From Grass to Glass, a case Study on the Supply Chain Management of Dairy Products

Bawah Boman Justin

Submitted to theBusiness SchoolIn partial fulfillment of the award of

Internation Advance Diploma in Business and Management

Supervised By:Chrishankar J

May 2014, Colombo

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide Chrishankar J for his exemplary guidance, monitoring and constant encouragement throughout the course of this thesis. The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude to the entire staffs of business management school for their cordial support, valuable information and guidance, which helped me in completing this task through various stages.

I am obliged to staff members of the manufacturing industries for the valuable informations which they provided to me in their respective fields. I am grateful for their cooperation during the period of my assignment.

Lastly, I thank the Alpha and the Omega, my parents, brothers, sisters, my pretty fiance and friends for their constant encouragement, without which this assignment would not be possible.

Bawah B.J

TABLE OF CONTENTS

ContentsACKNOWLEDGEMENT ACKNOWLEDGEMENT2List of Figures41.0INTRODUCTION51.1Background to study51.2Problem Justification61.3Problem Statement71.4Objectives72.0LITERATURE REVIEW82.1Historical Background82.2Variables in Your Research14i.Efficiency15ii.Information15iii.Quality16iv.Transportation Management16v.Knowledge17vi.Inventory Management173.0METHODOLOGY183.1Purpose of Study183.2Type of Research183.3Approach183.4Type of Investigation183.5Extend of Research Interference193.6Study Setting193.7Unit of Analysis193.8Time Horizon193.9Data Collection Method203.10Sampling Approach203.11Data Analysis20CHAPTER 04214.0CONCLUSION215.0REFERENCES226.0APPENDICES25

List of Figures Figure No.Page No.

Figure 1Supply Chain Diagram6

Figure 2Variable Related to Supply Chain Management14

CHAPTER 011.0 INTRODUCTION

1.1 Background to study IntroductionZealous competition in todays global markets have led to the introduction of products with shorter life cycles, and thus the augment expectations of customers have forced business enterprises to invest in, and put more attention on hteir supply chains. This together with ongoing advances in transpotation technologies and communication (e.g internet, communication, mobile, overnight delivery), this has motivated the continuous evolution of the supply chain and of techniques use to manage it effectively.This study will be focusing on the supply chain management of dairy products, most especially in sri lanka, just like in a typical supply chain, raw materials are procured and then items are produced at one or more factories, there after, they are being shipped to the warehouses for immediate storage, and then shipped to retailers or customers. Consequently, to reduce cost and improve service levels. Effective supply chain strategies most take into considerations and accounts of the interactions at the various levels in the supply chain.Supply chain which sometimes can also be refered to as the logistics network, consist of suppliers, producers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-progress inventory, and also finishe products that flow between facilities.In this study, key concepts will be explained, insights, practical tools, and decisions support systems which are relevant and important for the effective management of supply chain. But the most important question is what is supply chain management?Supply chain management is a set of approaches utilized to efficiently integrate suppliers,manufacturers, warehouses, and stores so that merchandise is produced and distributed at the right quality, at the right place or location, and also at the right time, in order to minimize cost while satisfying service level requirements.Figure 1 Supply Chain Diagram

1.2 Problem JustificationSupply chain management addresses the following problems: Distribution network configuration: the number, location, and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks, and customers. Distribution strategy: questions of operating control (e.g., centralized, decentralized, or shared); delivery scheme (e.g.,direct shipment, pool point shipping,cross docking, direct store delivery, or closed loop shipping); mode of transportation (e.g.,motor carrier, including truckload,less than truckload(LTL), parcel,railroad, intermodal transport, including trailer on flatcar (TOFC) and container on flatcar (COFC), ocean freight, airfreight); replenishment strategy (e.g., pull, push, or hybrid); and transportation control (e.g., owner operated,private carrier,common carrier, contract carrier, orthird-party logistics (3PL)). Trade-offs in logistical activities: The above activities must be coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost-per-pallet basis than are LTL shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs, which may increase total logistics costs. The planning of logistical activities therefore takes a systems approach. These trade-offs are key to developing the most efficient and effective logistics and SCM strategy. Information: The integration of processes through the supply chain in order to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration. Inventory management: Management of the quantity and location of inventory, including raw materials, work in process (WIP), and finished goods. Cash flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional. SCM applications provide real-time analytical systems that manage the flow of products and information throughout the supply chain network.

