december final capstone file.pdf

7/21/2019 december final capstone file.pdf

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report of Capstone Project

The Study of Supply Chain Management : An Evidence from

Sports Industry across Punjab

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Master of Business Administration

Under Guidance of Submitted by:

Ms. Vandana Chaudhary Nishant Kumar Garg(11006867)

Assistant Professor Rahul Ranjan(11010047)

Ganesh Prasad Singh(11005505)

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR NEW DELHI GT ROAD

PHAGWARA,PUNJAB


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TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report entitled The study of Supply chain management : An

Evidence from Sports Industry across Punjabcarried out by Mr. Nishant Kumar Garg , Mr.

Rahul Ranjan and Mr. Ganesh Prasad Singh have been accomplished under my guidance and

supervision as duly registered MBA students of Lovely Professional University. This project is

being submitted by them in partial fulfillment of the requirement for the award of the Master of

Business Administration from Lovely Professional University.

Our dissertation represents their original work and is worthy of consideration for the award of

the degree of Master of Business Administration.

Ms. VandanaChoudhary

Assistant Professor

(School of Business)


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Declaration

We hereby declare that the project report entitled The study of Supply chain management :

An Evidence from Sports Industry across Punjab is an authentic record of our work carried

out on this project. The data is collected from authentic resources and literature review of the

syudies already done. As requirement of Capstone project for the award of MBA degree from

Lovely Professional University, Phagwara under the guidance of Ms. Vandana Choudhary, our

project mentor. We are thankful for her continuous guidance and support .

Nishant Kumar Garg (11006867)

Rahul Ranjan (11010047)

Ganesh Prasad Singh (11005505)


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ACKNOWLEDGMENTS

We would like to first and foremost acknowledge Miss VandanaChoudhary not only her

invaluable guidance, but also her support and encouragement during the many moments of doubt

we had along the journey till now. I would also like to thank Mr. Chanderjeetsingh who took

time out his personal schedule to provide insight during the entire project.

Also, thanks to my friends who knew when to just leave me alone and when come forward with

support.

I would also like to thank to the company LORDZ KINGS , where we visit multiple times. I

learned a tremendous amount in terms of technical skills, inter-personal skills, and intricacies of

how large successful companies operate. They opened their doors and embraced me as one of

their own.


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ABSTRACT

Supply chain management (SCM) is the 21st century is consider as the important strategy tool in

global operations for achieving competitiveness within the industry. Companies are attempting to

formulate ways to improve their flexibility and responsiveness and in turn competitiveness by

changing their operations strategy, methods and technologies that include the implementation of

SCM paradigm, continuous performance evaluation and information technology (IT).

Manufacturers and retailers are faced with the challenge of making sure that the correct

quantities of goods are placed in a location readily accessible to the final customers and at the

correct price. The linkages between the different companies that participate in this process are

called the supply chain. This paper will study the coordination of information amongst the

different nodes in a supply chain for a sporting goods manufacturing company.

This study analyzes the biggest challenges facing a major sporting goods manufacturing

company as they try to coordinate factory orders to their third party suppliers with the orders

demands of their retail channels and also try to determine performance measurement factors to

evaluate the performance of their firm by the SMEs of sports near Punjab. The data will be

collected from structured interview and responses are collected from sports manufactures. So far,

study result is helpful to visualize that there is need od an effective supply chain management in

sports industry.

