BUSN20019: Project Proposal: Impact of Supply Chain on Company Sales

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BUSN20019: PROJECT PROPOSAL
Impact of the supply chain on the sales of the company
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Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................4
Research aims and research objectives............................................................................................6
Research questions...........................................................................................................................6
Research plan...................................................................................................................................6
Project feasibility within time frame...............................................................................................7
Gantt chart.......................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
This report will focus on analyzing the supply chain expenditure impact on the company’s sales.
The report will commence with the literature review on this subject covering the discussion
regarding the supply chain expenditure, sales and the relationship that sales of company and
capital expenditure of supply chain have. The research objectives will be established based on
the research aims and research questions will be made accordingly covering both primary and
secondary questions of research. The method that will be adopted for conducting the research
will also be mentioned and the data analysis method will be discussed. The feasibility of the
project will be analyzed if it will get completed within the timeframe. The different activities that
will be conducted in this research study will be established and on that basis, the Gantt chart will
be prepared.
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Literature review
Supply chain
Supply chain refers to the network of all organizations, individuals, activities, technology, and
resources that are involved in the sale and creation of a product from the point of delivery of
material's source from supplier to the manufacturer and it is eventually delivered to the end-user.
Capital expenditure is the amount which is spent by the organization for upgrading or acquiring
the long-term asset and is considered as an organization's major investment (Paulo, et. al, 2014).
Sales
Sales include those activities which are related to the selling of good and services that are made
in the given period. The provider or seller of the services and goods complete the sale as the
result of requisition, acquisition, direct interaction, or appropriation with the purchaser at the sale
point. In the market of finance, the sale can also be referred to as the agreement between the
seller and buyer regarding the security price (Ross, et. al, 2012).
Impact of the supply chain on sales
The process of the supply chain is related closely to the process of sales and it has a quantifiable
impact in the distribution industry. There is a great significance of the supply chain management
in the business context as this lead to the success of the business organization. If the supply chain
of the organization will be poor then it will fail in business (Ramanathan, 2012). The types of
supply chain strategies that are formulated by the business organization also decide the sales
growth of the firm. By negotiation of the prices, there can be a positive impact of the supply
chain on sales as it allows the distributor for selling at a low price in comparison to its
competitors. It also functions in keeping the sufficient inventory at the time when there is
demand for hot products and it exceeds than its supply in the market. The market can be national,
regional or international. There can be differences in the sales when coming for the special
orders and spot buys that engaged in providing the lead time which is shortest (Chandra, et. al,
2013).
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The effective supply chain can result in building the quality reputation and on-time delivery that
leads to additional opportunities for the firm’s sales. The impact of the supply chain cannot be
quantified in case of the failure. The category of direct procurement can negatively impact sales
as this is considered as the problem of the supply chain. If there is out of stock of the particular
raw-material which is needed in producing a product then this will stop the production of that
product. If the component or raw-material is of poor quality then they will not be able to meet
the requirements, stopping the production. Although the supply chain of the company is not
responsible alone for the product’s quality it is the part and process of the supply chain. Supply
chain breakdowns can result in missing the dates of delivery whether there is involvement of the
carrier or supplier. Missing of delivery dates by the supply chain also mean that there is no renew
of contracts or decrease in sales as other suppliers are found by the customers or diversification
of the supplier is made by them for the particular product. In the manufacturing company,
breakdown in the process of indirect procurement can lead towards a negatively impact on sales
(Fourie, 2018).
There can be an effect on renewal of contract or repeated sales due to the production delays or
impact on the quality because of the operational, maintenance, and repair supplies. The
expenditure made on the different logistics of the supply chain affects the sales and revenue of
the company. The dependence of the manufacturers is on the supply chain for reliable delivering
of materials for assembling of plants so that the material shortage can be avoided by which the
production can get shutdown (Li, et. al, 2014). For the designing of network retailers and
manufacturers depend on the SC managers that meet the goals of the customer service at the least
total cost. The firms are enabled by efficient SC to be more competitive in the global market
place. SC managers are valued a lot by the firms as they help in controlling and reducing the SC
cost. All the expenses that are related to the activities that add value are controlled through the
process of the supply chain. The efficiency of these processes determines the activity' cost basis.