1.3 Problem Statement

What are the factors affecting Supply Chain Management

What is supply chain management ? What are the factors affecting proper supply chain management ? What majors can be used to carry out a proper supply chain management ?

1.4 Objectives

To understand the concepts of effective supply chain management To review literature on factors affecting proper logistics and supply chain management To understand uncertainty and risk in supply chain To look for Sources of Revenue and Cost To fulfill customer demand through efficient resources

CHAPTER 022.0 LITERATURE REVIEW

2.1 Historical Background

Several journal articles were used in the table below to provide a base on, and to also understand the concept of supply chain management within different industries. Firms today are striving to achieve competitive advantage over others and one of the approaches is managing the entire supply chain in order to reduce costs and improve performance which leads to business success. Logistics and Supply Chain Management (SCM) practices are a set Using data collected from US manufacturing companies, this research evaluates logistics service from the eyes of manufacturers. The study leads to a close look at how manufacturers view third party logistics services to provide important strategic and operational values to manufacturers. The results indicate that the building of a long-term relationship is mediated by trust and commitment from manufacturers. When manufacturers believe that the logistics service provider is honest and passionate, and care about their business, they will make a commitment towards a long-term business relationship.(Li, Ling,Ford, JohnB, Zhai,Xin, Xu, &Li).International Journal of Production Research.(Oct 2012)

This paper describes the impact of collaborative transportation management (CTM) on the performance of manufacturing supply chains using a multi-agent approach. Two supply chain models (with and without CTM) are proposed to show how it realizes the real operational interactions between different supply chain partners under demand disruption. Simulation results of the proposed models reveal the evolution of the CTM supply chain with demand disruption. The dynamic delivery ability and order point which are caused by demand disruption in the CTM supply chain are investigated. The results indicate that CTM can significantly reduce costs and improve the flexibility of companies in handling demand disruption problems. It is suggested that CTM is an efficient mechanism to manage supply chains, especially under a demand disruption environment. (Jing Lia and Felix Chan). International Journal of Production Research.(2012)