Key Words : Supply Chain, Factor Analysis


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Table of Contents

Declaration..i

Acknowledgement.ii

Abstract

.iii

Chapter 1: Introduction to Supply Chain Management

1.1.Introduction1

1.2.Supply chain Management .1

1.3.Raw material in Sports Manufacturing..2

Chapter 2: Literature Review4

2.1. Factors for Performance Measurements.7

Chapter 3: Objective and Research Methodology....8

3.1.Objectives ..8

3.2.Research Methodology...8

Chapter 4: Need and Scope of the study .9

Chapter 5: References.11

Annexure:

Questionnaire..12


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Chapter 1

Introduction to Supply Chain management

1.1.Introduction

In todays dynamic market, customers are looking for different products and are more

discriminating in their purchasing strategies, Now, the products are of small life cycle and trend

is changing very frequently and the manufactures have to keep an eye on the market demands to

avoid wastage of products. Manufactures and retailers are facing the challenge of sure about the

correct quantities they need to place at accessible places so that they remain competitive in themarket. As it will cost in both way , stock out and overstock. It is a complicated process to

forecast about the demand of the products. So, here comes the role of a efficient linkages

between the suppliers, manufactures and the market by maintain the supply chain.

1.2. Supply chain management

SCM is defined as "the systemic, strategic coordination of the all business functions and the

tactics across these business functions within the supply chain, for the purposes of improving the

long term performance of the individual companies and the supply chain as a whole." It has also

been defined as the "designing and planning the execution of the activities and then controlling

within the limits, and monitor the supply chain activities with the objective of creating net

value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing

supply with demand and measuring performance globally. For the small SMEs also their supply

to the manufacturing unit as well as market is very important as it may reduce their chance of

growth and sustainability in early phase of business. This report will study the coordination of

information amongst different nodes in supply chain in case of sporting goods manufacturing

company.

With the widespread of globalization as an operational strategy (Braithwaite ,2003,pp.3-5),

greater global competition, increasing product variation, rapid rate of product innovation and the


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shortened time to market, companies is trying to be more flexible and faster to adopt in order to

survive in such dynamic environment(Fisher, 1994.pp.83-85).

Earlier ,supply chain defined as the flow of material and information between the different

functional groups within the organization. However, more component like infrastructure and

finance ,merits extra attention. The reverse flow of material become an important part of SCM

,occurs during returns, servicing, maintenance ,recycling , and disposal.

1.3 Raw Material Used in Sports Manufacturing

If we talk about the small scale sports goods manufacturing companies (both organized and

unorganized), the influence of change of trend around the world is much higher. The importance

of trends places emphasis on the ability of the manufactures to bring the product to market in the

intended season. Off season product are heavily discounted leading to large losses on potential

revenues. As a fashion focus firms, sporting goods manufactures must contend with the spikes in

fashions , changes in color preferences and the need for stock of various items to serve the

forecasted demand. This is not limited to sport playing equipment only. This includes all element

related to sports like kits , jersey, t-shirts , their safety equipment and other essential requirement

as per the game and sports person. A full assortment of different sizes ranging from between

cheerleaders to beefy linebackers is needed to flourish businesses. The different raw material

used as cotton, latex , PVC and leather for boxing gloves, willow, gum, wire, metallic frames,

threads, different type of leathers and material for security and safety are imported from multiple

locations from different vendors. The ADIDAS world leader in sports manufactures are using

sustainable materials that are recycled polyester, organic cotton, rubber, leather, Tencel (a fibre

made from wood pulp), Polylactic Acid and mulesed wool for leather and apparel. Other

materials are Inlay soles, textiles, metals, plastics and packaging material.

In addition, theres pressure to fill orders from large retailers on time with the right products and

keep safety stock an allow safety time in case of unusual weather. Today the companies have

multiple advance planning software(APS) to increase forecast accuracy , optimize inventory

management and enhance scheduling within your consumer products supply chain. When is

come to small SMEs mostly they work as third parties for these big sports companies and make


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their products for local markets too but they Small enterprise also face challenges of SCM so

they also need to keep track on performance evaluation of their activities.

The paper analysis the challenges small sports manufactures are facing as they are trying to

coordinate factory orders to their third party suppliers with the order demands of their retail

channels. The project is done of SME of Jalandhar so there must be a lot of challenges the

companies face during their supply chain related to raw material , equipment used. Bullwhip

effect is also a great challenge if the forecast is not properly consider by the manufactures. So , it

is necessary for the organizations to measure their supply chain performance so that they can

improve upon the loose factor to make it perfect. The continuous improvement is very necessary

key for improvement in efficiency of the complete channel from raw material supplies to reverse

SC.


