Comparing the Supply Chain Systems of the UK and the US - Research Paper Example

Project Definition Report Name: Details: Table of Contents Table of Contents 2 Abstract 4 1. Introduction 4 1.1 Purpose 4 1.2 Project Aim and Objective 4 1.3 Project Background 4 1.4 Reference Material 6 2. Project Organisation 6 2.1 Process Model 6 2.2 Project Responsibilities 8 3. Management Process 8 3.1 Management Objectives and Priorities 8 3.2 Assumptions, Dependencies, and Constraints 8 3.3 Risk Management 9 3.4 Monitoring of the project 9 4. Tasks and Schedules 10 4.1 Tasks 10 4.2 Schedule 10 References: 12 Appendices 13 Appendix I: References 13 Appendix II: Initial project plan 15 Appendix III: Research Methodology 16 Abstract This report provides an outline on how the study ‘Improving the performance and quality of automatic supply chain in UK: Comparing the supply chain systems of the UK and the US’ was conducted. The paper provides a comprehensive overview on the study and highlights on the major processes undertaken to complete the project. It gives the entire project plan, explaining the aim and objective, project background and project schedule as well. 1. Introduction 1.1 Purpose The paper evaluates various factors to improve the performance and quality of automatic supply chain in the UK by comparing the supply chain systems used in the UK and the US. 1.2 Project Aim and Objective Aim The paper focuses on providing recommendations for improving the quality and performance of automatic supply chain in the UK after comparing the supply chain systems of the UK and the US. Objectives The paper would also attempt to find out the various benefits and shortcoming of implementing automatic supply chain management system. Further, the paper would arrive at these recommendations by comparing the supply chain systems of the UK and the US. It especially highlights the limitations in the supply chain system of the UK. The paper also undertakes a sample survey to find out how UK-based companies leverage supply chain management systems to their advantage. 1.3 Project Background In order to evaluate the factors to improve the quality and performance of automatic supply chain in the UK, the paper undertook a comparison between the supply chain systems of the UK and US. In order to achieve this, a literature review on the existing studies comparing the supply chain systems of the chosen countries was conducted. Thereafter, the two systems are compared to find out the advantages and disadvantages in these systems. The paper also demonstrates the limitations found in the automatic supply chain in the UK. While conducting the literature review, it was found that usages regarding eCommerce have several misunderstandings; chief among them is that most people believe that once a data is being processed inside the system, it would be visible to the entire organisation (Juanqiong et al 2007). Further, the section stated that automatic supply chain management system in spite of having several benefits is difficult to manage. Also, to garner maximum benefit, the system should be integrated with the Internet in order to encourage collaboration among the various tenants of the value chain (Lee and Whang 2001). Due to the ever-changing business environment, most companies are looking at redesigning their existing supply chain system and automate it (Juanqiong et al 2007). Further, globalisation has also resulted in the need to develop an integrated supply chain management system that can help in incorporating the supply chain events and in taking management decisions appropriately (Mason-Jones et al 1999). In the later sections, the supply chain between the US and the UK are compared and it was found that the US system is more effective than the UK one. The section also highlights the various advantages and disadvantages of the system, especially focusing on the limitations of the supply chain system in the UK. Further a comprehensive qualitative research was also carried out to find out about the efficacy of the automatic supply chain management system. The paper highlighted on two case studies, wherein supply chain management system has been implemented. The two companies analysed in this paper are the US-based limestone producing company Carmeuse Group and the UK-based smoothie manufacturer Innocent. In order to understand whether the UK-based companies consider the US supply chain management system better, a sample survey was undertaken. The survey result found that around 46 per cent companies were still using supply chain management system for only certain divisions, such as generating invoices or taking orders. Therefore, full automation of the system has not yet taken place in most of these companies. It also found that around 70 per cent of the respondents said that their upper management is not involved in the supply chain system. It stated that only a few companies had a detailed and comprehensive written supply chain strategy. As expected, the survey found that the UK companies believe that the US supply chain management systems are better than theirs. The respondents said that the UK system needs to be much more flexible and incorporate various other features such as providing a platform for better coordination between various stakeholders within the supply chain. In conclusion, the paper provided several recommendations for improving the automatic supply chain in the UK. 1.4 Reference Material The list of sources used for this report is provided in Appendix I. 2. Project Organisation 2.1 Process Model As the project has been quite comprehensive it was essential to outline how the project would be developed (Lock, 2007). Therefore, the following steps were taken for fulfilling the project requirements: Understanding the project requirements: First and foremost the project has been understood and the requirements for the