Green supply chain issues have attracted a lot of attention in recent years with growing awareness of environmental concerns. This has drawn the considerable world-wide attention of academics and practitioners. Therefore, recycling has now become an integral component of the supply chain. Recycling of used products and the related logistics management pose a significant challenge to manufacturing industries. In order to resolve the complexity of the task, this study proposes a multi-agent architecture to handle recycling and reverse logistics issues, which have so far been neglected. It addresses the different aspects of recycling such as waste classification, recycling, logistics and reuse of products. Additionally, it also discusses how the agent communicates and acts autonomously to facilitate the efficient logistics of materials between different units. The proposed agent architecture can assist manufacturing industries in efficiently managing their green supply chain system and complex logistics issues. (Mishraa,Kumarb, and Chan). International Journal of Production Research. (May 2012)Genetic Algorithms (GAs) have been identified as an innovative and useful approach for dampening the Bullwhip Effect along supply chains. This paper extends previous work by developing an improved supply chain model that incorporates additional cost factors such as ordering cost, item cost, distribution cost and production cost. The revised model is then used to examine one element of the Bullwhip Effect, i.e. price fluctuation strategies. A GA is employed to determine the ordering policy for each member in the model that minimizes cost. The research illustrates how the GA performs if a sales promotion is introduced. From the experimental results, it is shown that a GA can help determine an improved ordering policy and reduce the total cost across the supply chain.(Lua, Humphreysa, McIvora, Maguireb and Wiengarten). International Journal of Production Research.(2012)We study the concept of supply chain integration scope by comparing firms that involve immediate supply chain partners in their strategic efforts (narrow supply chain scope) versus firms that involve supply chain partners beyond the immediate level, for example second tier suppliers and end customers (broad supply chain scope). By relying on Coordination Theory and expanding upon Frohlich and Westbrook's (2001) 'arcs of integration' principle, we propose that supply chain integration scope and the type of supply chain management efforts deployed by firms are correlated. We use data from a large sample of US and European firms to explore the association between supply chain integration scope and supply chain management efforts. The results show that supply chain integration scope can be predicted by a firm's supply chain management efforts. The implications of our results for practising managers are also offered. Our results suggest that supply chain managers should consider the practices identified in this study while deciding on the appropriate level of supply chain integration scope, i.e., which extended supply chain members to include in their strategic planning efforts. (Jayanth Jayarama, Keah-Choon Tanb and S.P. Nachiappanc). International Journal of Production Research.(2010)This study aims to investigate how different knowledge-management processes (i.e. knowledge acquisition and dissemination) affect the manufacturers performance in collaborative economic exchanges with their suppliers. Drawing upon the knowledge based view and transaction cost economics, this study proposes that knowledge-management processes are positively related to the performance of the manufacturers in a collaborative buyersupplier relationship. It also posits that this link is stronger when the levels of supply-chain integration and relational stability are higher rather than lower. The findings of this study show strong support for these propositions. Theoretical and practical contributions of this study are also addressed.(Yang, and Jie). International Journal of Production Research.(2013)One of the most important issues subject to theoretical considerations and empirical studies is the measurement of efficiency of activities in logistics and supply chain management. Simultaneously, efficiency is one of the terms interpreted in an ambiguous and multi-aspect manner, depending on the subject of a study. The multitude of analytical dimensions of this term results in the fact that, apart from economic efficiency being the basic study area, other dimensions perceived as an added value by different groups of supply chain participants become more and more important. Methods: The objective of this paper is to attempt to explain the problem of supply chain management efficiency in the context of general theoretical considerations relating to supply chain management. The authors have also highlighted determinants and practical implications of supply chain management efficiency in strategic and operational contexts. The study employs critical analyses of logistics literature and the free-form interview with top management representatives of a company operating in the TSL sector. Results: We must find a comprehensive approach to supply chain efficiency including all analytical dimensions connected with real goods and services flow. An effective supply chain must be cost-effective (ensuring economic efficiency of a chain), functional (reducing processes, lean, minimising the number of links in the chain to the necessary ones, adapting supply chain participants' internal processes to a common objective based on its efficiency) and ensuring high quality of services (customer-oriented logistics systems). Conclusions: Efficiency of supply chains is not only a task for which a logistics department is responsible as it is a strategic decision taken by the management as regards the method of future company's operation. Correctly planned and fulfilled logistics tasks may result in improving performance of a company as well as the whole supply chain. Fundamental improvements in supply chain efficiency may be ensured by analyzing theoretical models on the strategic level and implementing a selected concept.( Grzegorz Lichocik1, and Adam Sadowski2). Log Forum.(2013)In the logistics service supply chain (LSSC), quality supervision and coordination is an important approach that can ensure the effective operation of LSSC and obtain more customers. This paper aims to study the quality decisions of the functional logistics service provider (FLSP) and the logistics service integrator (LSI) when a service quality defect guarantee is promised by the FLSP. Assuming that customer demand is a function of the quality defect guarantee of the FLSP, the optimal quality decisions of the LSI and FLSP are presented under three typical game modes: Nash game, Stackelberg game, and centralised decision. Numerical analysis is conducted to show how the quality parameters of the customer affect the optimal quality decision-making behaviour of the LSI and FLSP. The research results indicate that, under all three game modes, the optimal quality defect guarantee of the FLSP increases as the customer punishment increases, and decreases as the elasticity of the customer demand for the quality defect guarantee increases. In addition, under all three game modes, the optimal quality supervision effort of the LSI is an increasing function of both customer punishment and elasticity of the customer demand for the quality defect guarantee. (Liu, and Xie,). International Journal of Production Research.