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Impact of e-supply chain on supply chain management of retail malls in Nagpur.

Introduction
Supply chain management today is as important for success in the digital economy as it was for
Roman Empire world dominance.” Douglas M. Lambert (2009) “Successful supply chain
management requires cross-functional integration within the firm and across the network of firms
that comprise the supply chain.” Many companies initially focus on supply chain management as
a way to improve customer satisfaction and reduce operational inefficiencies. While doing this,
the company improves visibility and control over its supply chain, which also leads to better
financial performance. Supply chain management is essential to the company’s competitive
capacity. Nowadays, especially with the globalization and IT industry development, companies
are not competing as individuals but as part of the supply chain in the global environment. How
to cut cost, improve quality and also operate effectively is every company’s principle through the
supply chain management. With substantially cheaper labor and cost, many companies in the
developed countries have started sourcing in the booming economics in China and some other
countries. This is also the trend of global supply chain. However, low product price in emerging
economics comes together with more communication efforts, longer delivery time, bigger
purchase quantities and high inventory level. A minor company therefore finds it rather difficult
sometimes to optimize their strategies, and resolve the quality problems. Benefit and cost are
closely linked with supplier performance.

In order to achieve this coordination/integration of all the links in the supply chain, information
is critical. Recent technological developments in information systems and information
technologies have the potential to facilitate this coordination, and this, in turn, allows the virtual
integration of the entire supply chain. The focus of this integration in the context of Internet-
enabled activities is generally referred to as e-SCM. Merging these two fields (SCM and the
Internet) is a key area of concern for contemporary managers and researchers. Managers have
realised that the Internet can enhance SCM decision making by providing real-time information
and enabling collaboration between trading partners. Many companies have implemented point-

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of-sales scanners, which read, on real time, what is being sold. These companies do not only
collect information on real-time to make decisions about what to order or how to replenish the
stores; they also send this information, through the Internet, to their suppliers in order to make
them able to synchronise their production to actual sales.

What is supply chain management?


In the globalized competition around the world are in search of a powerful source of competitive
advantage. The same advantage is found in terms of Supply Chain Management, which
encompasses all integrated activities which are associated whit the Traveling or transportation of
the product to satisfy the Customers.

The Supply Chain Management consists of integrated Manufacturing Functions i.e. operations,
Purchasing, Transportation and the Proper distribution of different components at different
locations & Positions wherever they are needed. The Supply Chain Management is a flexible
manufacturing Process which includes various tasks to be done and that functions of
manufacturing Processes linked together by Supply Chain Management. The SCM consists of
different departments, different vendors, suppliers, transportations or logistics services, third
party companies and the IT supports required and coordinate together.

The organizational supply chain management refers different functions and activities which
covers in inbound logistic and outbound logistic, inventory control, procurement, sourcing, ware
housing etc. which performs well under one roof of supply chain management and which control
and monitor different important functions like scheduling, order processing, customers service,
forecasting, production planning etc.

In the literature there is a diversity of models suggesting which the main supply chain processes
are. For example, in 1996 the Supply Chain Operations Reference (SCOR) model was developed
with the aim of helping organisations to improve their supply chain efficiency. This model
focuses on five key processes for supply chains: plan, source, make, deliver, and return. In 1997,
(Cooper, Lambert et al. 1997) defined SCM taking into account the eight supply chain processes
identified by the International Centre for Competitive Excellence (now named Global Supply

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Chain Forum): customer relationship management, customer service management, demand
management, e-fulfilment, eprocurement, manufacturing flow management, product
development and commercialisation, and reverse logistics. (Hewitt 1994) found that executives
identify up to fourteen business processes. As a result, we decided to adopt the (Cooper, Lambert
et al. 1997) model as it provides more detailed analysis.

Given the importance of e-SCM and its impact on research and business, our motivation is to
provide a literature review in a similar way as it has been done by the previous cited authors. The
main objective of the present work is to provide practitioners and academicians with a
comprehensive source of information to draw from, and help those identifying areas and
directions for future work.

