Impact of Supply Chain Strategies on Performance

Impact of Supply string Strategies on mathematical processIntroductionThe concept of Supply stove way (SCM), introduced to palm the smother of integration of organizational functions ranging from the avering and receipt of raw materials through and through the manufacturing processes to the distribution and delivery of products to customers with a view to enable organizations to achieve higher(prenominal) flavor in products and customer service and to lower inventory cost, has attracted significant managerial attention in recent times chief(prenominal)ly because of its bulky potential competitive impact (Stevens, 1989). Experience, however, demonstrates that managers adopt a variety of different approaches to SCM go acrossation. In this context, traffic pattern of an effective impart chain network has arrive a crucial issue for any phoner to survive in a fiercely competitive market. The SCM concerns with issues and characteristic features of several interrelated fact ors and activities of an organization, such as demand forecasting, procurement, manufacturing, distribution, inventory, transfer of training, and customer service, and the resulting integrated approach is extended to customers and suppliers (Christopher, 1992). Considering the implications of in exclusively these aspects, a number of issues in SCM have assumed importance in the context of prevailing industrial scenario in India in order to nettle SCM more effective.Numerous papers have been published in the lit advocating the principles and the pull aheads of SCM Beesley (1997), Lurquin (1996), Mason-Jones and Towill (1998), and Towill (1996). many an(prenominal) case studies have also been published evidencing the benefits of SCM Arntzen, et al., (1995), Calza and Passaro (1997), and Lee and Billington (1995). there argon several studies on SCM practices in different countries reported in the literature Gilmour et al. (1995), Handfield and Withers (1993), Cilliers and Nagel (1994), McMullan (1996), Cox (1999), and it is felt that an effort on design and unwrapment of SCM practices including issues, such as IT application, consummation measures used, and barriers of SCM implementation is very much(prenominal) needed in India.On reviewing the existing SCM literature, several major weaknesses in the conceptualization and modeling of SCM be found. In particular, the SCM construct is perceived as an extension of integrated purchasing and supply management, or integrated logistics and transportation management. It appears that a coherent view on SCM concept has yet to develop in the existing literature, and it makes a prerequisite to conduct a postdate on the Copernican issues of SCM before a comprehensive methodology for supply chain performance measurement and evaluation system for the Indian tire manufacturing industries is prescribed. This paper reports the details of a forefrontnaire-based check into to study the status and r from each oneing of SCM practices in Indian tire manufacturing companies and also provides a brief overview of the identical surveys on SCM already undertaken in different industries.Objectives of the SurveyThe primary aim of the survey is to explore and understand, in quantitative terms wherever possible, the issues in SCM practices and concerns of the Tyre manufacturing industries in India.In specific terms, the objectives are related to the pastime aspects Present status and scope of SCM practices Role of Information Technology (IT) in SCM Performance measures used in SCM, Benefits of employing SCM practices and Specific issues hindering SCM practices.It is assumed that addressing the above-mentioned issues, as all of them are related to SCM strategies and practical constraints, would lead to disposition the status and scope of SCM practices in Indian Tyre manufacturing industries. Presently, the majority of the Indian companies have a weak alignment of supply chain scheme with business stra tegy. This is primarily so because the companies are rigidly structured on functional lines with department-specific performance measures.Survey MethodologyA survey instrument, in the form of a questionnaire, is used in order to fulfill the objectives as mentioned. The questionnaire designed for the survey, will be conducted during December, 2010, for come only 18 companies covering Tyre manufacturing industry in various regions of the country. Various lists of manufacturing companies, Internet