CHAPTER II

REVIEW OF LITERATURE
2.1 Introduction
Literature Review is defined as a logical step for a researcher to understand the
myriad facts and theories on the chosen field of research. The researcher analyses
the different viewpoints and thought process of research study on a particular
subject over a period of time. The industry or branch of study can understand the
evolution and development of ideas, and how every new research throws light on
the particular area of specialization from diverse germination of ideas. An
objective opinion can be obtained by analyzing the review of literature that has
happened which enable the new research to explore the new manifestations that
has taken place and hitherto unobserved. This paves the way for culmination of
new ideas to offer solutions, observe and absorb what the requirements of the study
demand. Review enables the research to attain clarity and to organize in a cohesive
manner.

The researcher undertakes to give a gist of the research that has been
undertaken on the title - Impact Of Supply Chain Management on Operational
Performance.- A study with reference to Indian Agarbathy Industry

The reputed and accredited research views on various branches of Supply

Chain Management and various contours of SCM have been enlisted for
observation.

32
2.2.SCM - An Overview

Christopher, Martin. L (1992) in his research publication “Logistics and Supply

Chain Management” has made an attempt to provide an understanding of the
emerging competitive environment and the ultimate success of the single business
will depend on management’s ability to integrate the company’s intricate network
of business relationships , he sums .
This emphasizes the concept of network association in true sense. The modern
research envisages transformation of traditional business in a combination of
network and association of varied functional unit into effective operational
management.

An intrinsic study on Supply Chain Logistic management was done in the book
“Supply Chain Logistic Management” by DonalBowersox, David closs and M.
Bixby Cooper( 1997) In that sense, SCM deals with total business-process
excellence and represents a new way of managing the business and relationships
with other members of the supply chain.

Peter F. Drucker ( 1998), in his book, “The profession of Management” has given
a brief description about the management of multiple relationships across the
supply chain, this is being referred to as supply chain management (SCM). Strictly
speaking, the supply chain is not a chain of businesses with one-to-one, business-
to-business relationships, but a network of multiple businesses and relationships. It
concludes by saying that SCM provides the chance to get the synergy of intra- and
intercompany integration and management.

33
The research of Peter F.Drucker (1998) starts with defining SCM and
establishing antecedent and effective consequences of SCM.

Kathawala and Abdou (2003) in the research article “Supply chain evaluation in
the service industry: a framework development compared to 6 Discrete Dynamics
in Nature and Society manufacturing,” point out that SCM “has been poorly
defined and there is a high degree of variability in people’s minds about what is
meant.” In this management journal, the evolution of supply chain industry is
traced and the author is of the strong opinion that SCM cannot be defined by a
single idea or phrase of word as the function has a lot of variability in the
perception based on industry, geography and requirement.

Chen et al. (2007) “Auctioning supply contracts” in the research article study
supply chain in which a single buyer wishes to procure a package of products or
services from various competing suppliers. In his article in management science
journal, the multifaceted requirement of a single organization principle to procure
products and services from an array of multiple sources is discussed and the thrust
is on multiple sourcing and procurements.

Y. J. Chen and G. Vulcano, (2009) in the management paper “Effects of

information disclosure under first- and second-price auctions in a supply chain
setting” discusses how the buyer can optimize his/her profit and at the same time
coordinate the channel by using a contract scheme involving auctions, audits, and
profit sharing. The authors state, how an organization can put to effectively
economize and optimize and utilize the channel using second price setting.

34
Xiang Lee (2014), “Operations Management of Logistics and Supply Chain” in
this doctoral thesis, “the process of planning, implementing, and controlling the
efficient, effective flow and storage of goods, services, and related information
from point of origin to point of consumption for the purpose of conforming to
customer requirements, which includes inbound, outbound, internal, and external
movements and return of materials for environmental purposes”. The flow of
services and the product assembly related theories were analysed.

Adam Robinson (2015) in his article “3 Core Supply Chain Management,”

discusses the trends of change that SCM can usher in an organization. According
to him, “Supply chain visibility, manufacturing future of factories and internet of
things which pertains to data is the next big development in SCM”.

Graham c. Stevens (2016) in his article “Integrating Supply Chain” 25 years on

traces the developments that has taken place in SCM overview in the last 25 years.
The original publication was to analyse the state of art in SCM which was a new
terminology then. The current paper traces the over all state of art as of now and
verifies if there is any need to alter the original conceptualization. The author
concludes that clusters have evolved to function as one unit and also analyses the
financial profits of the organizations that have practiced SCM in the last 25 years.

David J KetchenJr, and Felix Reimann (2017) in their essay on “Power in

Supply Chain Management,” discuss power of an individual and the organization
in controlling the SCM. Power, buyer seller relationship, resource, dependence and
social exchange are the major power factors that control over all SCM. The power
of an organization according to the author is the strength to control suppliers,
organization, sales, distribution and customers.

35
Ali Bastas and KapilaLiyanage, (2018) in their article “Sustainable Supply Chain
Quality Management: A Systematic Review,” discuss in a unique way an
integrated idea of Quality, supply chain and sustainability Management. The
author concludes with the new theory of integrating TBM (Triple Bottom Line)
(social, environmental and financial) with QM in SCM. This can be termed as the
latest in SCM evolution.

2.3Consequences of SCM: It’s Impact

Jones and Riley (1985)- in his research paper , “Using Inventory for Competitive
Advantage Through Supply Chain Management”, in his analysis of the concept of
supply chain, states “Supply chain management deals with the total flow of
materials from suppliers through end-users...” and concluded this does not talk
about single entity, but a flow of products services..

Houlihan (1988) in the book “International Supply Chain Management”

discusses about the following matters

1) The supply chain is considered as a single procedure. Responsibility for the

various segments in the chain is not fragmented and relegated to functional areas
such as manufacturing, purchasing, distribution, and sales.

2) Supply chain management calls for, and in the end depends on, strategic
decision-making. “Supply” is a shared objective of practically every function in the

36
chain and is of particular strategic significance because of its effectiveness on
overall costs and market share.

3) Supply chain management calls for a different perspective on inventories which

are applied as a balancing mechanism of last, not first, resort.

4) A new approach to systems is required—integration rather than interfacing.

Stevens (1989) in his published article “Integrating the Supply Chain” has made an
effort to study the objective of managing the supply chain. The clinching factor is
to synchronize the requirements of the customer with the flow of materials from
suppliers in order to effect a balance between what are often seen as conflicting
goals of high customer service, low inventory management, and low unit cost.”.

Bernard J.La Londe and James .M. Masters (1994) in the article “Emerging
Logistic Strategies: Blueprints for the Next Century” had undertaken a research on
the new strategy of SCM. Supply chain strategy states that two or more houses in
a supply chain entering into a long-term agreement, for the development of faith
and loyalty to the kinship and the consolidation of logistics activities involving the
sharing of demand and sales data.

David Closs. (1997) – in his research book “ Supply chain Logistic Management”
on distribution of raw materials and products confabulates that Supply chain
management is “an integrative philosophy to manage the total flow of a
distribution- channel from supplier to the ultimate user.”

