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TO EVALUATE THE SUPPLY CHAIN IN
SOUTH INDIAN AUTOMOBILE INDUSTRY
Masters of Business Administration
Navaneeth Sarma Mukhami Shyamsundar
C1367799
Supervisor: John Davidson
December 2014
DECLARATION
This work has not previously been accepted in substance for any degree and is not being currently
submitted in candidature for any degree.
Signed………………………………………(Candidate)
Date…………………………………………
STATEMENT 1
This work is the result of my own investigations, except where otherwise stated. Where correction
services have been used, the extent and nature of the correction is clearly marked in a footnote(s).Other
sources are acknowledged by footnotes giving explicit references. A bibliography is appended.
Signed………………………………………(Candidate)
Date…………………………………………
STATEMENT 2
I hereby give consent for my work, if accepted, to be available for photocopying and for inter-library
loan, and for the title and summary to be made available to outside organisations.
Signed………………………………………(Candidate)
Date…………………………………………
ACKNOWLEDGEMENT
I want to use this opportunity to express my gratitude to everyone who supported me throughout
the course of this MBA project. I am thankful for their ambitious guidance, invaluably
constructive support and friendly advice given to me throughout my project work. I am sincerely
grateful to them for sharing their truthful and instructive views on a number of topics related to
my project.
I would also like to thank my family members for their moral boost and encouragement given
during the period of my course work and Business project as well.
My sincere thanks to my project external guide Prof. John Davidson for his continuous feedback
and recommendations on my work along with Ms.Helen Walker professor of operations and
supply management at Cardiff Business School, and director of postgraduate research studies,
without whom my literature review was not possible. I would also like to thank all my friends
and people who provided me with the facilities being required to complete my MBA project.
Thank you
Author
Navaneeth Sarma Mukhami Shyamsundar
TABLE OF CONTENTS
ABSTRACT ................................................................................................................................... 3
CHAPTER 1: INTRODUCTION ............................................................................................... 4
1.1 BACKGROUND RESEARCH .................................................................................. 4
1.2 RESEARCH STATEMENT ...................................................................................... 4
1.3 RESEARCH CONCEPT AND PURPOSE .............................................................. 4
1.4 FOCUSSED INDUSTRY .......................................................................................... 5
1.5 BUSINESS CASE ....................................................................................................... 5
1.6 LIMITATIONS OF RESEARCH ............................................................................. 7
1.7 SUMMARY OF THE CHAPTER ............................................................................. 7
CHAPTER 2: LITERATURE REVIEW ................................................................................... 8
2.1 INTRODUCTION TO SUPPLY CHAIN CONCEPTS .......................................... 8
2.2 PROCUREMENT OF SUPPLY CHAIN. .............................................................. 12
2.3 EVALUATION OF SUPPLIER PERFORMANCE.. ........................................... 13
2.4 SUPPLY CHAIN FOR COMPETITIVE ADVANTAGE.................................... 13
2.5 STEPS TO CREATE GREEN SUPPLY CHAIN WITH SUSTAINABILITY .. 15
2.6 ETHICAL CONSIDERATIONS ........................................................................... 19
2.7 SUMMARY .............................................................................................................. 20
CHAPTER 3: RESEARCH METHODOLOGY .................................................................... 21
3.1 INTRODUCTION..................................................................................................... 21
3.2 LITERATURE REVIEW ........................................................................................ 21
3.3 SEMI STRUCTURED INTERVIEW QUESTIONS ............................................. 21
3.4 RESEARCH DESIGN ............................................................................................. 22
3.5 CHOICE OF METHODOLOGY ............................................................................ 22
3.6 ETHICAL CONSIDERATIONS ............................................................................. 23
3.7 LIMITATIONS ........................................................................................................ 23
3.8 SUMMARY ............................................................................................................... 23
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION .............................................. 24
4.1 INTRODUCTION..................................................................................................... 24
4.2 LOG OF INTERVIEWS .......................................................................................... 24
1
4.3 ANALYSIS BASED ON SEMI STRUCTURED INTERVIEW QUESTIONS . 24
4.4 SUMMARY .............................................................................................................. 39
CHAPTER 5: CONCLUSIONS ................................................................................................ 40
5.1 INTRODUCTION.................................................................................................... 40
5.2 CORRELATION OF RESEARCH OBJECTIVES .............................................. 40
5.3 SUMMARY .............................................................................................................. 42
CHAPTER 6: RECOMMENDATIONS ................................................................................... 43
6.1 INTRODUCTION .................................................................................................... 43
6.2 KEY RECOMMENDATIONS FOR SUPPLIERS AND ORIGINAL
MANUFACTURERS OF EQUIPMENT ....................................................... 43
6.3 KEY RECOMMENDATIONS FOR LOGISTICS .............................................. 43
6.4 SCOPE FOR FUTURE RESEARCH ..................................................................... 44
6.5 SUMMARY ............................................................................................................... 44
CHAPTER 7: SELF REFLECTIVE STATEMENT .............................................................. 45
BIBLIOGRAPHY
APPENDIX-I ETHICAL FORM
APPENDIX-II SEMI STRUCTURED INTERVIEW QUESTIONS
APPENDIX-III BUSINESS PROJECT MEETINGS REPORT
2
LIST OF FIGURES FOR DATA ANALYSIS
Fig 1: Key Challenges faced in Implementation of Supply chain ………………….25
Fig 2: Issues faced in Integration of supply chain …………………………………26
Fig 3: Issues in Inbound logistics management of supply chain …….……………………27
Fig 4: Outcome of increased competition …….……………………………………………28
Fig 5: Key initiatives adopted in supply chain management ……...……………………….29
Fig 6: Strategies adopted in Outsourcing……...……………………………………………..31
Fig 7.Business models for effective supply chain management……...……………………..32
Fig 8: Key areas for successful supply chain management………...……………………….33
Fig 9: Requirements for future investments in SCM……….………………………………35
Fig 10: Exports are integral part of SCM…………………………..……………………….36
Fig 11: Advantages of standardized procurement process…………………………..……..37
Fig 12: General comments in supply chain areas……………………………………….…..38
3
TO EVALUATE THE SUPPLY CHAIN IN
SOUTH INDIAN AUTOMOBILE
INDUSTRY
Abstract
The concept of Green supply management is gaining momentum as a major step towards
sustainable approach to combat the Environmental degradation. This dissertation aims at
updating the various stages of implementation of green supply management and also throws light
on the integration of supply management using triple bottom line approach. The dissertation aims
at researching on the drivers contributing to the successful implementation of green supply
management and also barriers which act as challenges implementing the same. The barriers act
as hindrance in integrating the supply chains with the ecofriendly systems. The data analysis will
be based on results of semi structured interview questions and case studies revealing expert
guidance on the implementation of green supply chain management. The findings and
recommendations are suggested based on Data Analysis with ways and means to counter the
barriers is also discussed.
4
CHAPTER 1: Introduction
1.1 Background Research
In the current scenario there is serious need for implementation of green supply management to
tackle and minimize the harmful effects of emission of toxic gases, increased pollution creating
an adverse effect on the environment. Green supply chain management is an approach to save the
environment. According to Srivastva (2007) “Green supply chain management is defined as
integrating environmental thinking into supply-chain management, including product design,
material sourcing and selection, manufacturing processes, delivery of the final product to the
consumers as well as end-of-life management of the product its useful life”. According to study
by Rao (2002) it is stated “majority of worlds manufacturing domain would be carried out in
Asia for several reasons in the upcoming decades. This would motivate the industries to think on
Green supply management in order to maintain their competiveness”.
1.2 Research Statement
Lack of knowledge on adverse effects of pollution and no specified process for elimination of
lean wastes causes a serious problem in environment and green supply management is necessary
to overcome the same.
1.3 Research concept and Purpose
The research purpose is to examine the factors influencing the sustainability of manufacturing
organization and also the nature and extent of the supply chain.
The Research concept is to understand the various working conditions to attain sustainability of
supply chain industries. This can be more effective when we follow the steps as listed below.
• Plan of extending the sustainability level at all levels from small to medium companies
• Planning an atmosphere for better network solutions for the supply chain by handling
disturbances in economic and social domain
5
• The major success factor in supply chain concepts will be focusing on effective governance and
compliance to business ethics.
1.4 Focused industry
The first and foremost step is to identify and evaluate the actionable business case for execution
and also focus on the external landscapes. This approach will in turn help us in identifying the
issues related to supply chain and also provides an avenue to evaluate the ways and means to
strengthen the internal supplier performance by assessing the opportunity, threats, strength and
weaknesses.
