Final Year Project, Logistics and Supply Chain Management

CHUA TIEN ZHU

SCHOOL OF BUSINESS AND ADMINISTRATION

NAME Chua Tien Zhu

DEGREE Bachelor of Business (Hons) in Logistics and Supply Chain Management

SUPERVISOR Dr. Loo Puai Keong

TITLE Analysis of the Importance of Supply Chain Management Practices

DATE February 2023

INSTITUTION Wawasan Open University (WOU)

Project Report submitted in partial fulfillment

of the requirements for the award of

BACHELOR OF BUSINESS (HONOURS) IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

of

Wawasan Open University

Penang, Malaysia

Acknowledgment

I would like to acknowledge and give my warmest thanks to my supervisor Dr Loo who made this work possible. His guidance and advice carried me through all the stages of writing my project.

I would also like to give special thanks to my family as a whole for their continuous support and understanding when undertaking my research and writing my project. During my studies, there were times when work commitments and other challenges that made me believe that I would not be able to see this journey through. It was during these times that words of encouragement from my family and friends gave me the necessary motivation to persist. No words of thanks can adequately express the depth of my appreciation and gratitude. Your prayer for me was what sustained me this far .

CERTIFICATE OF ORIGINALITY

This is to certify that the research project, Analysis of the Importance of Supply Chain Management Practices is an original work of the student and is being submitted in partial fulfilment of the requirements for the award of Bachelor of Business (Hons) in Logistics and supply Chain Management of Wawasan Open University (WOU). This report has not been submitted earlier either to this University or to any other University / Institution for the fulfilment of the requirement of a course of study.

Declaration made by Student:

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Chua Tien Zhu

031170271

17-Feb-2023

PLAGIARISM STATEMENT

I, Chua Tien Zhu, hereby declare that the attached report is all my own work and all references contained within it have been correctly cited, the original authors acknowledged and it contains no plagiarism.

After the completion of the project report, I have scanned the report through TURNITIN software for plagiarism. The plagiarism report received from the plagiarism detection software indicated that the work is very likely to be original and that I am satisfied that I had not plagiarised any substantive part of the report.

Declaration made by Student:

------------------------------------------

Chua Tien Zhu

031170271

17-Feb-2023

TABLE OF CONTENTS

Chapter 1: Introduction 3 Introduction 3 Problem Statement 3 Purpose of Study 3 Research Objectives 4 Research Questions 4 Definition of Key Variables 4 Chapter 2: Literature Review 5 Background Study 5 Related Theory 5 Discussion of Recent Findings 6 Research Framework 7 Hypothesis 8 Chapter 3: Research Methodology 8 Variables and Measurement 8 Population, Sample, and Sampling Technique 9 Data Collection Technique 10 Techniques of Analysis 11 Questionnaire 11 References 14

The report aims to study the significance of supply chain management practices. The problem statement in regard to the topic has been studied and explained in detail. In the report, the purpose of the study has been provided. The research objectives, questions, and specific definitions of the crucial variables have been explained in detail. The background study related to the topic and the related theory has been explained. Specific discussions of the recent findings and the hypothesis have been provided. The research methodology in regard to the study has been explained in detail. The variables and ways to measure the data have been explained as well as the data collection techniques have been discussed. The ways the data has been studied in detail have been explained in detail. The questionnaire related to the specific study has been provided.

The risks in the supply chain of businesses tend to be seen due to market volatility. The external factors in terms of the pandemic and worldwide problems can result in delays in delivering the products. The worldwide supply chain includes larger distances and several steps resulting in vulnerability to delays. The longer lead times for the products ensure the shipments are unsuspecting of unexpected delays. The problem is for the business since they would be disrupted due to the undesirable supply chain.

The purpose of the specific study is to see the influence of the undesirable supply chain on the performance of the business. There is the study of distinct supply chain management practices in the business setting and the ways they influence the client base. The purpose of the study is to understand the ways supply chain management practices help the business.

The objective of the research is to determine the influence of supply chain management practices on business practices. The distinct types of supply chain management that are implemented by businesses have been explained in detail. The objective of the research study is to determine the influences of unexpected delays on the business’s supply chain. The ways the supply chain management practices improve business profits have been explained in detail. The objective of the research study is to understand the influence of an efficient supply chain on the satisfaction of customers.

The research questions for the specific study are:

· What is the influence of the efficient supply chain on the performance of the business?

· What are the different types of supply chain management practices?