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Chapter 2

Literature Review

Demanding completion in todays global markets, introduction of products with small life cycles

and the discriminating expectations of customers have forced the businesses to invest in fast

technological development and the bring them in market to create a competitive edge thus

enterprise need to invest and focus more attention on their supply chain. Supply chain become

more inevitable challenge in every field to be continuously survived and to have an edge in this

prospered global supply based competitive environment. As contented by Mangal.D that to

improve profitability and efficiency, companies are using ways to achieve operational

excellence, reduce operating cost and enhance customer service through efficient supply chainmanagement. Supply chain management is not a new concept in todays world, it is continuously

enhancing its dimension in every aspects to increase the efficiency of exiting adopted SCM by

the companies. According to Adrian Done,To determine several knowledge based management

concept and framework are relevant and useful to supply chain academics and practitioners.

Collaboration and integration are important for continuum improvement in SCM. Many

organizations still unable to implement the knowledge based concepts in real world. The

effective integration of suppliers into product value/ supply chains will be a key factor for some

manufactures in achieving the improvement necessary to remain competitive In a literature

P.W.Hyland said that incorporating new(product and process) technology enable

them(manufactures) to develop and exploit better practices in supply chains. The flexibility and

agility calls for companies to increase their effectiveness, exploits synergies and learn throughout

all areas of their operations. This is exactly possible in case of big organization or big

manufacturing houses. Small manufactures faces resources gaps in term of skills, knowledge,

technology and the finances (Hashim,2007), therefore, they tend to depend on suppliers

capabilities and co-operative relationships (Park and Krishnan ,2001) to access the latest

technologies, materials, process and other method of innovations. This is broadly in line with

Lipparini and Sobreros (1994) findings, who reported that SMEs often depend on their vendor to

whom they delivers as outsource or their own suppliers relationship as a key ingredients to

connect internal and external capabilities and expertise, as well as improve their innovation.


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Small companies faces the problem of stock limitation sometimes due to their inability to

purchase in bulk or unable to get the credit facilities. Small companies try to build deep suppliers

relationship with hopes to increase the stability of supply and reduce supply risk. [Ellegaard,

2006]

Hence , looking into the literature we the devise here our one of the objective .

Objective 1: To determine the challenges the SME of sports good are facing across

Punjab.

In recent years, requirement of organizational performance measures and develop the evaluation

metrics to determine the efficiency or performance receives the attention of researchers and

practitioners. The role of the measures and metrics in determining the success of organization

cannot be overstated because they affect strategic, tactical and operational planning and control.

Many firms look to continuous improvement as tool to enhance their core competitiveness using

SCM. Many companies have failed to succeeded in maximizing their supply chains potential

because these companies failed to develop the performance measures control variables and

metrics needed to fully evaluation in regard to integrate their supply chain to maximize

effectiveness and efficiency (Larry lepide) .Paper by John Storey identified the key barriers and

identified using 4 PL SCM, involving outsourcing ,cross boundary working, new organizational

forms characterized by flattened hierarchies ,teams and empowerment. These trends present an

opportunities for development of SCM

In literature of Aarti Deveshwar it was said that assessing supply chain performance leads to

identification of problems and opportunities. Having a strategy and measuring key parts are

necessary to smooth running of supply chain. the continuous changes in turn provide agility to

handle exceptions and to adapt to changes. All three working together provides coordinated,

unified efforts to use SCM as a driving force in customer satisfaction and advantages. A supply

chain design problem comprises the decisions regarding the number and location of production

facilities, the assignment of each market regionto one or more locations, and suppliers selection

of assemblies, components and materials( Chopra and Meindi ,2004). What to measure and how

to measure , to find the performance level of SCM and offer suggestion for setting up


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performance targets is critical. To develop a set of performance metrics and key performance

indicators are (KPIs) to ensure that it know the performance of SCM and organization too

require a stringent look over the business , stated Larry Lapide, AMR research.