The supply chain sector will be automobile industry giant player. The focused study relates to an
automobile and farm equipment manufacturing concern. The company has implemented
initiatives like awards for sustainability for their suppliers in farm equipment sector. They
evaluate the progress of the suppliers as stated by Global reporting initiative guidelines. Some of
the critical reasons to devise a strategy on improvement of social and environmental scenario are
listed as below
To ensure that the supply chains are sustainable by creating a widened scope for social
development and creating an internal commitment towards the buy in procedures.
To regulate the suppliers and comply towards business drivers for effective functioning.
1.5 Business case
In evaluating the business case, the company concentrated on various issues like segmentation,
footprints of suppliers, expectations of the stakeholders, devising a business strategy and creating
an effective climate towards development of organizational culture. Supply chain sustainability
aims at maximizing profit through effective value creation and response.
The 3 steps Business case of the specific company is devise strategy to manage business risks,
gauging the efficiency and widening the scope for the creation of sustainable products towards
profit maximization.
6
1.5.1 Research Aim
To evaluate the supply chain in an automobile industry like Mahindra and Mahindra limited and
evaluate their sustainability through various avenues and gauge their presence as an established
organization.
1.5.2 Research Objective
The objective of the dissertation is
1. To explain the supply chain of Mahindra and Mahindra Limited and assess their
organizational climate and efficiency.
2. To understand and explain the process of procurement followed by the focused industry
with pros and cons of sustainability and green supply chain.
3. To highlight the implementation of GSCM concept and its benefits and also focus on the
ways to handle the obstacles while implementing the concept.
1.5.3 Research Questions
The research questions are effectively designed for better understanding of the dissertation
concept .The focus areas and their responses can be understood through the answers of these
research questions which can highlight the implementation methods and their results. The
outcome of research can be understood in detail by categorizing the research questions in the
below areas.
Product lifecycle and lean method on waste management
Waste management and disposal methods
Knowledge level on Green supply management
Development of Business case of green supply management in automobile industry.
In order to achieve the objective of the dissertation, the research questions have been stated.
What is the level of understanding on implementation of Green supply chain management
in manufacturing industries of South India?
How the manufacturing industry develops strategies to meet up the expectation levels of
suppliers and market demands?
What are the potential factors influencing the green supply chain management?
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1.6 Limitations of research
The focus was digressed to manufacturing industry in South India and there were limited
options to detail out the importance of green supply chain management.
The dissertation will suggest only the possible solutions related to concept of green
supply chain and will not detail out explicit actions towards all problems faced by the
manufacturing industry.
Relatively a small manufacturing sample was limited to proceed the dissertation
1.7 Summary
The project tries to evaluate the supply chain in a “specific” industry and place of the established
organization. The dissertation explores the scope of sustainability of supply chain focusing on
various parameters of supply chain concepts and the culture of the supply chain. The dissertation
starts with an introduction chapter providing a brief on the research objectives, aim and also
research background. The Literature review chapter comes next detailing out the research
background and procurement process, factors governing the supply chain and ethical
considerations while operating a green supply chain. Research Methodology Chapter highlights
the methodology and validates the availability of various methods to be adopted for green supply
chain. Qualitative research methodologies such as semi-structured interview and secondary data
analysis were chosen. The chapter further focuses on the choice of the methodology, ethical
considerations and the limitations of the dissertation. Based on the responses from Semi
structured interview questions, the data will be analyzed and interpreted. The Data Interpretation
will highlight the correlation between the research questions and final analysis. Conclusion
chapter will focus on the various parameters to implement green supply chain and improve
sustainability based on findings. Recommendations chapter will focus on the suggestions for
improvement in the area of supply chain. Scope for Future research will emphasize the focus
areas where the study can be further intensified. Reflective statement will detail out the various
learning and records the experiences while doing this dissertation.
8
CHAPTER 2: Literature review
2.1 Introduction to Supply chain concepts.
Supply chains serve as a major determinant in any industry in terms of sustainability and thrive
for success. Supply chains act as an aggregate of activities like design, deliver and usage of a
product or service. Major challenges faced by supply chains are competitive market and effective
balance on demand and supply. “A supply chain is the alignment of firms that bring products or
services to market.”—from Lambert, Stock, and Ellramin their book Fundamentals of Logistics
Management (Lambert, Douglas M., James R. Stock, and Lisa M. Ellram, 1998,Fundamentals of
Logistics Management, Boston, MA:Irwin/McGraw-Hill, Chapter 14). “A supply chain is a
network of facilities and distribution options that performs the functions of procurement of
materials, transformation of these materials into intermediate and finished products, and the
distribution of these finished products to customers.”— An Introduction to Supply Chain
Management published at http://silmaril.smeal.psu.edu/supply_chain_intro.html(Ganeshan, Ram,
and Terry P. Harrison, 1995, An Introduction to Supply Chain Management).
Carter and Rogers’s (2008, p. 368) defined Supply chain management as “the strategic,
transparent integration, and achievement of an organization’s social, environmental, and
economic goals in the systemic coordination of key inter organizational business processes for
improving the long-term economic performance of the individual company and its supply
chains.” “Their definition builds upon the triple-bottom-line view of sustainability which
conceptualizes organizational performance as the management of not only economic but also
environmental and social capital” (Elkington, 1998). (Paulraj, 2011) stated that this definition is
also consistent with the argument that the supply chain management is key to measure relational
capability to fully contribute towards long term sustainability.
Major drivers of Supply chain management
The major drivers of supply chain management can be identified by the ability to create a direct
effect on the supply chain and also capability enhancement. The best judgment can be made by
9
assessing the outcomes obtained by the various permutations and combinations of the drivers.
“The major drivers of supply chain management are Production, Warehouse, Inventory, Location
and Transportation” (Brammer, S. & Walker, H, 2012)
Assessment of production
“Production is a process of making and storing products and the facilities are called as
warehouses and factories” (Gary Cicerini, John Farrell and Kalman Gyimesi, 2008). The needs
demand by the market within the prescribed timeline and the required form and type of
production .This can be easily facilitated by creating schedules for production based on capacity
of plant ,machinery involved to balance load, maintenance of equipment’s and effective quality
control measures.
Approaches in production
There are two major approaches in manufacturing sector based on product focus and functional
focus. Products focus aims at the all the operations process starting from fabrication of product
parts to assembly of the parts. Products focus enables the expertise of a specific product set and
their expense. Functional focus revolves around performing certain operations like specific
method of assembling.
Approaches in Warehousing
Warehouses are also built to cater to demands of supply chain using different approaches based
on the functional design of the warehouse. Some of the prominent approaches are
1) Stock keeping unit (SKU)-storage -All the product types are stored together and it is an
efficient process to facilitate easy understanding.
2) Job lot storage –All the products are stored together based on specific needs of the
desired job .This facilitates increase in efficiency of packing and picking operation. Job
lot storage needs more space than SKU storage approach.
3) Cross docking –A successful approach to increase the efficiency of the supply chain
where the facility is responsible for storing large quantities of various products due to
loading and unloading of trucks(Gary Cicerini, John Farrell and Kalman Gyimesi,2008).
10
Inventory management
Stock of inventory required during each and every stage of the supply chain and categorization
of inventory in terms of required stock of raw materials, state of goods whether it is unfinished or
finished goods. The major objective of inventory management is to serve as a buffer in case of
any uncertainty in the functioning of the supply chain. The decisions pertaining to inventory
holding and creation is listed as below
Cycle inventory: Amount of inventory required in order to cater the demand of the
product during any phase of purchase of product .By increasing the carrying cost and
purchase price of the product using cycle inventory leads to better tradeoffs at minimal
cost.
Safety inventory: It is a sort of buffer combating uncertainty. Forecasting technique has a
certain degree of uncertainty in it and hence safety inventory is adopted facilitating
greater or lesser percentage of safety inventory. The final tradeoff is determined on
comparing the cost of extra inventory against insufficient inventory stock.
Seasonal inventory: “In case of anticipation of a specific demand during certain
scenarios ,seasonal inventory is adopted. It is a process of low demand cover for a high
demand season to scale up the rate of production. This leads to increased cost due to
flexibility in capabilities of production” (Gary Cicerini, John Farrell and Kalman
Gyimesi,2008)..
Production locations
Location of inventory and production facilities is critical and should be decided based on
efficiency, demand, market presence and storage options. The product flow cycle must be
focusing on ensuring a smooth transition of products from production to market complying with
the demand of the consumer. The various factors to be considered while selecting a location are
cost incurred, labor cost, tariffs and taxes and proximity of demand between consumers and
suppliers.