project are determined through close analysis. Thorough review of the subject matter was conducted through an initial research on the topic. Further, queries were asked to the supervisor to further understand the requirements of the project. Outlining the project aim and objectives: The project aim and objectives were identified and clearly stated so that based on them, the project outline could be drawn (March, 1994). Planning: A rough sketch of the project was drawn wherein all the possible stages for conducting this study were identified (Best & Valence, 1999). The major stages included a literature review of available resources, establishing a methodology, conducting the sample survey and analyzing the collected data. Conducting secondary research: Various past literature on the subject were studied through a comprehensive secondary research. This aimed to find out the supply chain management used in the UK and the US at present and conduct a comparison between them. The advantages and disadvantages of the systems followed in these two countries were also analysed. Thereafter, a separate section on the limitation of such a system in the UK was studied in detail. Undertaking qualitative research: In order to understand how supply chain management system can be implemented successfully, two case studies were analysed in detail (Argyris, 1999). These two companies were the US-based limestone producing company Carmeuse Group and the UK-based smoothie manufacturer Innocent. The case studies further helped in formulating the questioner for conducting the primary interviews with the managers in the UK and identify the gap areas in the UK supply chain management systems. Conducting the sample survey: Even before conducting the actual survey, the researcher took the opinion of a small group of people containing his friends, their families and his peers, and interviewed each of the subjects to understand their perceptive about the issue (Denzin & Lincoln 2000). This helped in understanding various opinions about the subject and formulating a questioner based on these perspectives as well. The actual survey was conducted after developing the questioner. However, the researcher first indentified 35 UK-based companies from the trade association directories. The manufacturing manager from each of these companies were recognised and contacted to seek permission for conducting the survey. The researcher assured that the data collected would remain confidential. Analysing the data: The survey results as well as the case studies were analysed in detail. Several graphs were plotted to find out whether implementation of the supply chain management system was successful or not in the selected UK companies. Some of the parameters for analysing the data included finding out management responsibility in supply chain, use of official supply chain strategy, impact of the implementation of the supply chain management, generation of tax benefits, detailed information from the partners, expansion or contraction in suppliers, necessity of IT to manage supply chain, introduction of innovative technologies and US vs. UK supply chain system (Webber & Webber, 2006). Providing recommendations: After analysing the survey results and the case studies, the researcher provided several recommendations to better the supply chain management system in the UK. 2.2 Project Responsibilities Although being an extensive project, it was an individual assignment and therefore, all the tasks had to be undertaken by the researcher only. The researcher had the task of not only planning and researching about the subject but also had to undertake the sample survey and analyse the collected data. However, the researcher was also able to take help from his supervisor for getting direction on the report. 3. Management Process 3.1 Management Objectives and Priorities The project had to be managed properly as it had too many components (Costin, 2008). The major aim of the report was to provide recommendations on improving supply chain management system in the UK. The researcher took utmost care to plot the various tasks and assign deadlines to each of them, so that the work could be completed within the given timelines. 3.2 Assumptions, Dependencies, and Constraints The project is based on the assumption that the US supply chain management system is better than the UK one and that the UK system has limitations. Further, the project is dependent on getting adequate amount of responses through the sample survey. Also, the responses would be dependent on the availability of the managers for the survey. Often it was seen that the managers kept postponing the interview session (Kerzner, 2009). Some even did not fill the questioner properly and the researcher had to contact the manager again to get all the answers. This took a long time and the report was unable to meet the deadline and an extension was sought. The major constraint of the project was that due to limited amount of time and resource, the researcher could only conduct a few interviews (Kerzner, 2009). This may give a biased opinion about the issue. In order to establish that the US system is better than that of the UK system, it is imperative to conduct a survey with more number of participants, which would require more resources and time. 3.3 Risk Management The major risk that the project faced was the inability to get enough responses in the sample survey (Kendrick, 2009). Although the researcher had received responses from 35 managers, initially it was decided to conduct the survey with around 60 managers. Twenty five managers were kept as buffer in order to minimize the risk associated with conducting the survey. This was a good decision, as out of 60, only 35 responded and some after repeated reminders. In case, the researcher had only chosen 35 respondents, it might have been possible that only limited amount of answers would have received by the researcher and the survey might have failed. 