37
Monczka, Trent, and Handfield (1998) – conducted an empirical study of SCM
which was presented in the research article “ Purchasing and supply management:
trends and changes throughout the 1990s” which emphasizes that SCM requires
traditionally separate materials functions to report to an executive responsible for
co-ordinating the entire materials process, and also requires joint relationships with
suppliers across multiple tiers. SCM is a concept, “whose principal objective is to
integrate and manage the sourcing, flow, and control of materials utilizing a total
systems perspective across multiple offices and multiple tiers of suppliers.”

Gilbert, G. and Gips, M. (2000). In the article “ Supply-side Contingency

Planning and Security Management”, the authors analyses the consequences of
inadequate supply chain which might risk disruptions and avoiding disruptions is
the primary task of SCM . Contigency planning is the most vital cog in supply
chain management according to the authors.

Zsidisin, G. (2003) in his empirical study and research paper “A grounded

definition of supply risk” in the Journal of Purchasing & Supply Management,
discusses the various aspects of SCM models and according to him the vision of
the SCM manager is to avoid disruptions and he adds and discusses the risk of
improper supply chain management.

UtaJuttner,Helen Peck &Martin Christopher (2010) in the article “Supply

chain risk management: outlining an agenda for future research” a research paper,
the consequences of planning and future evolution of supply chain is discussed.
The solution is to plan for the future operations are outlined. The supply chain risk
is analysed.

38
Samir K. Srivastava (2007) in the article” Green supply‐chain management: A
state‐of‐the‐art literature review” the author discusses means to integrate
environmental and green issues and the need to involve the regulatory body into
planning the consequences of SCM. According to the author with changing times
and pollution levels that is a major effect which affects the lives of people , new
SCM antecedent should take this as a major issue.

David M. GligorMary C. Holcomb (2012) have presented an article

“Antecedents and Consequences of Supply Chain Agility: Establishing the Link to
Firm Performance.” The concept of supply chain agility has been discussed by the
authors in the published article. According to them there is big scope for
establishing the link between agility and firm performance.. The authors study the
various factors that mitigate SCM and conclude that there is a positive co relation
between SCM agility and the output of the organization.

.
.Clare Brindley (2017) in his book “Supply chain Risk”, state that external factors
influence the supply chain consequences of an organization .the findings sees a
robust cross functional and disciplinary view of supply chain strategies and
organizations..

2.4 Elements of SCM-Integrated Supply chain Strategies

Christopher (1992) , in his book “Logistics and supply Management” analyses

his experiment with firms which started practicing SCM and has new
interpretation. He concludes, a supply chain is the network of organizations that
are involved, through upstream and downstream linkages, in the different
processes and activities that produce value in the variety of products and services

39
delivered to the ultimate consumer In other words, a supply chain consists of
multiple houses, both upstream (i.e., supply) and downstream (i.e., distribution),
and the ultimate consumer..

Lambert, James R. Stock, and Lisa M. Ellram, (1998), in the publications

“Fundamentals of Logistics Management” have all conducted research on
emerging trends in SCM. The definition of “Supply Chain” seems to be more
common across authors than the definition of “supply chain management” Masters
proposed that a supply chain is a set of firms that passes materials forward.

Usually, several independent firms are involved in manufacturing a product and

investing it in the hands of the end-user in a supply chain—raw material and
component producers, product- assemblers, wholesalers, retailer-merchants and
transportation-companies are all members of a supply chain. By the same token,
Lambert, Stock, and Ellram explain supply chain as the alignment of firms that
brings products or services to market. It is noted that these concepts of supply
chain include the final consumer as part of the supply chain.

Forrester J.W.(1999) in his article “Urban Dynamics” in his descriptive study

describes systems approach to Supply chain members and their supply chain
management. Each member is an Entity with system elements of input, processes,
output, control, feedback and boundary conditions. It explains the ramifications
created by internal and boundary conditions. It also deals with outside or
environmental pressures on the system elements..

Mentzer John .T (2001) in his article “Managing the Supply Chain:Managerial

and Research Implications in Supply Chain Management” has done an empirical

40
study on managing the supply chain. Although connotations of supply chain
management seem to differ across authors, a representative of which has been
gathered by the researcher and denoted that these different definitions can be
classified into three categories: a management philosophy, implementation of a
management philosophy, and a set of management processes. The alternatives and
the categories which are represented by other authors suggest that the term “supply
chain management” presents a source of confusion for those involved in
researching the phenomena, as well as those attempting to establish a supply chain
approach to management.

Poirier C.C. (2003), in the book “Using Models to Improve Supply Chain”
advocates the four levels of supply chain optimization in his analytical study of
supply chain solutions.. The level one, ‘Sourcing and Logistics’ and level two,
‘Internal Excellence’ come under “Internal control”. The level, three, ‘Network
Construction’ and level four, ‘Industry Leadership’ come under “External control”.
Every Organization can assess their status level and strive to the next level…

Christopher (2007) discusses in the book, “Logistics and Supply Management”,

elements of supply chain management is a process integration within the chain of
flow of services and products. The process in the chain of events that connects the
process from end user to the original process, products and organizations and
concludes that the elements start with the customer.

Dr.Dawei Lu (2011) in the book” Fundamentals of Supply Chain”, discuss the

element of SCM which come together that comprises of groups of services and
companies that come together to add value to their product and deliver to the

41
customer. The author confabulates that SCM is a new phenomenon that has come
into existence recently, the reasons are primarily wide viz, globalization of
business, competition, heightened customer expectation, technical and commercial
factors etc. it is concluded that the competition has changed from company to
company to supply chain to supply chain and hence it is very important that the
clusters combine their elements at the optimum level.

Christian Bechtel, JayanthJayaram, (2013) "Supply Chain Management and

Strategic Perspective”, in this innovative paper, the researcher established the
connection among lead management, supply chain management and sustainability
in the business. The authors found that any organisation leaves upon the supply
chain management for continuous flow of production and maximizing their
profitability. It is also argued that the sustainability in the business is possible and
competency will maintain a unbreakable supply chain. The wheel of supply,
product and consumer should reach a maximum velocity to attain the point of
culmination of profit.

Douglas M. Lambert, Sebastián J. García‐Dastugue, Keely L. Croxton( 2013)

in their paper “An evaluation of process oriented supply chain management frame
works,” found the deep association between green procurement especially in the
private sector and supply chain management. The organisations are motivated
through the domain of economic policies, globalization and environment
protection policies. Still some of the organisations felt the difficulties in
implementing one of the element of supply chain management namely
procurement. The author found that organisation performance also creates impact
over well planned procurement management.

42
Pedro JoséMartínez-Jurado JoséMoyano-Fuentes(2014) “Management and
sustainability of supply chains”, the author found that sustainability, well
concerned of environmental compulsion and supply chain management are
interrelated. The model extracted by the authors from various mathematical
models proved that supply chain management is influenced by the prevailing and
existing multiple criteria of decision making. This is achieved through identifying
the correlation between life cycle analysis and analytical networks. It is also
concluded that all the SCM models have the tendencies to change due to policies
involved in supply chain.