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Transportation process
Movement of inventory stock between supply chains and the choice of transport plays a critical
role in supply chain management .We need to look at fast and reliable options like delivery using
trucks or using Air freight mode .The choice of transportation also has constraints of budget as
the faster mode are costly .We can also opt for cheaper mode of transport like sea or railways but
there are challenges like very long transit time, delays and air of uncertainty. In such cases, the
level of uncertainty must be tackled by increasing the inventory stocks and research on the mode
of transportation suitable to meet the consumer demand and create a sustainable supply chain.
Ship is a cost efficient and slowest mode with limited usage via waterways, harbors and canals.
Rail is cost efficient and slow mode of transportation with restriction pertaining to locations
having railway lines. Pipelines is a different transportation option for moving liquids or gases..
Electronic transport is cost efficient and fastest mode of transportation. Higher the product value
,the more will be responsiveness of the organization and lower will be cost of bulk
products(Gary Cicerini, John Farrell and Kalman Gyimesi,2008)..
Information on inventory and decision making process
Information can be gathered using two purposes of the supply chain.
Coordination of daily activities: Coordination is related to other key drivers of supply
chain like production, inventory, transportation and location. Decisions on production on
a weekly basis, meeting up with the production schedules, Routes assigned to
transportation process, stocking locations and inventory levels.
Planning and Forecasting: Forecasting is creating a process to meet with future
demands and anticipation. Tactic forecasts like availing production schedules and also to
determine forecast strategically in the same manner (Brammer, S. & Walker, H,2012).
Data collection and sharing of critical information is very important aspect of effective supply
chain management. In order to achieve better coordination and make effective decisions related
to supply chain, accurate and timely information is required at all levels of supply chain.
“Relevant information can help in setting right expectations to consumer and also facilitate
12
effective decision making on production, location of inventory and desired choice of
transportation ensuring compliance on the consumer’s delivery requirements”(Christine Harland,
Richard Brenchley, Helen Walker,2003)
.
2.2 Procurement of Supply chain
In procurement process there will be direct or indirect involvement of all parties with an ultimate
aim to fulfill customer request. Procurement process is sum total of all the functions required to
meet customer expectation such as product development, finance, customer service, operations,
distribution etc., in an internal environment. With respect to external environment, the
procurement process encompasses manufacturers, vendors, suppliers, distributors in the
transformation process of raw materials as inputs and final products as output facilitating the
supply process for the same.
2.2.1 Objectives of procurement supply chain
• The primary objective of procurement supply chain is to satisfy the needs of the
consumer by maximizing the profit through effective value creation.
• The secondary objective is to adjudge the cost involved in satisfying a customer need and
procurement profitability is the revenue generated due to difference between the revenue
generated by satisfying customer and the entire cost of the procurement process.
• Efficient management of procurement process involves cooperation, information sharing,
and coordination among employees with all partners in both external and internal
environment working towards a common goal.
Procurement can be more challenging if the procurement process network is complex with
conflicting objectives of partners and mutual agreement towards a task orientation (Brammer, S.
& Walker, H,2012).
Some of the objectives which raise conflict in a supply chain management are listed as below.
Purchasing department requires stability in volumes with a flexible time for delivery
using variation for large quantities.
Expectations from manufacturing side will be consistent production for a long run with
high quality leading to high productivity by lowering the cost of production.
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Warehousing expects minimizing the transportation costs with a faster enhanced
replenishment capabilities and managing the same with low inventory.
Finally, the most important customer expects the production to have high stocks with
wide variety, reduced price and above all shorter span of lead time(Brammer, S. &
Walker, H,2012)..
We need to assess the supplier with criteria like
Facilities and equipment management with a plan of expansion.
The process cycle times with capacity to ramp up based on need with an emphasis on quality
control complying with housekeeping and work environment without compromising the status
of back logs.
Project management skills needs to be assessed with focus on stability, customer orientation
with a vision of strategic leadership.
2.3 Evaluation of supplier performance
Planning and control strategies including the schedule, control and release of the work flow in an
organization. We need to evaluate the supplier in terms of planning material, capacity to cater
needs, qualified personnel etc., Tracking of supplier performances through time and quality
control schemes to increase the performance standards. Supplier’s interaction with customers is
important in terms of control measures and planning mechanism (Knight and Harland, 2000).
Compliance on Environmental regulation is critical aspect of evaluation of the supplier
assessing the practices of disposal of harmful waste, alliances and outsourcing of recycling
materials etc., Other evaluations to be done at a lower degree are to assess quality, service,
delivery and price reiterating the importance of procurement. Strategy formulation is important
aspect of sustainability with ultimate focus on product leading to sub strategies like marketing,
procurement and ability to cope up with the changing environment.
2.4 Supply chain for competitive advantage.
Supply chain helps in having a competitive edge as compared other players from the same
industry. The supply chain environment aims at developing a competitive strategy relative to
parameters like customer satisfaction, product and service offering, focus on cost Vs service,
14
idea for customization and the threshold for customization. Supply chains also increase their
sustainability by developing sub strategies to achieve competitive advantage. Some of the most
prominent sub strategies are (Christine Harland, Richard Brenchley, Helen Walker,2003)
Product development strategy-develop portfolios for new products developed by the
company.
Sales and Marketing strategy: Segmentation of market demand, positioning of product,
pricing options and promotional strategies to facilitate continuous improvement in supply
chain process.
Procurement strategy: Form and nature of procurement of materials, products
manufacturing and distribution based demand raised by consumer. There are two major
options with respect to procurement strategy namely efficient procurement and highly
flexible procurement or responsive strategy .Efficient procurement aims at variety
limitations and also exploits the scale of economy of the supply chain. Highly flexible
procurement strategy inculcates the responsiveness and facilitates production of different
varieties of products.
Competitive strategy: Availability of various options of configured products leading to
immense variety of computer oriented products designed with customization based on
consumer requirements. This strategy demands more profit maximizations facilitating
value creation of each product. Focus will be to make customized products with
intersecting components and platforms enabling quick assembling.
“Strategic approach success can be achieved by understanding the uncertainty of procurement
and customer, assessing the capacity and capabilities of procurement and finally achieve a
strategic fit” (Brammer, S. & Walker, H,2012). In a general perspective there are two types of
uncertainties based on demand and procurement chain capabilities.
1. Uncertainty due to demand: The major causative factor is changing trends of customer
needs and expectations .In such case forecasting the arising demand for a service or a
specific product is next to impossible and this is consumer controlled external factor.
15
2. Uncertainty due to procurement chain: “The causative factor is the uncertain outcomes
arising within the process of procurement. Any flaw or disturbance in the procurement
process can create uncertainty in the entire supply chain”.
(Christine Harland, Richard Brenchley, Helen Walker,2003)
Fig 1 : Competitive and procurement strategy of a supply chain.
Demand uncertainty can be induced by the customer like creating more demand for less mature
products like electronics, difficulty in forecasting the demand of the product leading to
inaccurate results, complying with the service and product demand curve is difficult and unstable
pricing options due to fluctuating demands.
2.5 Steps to create green supply chain with sustainability.
(Brammer, S. & Walker, H,2012) in their book “Sustainable procurement in the public sector:
an international comparative study briefs on the sustainable green supply chain and its
implementation and management”.
Step 1: Understanding the uncertainties of both demand and procurement chain in terms of
customer segment identification and their needs assessment, product quantity expected, tolerated
16
level of response time, product varieties and pricing .Finally the rate of innovation as desired by
customer for a specific product.
Step 2: Evaluation of capabilities of procurement by analyzing the demand, consumer response,
minimizing the lead times with highest service levels promoting greater product varieties.
Procurement capabilities can be categorically identified as increased costs for quick responses
(Responsiveness) and lower costs for delayed responses (Efficient).It is a challenge for the
supply chain to balance the bridge between quick responses at minimized cost.
2-33
A comparison of cost and responsiveness
High Low
Low
High
Responsiveness
Cost
Fig 2: Graphical representation of cost and responsiveness comparison.
17
Table 1: Comparison Efficient procurement and Responsive Procurement leading to
sustainability of green supply chain. (Knight and Harland, 2000)
Effective management leading to increased performance in social, environmental, economic
sections throughout the supply chain. “Conservation of resources by companies leading resource
optimization, promotes avenues for innovations of products, optimize cost and increase
productivity by promoting the values of corporate” (Knight and Harland, 2000),
Factors Efficient Procurement Responsive Procurement
Primary Objective Demand and supply met at
minimized cost
Quicker response to demand.