3.4 Monitoring of the project In order to monitor the progress of the report, the researcher set deadlines for the various tasks identified and gave it to the supervisor. Further, the researcher held regular meeting session with the supervisor to understand whether his project was in the right track or not. Also during these sessions, the supervisor was able to keep a tab on the timelines decided to finish the project (Kerzner, 2009). Added suggestions were also made during these sessions. For instance, the researcher wanted to undertake the sample survey with at least 60-70 respondents. However, the supervisor discussed the matter and stated that conducting survey with a high number of people might not be possible given the constraint of time and resources. Thus, when the researcher was able to get around 35 responses, the supervisor advised to undertake the analysis based on the collected data instead of waiting for more responses. Such regular meetings and monitoring mechanisms helped in getting the project completed within the given timeframe. 4. Tasks and Schedules 4.1 Tasks Most of the tasks identified in the project were interdependent to each other and had to be conducted in a proper schedule and format (Thomsett, 2009). The following work flow had to be administered to undertake the project: Each task was further divided into several sub-divisions and different timelines were assigned to them. As the tasks were dependent on each other it was important to follow the timelines strictly (Kerzner, 2009). For instance, the sample survey could only take place after the secondary and qualitative research has been undertaken and the gap areas are identified. The findings from the secondary research also become the basis for conducting the primary interviews. Thus, it becomes all the more important to keep the timelines intact. Further, the project could not have concluded without the recommendations, which was the central aim of the report. However, the recommendations were totally dependent on the results of the survey and the secondary research. Therefore, the report had to be performed as per the flowchart and the deadlines. 4.2 Schedule Each of these tasks discussed above were given certain deadlines to follow. Further, as the project was an individual one, the entire accountability rested with the researcher. However, it was also important to conduct regular meeting sessions with the supervisor to understand whether the project is making sufficient progress or not (Thomsett, 2009). The entire project had to be completed within a month’s time and therefore, the researcher decided to create timeline based on the various tasks assigned in the project. Further, the researcher also identified various milestones and based on them scheduled the meetings with the supervisor. This helped in finding out whether the report is on track or not and in case of any issues the supervisor was able to guide the researcher correctly. This also enabled the researcher to again undertake the section and make the necessary changes suggested by the supervisor (Hauga, 2002). Given below is the detailed timeframe and milestones of the project: Tasks Timeline Deadline Meeting schedule with supervisor Understanding the project requirements 2 days March 23 review of the subject matter initial research on the topic Queries to the supervisor March 23 Outlining the project aim and objectives 1 day March 24 Planning 2 days March 26 rough sketch of the project March 26 Conducting secondary research 5 days April 2 literature review Finding out advantages and disadvantages Limitations in the UK system April 2 Undertaking qualitative research 3 days April 7 Analysing two case studies Conducting the sample survey 7 days April 16 Sample survey with friends and family Identifying and contacting participants Conducting the actual survey April 16 Analysing the data 3 days April 21 Providing recommendations 1 day April 22 Final draft 2 days April 26 April 26 References: Argyris, C. (1999). On Organizational Learning. Blackwell Business, Massachusetts, USA. Best, Rick and Valence, Gerard De (1999). Building in value: pre-design issues. Butterworth-Heinemann. Costin, André A. (2008). Managing difficult projects. Butterworth-Heinemann. Hauga, Gregory T. (2002). Effective work breakdown structures. Management Concepts. Kendrick, Tom (2009). Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project. AMACOM Div American Mgmt Assn. Kerzner, Harold (2009). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. John Wiley and Sons. Lock, Dennis (2007). Project management. Gower Publishing. March, J.G. (1994). A Primer on Decision Making: How Decisions Happen. The Free Press, New York. Thomsett, Michael C. (2009). The Little Black Book of Project Management. AMACOM Div American Mgmt Assn. Webber, Larry and Webber, Frederick (2006). IT Project Management Essentials. Aspen Publishers Online. Appendices Appendix I: References Armistead, C. G., and Mapes, J. 1993, ‘The impact of supply chain integration on operating performance’, Logistics Information Management, 6(4), 9-14. Berry, D., Towill, D. R., and Wadsley, N. 1994, ‘Supply chain management in the electronics product industry’, International Journal of Physical Distribution and Logistics Management, 24, 20-32. Bleil, R. 1993, ‘Increasing competitiveness through better supply management’, Electronic Business Buyer, 72-74. Burt, D. N. 1989, Managing suppliers to speed. Harvard Business Review, 67(4), 127 - 135. Chopra, S, and Meindl, P 2001, ‘Supply Chain Management,’ Upper Saddle River, NJ, Prentice-Hall, Inc, 33-37. Customs 2002, International Trade: a blueprint for the future customs environment, HM Customs and Excise. Denton P. D., 2005, ‘An Enterprise Engineering Approach for Supply Chain Systems