(2013)Supply chain management (SCM) reflects the most recent approach to logistics integration, the final integrating perspective on the evolutionary processes of purchasing, production support and distribution. Existing supply chain literature identifies three hierarchical levels of SCM: strategic, operational and tactical level. After a discussion of the performance transmission tools and their mechanism, this paper uses logistic modelling with SPPS to estimate the impact of harmonizing organizational strategy with strategy at supply chain level on the organizational performance. Data comes from a questionnaire based survey which took place in 2011. A sample of 100 enterprises representative at national level was randomly selected. Results document the statistically significant impact of customers' orientation and integration efforts on organizational performance. Thus we have found that the odds for an increased performance are 1.21 times higher for organization that communicate customers' future strategic needs throughout the supply chain and 1.34 times higher for companies that search for new ways to integrate SCM activities. We also found a significant effect of industry on organizational performance. The odds of increased performance are lower for companies in manufacturing industries as compared to service companies. The results underline the importance of strategic planning in the context of supply chains. Customers' orientation and integration efforts are expected to increase the benefits for all supply chain participants. At the same time strategic planning in the context of supply chain is expected to better balance the interest of multiple stakeholders and to adequately address the multidimensionality of organizational performances. The quantitative methodology employed by the present study allows drawing meaningful conclusions valid in the context of national supply chains. Nevertheless further research is needed to consolidate these findings. Insofar as firms' size, ownership and the overall economic context have also been found to have a positive impact on organizational performance, we argue that future research in this field would benefit for employing more controls. (Florian, and Gyula Laszlo). Annals of the University of Oradea, Economic Science Series.(2013)We investigate methods for managing the irregular and uncertain demands involved in supply chain planning. We first build a supply chain planning model based on fuzzy linear programming, which defines demand as a fuzzy parameter. Next, we propose a fuzzy inference approach for converting fuzzy demand into crisp demand. In the proposed fuzzy inference-based approach, judgments of upcoming demand both internal and external experts are used as input variables to reflect the expected demand irregularity. By adopting fuzzy inference, we can compensate for the limitations of the existing demand treatment approaches, which usually demonstrate poor forecasting performance in cases of irregular demand and thus reduce the accuracy of supply chain planning. To verify the feasibility of the proposed approach, we present an illustrative example of a Korean electronics company.(Jung, Hosang,Jeong, and Suk-Jae). International Journal of Production Research.(2012)of activities undertaken to promote effective and efficient management of supply chains in the industries. These practices include supplier partnership, physical movement of goods, meeting customer demands and also information sharing throughout the supply chain. Some of the key logistics and SCM practices which impact the supply chain performance is related to estimation of customer needs, efficient and effective delivery, integration and collaboration throughout the supply chain, sharing of information and vision by using Information Communication Technology (ICT). All these practices impact logistics and supply chain performance. Logistics focuses on activities inside a company, while supply chain focuses on relationships between each company. (Madhuri, and Geetha). IUP Journal of Supply Chain Management.(2013)The article discusses the theme of the issue, industrial logistics systems and operations, and the role industrial logistics plays in imparting competitive advantages upon companies in market economies. Topics include the subjects of papers appearing elsewhere in the issue, including global operations and logistics management, third-party logistics and e-logistics, and warehouse management systems. Additional topics include performance analysis, green supply chain management, cross-dock operations problems, and reverse logistics.(Gunasekaran,Angappa,Choy, and King-Lun). International Journal of Production Research.(2012)We examine how UK universities view different topics withinsupply-chainmanagement as seen in their research output and their postgraduate curricula and whether this view matches the relative emphasis on these aspects by UK-based employers when hiring. Using content analysis, we analysed: (1) UK-basedsupply-chain/logisticsjob advertisements, (2) abstracts of research articles by UK academics insupply-chain/logisticsjournals, and (3) the description of the postgraduate-levelsupply-chain/logisticsdegrees in UK universities. Our findings show that the overall research output of UK universities is broadly in line with employers needs with regards to the relative emphasis on differentsupply-chaintopics. However, their relative emphasis on these topics in their teaching programmes is quite different. We suggest that universities need to look into their provision of academic programmes in relation to employers needs and need to look into how to leverage their research output better for this purpose.(Bourlakis,Michael,Sodhi,ManMohanS,Son,&Byung-Gak).International Journal ofLogistics: Research & Applications. (2013)The consignment stock (CS) is an innovative approach to manage inventories in which the vendor removes his inventory and maintains a stock of materials at the buyer's plant. The aim of this paper is to promote a successful application and comprehension of the CS policy both in literature and practice. In this paper, we deal with a multi-echelon inventory system in which one vendorsuppliesan item to multiple buyers. The study develops a single-vendor and multi-buyer consignment stock inventory model in which many clients can establish a CS policy with the same vendor. The aim of the paper is to evaluate the real economical andlogisticbenefits from the point of view of both the partners and the wholesupplychain, following the adoption of a CS policy. We determine the maximum and minimum inventory stock levels to store in the buyers' plant warehouse and the optimal quantity delivered from the vendor to each buyer in order to minimise totalsupply chaincosts. Space constraints in clients' plant warehouse, stock-out risk due to the variability of consumption and obsolescence risk for the materials stored are also considered.(Battini,Gunasekaran,Faccio,Persona,& Sgarbossa). International Journal of Production Research.(2010)