Design of product Decreased cost of production Restriction of product postponement
Pricing Options Decreased pricing options Increased pricing options
Manufacturing
strategy
Utilization is increased Flexibility is increased in terms of
capacity.
Inventory strategy Reduced inventory Introducing a buffer inventory
Lead time strategy Reduce but not at expense of
greater cost
Aggressively reduce even if costs are
significant
Supplier selection
strategy
Low Quality and cost Flexibility, compliance on quality and cost
optimization.
Transportation
strategy
Greater reliance on low cost
modes
Greater reliance on responsive (fast)
modes
18
2.5.1 First steps to create a green supply chain with sustainability.
Mapping of supply chains: Mapping of resources using the supply chain concepts identifying
suppliers, challenges in environmental and social front, acknowledging the efforts of suppliers,
thereby creating a comprehensive understanding of impacts on the supply chain’s sustainability.
Communication of customer expectations: Focus on the supply chain sustainability facilitates
more avenues of communication between customers and suppliers. In order to achieve excellent
results supplier’s code of conduct for communicating the customer expectations to increase the
sustainability level (Galtorna, John,1998).
Performance of the Baseline supplier:Knowledge on suppliers and their performance levels
through data analysis and benchmarking their performance with incentives can increase the
chances of sustainability in the supply chain. It is important to identify the opportunities to
maximize business prospects and facilitating constructive communication for future projects
leading to scope for further improvement(Knight and Harland, 2000)..
Design programs for capacity building and training: This practice is absolutely essential to
drive and tackle the changes in behavior and also to improve sustainability through efforts to
cater needs of specific sectors.
Initiate drivers for improvement in performance: The drivers for improvement in
performance can be achieved by “audits or assessments by an outsourced corporate on the areas
of marketing ,procurement process, audits on onsite locations and challenges arising out of
changed behavior and scope for improvement”( Knight and Harland, 2000). The major limitation
is to identify the difficulties or challenges using the questionnaire alone.
Be a part of Industry collaboration: Industrial collaboration refers to uniform working
methodology to combat the challenges unresolved by supply chains.” The implementation of
common practices and working in an competitive environment among peers with same
evaluation of metrics. This approach stops the redundancy in training, fatigue prevention and
also huge paperwork for suppliers” (Brammer, S. & Walker, H,2012)
19
2.6 Ethical Considerations
The Standard code of ethics is of prime importance in order to sustain the supply chain and also
to exchange the best practices across the supply chain. The conduct and behavior of all the
members of supply chain must be professional and socially acceptable.
SCMA general ethical considerations
Steps to avoid interest’s conflicts: It is evident that the members should be judgmental
and to practice discretion due to any conflicts based on interests. If there is any arising
conflict the senior members should step-in and resolve the same in a neutral manner.
Confidential clause on protecting sensitive information: There should not be a breach
or revelation of private or sensitive information for any personal gain or advantage and it
can mislead or deceive the members of the supply chain. Final outcome in such cases will
be the loss of sustainability of the supply chain.
Relationships in a Business perspective: Professional relationships among members of
supply chain are the need of the hour. Members should avoid using their position to do
personal favors or disturb the competition by unfair methods shattering the reputation of
company.
Gifts inducement: The members of the supply chains must not be influenced to alter
their decisions by accepting gifts, there should be not be a compromise on the integrity of
the profile in any aspect of implementation of supply chain.
Corporate social responsibilities: It is the duty of all the members to protect and
preserve the environment and all the members should ensure that the resource distribution
is carried out in an effective, ethical and efficient manner. Strict compliance on the social
rights, labor standards, attributes of sustainability and mutual support on diversity of
suppliers are important for a sustainable supply chain.
Professional principles: Competency levels, professional approach and standards of
honesty and integrity in all business standards.
20
2.7 Summary
The Literature review focused on the critical aspects of supply chain concepts emphasizing on
the drivers of supply chain management influencing the assessment of inventory, warehouse and
production. .Decision making is regarding as the important practice of supply chain management
and can be either individual decision making or collective decision making(Ganeshan, Ram, and
Terry P. Harrison, 1995). Major areas of focus will be production, inventory, location,
transportation, information. Process of procurement and the differences between efficient
procurement and Responsive Procurement was highlighted based on various attributes. Green
supply chain management and its attributes, strengths, best practices to achieve sustainability
were also detailed out in the Literature review.
The ultimate aim of the procurement process is to have an effective coordination between
suppliers and internal customers with a mutual understanding in identifying opportunities to
scale up the value based delivery and waste elimination process. Supplier evaluation is critical as
we need to do in depth evaluation for higher outcomes. We need best judge the capabilities of
suppliers with high potential with good performance record.
The cumulative decisions of all the concepts listed will enlighten us on the capabilities level and
definition and also gauge the effectiveness of the supply chain. The DO’s and DONT’S of the
above concepts in terms of challenging the competitive market is learnt from the effectiveness of
the supply chain management. In a nut shell, supply chain management is a sum total of
production coordination, location, inventory, transportation in the supply chain yielding to
effective responsiveness and scaling up the market efficiency.
21
CHAPTER 3: Research Methodology
3.1 Introduction
The major objective of the research is to explore the various strategies to be adopted, process to
be followed in order to achieve green supply chain and work towards the sustainability of the
same This research methodology chapter will focus on the research methods to be deployed and
highlights the code of ethics to be followed in such scenarios. The chapter also details out on the
research plan and choice of methodology whether it is qualitative or Quantitative, reason for the
choice, data collection plan and limitations occurring during the course of study. Research is
further elaborated by author Sivasubramaniyan (2012)”Research is a process involved from
collection of data, manage it in an organized pattern leading to evaluation, evaluation which
leads to a suitable conclusion and even in the process of generating hypothesis”. Research
methods are selected based on generalized approach to answer the questions pertaining to the
collected data and analyze the same in order to get expected results.
3.2Literature Review
After finalizing the research options the literature review is analyzed in order to emphasize the
significance of the study and the directives leading towards the implementation green supply
chain .The analysis highlights on the various research questions framed and correlates the same
with the outcomes of semi structured interviews.
3.3 Semi-structured Interviews
A semi-structured interview is a verbal communication where the interviewer attempts to
Extract information from the interviewee by asking questions. Although the interviewer
prepares as set of predetermined questions, semi-structured interviews allows the interviewee
to explore issues, they feel important to justify the scope of research. This approach produce
a high degree of involvement from either ends and creates a comfortable ambience inbuilding up
an effective communication.
Analyst like Austin (1981), Richardson et al. (1965) etc. explains the benefits of data collection
using semi-structured interview. The semi-structured interview has the potential to overcome the
poor response rate of the questionnaire survey and it facilitates the comparability by ensuring
22
that all questions are answered by all the respondents. It is well suited in clarifying the answers
for complex and sensitive issues thereby gaining more insight into the area of interest.
The semi structured interview is designed and categorized as follows
Supply Chain -3 questions
Procurement -3 questions
Green Supply Chain -3 questions
Sustainibility-3 questions
The sample size will be minimum of 5.The Target interviewee will be Managers of Supply
chain, Supervisors, Quality Analysts, Base line workers in the green supply chain.
3.4 Research design
3.4.1 Qualitative Research
Qualitative data, as the name suggests is the format of data collection which requires no
numbers, unlike quantitative but is an intense and broad means of data collection because it
requires quantity of words which is evaluated using non quantitative tools, based on observations
and public seeking polls and other means. Qualitative data can be translated into numbers as
well.
3.4.2 Secondary Data Analysis
“Secondary data analysis is a further analysis of an existing data with an aim of addressing a
research question, distinct from that for which the data was originally collected for” (Smith
2008). In order to reiterate the findings of the semi structured interview questions, secondary
data analysis is required to research on findings and also emphasize the same using a different
approach like case study and add more value to the primary data. The data is flexible and can
lead to a new perspective in terms of theory and interpretation of research.
