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December 02, 2024
Examine the influence of Supply Chain Management on organizational performance, specifically via a case study of Woolworths.
Context of the Research
Supply chain management is a procedure that facilitates the movement of raw materials from suppliers to manufacturers, followed by the distribution of completed products to wholesalers and ultimately to customers (Wang et al. 2016). Supply chain management encompasses the integration and coordination of business flows both within and externally within the organization (Gilling and Ulmer 2016). The primary objective of supply chain management is to minimize inventory levels to ensure product availability for consumers at the time of demand. This research will examine the influence of supply chain management on the business performance of Woolworths. This research will highlight the significance of supply chain management. This study will also address the research rationale.
Supply chain management pertains to the movement of services or items from inside to outside the organization. The movement, storage, and processing of items inside inventory are the primary elements of supply chain management. This research considers Woolworths as one of the premier retailers, alongside Tesco and Wal-Mart, for the establishment of an efficient supply chain. In 2005, Woolworths ranked 12th, and in 2006, it ranked 13th for its superior supply chain management (Wahyuni 2012). Woolworths emphasizes direct supply chain management to save costs and have more control over the supply chain.
The many channels involved in supply chain management are crucial for a corporation. Woolworths use the TradeStone service for their supply chain management. Approximately 6,000 vendors are affiliated with Woolworths. Various studies indicate that supply chain management enhances business organizations' service quality. To achieve competitive advantages, it is essential to manage the interconnections among various operations in value chain analysis. An analysis of the Woolworths case study will elucidate the benefits of supply chain management by demonstrating the attainment of competitive advantages. In the last year, the corporate market has become more competitive. Consequently, merchants globally endeavor to attain durable advantages in the international market. Nonetheless, Woolworths' supply chain management has seen considerable growth, resulting in competitive benefits. A strong interaction exists among the provider, organization, and customers (Tatoglu et al. 2016).
Objective of the Research
This research study seeks to ascertain the influence of supply chain management on company success within the framework of Woolworths.
The primary objective of this research is to emphasize the significance of supply chain management in improving corporate performance. Supply chain management is the fundamental aspect of the organization upon which its overall performance relies (Mangan and Lalwani 2016). This research will analyze Woolworths to discover supply chain management difficulties and the significance of obtaining competitive advantages. This research will examine how Woolworths use supply chain management to achieve competitive advantages.
Woolworths is the only firm that secured a spot on the top 25 list for its supply chain management. Nonetheless, despite robust supply chain management, Woolworths has encountered challenges within its supply chain operations. Woolworths allocated further resources to the Australian supermarket sector and expanded its high-volume inventory, notwithstanding the sluggish growth in fashion shopping (Businesslive.co.za 2017). This is a significant challenge for the company; yet, excessive inventory often impacts the firm when items remain unsold for an extended period. In the fashion sector, excessive inventory results in financial losses for the firm (Wang et al. 2016). In recent years, inventory management has become a significant challenge for food and fashion merchants within supply chain management, since excessive inventory leads to product loss and obsolescence. This impedes the organization's sales, as seen by the instance of Woolworths.
The fundamental principle of supply chain management is rooted in the management of the value chain. The value chain is a critical element of supply chain management. Diverse actions engaged in value chain management to enhance product value (Zhou et al. 2016). The whole process encompasses the provision of raw materials to the production of completed goods. Nonetheless, the supply chain encompasses not only the internal dimensions of the organization but also the exterior competitive landscape. The management of connections between suppliers, distributors, and consumers determines the management of the supply chain. Technology significantly enhances communication among stakeholders in supply chain management (Gilling and Ulmer 2016).
Objectives of the Research
The value chain is linked to competitive advantages. Effective management of the supply chain is crucial for the business organization; failure to do so may result in an inability to provide items to consumers (Burgess et al. 2016). Conversely, a firm requires the efficient movement of items from their place of origin via adequate supply chain management. Retailers in the fresh food supply chain must identify current demand and possible challenges in their supply chain management.
The Supply Chain Operations Reference (SCOR) model is a crucial framework for enhancing supply chain processes in any enterprise. This methodology has been swiftly adopted by several firms to enhance communication among stakeholders in supply chain management. The supply council has established this approach by aggregating the evaluations of 70 premier global firms. This approach is regarded as the most promising for making strategic decisions in supply chain management. This paradigm has five components: source, manufacture, plan, deliver, and return of items, since they are the major aspects of the supply chain (Dey and Sinha 2016). The plan establishes a balance between the demands and the existing resources in supply chain management. The source emphasizes the regions from where raw materials are sourced. Manufacturing include transportation, product life cycle, and packaging of goods. Delivery include both the export and import of completed items. Return enables enterprises to manage products rejected by consumers post-delivery.