2.2 Variables in Your Research

Introduction to Key AreasDEPENDENT VARIABLESINDEPENDENT VARIABLES

FACTORS AFFECTING PROPER SUPPLY CHAIN MANAGEMENT

Efficiency

Information

Quality

Transportation

Knowledge

Inventory Management

Figure 2 Variables Related to Supply Chain Management

The Six Variables Identified Above Are Are Examined In The Table Given Below i. Efficiency

One of the most important issues subjected to theoretical considerations and empirical studies is the measurement of efficiency of activities in logistics and supply chain management. Simultaneously, efficiency is one of the terms interpreted in an ambiguous and multi-aspect manner, depending on the subject of a study. The multitude of analytical dimensions of this term results in the fact that, apart from economic efficiency being the basic study area, other dimensions perceived as an added value by different groups of supply chain participants become more and more important. Methods: The objective of this paper is to attempt to explain the problem of supply chain management efficiency in the context of general theoretical considerations relating to supply chain management most especially in Sri Lanka. The study employs critical analyses of logistics literature and the free-form interview with top management representatives of a company operating in the TSL sector. Results: We must find a comprehensive approach to supply chain efficiency including all analytical dimensions connected with real goods and services flow. An effective supply chain must be cost-effective (ensuring economic efficiency of a chain), functional (reducing processes, lean, minimising the number of links in the chain to the necessary ones, adapting supply chain participants' internal processes to a common objective based on its efficiency) and ensuring high quality of services (customer-oriented logistics systems).

It is important to note that efficiency of supply chains is not only a task for which a logistics department is responsible as it is a strategic decision taken by the management as regards the method of future company's operation. Correctly planned and fulfilled logistics tasks may result in improving performance of a company as well as the whole supply chain. Fundamental improvements in supply chain efficiency may be ensured by analyzing theoretical models on the strategic level and implementing a selected concept. .( Grzegorz Lichocik1, Adam Sadowski2). Log Forum.(2013)

ii. Information

Firms today are striving to achieve competitive advantage over others and one of the approaches is managing the entire supply chain in order to reduce costs and improve performance which leads to business success. Logistics and Supply Chain Management (SCM) practices are a set of activities undertaken to promote effective and efficient management of supply chains in the industries. These practices include supplier partnership, physical movement of goods, meeting customer demands and also information sharing throughout the supply chain. Some of the key logistics and SCM practices which impact the supply chain performance is related to estimation of customer needs, efficient and effective delivery, integration and collaboration throughout the supply chain, sharing of information and vision by using Information Communication Technology (ICT). All these practices impact logistics and supply chain performance. Logistics focuses on activities inside a company, while supply chain focuses on relationships between each company. (Madhuri, J. Geetha1). IUP Journal of Supply Chain Management.(2013)

iii. Quality

In the logistics service supply chain (LSSC), quality supervision and coordination is an important approach that can ensure the effective operation of LSSC and obtain more customers. This paper aims to study the quality decisions of the functional logistics service provider (FLSP) and the logistics service integrator (LSI) when a service quality defect guarantee is promised by the FLSP. Assuming that customer demand is a function of the quality defect guarantee of the FLSP, the optimal quality decisions of the LSI and FLSP are presented under three typical game modes: Nash game, Stackelberg game, and centralised decision. Numerical analysis is conducted to show how the quality parameters of the customer affect the optimal quality decision-making behaviour of the LSI and FLSP. The research results indicate that, under all three game modes, the optimal quality defect guarantee of the FLSP increases as the customer punishment increases, and decreases as the elasticity of the customer demand for the quality defect guarantee increases. In addition, under all three game modes, the optimal quality supervision effort of the LSI is an increasing function of both customer punishment and elasticity of the customer demand for the quality defect guarantee. (Liu, W.H. n Xie, D). International Journal of Production Research.(2013)