So, here are considerable literature to devise our another objective for this project:

Objective 2 : To determine the factors for measuring the supply chain performance in

small scale sport industry.

The identification of factors are carried out forward from work by Li (2002) and Quesada and

Meneses (2010). In their finding, multiple factors like environmental uncertainty, company

environment, government support, information technology, planning tools and supplier

relationship are among top factors. Stevens(1990) states that the use of systems, facilities,

inventory level, service level, throughput efficiency and cost are among critical factors. Lear-

Olimpi (1999) also stated that logistics play an important role in pursuing supply chain

excellence. Customers like to give more value to low cast, on time delivery, delivery date

certainty and receiving a customized products(Simchi- levi et al., 2003). In a literature

Ganescu.M.C determine some more important factor for responsible SCM : D1 corporate

ethics, D2- Employee Training, D3- Quality of local suppliers, D4- Control On distribution, D5-

Degree of customer orientatation, D6- Nature of competitive advantage.The rest connect factors

will be mentioned in detail within the project.


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2.1.Factors for Performance Measurements:

In measurement , the greatest challenge lie in choosing the right measures. Here are some factors

that are determined as important factor that are important to link the whole of SCM.

Table 1: Measures and metric factor for evaluating SCM

PLAN PERFORMANCE Product development cycle time

Order entry method

Total cycle time

Net profit vs productivity ratio

Rate of return on investment

Order lead time

SOURCE PERFORMANCE Supplier interest in developing

partnership

Supplier delivery performance Supplier lead time against industry

norm

Purchase order cycle time

Mutual ability to respond to quality

problem

PRODUCTION PERFORMANCE Manufacturing cost

Economic order quantity

Capacity utilization

WIP

Finished good

DELIVER PERFORMANCE Delivery lead time

Number of faultless delivery

Response to number of urgent

deliveries

Toatal distribution cost

CUSTOMER SERVICE AND

SATISFACTION

Flexibility to meet particular customer

need

Customer query time

Level of customer perceived value of

product


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Chapter 3

Objective and Research Methodology

3.1.Objectives:

1. To Determine the challenges the SME of sports good are facing across Punjab.

2. To determine the factors for measuring the supply chain performance in small scale sport

industry.

3.2.Research Methodology:

The date will be collected as primary datafrom the sport manufactures across Punjab state.

Other key factor for measuring the performance are collected from secondary data available in

different review of literature and internet sources related to SCM and its measurement.

Once the responses are collected , both explanatory factor analysis(EFA) and confirmatory factor

analysis(CFA) will be applied to understand shared variance of measured variables

EFA is statistical method within multivariate factor analysis to uncover the relationship between

the measured variables.EFA is based on common factor model. In EFA , the assumption that the

variable may be associated with any factor. When developing a scale, researcher has to use EFA

prior of using CFA. The objective of confirmatory factor analysis is to test whether the data fit a

hypothesized measurement model.


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Chapter 4

Need and scope of the study

The challenges faced by the startup and MSMEs to manage their resources and supply chain is

more crucial for their development to become a big manufacturer. The study related to

performance measurement in SCM is mostly conducted on large manufacturing houses in the

field of textiles and automobiles. No study done in at small sport manufacturers .

This study will enable to find out the challenges face by the sport manufacture to find the vendor

and the market to supply their product and also the cop up with the changing market trend.

Moreover by means of performance measurement how they can increase their efficiency and turn

it into competitive advantage .


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Chapter 5

References

Done, A. (2011). Supply- chain Evolution : Kn.owledge Based Prospectives. IESE

Business School, WP-899

Hashim, M. (August ,2007). SMEs in malaysia: A brief handbook. SDN. Bhd.