The SCOR model allows organizations to comprehend how to effectively manage their supply chains (Aitken et al. 2016). Conversely, the retailers get insight into sophisticated supply chain management. Through the use of this approach, the business may leverage its five components to enhance supply chain management. This technique is advantageous for firms using it to detect difficulties related to supply chain management. This approach may provide a comprehensive average of the capital investment. Consequently, the formulation of a supply chain management roadmap and the synchronization of business activities represent further advantages of this approach in the context of supply chain management.
Numerous aspects influence supply chain management in a corporation, with product design and kind being among the most significant. Nonetheless, supply chain management differs according on the kind of goods. For instance, the supply chain management for solid items differs from that of liquid products (Kamal et al. 2017). For food merchants, cleanliness is a critical component of supply chain management. The choice about products is an additional element of supply chain management. The kind of facility for product development and the production schedule are the primary elements of product decision-making. Inventory control is a critical component of supply chain management inside a firm (Luthra et al. 2016). The inventory control comprises three categories of elements: raw materials, semi-finished products, and final products. Effective inventory management is essential for every firm as it determines production costs. Effective inventory management enables firms to mitigate the impact of surplus or insufficient stock on their operations.
Objective of the Research
The distribution strategy impacts the supply chain process of a corporation. Nonetheless, the distribution method establishes a link between warehouse managers and suppliers (Tatoglu et al. 2016). The objective of the distribution strategy is to enhance supply chain management. An effective distribution strategy directs items to the client directly. The integration of supply chain management consolidates the information accessible inside the system. The integration process consolidates suppliers, inventory, and management into a unified system. This is a crucial element of supply chain management in a corporation to improve the efficiency of supply chain operations.
The management of the supply chain is crucial for optimizing corporate performance; however, effective supply chain management also facilitates the development of customer and stakeholder relationships.
Establishing a strong rapport with consumers is essential for company success. The anticipated advantage of the firm may be realized via effective supply chain management; conversely, neglecting critical tasks adversely impacts profitability (John 2012). A successful company universally cultivates strong relationships with its consumers. The creation of an efficient supply chain converts the brand-centric marketing strategy into a customer-centric approach. The present market demand may be discerned via supply chain management.
Not all consumers contribute equally to a firm; thus, supply chain management identifies loyal clients who need extra attention from the organization. This enhances customer interactions. Supply chain management encompasses technology that facilitates efficient communication between customers and the enterprise. The customer relationship management (CRM) application pertains to data management that cultivates competitive advantages by analyzing collected data to fulfill consumer demand (Mohd Yusoff et al. 2016).
Competition determines the success or failure of a company. Supply chain management enables a firm to get competitive advantages in the global marketplace. The management of an organization's supply chain may differentiate it from its rivals. Competitive advantages draw clients to a firm. Nevertheless, client demand may be satisfied via the establishment of an effective supply chain management system (Ross 2016). Supply chain management pertains to the production and distribution of the product. Consequently, the creation of high-quality products and their prompt delivery enables a firm to attain competitive advantages.
Justification for Research
Order fulfillment, or OF, may be achieved via effective supply chain management. The consumer placed an order, however suppliers often fail to provide items that meet customer expectations (Quarshie et al. 2016). Effective supply chain management allows the business to complete the order from initiation to product delivery within the designated timeframe. To manage the clients, the suppliers must process the order. High-quality information is sent to the company by consumers during the order fulfillment procedure. In the order fulfillment process, customers and suppliers are interdependent. Following the processing of the transaction, it is essential for the suppliers to oversee the return order. They must provide appropriate products in accordance with consumer demand via supply chain management.
Supply chain management establishes a framework to create and deliver goods to consumers and suppliers (Dahl 2016). Supply chain management impacts product development and the commercialization of items in the market. It structures the network, enabling enterprises to decrease delivery costs and fulfill client requirements.
Organizational performance encompasses both financial and operational success (Pishvaee 2017). Effective supply chain management allows the firm to achieve its financial targets and market-oriented goals. Consequently, by manufacturing high-quality products and minimizing costs, organizations may optimize their organizational performance in the global market.
Cost management is a significant difficulty in supply chain administration. The increasing gasoline costs are elevating transportation expenses, therefore impacting the business's profitability. Conversely, rising freight, labor, and technology costs impede supply chain management (Gilling and Ulmer 2016). Consequently, partner relationship management is a significant obstacle to supply chain management inside a corporation. Nevertheless, frequent inadequate communication among partners in supply chain management impacts the whole service. In addition to these factors, it is essential to deliver the correct goods at the appropriate location within the specified timeframe, which is frequently overlooked. This is a significant blunder in supply chain management.
The research technique emphasizes the issue statement inside the investigation. The approach for this study will be determined based on the research purpose and objectives. An appropriate technique will adequately handle the research. Each element of the research process has equal importance for conducting a study.