iv. Transportation ManagementThis paper describes the impact of collaborative transportation management (CTM) on the performance of manufacturing supply chains using a multi-agent approach. Two supply chain models (with and without CTM) are proposed to show how it realizes the real operational interactions between different supply chain partners under demand disruption. Simulation results of the proposed models reveal the evolution of the CTM supply chain with demand disruption. The dynamic delivery ability and order point which are caused by demand disruption in the CTM supply chain are investigated. The results indicate that CTM can significantly reduce costs and improve the flexibility of companies in handling demand disruption problems. It is suggested that CTM is an efficient mechanism to manage supply chains, especially under a demand disruption environment. (Jing Lia and Felix Chan). International Journal of Production Research. (2012)v. Knowledge We examine how UK universities view different topics withinsupply-chainmanagement as seen in their research output and their postgraduate curricula and whether this view matches the relative emphasis on these aspects by UK-based employers when hiring. Using content analysis, we analysed: (1) UK-basedsupply-chain/logisticsjob advertisements, (2) abstracts of research articles by UK academics insupply-chain/logisticsjournals, and (3) the description of the postgraduate-levelsupply-chain/logisticsdegrees in UK universities. Our findings show that the overall research output of UK universities is broadly in line with employers needs with regards to the relative emphasis on differentsupply-chaintopics. However, their relative emphasis on these topics in their teaching programmes is quite different. We suggest that universities need to look into their provision of academic programmes in relation to employers needs and need to look into how to leverage their research output better for this purpose.(Bourlakis,Michael,Sodhi,ManMohanS,Son,&Byung-Gak).International Journal ofLogistics: Research & Applications. (2013)

vi. Inventory ManagementThe consignment stock (CS) is an innovative approach to manage inventories in which the vendor removes his inventory and maintains a stock of materials at the buyer's plant. The aim of this paper is to promote a successful application and comprehension of the CS policy both in literature and practice. In this paper, we deal with a multi-echelon inventory system in which one vendorsuppliesan item to multiple buyers. The study develops a single-vendor and multi-buyer consignment stock inventory model in which many clients can establish a CS policy with the same vendor. The aim of the paper is to evaluate the real economical andlogisticbenefits from the point of view of both the partners and the wholesupplychain, following the adoption of a CS policy. We determine the maximum and minimum inventory stock levels to store in the buyers' plant warehouse and the optimal quantity delivered from the vendor to each buyer in order to minimise totalsupply chaincosts. Space constraints in clients' plant warehouse, stock-out risk due to the variability of consumption and obsolescence risk for the materials stored are also considered.(Battini,Gunasekaran,Faccio,Persona, and Sgarbossa). International Journal of Production Research. (2010)

CHAPTER 033.0 METHODOLOGY

3.1 Purpose of StudyThis study is centered on the critical factors affecting the effective and porper &Supply Chain management, and also Majors that can be Used to Tackle Problems Faced by Logistics and Supply Chain Management firms

3.2 Type of Research

A deductive study will be used in this research in order to explore a known theory or phenomeno and test if that theory is valid in a given circumstance

3.3 Approach

A qualitative approach will be usesd in this study,it comprises of two task;1. Investigating that the attribute in interest is in fact quantitative2. Devising procedures to measure the magnitude of quantitative attributes.In the social sciences, researchers have assumed that variables are quantitative, assume for example that a psychological variable such as self esteem and extroversion are by their nature quantitative. For Michell (1997), though, phenomena like self esteem have no clear unit of measurement, compared to a cricket pitch where the measurement of the pitch is related to the pitch.Quantitative research uses numerical analysis. In essence, this approach reduces the data into numbers, such as the percent of teenage mothers in Florida. The researcher knows in advance what he/she is looking for and all aspects of the study are carefully designed before the data is collected. The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses pertaining to phenomena.