John Ni, Xiaowen Huang (2017) “Discovery‐to‐Recall in the Automotive

Industry: A Problem‐Solving Perspective on Investigation of Quality Failures”, in
this paper the authors enlightened the penetration of supply chain management in
the environmental issues. They found that the large and giant companies consists
of an element of supply chain which is not concentrating on corporate social
responsibility. This conceptual paper emphasized that the humanitarian logistics
must be included as one of the aspects (or) components of supply chain. This sort
of approach would decide the financial viability of firms in the long run. They also
categorized that the firms must be equidistant between purely sound and pure
commercial enterprises. The authors also generated a new concept called sound
impact supply chain management, it requires supply chains strategies, stake holder
identification and engagement and relationship management to distinguish sound
impact supply chain management.

43
2.5 Supply Chain Management Model

Bo Won Kim(2005) in his “ Supply Chain Management: Mastering Business in

Asia”, has conducted a hypothetic case analysis evolving a 3C Model for
building Supply chain management with sustainable competitive capability.
Competitive priorities for supply chains are low cost, consistent quality, and on-
time delivery. The 3Cs are Calculus, Creativity and Commitment. Calculus
represents in-depth, fundamental analysis before making any resource/strategic
commitment to particular choices or actions. The levels of calculus (analysis is
logical, robust and /or thorough enough) will affect the competitive strategy.
Creativity is motivated by communication, controversy and concurrency within the
system. Commitment is decided by the managers of the firm by their choice,
concentration and consistency in decision making.

RajkumarOhdar and Pradip Kumar Ray (2006), in the research article “Supply
Chain Management Practices in Indian Manufacturing Companies: A Study”
assessed the present status and scope of SCM practices through extensive survey
conducted among the Indian manufacturing companies. In this survey, the first of
its kind in India, opinions of Indian Manufacturers from across the country was
sought. A number of issues such as role of Information Technology, areas of IT
applications, prospects of employing SCM, Supply chain performance measures,
issues hindering practices were addressed in the context of the Manufacturing
companies. The paper presented a detailed statistical analysis of the survey
responses indicating the usefulness of the survey results to the companies
contemplating implementation of SCM practices in the near future.

Manuj,I., &Mentzer, J. T. (2008). “Global supply chain risk management

strategies”. in the article the author discusses the model that has evolved in SCM.

44
According to him, firms face challenges from within and external technological,
social and geographic factors and it is very important that the planned model looks
at these challenges before being developed for the organization.

Bhamra, R., Dani, S., &Burnard, K. (2011). “Resilience: The Concept, a

Literature Review and Future Directions”, in the article discusses the scarcity of
empirical studies on the SCM models especially involving SME, which produce
70% of the world productivity. The author emphasizes to attempt an analytical
study about building a resilient model and compares it with the actual performance
of the organization and confabulates that both should synchronize with each other.

Pal, R., Torstensson, H., &Mattila, H. (2014). “Antecedents of organizational

resilience in economic crisis” in the research article, the various models and
possible disruptions were discussed. The paper identifies that disruption of
information, services and materials will result in wilting down of supply chain of
an organization resulting in declined productivity. Hence the SCM model should
ensure the sequential flow of the elements, should be seamless and ensure a
smooth flow and increased productivity.

Sanderson J, Lonsdale C, Mannion R, et al.,(2015) in the research paper for UK

Health department, discusses the ideas, theories, conceptual models and paradigm
and recommended shifts to evolve a supply chain model. The various aspects and
possible disruptions are analysed. The rules of contracting, purpose behind
purchase decisions, networks and inter organizational relationship, developing a
structured framework for inter relationship are discussed and the author concludes,
all this to be integrated into identifying the functional model using lean
management techniques so that any disruptions can be immediately identified and
solved.

45
Marco Formentini and Paolo Tatichi (2016), in the publication” Sustainable
Supply Chain Management”, discuss how corporate sustainability has to model the
supply chain requirement approaches to the governance mechanism policy and has
to assess how governance restrictions might affect the approaches. This is very
critical because any change in governance laws might affect the supply chain flow.
The findings conclude there are sustainability traditionalist, leaders and
practitioners and discusses factors governing governance mechanism and how each
sustainable sections approach governance concepts.

Manopiniwes, W., &Irohara, T. (2017). In the research article “Stochastic

optimization model for integrated decisions on relief supply chains: preparedness
for disaster response” the authors confabulate the best supply chain model through
research in various case studies, and concluded that by integrating various flow
points and developing a series of alternate supply and services, pool the possible
response as an immediate state of preparedness for possible emergencies.

Wen Luo, Yangyan Shi,& VG Venkatesh (2018), in the article, “Exploring The
Factors of Supply Chain Excellence: A New Zealand Perspective”, the authors
have conducted a competent research with the leading practitioners of SCM on
their views and practices required to attain excellence model in SCM. The research
throws an interesting conclusion that, as per the opinion generated , people
relevant issues like SCM knowledge, education and SCM culture are the clinching
factors than technical and operational factors. Thus this model emphasizes more on
human resources as a potential SCM model.

46
2.5 Supply Chain – Operational Performance

Cooper, M.C., Lambert, D.M., & Pagh, J. (1997) “Supply Chain Management:
More Than a New Name for Logistics” in the research article, argue that
organizational relationships tie firms to each other and may tie their success to the
supply chain as a whole. In this context, a supply chain as a whole may suffer its
own individuality and social occasion like an independent house. However, to
accomplish this ultimate supply chain, all companies in the supply chain must have
a supply chain orientation. The result is a fully-managed supply chain.

Christopher (1998), in his publication, “Logistics and Supply Chain Management:

Strategies for Reducing Cost and Improving Service” discuss as leading-edge
companies have realized that the real competition is not company against
company, but rather supply chain against supply chain.. This is the crux of
evolving supply chain integration of diverse products and services.

Webster (2002), in his research publication “Theories of the Information Society”

on supply chain network emphasizes, networks are the complex, multifaceted
organizational structures that result from multiple strategic alliances. Thus, it is
proposed that a network is a well-recognized organization for SCM. The basic
feature of a network- formation is a confederation— a free and flexible coalition
guided from a hub where the key uses include growth and management of the
bonds themselves, co-ordination of financial resources and technology, definition
and management of core competencies and strategies, development of relationships
with customers, and management of information resources that bind the network.

47
There is a need for looking at the functional as well as the organizational scope of
SCM, as the implementation and process of SCM across companies, must have a
Supply chain oriented strategy. .

Kearney et.al., (2006) in their research publication “Meta-analysis of randomised

trials”, discusses a framework to identify a supply chain, and offers a how-to
approach for the development of strategies within the supply chain. It discusses the
issues, complications and prospects related to the supply chain. Every company
should understand its needs and operations before it makes a choice of the supply
chain. The key to a supply chain is its dynamic management-matching the right
strategy with the right situation. It aims to develop a supply chain strategy, by 1)
Identifying relevant supply chain segment (Customer segmentation and Product
segmentation), 2) Constructing logically distinct supply chains, 3) Matching
strategies to supply chains and 4) Defining reconfiguration plan, with each step,
carefully following, a) Purpose, b) Approach and c) Result.