The profit leverage is increased through the SCM and the use of the fixed asset is decreased
through this. The efficiency rate is increased, the output is raised, cost effects are reduced,
cooperation is boosted, delays in the process is lowered, supply chain networks are also
enhanced through the SCM (Rehman, et. al, 2018).
Literature review conclusion
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It can be concluded from the analysis of the different authors that the supply chain management
of the organization has a great influence on a firm’s sales. Therefore, the organization must focus
on the management of the supply chain. The pricing policies of the company are different for the
different supply chain logistics and it affects the selling of the organization.
Research aims and research objectives
The research of this project aims at “analyzing the impact of management of supply chain on
the firms’ sales”
The following research objectives will be worked upon for achieving the research aims-
 To analyze the supply chain management
 To find if there is any relationship between sales and supply chain management
 To do the literature review for the subject matter
Research questions
Research questions will be developed in which the whole research study will be made so that the
research objectives can be achieved-
 Primary question
Does supply chain expenditure and management have any impact on the organization’s
sales? Secondary question
Do any relationships exist between sales and expenditure of supply chain?
Research plan
Method of data collection and data analysis
The methodology of research is the procedures and the techniques that are used for selecting,
analyzing, processing, and identifying the information. The overall reliability and validity can be
evaluated by the research methodology (Jin, et. al, 2015).
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For researching this report the secondary data collection method will be used. Such data can be
collected through online websites, sales report, company information, financial statement,
articles, and journals. It can be quantitative and qualitative. Less time is required to collect such
information and is less expensive. The information about the data of both the variables will be
collected from the official website of the Marks and Spencer
(http://www.annualreports.com/Company/marks-and-spencer-group-plc). The annual report of
this company will be evaluated and from there the data will be collected for the ten years.
http://www.annualreports.com/HostedData/AnnualReportArchive/m/OTC_MAKSF_2017.pdf
(Page- 29 - supply chain expenses, Page- 102- sales). The other documents will also be analyzed.
For the data analysis, various methods will be used so that the results can be reached.
Correlation analysis, ANOVA test, and regression analysis method will be used for analyzing the
data (Hahn & Kuhn, 2012).
Project feasibility within a time frame
The project idea viability is determined through the feasibility analysis such as technical
feasibility, as well as legal feasibility. If the project is economically feasible is also essential to
be determined to decide whether the investment should be made in the project or not. This
project is feasible in all sense as it will get completed within a particular period. This project has
started in August and will get ended with the report submission in September. The
commencement of the project takes place with the project proposal (Grace, 2017).
Activities Start Data End Date Duration
Project Proposal 01/08/2019 04/08/2019 4 Days
Conceptual
framework
05/08/2019 11/08/2019 7 Days
Literature review 12/08/2019 20/08/2019 9 Days
Research plan 21/08/2019 25/08/2019 5 days
Research aims 26/08/2019 31/08/2019 5 Days
Data collection 01/09/2019 06/09/2019 6 Days
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Analysis of data 07/09/2019 12/09/2019 6 Days
Report submission 13/09/2019 15/09/2019 3 Days
Gantt chart
In the project management, Gantt chart is used commonly. It is a very useful and popular way of
showing the tasks and activities that are displayed for the time. the activities’ list is shown on the
left side of the chart and the particular time scale is there at the top of the chart. The bar is used
for the representation of each activity. At a glance it can be seen what are the different activities
in the project that are going to take place, the beginning and ending of each activity, the time
schedule in which the activity will take to complete, overlapping of activities with other
activities and start and end date of the project (Dellino, et. al, 2018).