Park, D., & Krishnan, H. A. (2001). Supplier selection practices among small firms in the

United States: Testing three models. Journal of Small Business Management, 39(3), 259 -

271.

Deveshwar, A., & Rathee, R. (2010). Challenges for SCM in Today's Global Competitive

Environment. International Review of Business Research Papers, 6 , 194-203.

Li S. An Integrated Model for SCM Practice, Performance and Competitive Advantage.

In: Management of Manufacturing (2002) Ohio: The University of Toledo. 1-266.

Quesada, H. and Gazo, R. 2007. Methodology to Determine Key Internal Business

Processes Based on Critical Success Factors: A Study in Furniture Industry. BusinessProcesses Management Journal. 13(1):5-20

Lear-Olimpi M. Get in step for the future. Warehousing Management (1999) 6:15.

Simchi-Levi D, Kaminsky P, Simchi-Levi E. Managing the Supply Chain. (2003) New

York: McGraw Hill.

Ganasekaran, A., Patel, C., & Ttittiroglu, E. (2001). Performance measures and metrics

on a supply chain environment. International journal of Operations and production

Management. , 21 (1/2), 71-87.

G.p.Kurien, & Qureshi, M. (2011). Study of performance measurement practices in

supply chain management. Interantional Journal of Business, Management and Socila

Sciences , 2, 19-34


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Quesada, H., Gazo, R., & Sanchez, S. Critical Factors Affecting SCM: A Study in the US

pallet industry. Purdue University, Virginia, USA.

Ganescu, M. C., Asandei, M., & Chirila, C. Performance Determinants For Responsible

Supply chain Mangement in the European Emenrging Country. Univeresity of Pitesti.

Romania: Constantin Brancoveanu.


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QUESTIONNAIRE

1) Name of the Firm

2) Designation

________________________________________________________________________

3) Gender

Male Female

4) Which Sports related item the company generally made.

________________________________________________________________________

________________________________________________________________________

_______________________________________________________________________

5) What categories of items the company is manufacturing?

Sports equipment

Sports utilities.

Security and safety equipments.

Apparels

Footware

Others

6)

The capacity level of manufacturing houses is upto what extentSmall, limited to single item

SMEs

Large Level

Global level


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7) From where the company take raw material?

________________________________________________________________________

________________________________________________________________________

8) Tell about the cities, the company is supplying the products.

________________________________________________________________________

________________________________________________________________________

9)

To what extent do you consider that the following functions affect your efficiency of supply

chain management

Low Extent High extent

1 2 3 4 5

Inventory

Transportation

Lead time

Purchasing

Production Planning


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10)The table includes some relevant variable related to the performance measurement of

supply chain management and rating should need to be given as per the management

level ( the level your company is attaining) for particulars on Likert Scale

1. Least appropriate 5 )Most appropriate

FACTORS LEAST MOST

Does the time taken by the

supplier for supply of raw

material is appropriate

1 2 3 4 5

At what scale do you rate the

relationship with the supplier

1 2 3 4 5

How appropriate you consider

the quality of raw material you

receive

1 2 3 4 5

How waste you manage the

inventory level of raw material

1 2 3 4 5

How much advance machineries

you are using for manufacturing

1 2 3 4 5

How efficient the production

cycle of your product

1 2 3 4 5

How appropriately you are

managing wastage of your

1 2 3 4 5


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manufacturing house

How appropriate the lead time of

the product you deliver to the

market

1 2 3 4 5

How efficient do you think your

collection of payment procedure

is:

1 2 3 4 5

How important the measure of

employee performance is:

1 2 3 4 5

How appropriately you use IT

enable infrastructure

1 2 3 4 5

How efficiently you are

managing your logistics

1 2 3 4 5

How appropriately you are using

you reverse SCM

1 2 3 4 5

To what level you consider over

all SCM

1 2 3 4 5

december final capstone file.pdf

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