3.5Choice of Methodology
Methodology is chosen based on the research approach and technique to be adopted for Data
analysis. Currently the dissertation will be following deductive research approach and
Qualitative data analysis for better results. For this research, the ideal and most suitable form of
research approach will be Inductive approach. Reasons being that firstly the nature of the
23
research is based on human findings and getting to know desired questions from respondents
rather than making basis on fixed laws and hypothesis. Secondly this is the ideal tool also for
qualitative research, where the data will be based on semi structured interview which will have
suggestions and opinions; with no figures which can be measured. The choice of methodology
was rooted by the fact that the study aims to conceive the approach of organizations in
formulating viable operation strategies under reality grounded scenarios. As a deduction, the
study demanded a qualitative research method which emphasizes words rather than quantifying
the collection and analysis of the data. Hence semi-structured Interview and secondary data were
chosen for the data collection as it allows the researcher to analyze issues and also to examine
the scope of the research.
3.6 Ethical Considerations
Prior to conducting the interview, the research was approved by the automobile manufacturing
company .We have informed the interviewee on the procedures and sign of consent form was
also filled by them and we have encouraged on voluntary participation. The entire semi
structured interview is carried out with professionalism and there is no force or negative
influence during the process.
3.7 Limitations
Gauging the research amplitude and also complying with the time management faced a series of
limitations. The semi structured interview was conducted for a limited sample size of 5 as the
other profiles were busy. The interviews with the Supply chain managers, supervisors and few
base level employees cannot be categorized towards a general mode due to the approach and
variation in the responses and their level of knowledge.
3.8 Summary
Research methods were identified and semi structured interview questions are categorized and
designed. The plan for data collection, sampling and Target audience is also planned as it is very
critical to interpret the research outcomes. Research methods were reliable and valid for the
desired data collection and can be a strong base for analysis and correlation of research
questions. Secondary data analysis offered the prospect of having access to the good quality data
explored by well-known analyst and researchers.
24
CHAPTER 4: Data Analysis and Interpretation
4.1 Introduction
Data analysis is the activity of transforming a set of responses received from semi structured
interview questions with the goal of being able to check them better by giving them both a
reason and a rational analysis. Researchers analyze the data of a response and interpret the
research objectives using correlation. The data analysis has different facets and approaches,
incorporating various techniques.
4.2 Log of interviews
Date Time Person Duration
10/11/14 9:30am Production
manager(A)
25min
15/11/14 10:00 am Procurement
manager(B)
20 min
18/11/14 11.00am Supervisor(C) 30min
19/11/14 10.00am Quality(D) 20 min
20/11/14 2.00pm Logistics (E) 15min
4.3 Analysis of Data based on semi structured interview responses
This section will analyze the responses based on the target interviewee and their responses.
1. What are key challenges faced by supply chain management of your automobile
organization?
A said that the key challenges faced by them in the supply chain management are Managing
supply chain costs and integrating the end to end supply chain.
B said that the key challenge is faced by Just in Time Supplies.
C said that the challenge is faced in terms of Part Proliferation and Product management
25
D said that the major challenge faced is in terms of integrating the end to end supply chain
E said that the challenge is Managing Inbound Logistics.
Fig 1: Key Challenges faced in Implementation of Supply chain.
Discussion
Most significant and prevalent challenge in establishing a green supply chain is integration of
supply chain. The visible challenge is to adopt measures to align the shareholders like dealers,
vendors, transporters and distributors towards a expected outcomes. This critical challenge can
be overcome by linking IT systems and integrating and defining a common process and
standardized procedures across the supply chain. Effective management of logistics is another
challenge highlighted by managers as they need to rely more on data and time management
.Quality manager said that lack of quality aspect among logistics personnel hamper the supply of
future in an growth oriented aspect. Part proliferation and product management has caused
shrinkage of lifecycles of product and continuously reiterate the necessity of up gradation of
product and introduction of new designs of same product. This is one area where there is a lot of
scope for improvement. Major concerns are in terms of cost factor, increasing competition and
providing delivery on time .Implementation of JIT will reduce the concern in logistics and there
will increase in visibility boosting vendor management.
A
A
B
C
C
D
E
Managing supply chain costs
Integrating the end to end supply…
Just in Time Supplies
Part Proliferation
Product management
Managing Inbound logistics
Key Challenges
26
2. What are the key issues faced by automobile industry during implementation of an
integration process of supply chain?
A said that the key issue is to manage the entire supply chain process as one single integrated
entity. This is directly implying on the effectiveness of vendor and dealer management.
B said that the key issue is streamlining the team members towards the integration of supply
chain.
C said that the key challenge is the integration of supply chain with effective vendor
management and dealer management.
D said that the process checks and monitoring on the vendors and dealers and their performance.
E said that the challenge is Logistics operations in managing single entity involved in the
integration process.
Fig 2: Issues faced in Integration of supply chain .
Discussion
Streamlining the process of supply chain and also identifying the scope of improvement in the
grey areas is tough due to critical issues like coordinating with the dealers facilitating operations
and planning strategies, rationalization process of vendors and IT initiated steps for
A
B
B C
D
E Single Entity Management
Streamlining of team members
effective vendor and dealer management
process checks and monitoring
Issues faced in Integration of supply chain
27
implementation. These activities need to be linked with each other and alignment of process
across the supply chain to meet the expectations and demand of the market .Quality Assurance
reiterated the efficiency and process checks and controls are the critical issues that need to be
address while integrating a supply chain.
3. Why is inbound logistics management considered as a concern in automobile industry?
A and C said that major concern in inbound logistics is compliance to lead time.
B said that the challenge in inbound logistics is data reliability and transportation cost.
D said that the issue with respect to Adherence on quality parameters and efficiency of logistics
operators
E said that the major is cost of transportation and efficiency of logistics operators.
Fig 3: Issues in Inbound logistics management of supply chain
Discussion
It is evident that handling the supply chain process the inbound logistics management is a key
concern in automobile industry .There are lot of issues like data reliability, compliance towards
the lead time and Quality adherence of all the logistics players .The Inbound logistics can be
effective if there is complete adherence on quality control process monitoring capabilities and
A
B
B
C
C
D
D E
Complaince to lead time
Data reliabiity
Transportation cost
Adherence to quality parameters
Efficiency of logistics operators
Issues in Inbound Logistics management
28
choosing efficient logistics operators. Logistics players reiterate that the cost of transportation,
quality of delivery within the committed transit times is a challenge. Lack of visibility of
functioning of supply chain and Inventory management challenges like shifting inventory from
suppliers to vendors can cause more problems.
4. What is the outcome of increased competition among automobile industries and how
does the company tackle this competitive challenge?
A, B and C said that the outcome of increased competition is virtual integration of all companies
throughout the supply chain and effective design management.
D highlighted that there is an improvement in competency assessments of workers as an outcome
of competition.
E explained that the there is increase in the percentage of on time deliveries to have an edge on
competition
Fig 4:Outcome of increased competition
Discussion
Most of the interviewees agreed that the major outcome of increased competition among
Automobile industries is the origin of Virtual integration of companies across the supply chain.
There is clear display and boost on the competency levels of workers for a required design and
also the delivery of finished goods at the market .Quality manager analyses that gauging and
A
A
B
B
C
C
D
E
Effective design management
Improvement in competencyassessment
Virtual integration of companies
Increase in % of On time deliveries
Outcome of Increased competition
29
improving the competency levels will help the automobile industries to gear up and meet the
expectations of faster market and advanced technological changes having an adverse effect on
the economy. It is known that most of the competitors use the same components or parts to
design and build their machines. Some of them have a competitive edge as they catch customer
attention by introducing strategies like customization and offering cost effective supply chain
management solutions. Stock building and Inventory position will be the solutions for
competitive issues where they use a retailing concept in order to facilitate a better theory.
Supervisors stated that Based on the business strategy changes the supply chain’s impact and
performance can be executed. Some of the reliable solutions to tackle competition are alignment
of supply chain and balance in production, service and demand of the supply chain products.
5. What are the key initiatives adopted by your organization to address challenges faced in
supply chain management?
A and C said that the key initiatives adopted is to increase the investment for more revenue
generation and profit maximization.
B and C also agreed up on the rationalization of vendors in supply chain
D initiated issues related to process improvement and infrastructure management
E highlighted that the key initiatives are outsourcing logistics and manage infrastructure.
Fig 5: Key initiatives adopted in supply chain management
A
B C
D
D E
E
Increase in Investment
Rationalization of Vendors
Process improvement
Infrastructure of management
Outsourcing of Logistics operation
Key Initiatives adopted in Supply chain management
30
Discussion
The Key initiatives adopted by the automobile industries in order to counter the challenges faced
while implementing green supply chain are listed below
Improvement in process capabilities and increasing investments for more revenue
Rationalization process for Vendors or Dealers leading to a conducive approach
Outsourcing to service providers in logistics arena
Address the issues related to Infra structure.