· What is the influence of unexpected delays on the supply chain of the business?

· How do supply chain management practices improve the profits of the business?

· What is the influence of an efficient supply chain on customer satisfaction in the business?

· Supply Chain: The supply chain processes tend to be influenced by digitalization and the business gains a competitive advantage by shifting from a traditional to a digital supply chain (Ageron et al., 2020). The supply chain of the business refers to the network of the individuals and the businesses that are included in the creation of the product and businesses are involved in delivering to the clients.

· Supply chain management practices: They are significant in regard to the business settings. There are five steps to the specific management of the supply chain that are planning, sourcing, manufacturing, delivery as well as returns.

Supply chains are significant for businesses since they implement to quickly deliver customer services. Supply chain management practices (SCMP) have been gaining huge popularity since the 1990s when the world experienced huge competition in the market to deliver products at a lesser cost. SCMP has been defined to be the combination of the activities that are undertaken in the businesses in order to encourage better management in the supply chain (Khalil et al., 2019). The food and beverage industry (F&B) in Malaysia includes several types of processed and fresh foods. The specific market in the industry can be divided into dairy products, fish, vegetables, and sauces. Revenue in the specific food market in Malaysia is US$51.08bn in 2023 and is expected to grow yearly by 7.95% (Statista, 2023). From the above analysis, it can be indicated that the supply chain plays a significant role in boosting the profits of the industry.

The related theory that would help in understanding the relations between the systems is the resource-based view. Implementing the theory, specific businesses can develop adaptability as well as alignment in regard to SCM (Filho & Moori, 2020). In the scenario of the establishment of relations collaborating partners upstream and downstream, RBV had implemented their resources including tangible assets in order to add value to the products. From the above analysis, it can be indicated that the resource-based theory indicates the business’s competitive advantage has been based on rare and inimitable resources. The supply chain of the business has been seen to be the valued resource that helps the businesses to gain a competitive advantage.

The recent findings indicate that the supply chain in the business setting plays a significant role in the quicker delivery of services to customers. Businesses across the world tend to implement supply chain management practices but seem to fail internationally. The businesses could not bring in positive results in cases irrespective of the specific use of the resources. In accordance with the resource-based view, the resources and the capabilities provided by the members of the supply chain help to create and sustain a competitive advantage. In order to produce the services at lower prices and higher quality, there is a requirement for businesses to integrate operational activities with the supply chain members (Tarigan et al., 2020). The different supply chain management practices implemented by the businesses are the source for the firm to increase cost and performance. In order to handle the problems of clarity of the firm and environmental protection, there is a requirement for the firms to transform the efficient supply chain model. The businesses that gain competitive advantage, as well as lead in the worldwide markets, tend to have better-level supply chain practices. For example, Unilever is a multinational business that had implemented a project named The Unilevel Sustainable Living Plan that helps to provide improvement in the health of the people (Isnaini et al., 2020). From the above analysis, it can be indicated that the efficiency in the supply chain helps to deliver quality products to their clients at lower possible costs by improvement of the resources in terms of resources and labor.

The supply chain management practices tend to include the multidimensional construction that comprises the integration among the business and upstream as well as businesses and clients. The crucial objective of supply chain management practices is to establish the business network between the upstream and downstream businesses in terms of the activities that deliver customer value to improve the product quality for the end clients. The strategic partnerships in the specific supply chain of the businesses refer to the long-run reciprocal relations between the businesses and the individuals that serve as the material suppliers (Sukati et al., 2020). The supply chain management practices directly influenced the performance of the supply chain, but customer relations management seems insignificant to the performance of the supply chain. The supplier, as well as customer relations management, has a huge influence on the specific management. Innovation has been considered to be a positive predictor of performance in the supply chain. However, the commitment from the top management proved to be insignificant to the performance of the supply chain. The specific supply chain management practices in the business setting would be inefficient in the improvement of the supply chain performance if the businesses do not implement innovative technologies in the businesses (Xu & Zhao, 2022). From the above analysis, it can be indicated that the supply chain management practices induced an efficient supply chain can help the businesses to deliver products in accordance with the market needs.

The research framework helps in the implementation of the steps that are implemented during the research. The framework has been implemented in terms of a guide for the researchers in order to focus on the scope of the studies. The specific theoretical framework of the research includes supply chain, business performance, and supply chain management models. The distinct elements of the specific framework helped in the identification of the propositions to be tested and guide the study to answer the research questions. The significant problem that can influence the specific argumentation and the study in the thesis is the ways the researcher implements the terms. In the study, the independent variable is the supply chain management practices whereas the dependent variable is the business performance. From the above analysis, it can be indicated that the efficient research framework helps in the study of the research topic.