Defining e-SCM
As (Croom 2005) pointed out very recently, there is some debate about the scope of SCM. For
example, (Oliver and Webber 1992) and (Houlihan 1984) used the term SCM for the internal
supply chain that integrates business functions involved in the flow of materials and information
from inbound to outbound ends of the business. (Ellram 1991) viewed SCM as an alternative to
vertical integration. And, (Christopher 1998) defined SCM as the management of upstream and
downstream relationships. (Croom 2005) suggested that one way of dealing with the diversity of
SCM definitions is to concentrate on the core processes and functions relating to the
management of supply chains (for example, fulfilment, operations planning and procurement).

In the literature there is a diversity of models suggesting which the main supply chain processes
are. For example, the Supply Chain Operations Reference (SCOR) model developed in 1996
focuses on five key processes: plan, source, make, deliver, and return. (Cooper, Lambert et al.
1997) defined SCM taking into account the eight supply chain processes identified by the
International Centre for Competitive Excellence (now named Global Supply Chain Forum):
customer relationship management, customer service management, demand management,
fulfilment, procurement, manufacturing flow management, product development and
commercialisation, and reverse logistics.

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Hewitt (1994) found that executives identify up to fourteen business processes. As a result, a
definition comprising a number of processes closer to fourteen might provide more detailed
information for practitioners and researchers. Accordingly, from the two previous models we
decided to adopt the definition of SCM provided by (Cooper, Lambert et al. 1997). This
definition has been widely referred to (see for example, (Romano and Vinelli 2001), (Cagliano,
Caniato et al. 2003), (Mills, Schmitz et al. 2004), (Cousins 2005) and (Danese, Romano et al.
2006)). (Cooper, Lambert et al. 1997) defined SCM as “the integration of key business processes
from end user through original suppliers that provides products, services, and information that
add value for customers and other stakeholders”. SCM ideally embraces all business processes
cutting across all organisations within the supply chain, from initial point of supply to the
ultimate point of consumption

(Cooper, Lambert et al. 1997). For (Cooper, Lambert et al. 1997), SCM embraces the business
processes identified by the International Centre for Competitive Excellence (now Global Supply
Chain Forum) (see Figure 1). Accordingly, we define e-SCM as the impact that the Internet has
on the integration of key business processes from end user through original suppliers that
provides products, services, and information that add value for customers and other stakeholders.

The Internet can have three main impacts on the supply chain. One of the most covered topics in
the literature is the impact of e-commerce, which refers mainly to how companies can respond to
the challenges posed by the Internet on the fulfilment of goods sold through the net. Another
impact refers to information sharing, how the Internet can be used as a medium to access and
transmit information among supply chain partners. However, the Internet not only enables supply
chain partners to access and share information, but also to access data analysis and modelling to
jointly make a better planning and decision making.

Review of Literature
1. (Chopra and Meindl, 2001). One of the most relevant evolutions of modern business
management is that companies compete as networks of partners, rather than as single
autonomous companies. Traditionally composed of suppliers, manufacturers, wholesalers, and
customers, these partners form a network of relationships that is known as a supply chain."

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Closely related to supply chains is the concept of supply chain management" which emerged
from the natural intuition that adequate management of supply chain products, information, and
funds will improve supply chain competitiveness and profitability

2.Christopher (1998) defined supply chain management as: the management of upstream and
downstream relationships with suppliers and customers to deliver superior customer value at less
cost to the supply chain as a whole." (Christopher, 1998) The foundation of supply chain
management is underscored in this definition in that supply chain management focuses on the
optimization of system-wide performance, not the narrow interests of single partners. There is a
significant amount of evidence in the literature that networks' bottom-line performance can be
improved by counterintuitive decisions at the retail level. For instance, Billington et al. (2004)
detailed how HewlettPackard Company saved $80 million in desk printer supply costs by
switching transoceanic freight lanes from air to sea.