According to the managers, the key initiatives adopted by organization are to devise strategy to
improve process control and also adopt and link supply chains with sophisticated IT systems.
The vendors, suppliers and all key players of the supply chain are aligned to supply chain using
IT systems like ERP.Most of the interviewees acknowledged that there are lot of value based
initiatives like support systems in order to facilitate decision making process ,efficient
transactions monitoring systems ,consistent updating of dashboards leading to effective
monitoring of supply chain.
Rationalization of Vendors is a critical focus area in order to minimize cost and focus on the
management issues, process checks followed by vendors in a supply chain .There are constant
efforts to encourage vendors to execute their responsibility in the areas of modules and sub
assembly supply chains and segmentation of supply chain as Tier 1,Tier 2 has facilitated more
focus on the combating against the challenges of implementation of green supply chain .
Another initiative is to outsource Logistics operation to qualified experienced players for better
focus. This facilitates cost reduction and focus is shifted towards customers and achieving the
expected outcomes.
6. In what way can the outsourcing of green supply chains be effective and sustainable?
A and C said that the better inventory management and outsourcing outbound activities of supply
chain can be effective and sustainable.
B said that the effective collection and monitoring of parts and accessories
D said that the inspection of materials transfer and packaging
E said that the maintenance of warehouses and outsourcing activities of the supply chain.
31
Fig 6: Strategies adopted in Outsourcing
Discussion
The green supply chain of the automobile industry has outsourced the outbound activity of
logistics .They have collection of parts or accessories on a daily basis, transfer of materials to
warehouses and Hubs and also to inventory management. The outsourced logistics players have
started to maintain their warehouses near the plants and this cares of JIT compliance on materials
to be supplied. Third party service providers also do the job of materials consolidation,
inspection, packaging and cleaning of hubs and warehouses in near vicinity. This scales up the
chances for sustainability of green supply chains. Some of the process Issues which are
outsourced are inbound packaging process, Logistics operations and Outbound Warehousing.
Packaging outsourced will add more value and build up efficiency in transportation process. In a
nut shell outsourcing of packaging, outbound and inbound operations and warehousing
operations can make supply chain effective.
7. What are the different types of business models that can be adopted to sustain the supply
chain in a global perspective?
A said that the ideal business model will be acquisition of domestic companies and also
globalization process by opening branches in other countries.
A
A
B
C
C
D
E
E,
Better inventory Management
Outsourcing of segments of supply chain
Effective collection of parts or accessories
Inspection of materials and packaging
Maintenance of warehouses
Outsourcing strategies
32
B said that effective partnership with right and worthy vendors and dealers and leveraging
partnership with technologically sound organizations can help to sustain the supply chain.
C said that Joint ventures teamed up with domestic players and effective partnership with correct
vendors or dealers can increase the chances of sustainability of supply chain.
D said that complying with quality and delivery timelines given to the customer add more
chances of sustainable supply chain.
E said globalization process is the most effective business model for sustaining the supply chain.
Fig 7.Business models for effective supply chain management.
Discussion
Apart from Exports, there are many Indian manufacturers having a business reach and global
presence in other countries. As stated above some of the effective business models which can
add more value for a sustainable green supply chain are acquisition of smaller domestic
companies ,Joint ventures with efficient dealers and vendors ,partnership with dealers, quality
adherence leading to customer satisfaction etc.Other overall accepted business model is
globalization with technical efficiency ensuring minimum risk at the investment. The business
model always defines the opportunity paving way for deciding criteria like risk involved and
investment cost. Catering to an effective customer centric business model can help in achieving
higher degree of sustainability. Effective management of supply chain globally in various
A
A
B
C
C
D
D
E
Acquisition of companies
Globalization process
Effective Vendor partnership
Partnership based on Technology
Joint Ventures with domestic partners
Compliance on quality parameters
Business models for supply chain management
33
countries can create challenges to domestic automotive companies in India. Handling longer lead
times, increasing number of stages and involvement of more stake holders, maintaining
maximum profit at minimum cost and finally complying with the expectations of the customers
in terms of delivery timelines and quality of the product. These are some of the business models
for the sustainability of supply chain.
8)What are key areas contributing to successful global supply chain management?
A said that a strong and enriched team with process and technological capabilities will be adding
more value to success of the global supply chain management.
B said that decentralized internal supply chain with strong domestic and global presence can
contribute to the supply chain’s success.
C said that strong domestic presence and team with good knowledge on technology and process
flows can help in successful supply chain.
D said that decentralized internal supply chain and good inventory system can make the supply
chain stronger.
E said that effective logistics performance using a strong player in logistics in a global
perspective and good inventory can add more positive impact to the supply chain.
Fig 8: Key areas for successful supply chain management
A
B
C
C
D E
E
Process and technological capabiities
Decentralized internal supply chain
Strong presence in domesticenvironment
Good inventory
Effective logistics performance
Key areas for successful supply chain management
34
Discussion
It is evident that we need to have an effective logistics partner to meet the expectations in a
global perspective and also to comply with operational capabilities in a global perspective. These
players minimize the delay and also comply with on time deliveries to the end user. This in turn
increases the demand and also the companies can sustain their supply chain by retaining their
infrastructure, business contacts and also will acquire a more enriched experience to handle the
market. This experience will help them to identify the risks and help them to handle the same
effectively. A strong and enriched team with process and technological capabilities will be
adding more value to success of the global supply chain management. Talents with technological
competence are major resources to sustain the supply chain as they allow more avenues to excel
in service and decision making process with a emphasis on retaining the internal talent options.
Ardent focus on global supply chain is another key requirement for supply chain success story.
A good inventory management is absolutely essential to analyze failures and transform the same
to success and adds more value to the sustainability of the supply chain.
9. What are the critical requirements for future supply chain management in an investment
perspective?
A said that formation of effective global chain and strong relationship with vendor and
distribution management can be focus areas in an investment perspective.
B said that strong focus on vendor performance and management can lead to future SCM in a
investment based outlook.
C said that forming supply chains globally can help in the investment perspective.
D said that there should be improvements in process flow and process control leading to
effective planning of investments based on demand.
E said that managing dealers and control on distribution process are requirements in an
investment perspective.
35
Fig 9: Requirements for future investments in SCM.
Discussion
The basic idea behind this question is to understand the relevant focus areas for planning the
investments required for future scenarios. As reiterated earlier, stronger focus area will be
managing the relationship with vendor and help them to perform better .No wonder vendors can
get transformed in to partners ,suppliers of parts or even as service provider. A stronger
performing vendor can help us to get a global reach in international market .Investments can
boost the development of supply chains in a future global perspective. As dealers act as an initial
interface with client and suppliers, it is important to help dealers with investments in order to
retain customer and also enrich business prospects through amicable relationship with respect to
distribution of resources. Growth of the product cycle can help companies to create avenues for
better investments for a green supply chain.
10. Why are exports considered as an integral part of global supply chain management of
the organization?
A said that exports are critical because they act as medium for global business patterns.
B said exports are important as they create a dynamic environment and influence global presence
A
A
B
C
D
E
Vendor relationship
Process flow and control for demand
assessment
Global supply chains
Managing dealers and distribution
process
36
C said that exports facilitates optimization of resources and helps in creation of customer
segmentation.
D and E said exports help in transformation of required talent across borders and helps in
financial and material flow of supply chain.
E also said that exports display the logistics capabilities of the company in a global perspective.
Fig 10 :Exports are integral part of SCM
Discussion
Role of exports are very critical as it provides avenues for global strategies and exchange of
talent across cross borders in a supply chain management. Resource optimization and customer
based segmentation is facilitated through exports. Exports are integral part of global supply chain
as they increase the demand leading profit maximization at minimum investment. This in turn
increases the cash flows in a financial perspective and also scales up the product flow in a
procurement perspective. Exports are also considered as evidences to promote the logistical
capabilities of the company in a global arena. Exports help us to deal with global players leading
to increase demand and revenue generation, working on integration of supply chain through
A B
B
C
D
D
E
E
E
Medium for global business partners
Provides Dynamic environment
Optimization of resources and Customersegmentation
Talent transformation
Influence financial and material flow
Logistic capabilities
37
effective planning in operations and sales domain. Thus exports are integral part for the
functioning of green supply chain.
11. What is the advantage of having a standardized procurement process in your
automobile organization?
A said the major advantage of standardized procurement process is the organizational alignment.
B said that inventory strategies is changing and initiates performance management in a real time
mode.
C said that there will higher demand paving way for emerging markets scaling up growth.