Gujar, Mophare, Deomore and Khodke (2007) in their research article “ System
dynamic Approach For Strategic Supply Chain Management”, discusses how the
long-term profitability of supply chain is affected by strategic decision making
tools like determination of optimal network configuration, inventory management
policies, supply contracts, distribution strategies, supply chain integration,
outsourcing and procurement strategies, product design and information
engineering. Strategic decision-makers are guided by comprehensive models for
efficient decision-making which increases the profitability of the entire chain. This
study presents the guidelines for the methodology and the development for the
strategic modeling of single and multi-echelon supply chains.

48
 The analysis of the survey suggest several directions of research in SCM,
including important performance measures for the development of a
comprehensive performance measurement system.

Sunil Chopra and others (2008), in the publication “Supply Chain Management-
Strategy, Planning, And Operation” discusses the modalities in conducting a
survey and describes the supply chain management strategies, network design,
cross functional and logistical drivers and metrics, effectiveness of information
technology and coordination.

There are many supply chain-initiatives for time-based purchasing -

strategies inspired by JIT philosophy, such as quick response (QR), efficient
consumer-response (ECR), and continuous replenishment (CR). All these
inventory-techniques use pull-philosophy and information to minimize buffers. .

The idea of QR is to capture demand as close to real-time as possible and as

close to the final consumer as possible . In a QR system, suppliers receive point of-
sale (POS) -data to synchronize production and inventory activities with actual
sales at the retailer. The retailer still places individual orders but POS- data is used
to improve forecasting and scheduling, and to reduce lead time. . QR-logistics has
become a basis for collaborative working in the supply chain.

Melnyk S.A.,Lummus R.R., Vokurka R.J., Burns L.J., and Sandor J. (2009),
in the article , “Mapping the future of Supply Chain Management: A Delphi
Study” point out that SCM is changing from tactical in nature (where the major
focus is on cost and delivery) to a field that is strategic in nature. The author report
the future issues and challenges by drawing on the findings generated by a three-

49
phase study (a two-round Delphi study and a workshop).Unique in this Delphi
study is that it brings together leading practitioners in the supply chain
management with leading supply chain management researchers. The authors
explain the process of selection of 29 potential participants.

The findings indicated that while the focus of the current tactical supply
chain position is relatively limited to issues of delivery, risk, and leadership, the
supply chain view of the future (i.e., five years from today) is more complex and
exacting. The results of the study show the following five issues to be most
important in the future. 1) Supply chain disruptions and supply chain risk, 2)
Leadership within the supply chain, 3)Managing the timely delivery of goods and
services, 4) Managing production innovation by drawing on the capabilities of the
supply chain, 5) Implementing appropriate technology to allow seamless exchange
of information within the supply chain. The conflict between what is important
nowadays and what is important five years from now illustrates the differences
between the price driven/strategically-decoupled supply chain of today and the
value-driven/strategically coupled supply chain of tomorrow.

Qi, Y., Boyer, K. K., and Zhao, X. (2009). “Supply Chain Strategy, Product
Characteristics, and Performance Impact” declare that supply chain management is
the most popular approach as the firms must have clear strategic thinking in order
to effectively organize such complicated activities, resources, communications and
processes. This is essential to enhance the global competitiveness of business
corporations today. The authors explain a framework that identifies three kinds of
supply chain strategies: lean strategy, agile strategy and lean/agile strategy on in-
depth case studies. With three target cities, 2724 companies, 604 completed and
useful responses are taken for the analysis. The results and findings discuss the

50
taxonomy of supply chain strategies and their implications on the performances of
operating Firms.

However, the data reveal that some firms have a traditional strategy that
does not emphasize either lean or agile principles. These firms perform worse than
firms that have a strategy focused on lean, agile and lean/agile supply chain. The
schemes are tested with regard to product characteristics and financial and
operational functioning. The study includes correlating lean or agile supply chain
strategy with higher value of functional product characteristics, innovative product
characteristics, firm’s financial performance, customer service performance and
firm’s operating cost performance.

AndreaAppolloni HuiSun FuJia XiaomeiLi (2014), “ Green procurement in the

private sector organization” in ingenious method authors developed a conceptual
model pertaining to strategic factors influencing the supply chain management they
found out in the model that supply input (I), consumer demand (CD) and policies
(P) are the predominant factors influencing the strategic supply chain management
in any organisation.

MarcusBrandenburg KannanGovindan JosephSarkis StefanSeuring (2015),

“Quantitative models for sustainable supply chain management: Developments and
directions” in an innovative empirical paper, the authors proved that the
implementation of effective supply chain management through integration of
corporate functions. They proved the main tool of unification is the business
process within the company also among the different companies. The continuous
different process oriented frameworks are more appropriate in the implementation
of supply chain management. It is also found that supply chain operations

51
reference frame work and global supply chain management are predominant
frameworks useful to identify the strength and weakness of supply chain.

Lutz Kaufmann, JoergRottenburger, Craig R. Carter, Christian Schlereth

(2018), “Bluffs, Lies, and Consequences: A Reconceptualization of Bluffing in
Buyer–Supplier Negotiations”, in this effective research paper authors
meticulously identified the reason why the companies of costly defective products
exploit more time to recall them from their customers. They also found its
subsequent impact on smooth functioning supply chain of the organisation. The
researcher innovatively found five attributes namely, identification of recalling
products, time taken for identification of defective products, official
announcement, flaws identification and strategies from rectification of the flaws
are essential for quality maintenance in supply chain as well as the brand
reputation of the products.

Madeleine Pullman, AnnachiaraLongoni, DavideLuzzini (2018), “Emerging

discourse incubator: The Roles of Institutional Complexity and Hybridity in Social
Impact Supply Chain Managemen”, in an exploratory approach, the researcher
ascertained that business negotiations constitute a crucial element of fulfilling
supply chain interaction. This strategy creates additional value to both buyer and
supplier involved in supply chain management. They also found that supply chain
relationships between buyer and supplier are in the buddy stage due to deception
and bounded ethicality. They also found that there are two types of deceptions
namely bluffs and lies. It makes both the parties to deviate from norms based
constructs of the supply chain management. The authors also empirically
calculated the optimization of bluffs and lies in the problem of refining the
organization.

52
2.6 Supply Chain Management Cycle

Mentzer et al, 2001 in his research article “ Managing the supply chain:
Managerial and Research Implications: in Supply Chain Management”, analyses
that “direct supply chain” consists of a company, a supplier, and a customer
involved in the upstream and/or downstream-flows of products, services, finances,
and/or information. An “extended supply chain” includes suppliers of the
immediate supplier and customers of the immediate customer, all involved in the
upstream and/or downstream-flows of products, services, finances, and/or
information.