websites of the companies, and personal contacts were the main sources for obtaining data about the companies and creating a database. The companies were selected randomly from the database. Although the survey will be conducted for a specific time period, the issues considered remain highly relevant for soul the operating principles, norms, problems, and implementation aspects of SCM practices in the Indian Tyre manufacturing companies.The questionnaire is designed to pick out about th e responding companies, their main objectives of employing SCM, positions of companies in the supply chain for their primary products, and views of the respondents on the principles of effective SCM practices. The questionnaire was divided into two sections component part A and Section B. Section A was designed for the companies which have already implemented the SCM concepts like information sharing with suppliers and customers, or have decided to implement SCM concepts in near prospective, contains questions pertaining to several important issues related to SCM practices, such as a companys exercise in servicing customers needs, its percentage as a customer to its suppliers, the role of IT in SCM, the performance measures used in supply chain performance evaluation, and the activities or actions hindering SCM practices. Section B presents the items related to several types of barriers and organization policies commonly found in implementing SCM practices in the Indian Tyre ma nufacturing industries.A combination of checks, yes/no, Likert scale, and multiple choice questions are framed against the issues as mentioned.The pursual specific tests will be employed on the data obtained Two-Tailed entailment Test-this provides a aim of significance for differences amid two groups to a question requiring a response using a Likert scale. Bivariate Correlation (Pearson) Coefficient-this tests the relationships between responses to two different questions. The test provides a p value indicating the metier of the relationship. A value of p=0 represents no relationship, and p=1 a strong relationship, and shows the significance level of the relationships. Reliability Analysis-In order to treasure the homogeneity and inter-correlations of the factors used in an item, Cronbach alpha (a) Cronbach (1951), a measure of internal consistency often used in cases where participants respond to questions on a Likert scale The values of a lies in the range (0, 1).For the p urpose of analysis, the survey responses are divided into three categoriesCategory 1 Questions that need be of alternatives (Likert-scale questions)The importance of the alternatives under each issue is established based on the values of statistics obtained.Category 2 Questions requiring form of agreement (multiple choice questions)For the questions requiring degree of agreement, Specific issues such as main objectives of SCM, principles of effective SCM practices, integration of divisional areas in the supply chains, information communication tools with suppliers and customers, area of IT applications, and barriers of SCM implementation are included in this category. The percent responses of all the alternatives under each issue are computed and the rankings of the alternatives are done based on the percent responses resulting in identifying the important alternatives.Category 3 Yes/No type questionsFor this category, two yes/no type close-ended questions have been framed against different issues. The percent responses of Yes/No is computed against each issue, which provide the general views of the respondents on a particular issue.Company enlargeApollo Tyres LtdShanmugham Road Cochin, KL 682031 think +91-0484-2381902/2381903/ 2380720/ 2372767/ 2363760Birla TyresSyed Amir Ali Avenue Kolkata, WB 700019Email emailprotected foretell +91-33-22814516Ceat TyresCeat Tyres. D 6/5, SMB ENGINEERS, TTC INUSTRIAL AREA MIDC TURBHE NAVI MUMBAI, MH four hundred705 Phone +91-22-27622079Elgitread (India) LtdElgitread (India) Ltd 2000 Trichy Road Coimbatore, TN 641005 Email emailprotectedPhone +91-422- 4321000Falcon Tyres LtdFalcon Tyres Ltd K. R. S. Road Metagalli Mysore, KK 570 016 Email emailprotectedPhone +91-821-2582453/ 2582055/ 2582041Govind Rubber particular(a)Govind Rubber confine G -15,Creative Industrial Estate,Sitaram Mill Compound,72-N. M. Joshi Marg Lower Parel Mumbai, MH 400 011 Email emailprotectedPhone +91-22-2309 5641/1784 / 309 21124 / 309 21126JK TyresJK Tyres 3 Bahadurshah Zafar Marg New