Hypothesis testing refers to the type of statistical inference that implements the data in order to draw conclusions regarding the population parameter. The tentative assumption that is created regarding the parameter is referred to as the null hypothesis (H0) whereas the alternative hypothesis(H1) is the opposite that has been said to the null hypothesis. In the specific study, the hypothesis are:

H0: There is a positive influence of the supply chain management practices on the profits of the business.

H1: Supply chain management practices have a negative influence on business performance.

In the study, the independent variable is the supply chain management practices whereas the dependent variable is the business performance.

The significant part of scientific research is to develop the hypothesis that refers to the testable statement regarding the relations between more variables. The variable refers to the logical group of attributes that are measured and observed as well as varies from person to person in the population. The research of social sciences has variables with two significant properties in terms of exhaustive as well as mutually exclusive (Wagner & Gillespie, 2023). The measurement in the research study indicates the process to observe as well as record the observations collected in terms of the research effort. The independent and the dependent variables in the specific research study are the supply chain management practices and the business performance. From the above analysis, it can be indicated that the variables, as well as measurement, seem to be a huge part in ensuring a better research study,

The population, sample as well as sampling techniques are significant elements of the research study. The population refers to the entire group from where the conclusions can be drawn. However, the sample refers to the group of individuals from where the data is collected. The population in the research study can be determined by geographical location, income, age, and several other features. The larger population that is demographically mixed and dispersed geographically can prevent access to the representative sample. In the specific study, the population is the businesses of the food and beverage industry that implements different supply chain management practices. The sample of the research study is the businesses in the regions of Kuala Lumpur. Sampling refers to the technique that is employed by the researcher to select a small number of items from the pre-defined population as the subjects for observations (Sharma, 2017). From the above analysis, it can be indicated that the population, sample, as well as sampling technique, are significant in the research study.

In the study, the probability sampling technique has been implemented to study the research topic. The technique is referred to as the sampling scheme where the probability to select the individual is similar. Simpler random sampling has been implemented in the study where every member of the population has an equal chance to be selected as the subject. The benefits of simple random sampling are the ease of assembling the sample and the help in determining the results (Sharma, 2017). From the above analysis, it can be indicated that the sampling technique implemented in the study can be beneficial in having positive results.

The specific data related to the topic of supply chains has been collected from credible journal articles and books. Google Scholar had been implemented in terms of a search engine to study the articles related to the supply chain. Data collection refers to the methodological process of gathering specific information in regard to the subject. Surveys, interviews, and observation are the techniques of data collection that have to be implemented in order to study a specific topic. Social media has been implemented to reach the target audience and is planned to collect 80-120 respondents for the survey. There are 20-30% of the data that are collected unusable. The data given was filtered and the final useable data was captured before the run of SPSS.

Surveys refer to digital questionnaires that help to gather qualitative as well as quantitative data from the subjects. The physical copies of the specific surveys can be delivered to the participants but the online surveys help to provide the opportunity to distribute at scale. Interviews are significant techniques to collect data in regard to the research study. With the help of the interviews, feedback can be gathered regarding the features and several other elements. The traditional modes in terms of personal interviews seem to be attractive in collecting significant data (Mulder & de Bruijne, 2019). From the above analysis, it can be indicated that the two types of techniques to collect the data seems significant in the specific research study.

Observing the employees in the business setting telling the supply chain management practices can help in the research study. For instance, the journal articles and the books that have been selected are related to the topic of supply chain management practices and are observed to understand their influence on business performance. The secondary data has been collected from journal articles and books related to the topic. The data source helps to provide insights into the research area in regard to the current state-of-the-art technique (Sileyew, 2019). From the above analysis, it can be indicated that observation is the best data collection technique. The pretest in terms of the questionnaires and the interviews had been conducted in order to validate the content to be valid in sense of the understanding of the respondents.

Questionnaire

The questionnaire has been implemented for the understanding of the answers to the questions related to the topic. The demographics in terms of age, sex, location, education, status, and career has been included to filter the points deciding the ways respondent data is implemented. The independent and the dependent variable has 3-5 questions.

Table 1: Questionnaire

The above table indicates the questions related to the specific topic.