An “ultimate supply chain” includes all the organizations involved in all the
upstream and downstream-flows of products, services, finances, and information
from the ultimate supplier to the ultimate customer. A third party financial
provider may be providing financing, taking some of the risk, and offering
financial advice; a third party logistics-provider is performing the logistics-
activities between two of the troupes; and a market-research firm is providing
information about the ultimate customer to a company will back-up the supply
chain.

Handfield et al, (2002)., in his analytical study, “Supply Chain Redesign”

discusses the Strategic positioning of inventories as it is essential, so that the
products are available when the customer wants them.

Domenica Nic et al, ((2003) in his article”Supply Chain planning and

Management” emphasizes that the efficient means should actually be efficient and

53
effective. In this case, efficient means is to minimize resource-use to accomplish
specific outcomes; and effective, in terms of increasing customer service and
reducing cost.

Long-term competitiveness depends on how well the company meets

customer preferences in terms of service, cost, quality, and flexibility, by designing
the supply chain, which will be more effective and efficient than the competitors.
Optimisation of this equilibrium is a constant challenge for the companies, which
are part of the supply chain network.

Longitudes (2004) in his conference report “Mapping The New World of

Synchronized Commerce” discusses firms ability to optimize the equilibrium,
many strategic decisions must be taken and many activities co-ordinate. This
requires careful management and design of the supply chain. The design of supply
chains represents a distinct means by which companies innovate, differentiate, and
create value. The challenge of supply chain design and management is in the
capability to design and assemble assets, organizations, skills, and competences. It
encompasses the team, partners, products, and processes..

Efficiency is measured by delivery-performance, product-quality,

backorders and inventory level, whereas effectiveness is measured by service-
quality and the service needs as per Lyns Peterson (2009) in his article
"Educating the supply chain logistics for humanitarian efforts in Africa: a case
study", Supply chain is affirmed as a set of three or more entities (organizations or
individuals) directly involved in the upstream and downstream flows of products,
services, finances, and/or information from a source to a customer.

54
Eric Astrom,( 2010) in his doctoral thesis “Evaluating Distribution Centers in a
Global Supply Chain: A case Study at Cargotec Sweden, MacGregor Cranes.”
asserts that many systems today are driven to increase their global market-share in
order to exist and support growth objectives. At the same time, these same
organizations must defend their domestic market- share from international
competitors. The challenge is how to extend the global logistics and distribution-
network, in parliamentary procedure to ship merchandise to customers who require
them in a dynamic and quickly-changing set of grooves.

Benjamin T. Hazen, Christopher A. Boone,Jereme D Ezel, Allision Jones

(2014), in their article, “Data quality for Data science predictive analytics and Big
Data in supply chain management” discuss the concept and factors for arriving at
the perfect design for choosing the correct SCM management process. According
to them, the choice of the optimum SCM management process have to be tailored
to perfection by suitable data that is made available. The point emphasized is
therefore that the choice of authentic data is a critical component in SCM
management cycle. Any reliability on improper data might result in a wrong SCM
management process. They conclude and propose to monitor data quality for the
SCM context and ask to control and monitor the data available to ensure correct
SCM management cycle.

Lawrence D Fredendall, Ed Hill (2016), in the Book, “Basics of Supply Chain

Management”, discuss the various contours, purposes and processes in SCM
Management process and dwell in detail about various functions of SCM , says
SCM has developed because of Technology that has made communication simple,
New management paradigms ,and trained workforce and global reach. The correct

55
choice of SCM Management process in purchase, inventory and warehousing ,is
the perfect recipe for the competition that is in vogue and concluded that the
organization that get the cycle right has the edge and it is money. The process that
has emerged is a network of companies, suppliers, service providers have become
networked into one single process unit to cater to the demand and save money.

James B. Ayers, Mary Ann Odegaard (2017), in their publication “Retail

Supply Chain Management discuss supply chain management cycle as multiple
segments from finance, production, distribution to sales. Consumer requirement
and stiff competition require end to end efficiency and a clear cutting edge supply
chain process. Supply chain has scaled to global challenges and technology has
grown to create and manage the process. The success of the process is to manage
the uncontrollable variables at all levels. He concludes to keep the thrust on cost
cutting in an efficient process cycle.

Ming Lang T. Seng, Ming K. Lim, WaiPengWong (2018), in their research

article “A framework for evaluating the performance of sustainable service supply
chain management under uncertainity” is about developing and measuring
sustainable supply chain mechanism. The research emphasize on practical
implementation and its enhanced management process. It concludes that the SCM
process cycle should ensure material efficiency which will result in cost efficiency.
The study gives an insight into how management can evolve a process to take a
decision under uncertain conditions and ensure the purpose of efficient SCM
management process.

56
2.7. Antecedents to supply chain management

Antecedents to supply chain management are defined as different factors which

have a role in enhancing or impeding the implementation of a supply chain
management philosophy. Morgan and Hunt (1994) in the article “The
Commitment, Trust and Theory of Relationship Marketing” propose that co-
operation arises directly from both relationship-trust and commitment Human
aspect.

Gundlach, Achrol, and Mentzer (1995) in the research article “ The Structure of
Commitment in Exchange” has propounded the theory that in SCM essential
ingredient for the successful long-term relationships are a Commitment component
of the implementation of SCM .

Lambert, Stock, and Ellram (1998), in the publication “Fundamentals of

Logistics Management” also point out that the necessary commitment of resources
and empowerment to achieve stated goals is important to implement SCM. Putting
together the effects of trust and commitment, Morgan and Hunt state,
“Commitment and trust are ‘key’ because they encourage marketers to work at
preserving relationship investments by co-operating with exchange-partners. As
such, trust and commitment lead directly to co-operative behaviours in the
implementation of a supply chain orientation across several companies to achieve
SCM-objectives of a firm. This is human element of supply chain.

Moorman, Deshpande, and Zaltman (2002) in their research Paper “Relationship

Between Providers and Users of Market Research: The Dynamics of Trust Within
and Between Organizations” define trust as a willingness to rely on an exchange-
partner in whom one has confidence. They sum up that trust is the central

57
antecedent within and between organizations. Thus, trust has both direct and
indirect relationships with co-operation.

Mark A. Moon and Leff Bonney (2007) in the article “An Application of the
Investment Model to Buyer-Seller Relationships: A Dyadic Perspective”
emphasize the role of trust to overcome mutual difficulties such as power, conflict,
and lower profitability. Therefore, it is proposed that trust has an effect on the
sharing of risks and rewards. They defined commitment as “an implicit or explicit
pledge of relational continuity between exchange-partners” which is an essential
ingredient.

BYoung. Chan Lee (2008), in the article “Evaluating Antecedents and

consequences of Supply Chain Activity”, examines the antecedents and
consequences and does an empirical study on the buyer seller relationship models.
The tests are done through structured questionnaire of 271 manufacturing units.
The thrust was on information sharing, trust and inter dependability. The study
reveal that more the trust, more the information sharing, greater level of effect is
observed. However the findings say the length of relationship does not count on
the information sharing and collaboration.