Delhi, DH cx002 Phone +91-11-23311112/7Malhotra Rubbers LimitedMalhotra Rubbers Limited D-4, Sector 11 Noida, UP 201301 Email emailprotected,emailprotected,emailprotectedPhone +91-120-2543028/2543029/2553724 underground TyresMetro Tyres Metro House, 134/4, 135/5 Zamrudpur Kailash Colony New Delhi, DH 110 048 Email emailprotected,emailprotectedPhone +91-11-6219097/98Modi RubberModi Tyres Company Pvt. Limited.NH-58, Meerut Roorkee RoadModipuram 250110MEERUT (Uttar Pradesh)MRF TyresMRF modified KOTTAYAMMANUFACTURING UNITSP.B.No.2, Vadavathoor P.O.,Kottayam,Kerala 686 010Tel 0481-2570461 (12 Lines)DID 2575196/97/98,Royal TyresRoyal Tyres C-11 Mugappair Industrial Estate(East) Chennai, TN 600037 Email emailprotected Phone +91-44-26565643/42690079/42690089TVS Srichakra LtdTVS edifice 7-B West Veli StreetMadurai, 625001India+91-45-2420461 (Phone)Questionnaire forThe Impact of Supply Chain Strategies on th e Performance of Indian Tyre Manufacturing CompaniesPart 1 Company Profile1. propose of Company2. Address3. Country4. Tel5. Fax6. Website7. Contact person9. e-mail8. Position in companyNo of employees______Turnover 2009 _________________Part 2 Theme 1How do you manage your supply chain? baulk all that apply1 occlude federation with suppliers2Close partnership with customers3JIT supply4e-procurement5EDI6Outsourcing7Subcontracting83PL9Plan strategically10Supply Chain Benchmarking11Vertical integration12Few suppliers13Many suppliers14Holding safety bear15Use of immaterial consultants16 opposite, please specifyHow palmy do you think is your company in managing its supply chain in general? non successful at allNot successful just about successful prosperousVery successful12345Which of the following you think that your company needs to do in order to manage its supply chain better? Tick all that apply. emendStart ImplementingSatisfied alreadyNot appropriateClose partnership with s uppliersClose partnership with customersJIT supplye-procurementEDIOutsourcingSubcontracting3PLPlan strategicallySupply Chain BenchmarkingVertical integrationFew suppliersMany suppliersHolding safety stockUse of external consultantsOther (specify)Does your company have a authorise logistics strategic plan? YES NOPart 3 Theme 2What types of systems are currently in use in your company to bear out Supply Chain Management?Custom-made measuring stick packageNot in useMaterial Requirements Planning (MRP)Manufacturing resourcefulnesss Planning (MRPII)Enterprise Resource Planning (ERP)Warehouse Management remains (WMS)Supply Chain Management (SCM)Customer Relationships Management (CRM)Supplier Relationships Management (SRM)Advanced Planning System (APS)Just In Time (JIT)Other (specify)How much did you actually benefit from using these systems?Not at allLittleAveragegreatlyA lotDont know(1)(2)(3)(4)(5) best quality of informationBetter quantity of informationFlexibilityReduced lead-time in productionmonetary value savingForecastingResource planningBetter operational cogencyReduced inventory levelMore accurate costing change magnitude coordination between departmentsIncreased coordination with suppliersIncreased coordination with customersIncreased salesBetter quality of informationBetter quantity of informationFlexibilityIn what level your company is facing the problems below when using SCM systems?No problem at allLittle problemSome problemSignificant problemSerious problemDont know(1)(2)(3)(4)(5)Resistance to change from employeesInsufficient vendor provideHidden cost consolidation with existing systemIntegration with suppliers systemIntegration with customers systemOther (specify)What types of systems do you plan to implement in the near future (within the next 2 years)?Custom-madeStandard packageNot going to implementE-commerceE-businessDecision support / in effect(p) systemRadio Frequency Identification (RFID)Bar codingOther (specify)Part 4 Theme 319 How satisfied are you with the current public policy regarding SCM and IT?Not at allSomewhatSatisfiedQuite satisfiedVery satisfied12345How important are the following future measures for supporting your company effort in SCM and IT?Not at allsomewhatimportantimportantquite importantvery important(1)(2)(3)(4)(5)More education, e.g. formal qualificationMore funding and financial supportBetter infrastructure e.g. telecommunications, road, etcImproved information provisionIncreased regional cooperation between institutions, e.g. chamber of commerceCloser cooperation between companies and governmentsOther (specify)