Design and Implementation,’ Proc of 3rd SCMIS Conf, 555-566. Denzin, K. N. and Lincoln, S. Y. 2000. Handbook of qualitative research (2nd Ed.). Thousand Oaks, CA: Sage Publications. Finch, J., 1986, Research and Policy, pub, The Falmer Press, London, 6-10. Grainger, A 2000, ‘Customs and International Supply Chains,’ Logistics & Transport Focus, 2(9). Gunasekaran, A., Patel, C. and Tirtiroglu, E. 2001, ‘Performance measures and metrics in a supply chain environment,’ International journal of operations and production management, 21(1), 71-78. Haughton, M and Desmeules, R 2001, ‘Recent Reforms in Customs Administration,’ The International Journal of Logistics, 12(1), 65-82. Juanqiong, G, Tingting, M, and Jingjing, L 2007, ‘A Research on Supply Chain Integration Strategy Based on Virtual Value Net, Springer Boston, 887-891. KPMG 2009, ‘Logistics and Supply Chain’, KPMG, Transwide, Cardiff University, viewed on May 13, 2010 < https://www.kpmg.ch/Topics/15130.htm>. Kruse G., 2000, ‘Meeting Your Customers' Needs: Effective Business Processes for Your Supply Chain,’ KPMG Consulting. Lee H. and Whang S. 2001, ‘E-Business and Supply Chain Integration,’ SGSCMF-W2-November. Lee, H., Padmanabhan, L. V. and Whang, S. 1997, ‘The Bullwhip effect in supply chain,’ Sloan Management Review, Spring, 93-102. Mason-Jones R., Naylor B., Towill D. R., 1999, ‘Lean Agile or Leagile: Matching your Supply Chain to the Marketplace,’ Proc 15th ICPR, 1, 593-596. Morten, J 2003, ‘Managerial Challenges within Networks: Emphasizing the Paradox of Network Participation,’ The Aarhus School of Business, 9(3), 372-375. Noor K B M, 2008, Case Study: A Strategic Research Methodology, pub, American Journal of Applied Sciences, 5(11), 602-1604, 2008 Nwana H and Ndumu D 1999, ‘A Perspective On Software Agents Research,’ The Knowledge Engineering Review, 14 (2). Porter M. E., 2001, ‘Strategy and The Internet,’ HBR, 79, 63-78. Vastag, G. and Whybark, D. C. 1994, ‘American and European manufacturing practices: An analytical framework and comparisons’, Journal of Operations Management, 12(1), 1-11. Wathen, S. 1995, ‘Manufacturing strategy in business units: An analysis of production process focus and performance,’ International Journal of Operations & Production Management 15(8), 4-13. Wight O. W., 1995, ‘Manufacturing Resource Planning: MRPII: Unlocking America's Productivity Potential,’ John Wiley and Sons. Appendix II: Initial project plan Understanding the project requirements: The researcher would first attempt to understand the requirements of the project by conducting an initial research on the topic and asking queries to the supervisor. Further, the aim and objectives would also be outlined. Planning: How the project should be conducted needs to be chalked out and a rough sketch should be drawn. Conducting secondary research: In order to find previous studies for the literature review section, secondary research needs to be conducted. Undertaking qualitative research: Two-three case studies should be selected for this paper to understand how successful supply chain management systems are being implemented. Conducting the sample survey: A questioner needs to be made first and thereafter the target participants should be identified. Following this, the sample survey should be conducted. Analysing the data: The data from the sample survey needs to be analysed to find out the trends in the use of automated supply chain management system in the UK. Final draft: The final draft of the report needs to be made to be submitted to the supervisor for comments. Tasks Timeline Start Day End Day Understanding the project requirements 2 days March 22 March 23 Planning 2 days March 24 March 25 Conducting secondary research 4 days March 26 March 31 Undertaking qualitative research 3 days April 1 April 5 Conducting the sample survey 5 days April 6 April 12 Analysing the data 3 days April 13 April 15 Final draft 2 days April 16 April 19 Appendix III: Research Methodology The researcher has chosen the qualitative research method for this study. A combination of case studies and sample survey methods would be used to find out about the supply chain management systems used in the UK and the US as well as the gap areas in the UK systems and how these can be addressed. The researcher decided to use a company each from the US and the UK where supply chain management systems have been implemented successfully. The two companies that were analysed for this paper were the US-based limestone producing company Carmeuse Group and the UK-based smoothie manufacturer Innocent. These two companies were chosen after careful consideration as they offered diverse viewpoints about the implementation of the systems in these companies. The researcher obtained the data for these case studies from various secondary sources such as news articles, books, journals etc. Based on the analysis of these case studies, the researcher formulated the questioner for conducting the primary interviews with the managers in the UK. However, the researcher also decided to conduct a pilot test to understand whether the questions asked by the researcher would add value to the report or not (Finch 1986). Further, there might be instance where the researcher has taken things for granted and has not considered certain angles. Thus, a pilot test would provide all the aspects of the research that the researcher needs to cover. With regards to the qualitative analysis i.e. a sample survey, the researcher randomly selected a few UK-based companies from the trade directories that have implemented the supply chain management systems in their companies. The managers from these companies were then asked to fill a questioner to find out whether they were satisfied with the current system or not, what were the gap areas they were concerned about, and what improvements they wanted to see in the systems. Read More