Sin Yi Wee (2015) in his research paper presented at the conference on “The
Antecedents of Supply Chain Technology Adoption among the SME’s in Johor”,
presents the three antecedents for of SCM adoption as, Environmental,
Organizational and Communicational factors as key . Social analysis compounds
that all three are interrelated in the SCM adoption wherein regression analysis, it
concludes organizational factors have a negative impact whereas environment and
communications have a positive impact among the antecedents.

58
Annan J and Boso .N (2016) in their research paper published in “Antecedents
and Consequences of Supply Chain Integration: Empirical Evidence from a
Developing Economy” trace the antecedents of supply chain application in revival
of manufacturing in Liberia, Africa which was civil war strife prone for a long
time. The study analyses the firm resource, environmental drivers, and operational
performance as benchmark indicators to study the antecedents of SCM integration.
The study finds that inter firm resource and total dysfunctional competition bond to
create superior value for customers and increased operational efficiency.

Joa Kim Kembro, Dag Nasuland (2017) titled a research paper “Information
sharing Across Multiple Supply chain Tiers : A Delphi Study on Antecedents, an
empirical study on information sharing among supply chain levels and clusters”.
The study analyses the working relationship, purpose and depth of information
sharing among various tiers and conclude that sharing of information among
multiple tiers is a challenging task taking into account relationship level, purpose
levels due to multiple links, exchanges and to formalize contacts. It cofounds that
information sharing will be an indomitable task to resolve in multitier setting.

HarisAslam (2018) in the research article “Dynamic supply chain capabilities:

How market sensing, supply chain agility and adaptability affect supply chain
ambidexterity.”, discusses market sensing, supply chain agility and adaptability
as major antecedents in that SCM management. The purpose of the paper is to
track how supply chain capabilities co relates and its effect on the operational
performance. The paper concludes that market sensing ability is the effect of

59
supply chain agility and adaptability. Supply chain agility directly and supply
chain adaptability indirectly contributes to supply chain ambidexterity.

2.8. Prospects of SCM

A number of researchers have indicated that a key objective of SCM is to lower the
costs required to provide the necessary level of customer-service to a specific
segment

Houlihan (1988) in the book “International Supply Chain Management”, the

combined study on contrasting style agree that the prospects of SCM should ensure
the customer is the absolute beneficiary.

Cooper and Ellram, (1993) in the article “ The Relationship between

Management and Keiretsu” the authors have researched that the key objective is
to improve customer-service through increased stock- availability and reduced
order-cycle time .This clearly indicates how the customer and the organization
should be able to satisfy his needs within the cycle of demand.

La Londe (1997) proposed that SCM aims at delivering enhanced customer-

service and economic value through synchronized management of the flow of
physical goods and associated information from sourcing to consumption.

Porter (1998) in the article “Competitive Advantage and Creating and Sustaining
Superior Performance” describes that competitive advantage grows fundamentally
out of the customer value and concludes a firm creates, and proposes to build a

60
profitable and sustainable position against the powers that define industry-
competition. .

Ross, (1998) in his publication “ Competing Through Supply Chain Management”

makes a study on supply chain and outlines that Customer-service objectives are
also accomplished through a customer-enriching supply system focused on
developing innovative solutions and synchronizing the flow of products, services,
and information to create unique, individualized sources of customer-service value.

Mentzer et al., (2001) in his book “ Managing the Supply chain: Managerial and
Research Implications: in Supply Chain Management” explains in his article that,
it is proposed that the implementation of SCM enhances customer value and
satisfaction, which in turn, leads to enhanced competitive advantage for the supply
chain, as well as each member firm .. This, ultimately, improves the profitability of
supply chain and its members.

Specific objectives to improve profitability, competitive advantage, and

customer value/satisfaction of a supply chain, as well as its participants, are
suggested by several researchers

Porter (2004) in the article “A Standard Test Protocol for Evaluation of Radio
Frequency Identification Systems for Supply Chain Applications” defines that
profitability through SCM can be accomplished by enhancing overall customer-
satisfaction. types of generic competitive strategies, cost leadership, differentiation
and focus.

61
 SCM is concerned with improving both efficiency (i.e., cost-reduction) and
effectiveness (i.e., customer service) in a strategic context (i.e., creating customer-
value and satisfaction through integrated supply chain management) to obtain
competitive advantage that ultimately brings profitability. If distinguished between
the operational function of customer-service and the resultant goal of customer-
value and satisfaction, this discussion leads to conclude that the consequences of
SCM are lower costs and improved customer value and satisfaction to achieve
competitive advantage. The motive behind the formation of a supply chain
arrangement is to increase supply chain competitive advantage

GangWang AngappaGunasekaran EricW.T.Ngai ThanosPapadopoulos (2016)

“Big data analytics in logistics and supply chain management: Certain
investigations for research and applications” in an empirical approach authors
proved that maintenance frame work of supply chain analytics depends on four
capability levels namely functional aspects of supply chain, process involved in
supply chain, collaborative approach with chain elements and efficiency of supply
chain analytics and its sustainability. They also identified the mangers in the
companies having lack of knowledge in big business analytics and supply chain
analytics.

Zhongzhi Liu, Daniel Prajogo,AdegokeOke (2017) “Supply Chain

Tehnologies:Linking Adoption, Utilization, and Performance” in this descriptive
paper the authors identify the analytical reasons for more or less utilization of
supply chain technologies and it has intimate relationship with the organizational
performance. They also found that the motivation in using the supply chain
technologies and the organizations are not able to express their full potentialities in

62
every step of supply chain. It is also found that efficiency motivation of supply
chain technologies adoption is significantly and positively related to the
information sharing of logistics involved in supply chain management. There could
be legitimate motivation for adoption and utilization of supply chain technology to
manage the cost.

2.9. SCM Inventory Management

Martin Christopher (1998) in his publication” Logistics and Supply Chain

Management” on effectiveness of SCM in customer service has explained the new
emerging idea of Just-in-Time (JIT) is that no activity should take place in a
system unless and until there is a need for it. This requires synchronization of all
elements in the chain and the highest level of planning-discipline. JIT-logistics
avoids excessive inventory-holding by the supplier, making the management of
inbound materials-flow a crucial issue. Small JIT-deliveries are often combined
into a single delivery of several suppliers. Thus, it is not a surprise that JIT-
philosophy has coincided with the growth of third-party distribution. JIT-
deliveries are not always appropriate. JIT-deliveries are typically justified when the
demand for variety and the value of the products are higher.

James et al,( 2000), in his specialized publication “Vendor Managed

Inventory(VMI): A System Approach”, have explained and emphasized that even
though the VMI system can be realized in different ways, there is a common
characteristic that differentiates VMI (Vendor Management Inventory) from other
techniques — the supplier's responsibility. The supplier determines the
replenishment quantity, frequency, and regularity. This means that a supplier's

63
performance can be measured in terms of availability and inventory-turnover,
instead of delivery time and accuracy.