Literature Review: The Concept of Supply Chain Management
The selection of a research philosophy will facilitate the examination of supply chain management factors and their influence on Woolworths' business performance. This research will use positivism as the philosophical framework for conducting an analytical examination of the chosen issue. Supply chain management may be accurately characterized within the framework of positivist philosophy. The philosophy of positivism offers a comprehensive framework for the particular research subject around which the complete technique will be developed (Silverman 2016).
The inductive and deductive approaches are the two essential sorts of research methodologies. A deductive technique will be used in this investigation. The inductive method involves observation, data collecting, and analysis of the gathered data. The deductive method encompasses hypothesis formulation, theory selection, and data analysis procedures. The deductive method relies on established ideas and concepts (Wiek and Lang 2016).
Research design is a methodology that enables the researcher to evaluate results via data analysis. This interpretation is contingent upon the study's goal and objectives. The primary research designs used in the study include descriptive, explanatory, and exploratory designs. A descriptive design will be used in this investigation. The descriptive design establishes a connection between the study's aims and its results (Wåhlberg 2017). The descriptive design will enable the researcher to illuminate the current problem during data collecting. The researcher will be able to articulate the existing condition, and a descriptive study is linked to observational investigations.
The data collecting process consists of two types: primary and secondary data collection. This research will use both primary and secondary data gathering approaches to gain information. In the literature review, the secondary data gathering approach will be used via the examination of journals and publications. This research study examines the influence of supply chain management on the business improvement of Woolworths. Therefore, a qualitative data gathering strategy will be used in the analysis of primary data. Woolworths management will provide accurate information on the importance of supply chain management for their firm. Both primary and secondary data analysis are essential for acquiring accurate information about a subject (Fletcher 2017). An interview will be performed with the management of Woolworths to get accurate facts. Primary data is acquired directly from relevant individuals, ensuring its greater reliability and validity.
Utilization of the SCOR model in supply chain management
The sampling approach is essential for collecting primary data in the research project (Wåhlberg 2017). This enables the researcher to do the interview or survey to get direct responses from the applicants. This research project will use interviews as the sampling approach to get responses from relevant individuals. The specific candidates will be chosen by a sampling process to collect data. Probability and non-probability are the two main categories of sampling procedures used in research studies. The investigator will use the probability sampling technique in this investigation. The probability sampling technique is the suitable approach for primary data analysis.
The sample size is a crucial component of the study technique. The sample size is crucial in the main data gathering process. This research will pick the four managers of Woolworths as the sample for the interview. Managers will be chosen to get the qualitative data.
The primary concern is the reliability problem that often arises during data access (Murshed et al. 2017). However, they will encounter dependability issues since several journals do not provide real data. Conversely, some journals will lack validity, since they are not presently published. Consequently, accessibility issues provide an additional challenge in data gathering. Certain journals need a subscription, thereby preventing researchers from accessing data from these publications.
Ethical considerations must be addressed throughout the data gathering process. However, ethical considerations must be adhered to in order to perform the interview (Fletcher 2017). The Data Protection Act 1998 prohibits the dissemination of candidates' information. Consequently, the participants' data must be safeguarded. No participants should be posed any personal inquiries that might adversely affect their feelings. Data must remain unaltered, and appropriate reference is required. The gathered data will only serve business purposes, and all information will remain secret.
The comprehensive analysis demonstrates the influence of supply chain management on organizational performance inside Woolworths. Consequently, the aforementioned study indicates that supply chain management is a crucial component of corporate operations that significantly influences overall performance. Conversely, the supply chain management encompasses several components, including the procurement of raw materials, production, and distribution of final goods. Inadequate supply chain management is likely to cause significant problems for organizations in the global market (Wahyuni 2012). Woolworths will gain competitive benefits by effectively controlling the supply chain. Conversely, effective supply chain management will enhance the organization's performance. Supply chain management include order fulfillment and customer relationship management. Effective supply chain management will allow the firm to comprehend client demand.
Determinants influencing supply chain management
The research emphasizes that supply chain management encompasses the stakeholders inside an organization and fosters effective communication among them (Mohd Yusoff et al. 2016). The substantial investment by Woolworths impacts their business operations. Consequently, substantial inventory in fashion retailing is a significant cause of considerable financial losses in their operations. This will be addressed by effective inventory management within the framework of Woolworths. Organizing the inventory in accordance with the current market demands will be advantageous for the firm. The use of the SCOR model will enable the business organization to comprehend the stages of supply chain management. This research is anticipated to be vital for company sectors to enhance their supply chain management and get competitive advantages. This research will provide a concise examination of supply chain management challenges within Woolworths and the benefits of supply chain management for optimizing company performance. This present study will serve as secondary material for subsequent research on a similar issue.
References
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