D said that standardized procurement process scales up the performance management in real
time mode.
E said that standardized procurement process will have advantage of proper planning of
materials and disposition.
Fig 11:Advantages of standardized procurement process
Discussion
The standard procurement process paves way for an alignment of objectives, process and
performance in an organizational perspective. A standardized procurement process can enable
strategies for enhancing the performance of organization with effective design and logistics
operation. It also increases the requirement of reliable delivery and challenges of increased cost
of operation, unpredictable customer demands and decrease in the profit. There will be higher
degree of flexibility and speed as adaptation is easier if we have a standardized procurement
process. Other advantages will be creation of markets with higher demand leading to better
Organizational Alignment
Performance management in…
Higher growth prospects
Materials planning and…
A
B
C
D
E
38
business prospects. In a logistics perspective the procurement process will enable proper
transportation of materials and their disposition paving way for committed deliveries of products.
12. Are there any further comments you would like to make in these supply chain areas?
A said that there must be reduction of procurement lead times and storage costs in procurement
strategies in order to form a green supply chain.
B said that increase in service levels and reduction of storage costs can be emphasized.
C said that there should be innovative strategies in managing cost and collaboration in an
effective manner.
D said that there should be compliance on service level expectations and reduction of lead times
to facilitate performance.
E said that supply chain need to have complete control on logistics cost and reduce the lead times
of procurement process.
Fig 12 :General comments in supply chain areas.
Discussion
The comments on supply chain areas is stated in a general perspective .There were different
comment s focusing on introducing effective process control on procurement process leading to a
stable organization. Other comments included increasing the service level capabilities in order to
boost the market presence and scale up demand .Another strong point is the cost reduction aimed
at storage and logistics process. Reduction of lead times can avoid further delays and set right
expectations for suppliers in the supply chains. Increase in lead time can affect the sustainability
of the supply chain.
A
A
B
B
C
D
D
E
E
Reduction of procurement lead times
Increase in service levels
Reduction of storage costs
Reduction of logistics costs
Promote cost control and collaboration…
General comments in supply chain areas
39
4.4 Summary
In this chapter we have analyzed the responses on the semi structured interview questions
conducted for critical profiles handling the supply chain management. The key aspects of supply
chain management and functionality were analyzed in the form of semi structured interview
questions. Some of major areas like integration of supply chain, challenges faced while
implementing a supply chain, role of logistics were reviewed and discussed .Investment planning
as a source for future supply chain management was also discussed. The strategies and practices
to be adopted for outsourcing the inbound, outbound and packaging operations of the supply
chain were discussed. The critical role played by exports to promote sustainability of supply
chain in a global arena was also highlighted .The analysis also provided an insight on the key
focus areas of supply chain and their efficiency and effectiveness in terms of promoting the
green supply chain was also discussed.
40
CHAPTER 5: Conclusions
5.1 Introduction
In this section we will be correlating the analysis interpretation with the research objectives
highlighting the outcome of analysis. Supply chains need to focus on managing growth with
flexibility and responsibility in order to handle the volatile nature of the same. It is very critical
that the supply chain is designed specifically to meet the expectations of the end user with
service and product offerings based on demand. Sustainability of green supply chain is possible
only with consistency and core objectives aligned for each and every stage of the supply chain.
5.2 Correlation of research objectives with analysis outcomes
Objective 1:
To explain the challenges in implementing a supply chain and assess their organizational
climate and efficiency in a global perspective
Correlation from Data Analysis
According to the analysis the major challenges in implementing a supply chain is integrating
supply chain from supplier to end user, compliance towards Just in time supplies, Outsourcing
options and effectiveness and globalization .There need to be a confident approach on product
life cycle and proliferation of accessories or parts .The ultimate aim of the supply chain will be
achieve maximum profits incurring minimum cost and also to offer cost effective products to end
users. The supply chain follows planned strategies in terms of outsourcing activities like
warehouse maintenance, better management of inventory stocks, packaging and constant
inspection of raw materials. The globalization process is possible only based on company’s
capability as an organization to manage inbound, outbound and packaging operations. In a
competitive environment, the supply chains follow innovation process in terms of design of
product and technology, joint ventures with domestic companies in order to meet the demand,
partnerships with dealers. Effective management of lead time by optimizing the supply chain and
41
neutralizing the various challenges posed by competitors is another criterion for assessing the
organizational efficiency and climate of the focused company.
Objective 2:
To understand and explain the process of procurement followed by the focused industry
with pros and cons of sustainability and green supply chain.
Correlation with Data Analysis
In this research objective, we have highlighted the strengths and weakness of the supply chain
especially in the procurement stage. In order to attain sustainability the supply chain need to
focus on the transparent methods to integrate the end to end supply chain. This can be easily
achieved by aligning the technology with the process. This can lead to quality compliance in
early procurement stage itself. In order to address the complexities involved in managing the
supply chain we can go ahead with proliferation of parts. It is very critical for the supply chain to
have coordination with logistics providers, dealers and partners for a smooth functioning of
procurement process. In the logistics segment the supply chain has to focus on the knowledge,
exposure to technological innovations, tracking of materials and scheduling of on time deliveries.
As per analysis the pros of the standardized procurement process can improve the planning of
materials and their disposition, increases the level of performance in real time mode, facilitate
organizational alignment, incorporate changes in inventory and finally paves way for emerging
markets of growth .The cons of procurement process is the increased costs of inventory, storage
and logistics leading to increase in lead times of procurement process, there is also a serious
concern on the capital inflows as per commitment and also lack of streamlined process in
procurement .These are the pros and cons of sustainability in green supply chain.
Objective 3:
To highlight the implementation of GSCM concept and its benefits and also focus on the
ways to handle the obstacles while implementing the concept.
Correlation with Data Analysis
The key challenges highlighted while implementing the GSCM concept are problems in
proliferation of parts, product management, IT implementation and cost reduction. Another
critical challenge is integration of end to end supply chain .In order to tackle the challenges, we
need to implement better infrastructure, improve process, rationalize the vendors, and increase
42
the investment to meet the demand and outsourcing of inbound, outbound and packaging
operations of supply chain. This can improve the sustainability of the supply chain and also
provide avenues for growth. Implementation GSCM will help in managing the competition;
increase the exports, creating value chains, cost reduction with high quality and efficiency. We
can also use technology to innovate the supply chain and achieve automation. By implementing
GSCM, the organization will be a differentiator in a global perspective.
5.3 Summary
In this chapter we reiterated the research objectives and correlated the same with the
interpretation of analysis. Supply chain is an encompassed function of design, production of
materials and delivery of completed goods to the market .The primary objective of the supply
chain management is to increase the production of materials, maximizing the profit at a reduced
cost. Supply chains are focusing on competency levels, technological changes leading to
innovative design and speedy deliveries .Supply chains act as virtual integration business model
to boost the economy of the industries.
43
CHAPTER 6: Recommendations
6.1 Introduction
Due to globalization and transformation of process, there are many challenges and opportunities
in the management of supply chain. Based on outcome of Data analysis, the recommendations
will be outlined for formation and sustainability of global supply chain.
6.2 Key Recommendations for suppliers and Original Equipment Manufacturers
There should be strong focus on end to end integration of supply chain paving way for a more
transparent organization process and climate. There should be more emphasis on the
management of inbound process so that capabilities assessment and management leading to more
prospective growth of supply chain. Some of the key initiatives include on time deliveries,
Budgeting, talent and change management, encouraging the need of excellent negotiation and
communication skills. Introduction of parts proliferation is another important factor as it can
minimizes the complex procedures involved in supply chain. Outsourcing of Logistics is key
initiative to be adopted for stronger relationships with vendors and dealers with an assurance on
committed deliveries. Business plans involving cross functional operational activities, correlating
the demand and supply chain expectations leading efficient operations administration.
Simultaneous and uninterrupted focus on markets globally and also there is a serious need to
have partnership with local players having stronger hold in the domestic market. Some of key
initiatives include design of products, alignment of supply chain and segmentation of customer
matrix. There should be constant monitoring and realignment of process, based on efficiency and
performance required to meet the demand. In order to achieve globalization process, there should
be focus on adaptation towards different cultures, evaluating pros and cons with risk assessment
for implementation of supply chain in a global perspective.
6.3 Key Recommendations for Logistics Operations.
The logistics players must be experts in handling the movement of materials across various
geographical boundaries either by means of effective partnerships or independent management.