Hoover et al, (2001) in the book “Managing the Demand-Supply Chain: Value
Innovations for Customer Satisfaction” in the article on inventory and distribution
says that it is essential to understand how the customer's demand chain and supply
chain are linked to improve a customer's performance and the company's
efficiency. There are two points linking the chains, the order penetration point
(OPP) and value-offering point (VOP).

The order penetration point is the point in the supply chain where customer’s
demand or an order is directed to the product . Costs and prospects for both parties,
supplier and customer, depend on the allocation of the OPP. The order can be
allocated from the supplier's warehouse, which means rapid delivery and prospects
for the customer.

One way to shorten delivery- time is customization by postponing the

process steps that create variants. Moving the OPP back further to manufacturing,
a supplier's inventory-costs get even lower and make it possible to meet individual
customer-needs. This, however, means longer delivery-time that a customer may
not be willing to wait for.

JoergNienhaus, Arne Ziegenbein and ChristophDuijts, (2007) in the article,

“How human behaviour amplifies the bullwhip effect – a study based on the beer
distribution game online, Production Planning & Control: The Management of
Operations”, these researchers have detailed the effects of bull whip effect in

64
supply chain, The bullwhip-effect is one of the main reasons for inefficiencies in
supply chains. Since Forrester discovered around 45 years ago that variations of
demand (and based on that of orders and stocks) increase up the supply chain from
customer to supplier, researchers look for reasons and try to find countermeasures.
Nevertheless the role that human behaviour plays in the bullwhip-effect is still
overlooked.

Simchi-Levi et al, (2008), in the research paper “Designing and Managing the
Supply Chain: Concepts, Strategies and Case Studies” has explained the concept of
a new theory on production and distribution in his research article. This was a new
concept which is a pull-based supply chain, production and distribution are co-
ordinated with true customer-demand. Efficient information-flow about customer-
demand decreases inventories. This system enables lead-time reduction due to
better anticipation and decrease in variability.The bullwhip-effect describes the
phenomenon that the variation of demand increases up the supply chain from client
to supplier.

Simchi-Levi et al., (2008) James et.al.,(2000), have together in contrastive styles

have added and contributed their theories on effective customer service in SCM.
There are many supply chain-initiatives for time-based purchasing -strategies
inspired by JIT philosophy, such as prompt response (QR), efficient consumer-
response (ECR), and continuous replenishment (CR). All these inventory-
techniques use pull-philosophy and information to minimize buffers.

The idea of QR is to capture demand as close to real-time as possible and

equally near to the final consumer as possible (Christopher 1998). In a QR

65
system, suppliers receive point of-sale (POS) -data to synchronize production and
inventory activities with actual sales at the retailer. . (Simchi-Levi et al, 2008).
QR-logistics has become a basis for collaborative working in the supply chain.
Effectiveness of purchasing strategies on cost and customer service levels
have not been studied fully. Existing purchase methodologies require a relook
through research which would lead to formation of customized strategies.

Cattani K, Jacobs F, and Schoenfelder J (2011), in the research paper

“Common Inventory Modelling Assumptions that fall short: Arborescent
Networks, Posison Demands and single echelon approximations” discuss the
inventory levels that is required for an interrupted supply chain by analyzing
transportation, transshipment, schedule, inventory and customer demand and
conclude that global supply chain inventories should be planned for and confirms
and concludes that normalcy is not a tenable assumption for many segments of
supply chains.

Dullaert, W & Zamprini .L (2013) in the article “ The Impact of Lead Time
Reliability in Freight Transport: A Logistic Assessment of Transport Economic
Findings” discuss the strategic importance of lead time in transportation in SCM
inventory management and the need for proper lead time in time delivery and
transshipment with invariables like disruption reasons accounted for which will
have a bearing on inventory management in SCM. The article concludes that it is
very important to take into account appropriate distributions for link times in
transportation and nodal delays in global supply chain while planning inventory.

66
Bart Beemsterboer Ruud Teunter JanRiezebos (2016), “Two-product storage-
capacitated inventory systems: A technical note” in an new attempt of unifying the
concept of inventory and supply chain management found that two product
inventory model supported by limited storage capacity and constant demand from
customers create a maximum velocity to the supply chain cycle. Cost
minimization model is the primary concern of this paper. The authors clearly
developed a solution model under the restricted domain of policies regarding two
product inventories. They also innovatively identified that close supply chain can
be achieved by measuring the optimal order quantities from customers domain.

Tom Short, V.P.Supply Chain, Home Depots (2017), quoted by the article “
Inventory Management Trends: Inventory Reduction” in App tricity News,
discusses the inventory levels of departmental stores and retail in US, Texas state.
According to the article the retail inventory management has reduced stock levels
to cater to the changing taste of the consumer and concludes with the quote by tom
that “ Get Comfortable with Days of Inventory and not Weeks”.

Kubix News (2018) in the article published online “ Supply Chain 2018 Mid-Year
Analysis : What’s Happened and What’s Still to Come” predicts that 2018 will be
an enormous year for changes in supply chain inventory management. More and
more companies embrace technology to increase delivery as constraints in Industry
Tighten. The transport industry is going sea changes as diesel prices go high, and
Electronic Logging Device (ELD) are employed . The study concludes these
changes will assist in better inventory management since utilization of transport
management systems have become high. It sums up that technology has to be

67
adopted by all members of the SCM to bring change in the SCM environment as
inventory levels have started adopting JIT technology.

2.10. SCM-Operational Strategic Perspective And Risks

Michael. E. Porter , (1990) in his research publication,” Creating and Sustaining

Superior Advantage on operational impact on integration of SCM” declares
manufacturing organizations now have an increased focus on specific competitive
advantages, geographic spread and location, management of costs ,relations with
customers and suppliers and by no means least, the treatment and development of
people . Thereby he concludes human capital as the biggest resource in the entire
integration of SCM.

Christopher (1998) in his book,” Logistics and Supply Chain Management” on

the impact of scm on operations profounds that, in some industries more than
others, there has been a progressive change in focus away for separate, arms length
entities along a common supply chain to a more integrated and collaborative view.
He concluded that isolated approaches cannot contribute to operational
effectiveness like an integrated and collaborative view.

Robert .E. Spekman et al.,(1998) On his publication, “An empirical

Investigation into Supply Chain Management: A Perspective on Partnership of
effectiveness of SCM on operations” says that Supply Chain Management (SCM)
as such, is by now recognised by many organisations as a means by which they can
gain competitive advantage and improve their business results. This is especially

68
the case as more companies link their advantages together and begin to work as
supply networks of mutually beneficial supply chain partners as opposed to split
up, stand-alone he concludes.