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Conclusion
It can be concluded from the project report that the supply chain management and its expenditure
is very important as it increases the customer satisfaction and competitiveness.it is also
considered as an integral part of the success of the business. the expenditure that is made in the
supply chain should be made very wisely as if the capital expenditure on the supply chain will
increase then it will also impact on the organization's sale. Operating planning and sales are the
part of the SCM and are the integration of sales input., and input from the finance department,
and operations department for setting in place the immediate demand and supply plans. The
secondary method will be adopted by the researcher for data collection of the Marks & Spenser
and annual reports of the company will be analyzed for this purpose. Both the variables will be
then analyzed and the data of ten years that has been collected will be analyzed by the adoption
of the ANOVA test, along with the correlation and regression analysis.
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References
 Chandra, Hem, Rinkoo, Arvind, Verma, Jitendra, Verma, Shuchita, Kapoor, Rakesh, &
Sharma, R. (2013). SUPPLY CHAIN MANAGEMENT WITH COST-CONTAINMENT
& FINANCIAL-SUSTAINABILITY IN A TERTIARY CARE HOSPITAL. Journal of
Health and Human Services Administration,36(1), 3-23. https://go-gale-
com.ezproxy.cqu.edu.au/ps/i.do?p=AONE&u=cqu&id=GALE
%7CA336844341&v=2.1&it=r
 Dellino, G., Laudadio, T., Mari, R., Mastronardi, N., & Meloni, C. (2018). A reliable
decision support system for fresh food supply chain management. International Journal
of Production Research, 56(4), 1458-1485. DOI: 10.1080/00207543.2017.1367106
 Fourie, D. (2018). Ethics in municipal supply chain management in South Africa. Local
Economy: The Journal of the Local Economy Policy Unit, 33(7), 726-739. DOI:
10.1177/0269094218809598
 Grace, R. (2017). How digitalization is reshaping the plastics & chemical industries:
From sales and marketing to recruitment and supply-chain management digital forces are
changing how we do business. Plastics Engineering,73(7), 40-41. https://go-gale-
com.ezproxy.cqu.edu.au/ps/i.do?&id=GALE|
A503937151&v=2.1&u=cqu&it=r&p=AONE&sw=w
 Hahn, & Kuhn. (2012). Value-based performance and risk management in supply chains:
A robust optimization approach. International Journal of Production Economics, 139(1),
135-144. DOI: 10.1016/j.ijpe.2011.04.002
 Jin, Wang, & Hu. (2015). Contract type and decision right of sales promotion in supply
chain management with a capital-constrained retailer. European Journal of Operational
Research,240(2), 415-424. DOI: 10.1016/j.ejor.2014.07.030
 Li, Huang, Cheng, Zheng, & Ji. (2014). Make-or-buy service capacity decision in a
supply chain providing after-sales service. European Journal of Operational
Research, European Journal of Operational Research. DOI: 10.1016/j.ejor.2014.05.035
 Paulo, Helena, Barbosa-Póvoa, Ana Paula F.D., & Relvas, Susana. (2014). Energy from
Lignocellulosic Biomass: Supply Chain Modeling to Maximize Net Energy Production.
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In Computer Aided Chemical Engineering (Vol. 33, pp. 481-486). DOI: 10.1016/B978-0-
444-63456-6.50081-8
 Ramanathan, U. (2012). Supply chain collaboration for improved forecast accuracy of
promotional sales. International Journal of Operations & Production
Management, 32(6), 676-695. DOI: 10.1108/01443571211230925
 Rehman Khan, Zhang, Anees, Golpîra, Lahmar, & Qianli. (2018). Green supply chain
management, economic growth and environment: A GMM based evidence. Journal of
Cleaner Production, 185, 588-599. DOI: 10.1016/j.jclepro.2018.02.226
 Ross, A., Parker, H., Del Mar Benavides-Espinosa, M., & Droge, C. (2012).
Sustainability and supply chain infrastructure development. Management
Decision, 50(10), 1891-1910. DOI: 10.1108/00251741211279666
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