3.Shanthi Venkataraman (2004) states that strict inventory control, backward integration and
the use of private labels are some of the measures that have been taken by many organized
retailers to improve margins, and for Example Pantaloon has a stock conversion period of about
90 days. This is moderate, considering that it retails a wide range of products with divergent
inventory policies. Pantaloon is integrated backwards in the organized apparel business, with its
group company, Pantaloon Industries - supplying fabric. This enables it to have some control
over the cost and quality of its organised apparel. It markets most of its products under private
labels, thus offering products that cost 20-25 per cent lower than branded items, owing to an
absence of advertising and other related expenses.

4.Mike Kilgore, Abraham Joseph and Jeff Meterskyy (2007) argue that India‟s supply chains
will not be highly reliable. Shippers accustomed to reliability and speed will have to reset
expectations. To reduce the impact of highly-variable transportation, brought about by
inadequate logistical infrastructure, firms must adopt inventory strategies similar to those used in
small-part service industries. While service parts industries use inventory to buffer demand
versus transportation variability, the resulting network structure is the same. Firms will need to
stage inventory throughout multiple echelons to reduce the impact of transportation variability

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and high transportation costs. This multiechelon Staging will create networks with many
distribution points and double-handling of products.

5.Vyas Preeta and Sharma Ankush (2007) Decision Support Systems (DSS) provide timely
and accurate information & it can be viewed as an integrated entity providing management with
the tools and information to assist their decision making. This study which is exploratory in
nature, adopts a case study approach to understand practices of organized retailers in organised
apparel outlets regarding applications of various DSS tools. Conceptual overview of DSS is
undertaken by reviewing the literature. The study describes practices and usage of DSS in
operational decisions in organized retail organised apparel outlets and managerial issues in
design and implementation of DSS. A multi brand local chain and multi brand national chain of
organised apparel was chosen for the study. Varied tools were found to be used by them. It was
also found that for sales forecasting and visual merchandising decisions, prior experience rather
than any DSS tool was used.

Need and Rationale of the Study

Supply chain management has been identified and researched in many industries including
automobile, food service, healthcare, information technology, and retailing outlets. However,
limited information is available about the functions and practical experiences of the supply chain
management in the retail business. The study will focus on the importance of the supply chain
management and framework of an effective supply chain management in the retail business. The
real meaning of supply chain management will be defined. The related practical skills and
effective management issues will be discussed. The research specially focuses on the retail
business in India.

The organized retail businesses are spread all over the country. The size and scale of the
businesses are various. Also the target customer and markets are quite different. Therefore,
supply chain, as a dynamic is difficult to be covered in all the aspects in the study. The study will
focus on the selected organized retail business in India.

Objectives of the study


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The objectives of this study are:
1. To define what can be understood by e-SCM.
2. To determine if e-SCM has been acknowledged as an outstanding topic in the most
prestigious Operations Management and Logistics journals.
3. To identify the main topics of e-SCM during the period 2007-2017.
4. To identify the methodologies used in the existing literature.
5. To present a literature review of the main topics on e-SCM.
6. To identify implications and directions for future research.

Scope of the Study

Since the stake for the different players is extremely high making it imperative for the partners -
including suppliers, manufacturers, distributors and customers behave as if they are part of the
same company. Thus scope of supply chain management is vast.

This way only they can enhance performance significantly across the chain.
This amply defines the scope of supply chain management which has to monitor and control the
activities right from customer's customer to supplier's supplier.

With Globalization and resulting competition compelling the business entities the world over to
change and adapt the new technologies and concepts, Supply Chain Management, as concept and
tool has emerged as the most important field of management today. Thanks to the advancement
in the Information technology, managing diverse affairs of the business starting from customer's
customer to supplier's supplier is easily attainable.