Frohlich, M.T. and R. Westbrook (2001), “Arcs of integration: an international

study of supply chain strategies.” in the article the authors dwell on the importance
of integrating customer demand with the entire process of supply chain elements
and according to the authors the variables should be analyzed carefully so as to
form an alliance of integration which should be flexible enough to adapt quickly
for any sudden disruptions. The emphasize of the integration should be
performance. The major aim of this study therefore was to answer the inquiry: “In
what ways does the consolidation of supply chain logistics processes in
manufacturing organizations impact upon job performance”

The main research hypotheses and three theoretical frameworks were

proposed. The hypotheses and theoretical frameworks captured the thoughts and
findings of numerous researchers and writers with respect to variables and
relationship structures that may help answer the inquiry. This research deals
specifically with the order fulfillment processes operating within a supply chain
and in particular the integration of those processes both horizontally and vertically
within the range. The key belief is that higher levels of such consolidation will
serve organizations to improve their supply chain and overall job execution.

Aleksandra Andjelkovic Frinch (2004) in his research “Supply chain risk

management in function of increasing its resistance, on automotives”, explains that

69
large companies are increasing their exposure to risk including small and medium
enterprises in supply chain. The reason for that are limited resources of SMEs.
However, the author points out that the presence of SMEs in the supply chain is
inevitable. And he concluded that integrating larger companies with small and
medium enterprises in supply chain reduces risk and enhances the operational
impact on the organization.

Koufteros, X.A., T.C.E. Cheng, and K.H. Lai (2007), in the article “Black-box
and gray box supplier integration in product development: antecedents,
consequences and the moderating role of firm size”, in the article on a case study
of a particular product line the authors emphasize the need to integrate the
customer requirement and relate that to the delivery of the product in such a way
that it suits the customer needs and concludes that the customer integration is
indirectly linked to product development and innovation. Hence the thrust is on the
customer need and process changes and adaptability.

Thun J. H., Druke M., Hoenig D. (2011) in the article “Managing uncertainty -
an empirical analysis of supply chain risk management in small and medium-sized
enterprises” in the case study on large scale industry point out that with great
number of small and medium enterprises supply chain is becoming more complex
(for example, automotive industry). He sums up that to manage the complexity, the
integration has to be managed and information shared as one entity.

Danese, P. and P. Romano (2011) in the article,” Supply chain integration and
efficiency performance: a study on the interactions between customer and supplier

70
integration”, discusses the efficacy of integration from within the organization and
with external clusters, suppliers and services that make the chain to maintain flow
of elements to deliver the product to the customer. He raises queries about the
integration of external factors and concludes the performance because integration
increases when supply complexity is very high.

William Ho, TianZheng, HakanYildiz & SrinivasTalluri (2015), “Supply chain

risk management issues and challenges”, in a new ideological paper, the authors
found the contribution of risk management in a effective operations of supply
chain under the circumstances of uncertain ability. The two stages in the paper
consist of defining operational and mitigating risk involved in the supply chain. It
is also found that there are four types of risks prevailing in supply chain namely,
supply risk, customer risk, employee risk and machinery risk in every production
organisation. These risks are mitigated by the careful attention on the four sources
of risk bearing involved in the production.

Erlinda N. Yunus, Suresh K. Tadisina, (2016) in the article "Drivers of

supply chain integration and the role of organizational culture: Empirical
evidence from Indonesia", discuss supply chain integration as a set of practices
drive by many factors and situations. There need not be a defined set of rules
but characterized by requirements of individual organizations. The study
concludes that there is a positive relationship between SCM integration and
firm performance.

Atanu Chaudhuri, Harry Boer, Yariv Taran (2018) in the research article
"Supply chain integration, risk management and manufacturing flexibility", the

71
thrust is on the study to link internal integration and supply chain risk
management on manufacturing flexibility and to understand the effects on each
individual module with each other. The findings suggest that their Internal
integration and SCRM have a direct effect on manufacturing flexibility. SCRM
moderates the relationship between EI and flexibility.

2.11 Risk Factors of Supply Chain Management on Operational

Peformance

Any positive impact or changes made for a positive impact and increased
efficiency will have an opposite impact or a negative effect on the organization.
Even if it is not necessarily on the operational side of the organization, it could
be social, geographical, or notional or abstract theories.

Ik‐Whan G. Kwon , Taewon Suh (2006) “Factors Affecting the Level of Trust
and Commitment in Supply Chain Relationships”, the authors in the research
article on analyzing supply chain trends and organizations emphasize that the
primary aim of the organization is to bring various suppliers and stake holders into
one single entity with the sole purpose of delivering the perfect value to the
customer. This is the paramount purpose of the supply chain. It is very clear that
the individual profitability of the organization or the entity is not the primary
objective of the supply chain and due to this the authors feel the individual
organizations might lose steam working for a common cause rather than
individual. Trust among organizations is a vital cog as when a cluster of
organizations come together, trust is the most important and binding factor. The
authors discuss the factors like examination, inspection, survey, certifications etc
as factors that affect the trust and increase cost towards these services. He

72
concludes that information sharing is the most potent factor in creating the trust
among the units in supply chain.

Chimaa Abdellaue Anr(2009-10) In the research article, “Risks in global supply

chain” discuss that small organizations becoming part of supply chain to larger
companies, acquire global levels of operations and become part of the
multinational value chains. As the value chain transcends countries and continents,
the risks involved in such value chains are not the problems but the disruption that
it could cause to supply chains which are more of catastrophic nature. Hence
according to the researcher the supply chain should have back up plans to
minimize the damage on such disruptions. The effect is more on supply chains that
have a larger area of execution rather than based in one country or region within
the country.

L.Avelar-Sosa J.L.García-Alcaraz J.P.Castrellón-Torres (2014) “The Effects

of Some Risk Factors in the Supply Chains Performance”, in their research propose
a structural equation model to assess the effects of risks in supply chain
management. The model includes demand, suppliers and process as risk factors
with a case study from Mexico. The equation model has demand as an independent
positive effect with supplies, politics and manufacturing process. The suppliers
have to deal with flexibility factor which has a direct relationship with customer
service and how all these have to be factored will result in mitigating the risks.
Thus demand based on which the supply chain is structured works on assumptions
and closer to accuracy.

73
Tom Chmielewski (2017). “The Disadvantages of SCM” in the article , the author
emphasizes that supply chain management is not a quick fix solution to fix the loop
areas in the organization. According to him embracing supply chain into the
organization without understanding it will be a big disruption to the organization it
self. It consumes huge resources in cultivating the value chain, through vendor
identification, training, retention, profitability, human training and proper system
in place. Thus supply chain disruptions if not planned well might be biggest spoiler
for organizations.

CONCLUSION

The chapter traces various reviews and research that has been done hitherto
on the various gamut’s of SCM spread across different industries and countries.
The vital parameters and relevance of SCM which involves various practices,
theories, problems, remedies and opinions by various experts and researchers have
been analyzed with relevance to the subject of research.

The distinct gap between various reviews and this research is basically the
choice of industry. How global practices and latest evolution in SCM has been
adopted by a SMSE sector which has impacted the operational performance of the
industry is the central part of the research.

The next chapter deals with an overview and discusses the profile of Indian
agarbathy industry. The various gamut’s of Indian agarbathy industry with
relevance to supply chain management and its future are discussed.

74