Green III, 2014). Moreover,
requirement of target market changes time to time and if supply chain of firm is properly
managed then it is possible to deliver superior quality product to the customer as per their
needs. However Berkes, (2010) argued that short term objective of SCM is to enhance
productivity of the business and reduce inventory time which is also profitable for the
business. Sometime, it is possible that business may not be able to utilize all the available
resources in appropriate manner and due to this reason significance of SCM practices is
gaining important day by day and it acts as development tool for the organization (Fawcett,
Magnan and McCarter, 2014). Further, long term objective takes into consideration rise in
profitability level along with market share of the company in the market. In this way, practice
of supply chain management is fruitful for the business and each and every objective set by
business can be easily accomplished if proper chain is managed by the company (Hervani,
Helms and Sarkis, 2005).
Apart from this, it becomes easy for business enterprise to dominate market if proper
coordination is present in between suppliers, manufacturer, retailer, wholesaler etc who are
important part in the supply chain management practice of business. In short firm can easily
gain competitive advantage and can retain its valuable customers for longer period of time.
As per view of Harland and et. al., (2015) SCM practice does not influences organizational
performance but also affects competitive advantage also. It enhances performance in the form
of price, cost, quality, delivering products to target market etc for instance with the help of
strategic supplier partnership it is possible for business enterprise to enhance supplier
performance and the time period required in delivering the finished goods to the target market
can be reduced easily and it is favorable for the organization. Therefore, in this way it can be
said that practices of supply chain management are highly effective and have favorable
impact on business performance along with productivity (Vachon, and Klassen, 2014).
Aspect Reference : Author
and Year
Relevance
Impact of supply chain Srivastava, supply chain management is regarded as
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management on
organizational
productivity
(2010)
Closs, Speier and
Kleindorfer,
Singhal and
Wassenhove,
(2012)
one of the effective way for business in
order to perform better in the
competitive market.
Management of every business has
started to take initiative for effective
management of supply chain and in
short it has boosted performance of
company in the market.
Benefits of managing
supply chain to
companies
Berkes,
(2010)
Chun (2005)
supply chain management provides
large number of benefits to business.
One of the main issue faced by business
in the competitive market and to
enhance quality level of products supply
chain management practice is beneficial
and through this it is ensured that
quality standards adopted are as per
expectation level of the target market.
Link between supply
chain management and
organizational
performance
Fawcett,
Magnan and
McCarter, (2014)
Berkes,
(2010)
When firm is capable enough of
delivering products to its target market
on time then it enhances satisfaction
level of customers
Short term objective of SCM is to
enhance productivity of the business
and reduce inventory time which is also
profitable for the business
Part 3
Please provide a brief description and the aims of your study (250 words) *
Aim of the research project:
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The main aim behind carrying out this study will be “To assess the impact of
sustainable supply chain management on market performance of enterprise: A study on
Marks and Spencer”.
Research objectives are to:
1. To identify the impact of supply chain management on organizational productivity
2. To assess the key benefits of managing supply chain to organization
3. To determine the link between supply chain management and market performance of
enterprise
4. To recommend the effective ways through which Marks and Spencer can better
manage its supply chain
Part 4
Please outline the design and methodology of your study (include details of the selection
and recruitment of participants (if any) and details of any invasive (e.g. blood samples,
inhalation/ingestion of food and/or non-food products (in abnormally higher or lower
levels than normal or a different form), or intrusive procedures (e.g. questionnaires,
focus groups, interviews, etc.) (400 words): *
It is regarded as one of the most important part of the research which supports in
knowing the nature of the study. Further, selection of every methodological tool is required
for the research and it supports in accomplishment of overall aims along with objectives.
Different types of research designs are present which involves case study, exploratory,
descriptive, experimental etc (Saunders, 2003). For conducting the present study descriptive
design will be adopted where main stress is on providing description of the topic being
selected for the research. Through adoption of this design it will become possible to know
impact of sustainable supply chain management practice on market performance of Marks
and Spencer. In short adoption of this design will support in accomplishing aim of the study
and is appropriate for the entire research.
Further, research inductive approach will be used which will be the most suitable and
appropriate approach as per the nature of this study where results move from specific to
general. Entire research will be carried out from point view of Marks and Spencer and on the
basis of outcomes recommendations will be provided to entire retail industry. This will be
one of the main reason behind selection of inductive approach for the present research.
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Interpretivism as a philosophy will be employed where results will be interpreted and through
this it will become possible to know how effective is supply chain management practices of
Marks and Spencer in enhancing its overall performance in the market. On the other hand
main reason behind rejection of positivism philosophy is that it is suitable for quantitative
researchers whereas interpretivism research philosophy are more appropriate for qualitative
studies (Sekaran, 2006). Through interpretivism philosophy it will be possible to accomplish
overall aim of the study in effective manner and can enhance validity of the study in every
possible manner.
Moreover, sample size of 10 managers working in Marks and Spencer will be undertaken
who are responsible for managing supply chain within the workplace. By obtaining response
from them it is possible to accomplish overall aim along with objective of the research.
Further, technique of purposive sampling will be employed for obtaining information from
the respondents and this will help in obtaining expected results which is beneficial for the
entire study. Therefore, this will be the range of techniques which will be adopted for
conducting the entire study and it will enhance research reliability.
Data collection can be termed as the process in which a scholar determines various
sources from which he can gather relevant information regarding the topic of the study.
Further one has to be very careful in determining the sources as the success of researcher
somewhat relies on the quality and the kind of data collected. Other than this primary and
secondary are the two major sources from which a researcher can gather information
(Sreedharan., 2007). Primary data is the one which has been collected for the first time and
has not been used by anyone else in the past. On the other hand, secondary data is the one
which is already gathered by someone else and has been used earlier. In the present study,
both the sources of data collection will be taken into consideration. For collection of primary
information 10 managers of Marks and Spencer will be selected on the basis of which
appropriate information will be acquired which will be beneficial for research. Further a well
structured questionnaire will be used to collect the information from primary sources. On the
other hand for collection of secondary information various books, journals and online will be
referred which are associated with the topic and this will support in attaining the aim of the
study. The secondary data will be collected in context of what kind of impact does
sustainable supply chain practises have on the performance of an organization. In aspects of
this, data regarding organization performance before the use and after the use of sustainable
supply chain practises will be taken into consideration.
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Further, for data analysis two techniques are present namely qualitative and quantitative. In
the present study qualitative technique will be employed where data will be analyzed by
forming different themes and this will represent overall response provided by the respondents
from whom information will be acquired. Moreover, quantitative technique will not be
adopted where statistical tools are adopted for analyzing information as in present research
data is present in non numeric form and it is not possible to employ quantitative technique.
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