It is better to offer complete result oriented solutions for effective sustainability of supply chain
as compared to solutions offered like piece meal. This implies providing consolidated services
44
like tracking of materials, planning, forecasting and scheduling, technological support,
knowledge management and transitions etc.Developing process capabilities and monitoring the
compliance towards performance of the logistics operations will help to build up a green supply
chain. Effective Knowledge management in terms of flow of materials, finance and information
help in the alignment of supply chain with the organizational performance. In order to achieve a
higher degree of sustainability, it is mandatory for the suppliers to design a performance
framework on metrics measuring the cost probabilities ,investment capital flows and correlate
the same with deliveries and availability of products.
6.4 Scope for future research
Ardent focus on management of Vendors will help in the effective management of supply chain
as the vendors can get transformed to future suppliers of parts. Future research must focus on
sustainability of global supply chain enabling outsourcing of services and products across the
globe. Dealers are acting as an interface between suppliers and customers .This calls for more
future research options in order to achieve better relations with customers and retain them. There
should be focus on tapping skilled and proficient executives with expertise in handling shipping
routes, identifying warehouse equipments, locating centers for distribution and negotiation skills
to handle rate related freight and fuel.
Future research with respect requirement of investment stresses on more focus on improving the
existing process and planning investments, management of dealers and distribution,
Transformation of domestic supply chains to global supply chains. Acquisition, vendor
partnership, Joint ventures are critical areas of focus for future research. Effect demand
assessment influencing strict monitoring on process flow and control is also essential for
sustainability of supply chain.
6.5 Summary
In this chapter, recommendations are given specifically to original equipment manufacturers,
logistics players based on the pointers received in data analysis of semi structured interview
questions. The areas for future focus are also highlighted to enable consistency and continuous
improvement in the supply chain performance and retain the degree of sustainability of green
supply chain across the globe.
45
CHAPTER 7: Self-reflective statement
This is a brief write up on the learning achieved by me while doing this dissertation .I have
gained considerable research aptitude and probing skills while designing the questions for semi
structured interviews .The analytical ability to correlate the data interpretation with research
outcome is another learning acquired by me. When I started the Dissertation, I was not aware of
the detailed reviews that can be fetched till I finalized my objectives for research. Once this was
done, then I have got an idea on the next step of implementation that is the research methodology
and format of data collection. In all chapters of this dissertation, there is a step by step learning
approach with emphasis on learning and application of learning through the data analysis .The
data interpretation has helped me to scale up my research aptitude and also envisioned me to
develop an interest towards graphical representations as tools for effective data analysis. The
major skills acquired by me is primary and secondary research skills, compliance towards time
and plan efficiently on time management to meet the deadlines, skills for prioritizing the data and
finally my dissertation writing skills. This dissertation has increased my confidence level to a
higher dimension. I have also acquired interest on independent learning focusing and segregating
of data with higher degree of relevance. I have referred various journals, books and interviews of
leading supply chain directors to achieve this expertise on green supply chain
management.While designing the questions for semi structured interview,I had to exhibit
knowledge and design questions appropriately and this definitely added more clarity to my
probing skills.Throughout the journey of dissertation, I had referred effective literature which
served as a base for my research .I sincerely thank all the authors who have contributed to the
research in area of supply chain management and helped students like me to gain more expertise
in this area. While doing scope for further research, I have brainstormed with the interviewee and
recorded their opinions as well. Without their support and patience to answer the questions, this
dissertation will not be complete. While doing each and every chapter, my project guide offered
me continuous feedback and assistance in citing references.In a nut shell, I have learnt the
importance of time management, disciplined myself, enriched my organizing capabilities while
doing this dissertation and I am sure that this experience will help me in my future prospects.
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54
APPENDIX-I ETHICS FORM
APPENDIX-II SEMI STRUCTURED
INTERVIEW QUESTIONS
STRUCTURED INTERVIEW QUESTIONS
My name is Navaneeth Sarma Mukhami Shyamsundar and I am a student at Cardiff University.
This survey is being undertaken for my MBA qualification. Can I assure you that any information
provided will be treated as strictly confidential.
1. What are key challenges faced by supply chain management of your automobile organisation?
2. What are the key issues faced by automobile industry during implementation of an integration process of supply chain?
3. Why is inbound logistics management considered as a concern in automobile industry?
4. What is the outcome of increased competition among automobile industries and
how does the company tackle this competitive challenge?
5. What are the key initiatives adopted by your organization to address challenges
faced in supply chain management?
6. In what way can the outsourcing of green supply chains be effective and
sustainable?
7. What are the different types of business models that can be adopted to sustain the
supply chain in a global perspective?
8. What are key areas contributing to successful global supply chain management?
9. What are the critical requirements for future supply chain management in an
investment perspective?
10. Why are exports considered as an integral part of global supply chain management of
the organization?
11. What is the advantage of having a standardized procurement process in your
automobile organization?
12. Are there any further comments you would like to make in these supply chain areas?
APPENDIX-III BUSINESS PROJECT
MEETING REPORT
Dissertation / Project Progress Report Form Student Name
Navaneeth Sarma Mukhami Shyamsundar
Student Email
Student Number
1367799 Course MBA
Date 25th September 2014 Time 10.30 a.m. Location: Room C.22
Comments on progress
Discussed the project and agreed on Supply Chain investigation with “Green” within the investigation.
Produced a “route map” of the project.
Still awaiting results of re-sits.
Targets for next meeting
Commence literature review with approximate total of 2,000 words across the main areas.
Date of next meeting T.B.A.
Student Signature Signed by student Date 25.09.14
If your dissertation requires research ethics approval and you do not obtain it before you conduct the research and submit the forms as an appendix to your dissertation you will receive a mark of zero. Please sign below to show that you understand this.
Student Signature Signed by student Date 25.09.14
Dissertation / Project Progress Report Form Student Name
Navaneeth Sarma Mukhami Shyamsundar
Student Email
Student Number
1367799 Course MBA
Date 31st October 2014 Time 10.30 a.m. Location: Room C.22
Comments on progress Travelled from Reading for interview.
Reviewed and edited semi-structured interview questions.
Has commenced literature review based on supply chain, procurement and green supply chain.
Has completed abstract and introduction; this has been reviewed and edited.
Targets for next meeting
Produce ethics and consent forms and send; tutor to organise in the office.
Revise introduction chapter.
Carry out interviews.
Continue to write literature review.
Commence research methodology chapter.
Tutor to send documents showing approximate word count for an MBA project.
Date of next meeting Wednesday 12th November 2014 at 10.30 in room B.28
Student Signature Signed by student Date 31.10.14
If your dissertation requires research ethics approval and you do not obtain it before you conduct the research and submit the forms as an appendix to your dissertation you will receive a mark of zero. Please sign below to show that you understand this.
Student Signature Signed by student Date 31.10.14
Dissertation / Project Progress Report Form Student Name
Navaneeth Sarma Mukhami Shyamsundar
Student Email
Student Number
1367799 Course MBA
Date 12th November 2014 Time 12.00 noon Location: Room B.28
Comments on progress Now moving to Skype meetings from Reading.
Completed and edited introduction and literature review chapters.
Targets for next meeting
Draft research methodology chapter and send to tutor.
Carrying out semi-structured interviews (some already completed 3 or 4).
On completion of interviews, complete results / findings chapter.
Then move to conclusion chapter.
Date of next meeting Wednesday 26th November 2014 at 9.00 p.m. via Skype
Student Signature Signed by student Date 12.11.14
If your dissertation requires research ethics approval and you do not obtain it before you conduct the research and submit the forms as an appendix to your dissertation you will receive a mark of zero. Please sign below to show that you understand this.
Student Signature Signed by student Date 12.11.14
Dissertation / Project Progress Report Form Student Name
Navaneeth Sarma Mukhami Shyamsundar
Student Email
Student Number
1367799 Course MBA
Date 26th November 2014 Time 9.00 p.m. Location: Via Skype (student in Reading / Tutor at home)
Comments on progress
Reviewed progress in that has drafted literature review.
Has drafted research methods chapter.
Targets for next meeting
Edits to literature review to increase citation (references) and a chapter summary.
Look to finish the findings and results chapter.
Then move onto the conclusions chapter followed by the recommendations chapter.
Date of next meeting Tuesday 9th December 2014 at 9.30 a.m. via Skype
Student Signature Date 26.11.14
If your dissertation requires research ethics approval and you do not obtain it before you conduct the research and submit the forms as an appendix to your dissertation you will receive a mark of zero. Please sign below to show that you understand this.
Student Signature Date
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