Management of supply chain as such is management of various functions carried out in a


continuous supply chain environment such as demand forecasting, production planning,
procuring raw materials for production, manufacturing, managing inventory, processing input to
convert into output and finally arranging smooth distribution of the finished product to the
retailers.

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As the reach of Globalization expands so shall the scope of Supply Chain Management which is
being recognized as a major competitive edge of business today.

Methodology

The Research Methodology adopted for the study comprises of several steps, such as

1. Secondary Study

A study of several research papers/books and other reports were identified and studied, with the
objective of finding out the gaps in the study, the factors that have a bearing on the objectives of
the study.

2. Primary study

A primary study confining of discussions with various Mall Managers of Nagpur was initiated
and conducted. The discussions were held using a questionnaire

The questionnaire comprises of several parts such as

a) Recognition of supply chain management


b) Importance of supply chain management
c) Performance of supply chain management
d) Supplier Performance
e) Distribution channel
f) Customer demand

The questionnaire was further tested for Cronbach Alpha reliability to test the internal
consistency of the items. According to Aiken,(2017) This is a general formula for estimating the
reliability of a test consisting of items on which different scoring weights may be assigned to
different responses. Alpha reliability coefficient for the respondent’s questionnaire was found to
be 0.740 which is within the acceptable range. Reliability refers to the consistency of scores
obtained by the same person when reexamined with the same test on different occasions or with
different sets of equivalent items or under variable examining conditions.

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Data Collection & Data Analysis

For the purpose of the study 3 Malls of Nagpur city was chosen as the area where the study will
be conducted. The preliminary study indicates that the impact of supply chain management and
its effect was felt to be high in most of the retail Malls in Nagpur.

A pilot study was conducted in Nagpur with the objective of checking the reliability of the study.

Sample Size

The sample size calculator indicated that a sample of around 864 respondents would be required.

The actual sample used was 900 comprising of 300 respondents in each of the 3 Malls. The 300
respondents were than further stratified to take into consideration the number of outlets for each
Mall.

Data Analysis

The data collected was then curetted and analyzed using SPSS 20. Statistical tools like
ANNOVA, Chi Square etc. were used.

Limitations of the study

Researcher has assumed that the information provided by the retail executives and managers is
transparent and accurate. However there can be constraints while sharing information by the
retailers for general and academic survey. Hence more accurate information can be gathered only
if such survey is commissioned by large retailers for their own use.

The Indian organized retail scenario is evolving and is in dynamic state with all retail chains
expanding aggressively. However many of them could not sustain this growth because of
liquidity problems and debt related issues. Therefore care has been taken to include only those
retailers who have stabilized operations. The scenario can change in the future. Thus this
research work can only be used as a reference for conducting a similar study on organized retail.
But the sampling frame will have to be decided as appropriate at the time of conducting any
future study.

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Plan of analysis

Chapter Contents

1 Executive Summary
2 Introduction
3 Research Methodology
4 Analysis and Findings of study
5 conclusion and recommendation of study
6 Key Findings and Conclusions
References, Bibliography
Appendices

QUESTIONNAIRE

The questionnaire is aimed at collecting information in regard to effect of e-supply chain on


Supply Chain Management at a retail Mall in Nagpur.

Please assess the criteria statements by putting a tick in the box that best represents your
expectations or opinions of your company.

Strongly Disagree ( ) Disagree ( ) Neutral ( ) Agree ( ) Strongly Agree ( )

1. Is the supply chain management mentioned and recognized by your company

Strongly Disagree ( ) Disagree ( ) Neutral ( ) Agree ( ) Strongly Agree ( )

2. Do you think that e-supply chain management is different from value chain management?

Strongly Disagree ( ) Disagree ( ) Neutral ( ) Agree ( ) Strongly Agree ( )

3. There is close relation between supply chain management and retail business.

Strongly Disagree ( ) Disagree ( ) Neutral ( ) Agree ( ) Strongly Agree ( )

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