3.4 Type of Investigation

Investigation can be carried out in either as a Causal study or a Correlational study.A causal study is an analysis that is done to identify and establish the link between various variables in a research. This analysis is normally aimed at establishing the cause and effect patterns of the variable thereby discovering the root cause of an event.While a correlation study is used when you want to take a look at variables and see if they have any relationship. Scientists use terms like positive correlation, negative correlation and non correlation to describe the relationship among variables in a correlation study.This research will be strictly based on correlational study, which will enable ways to explore the relationship between variables, and eliminate unrelated variables..3.5 Extend of Research Interference

By Mehtabmr (November, 2009)The extent of interference by the researcher with the normal flow of work in the workplace has a direct bearing on whether the study undertaken is casual of Correlational. A correlational study is conducted in the natural environment of the organization with minimal interference by the researcher with the normal flow of workResearcher selected Minimal interference as the extent of research interference while interviewing subjects in the same study setting.

3.6 Study SettingNon Contrived study setting will be used since the research can be done in natural environment and it doesnt bring the need for creating and experimenting data inside a lab, as data can be collected from the organization itself.Non-contrived study setting is where the research is done in a natural environment where work proceeds are normal and search done in an artificial environment is known as contrived settings. (Mehtabmr. November, 2009)

3.7 Unit of Analysis(Mehtabmr November 2009). Explains unit of analysis to be the level of aggregation (bunch) of data collected during subsequent data analysis stage, here the data analysis will be carried out in an Organisations level.

3.8 Time HorizonTime Horizon can be carried out in either Cross-sectional, or longitudinal.Longitudinal allows a researcher to study people or phenomena at more than one point in time, in order to answer the research question or when data on the dependent variables are gathered at two or more points in time to answer the research question. It is also called multi-short.While the Cross-sectional studies allow a researcher to gather data just once over a period of days, weeks or months, in order to answer a research question. It is also called one-short.

3.9 Data Collection Method

Interviews with five companies and understanding supply chain practices

3.10 Sampling ApproachThis research will be focusing strickly on only manufacturing companies for its analysis Brandix lanka Unilever Mas Lucky yoghourts Reckitt binkisa

3.11 Data AnalysisExcel will be used to carry out this analysis

CHAPTER 04

4.0 CONCLUSION

The challenges identified in this paper will only intensify in the future and it is important that the organisations Procurement function understands the diverse product and service supply chains that exist and work closely with key stakeholders to address and manage the various risks involved. Those that do it well are less likely to be impacted by the various challenges of todays operating environment and quicker to react when unforeseen events occur.

5.0 REFERENCES

Beiske, B, 2007, Research Methods: Uses and Limitations of questionnaires, interviews and case studies, GRIN VerlagGulati, PM, 2009, Research Management: Fundamental and Applied Research, Global India PublicationsMonette, DR, Sullivan, TJ, DeJong, CR, 2005, Applied Social Research. A Tool for the Human Services, 6th editionPelissier, R. (2008) Business Research Made Easy Juta & Co.Snieder, R & Larner, K, 2009, The Art of Being a Scientist: A Guide for Graduate Students and their Mentors, Cambridge University PressLi, Jing. (2012). The impact of collaborative transportation management on demand disruption of manufacturing supply chains..International Journal of Production Research. 50 (19),

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Lu, J, Humphreys, P, McIvor, R., Maguire, L., Wiengarten, F.. (2012). Applying genetic algorithms to dampen the impact of price fluctuations in a supply chain..International Journal of Production Research. 50

Yang, Jie. (2013). Harnessing value in knowledge management for performance in buyersupplier collaboration.International Journal of Production Research. 51

Kim, Seung-Hwan, Fowler, John W., Shunk, Dan L, Pfund, Michele E.. (2012). Improving the pushpull strategy in a serial supply chain by a hybrid pushpull control with multiple pulling points..International Journal of Production Research. 50

Jayaram, Jayant, Tan, Keah-Choon, Nachiappan, S. P. (2010). Examining the interrelationships between supply chain integration scope and supply chain management efforts.International Journal of Production Research. 48

Mishra, N., Kumar, V, Chan, F.T.S.. (2012). A multi-agent architecture for reverse logistics in a green supply chain..International Journal of Production Research. 50

Lichocik, Grzegorz, Sadowski, Adam. (2013). Efficiency Of Supply Chain Management. Strategic And Operational Approach..Scientific Journal of Logistics. 9 (2)

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6.0 APPENDICES

2