You are on page 1of 66

Shaktiraj Jena MBA Information systems University Of Wales

LODO COLLEGE OF BUSIESS



Affiliated By

UIVERSITY OF WALES

A report submitted in partial fulfilment of the requirement for the award of the
degree of MASTER OF BUSIESS ADMIISTRATIO
in
IFORMATIO SYSTEMS

April 2010

IMPACT OF IFORMATIO AD COMMUICATIO
TECHOLOGY O SUPPLY CHAI MAAGEMET

I

P C WORLD

BY

SHAKTI RAJ JEA

US: 0811866996842

UDER THE SUPERVISO

OF

Dr. GAJEDRA KADASAMY Ph.d

PROFESSOR

LCB, LODO






Shaktiraj Jena MBA Information systems University Of Wales


Table of Contents
EXECUTIVE SUMMARY .......................................................................................................... 4
CHAPTER OE ........................................................................................................................... 6
ITRODUCTIO .................................................................................................................... 6
CHAPTER TWO ........................................................................................................................ 10
LITERATURE REVIEW ...................................................................................................... 10
The impact of ICT .................................................................................................................... 29
Internet based communication systems and supply chain management .................................. 31
Move to the market hypothesis ................................................................................................ 31
Move to middle hypothesis ...................................................................................................... 33
CHAPTER THREE ................................................................................................................... 37
RESEARCH METHODOLOGY .......................................................................................... 37
Data Collection ....................................................................................................................... 41
Customers ............................................................................................................................... 41
Respondent 1: ........................................................................................................................... 41
Respondent 2: ........................................................................................................................... 42
Respondent 3: ........................................................................................................................... 43
Respondent 4: ........................................................................................................................... 44
Employees ................................................................................................................................ 45
Respondent 1: ........................................................................................................................... 45
Respondent 2: ........................................................................................................................... 46
Respondent 3: ........................................................................................................................... 47
Respondent 4: ........................................................................................................................... 48
CHAPTER FOUR ...................................................................................................................... 49
AALYSIS AD FIDIGS ............................................................................................... 49
PC World Today ....................................................................................................................... 49
P C World and its Supply Chain Management Systems .......................................................... 50
Impact of ICT in P C World ..................................................................................................... 50
Impact on the Customer Services ............................................................................................. 51
The customers: ......................................................................................................................... 53
Suppliers: .................................................................................................................................. 54
The management: ..................................................................................................................... 54
Summary .................................................................................................................................. 55
CHAPTER FIVE ........................................................................................................................ 56
COCLUSIO AD RECOMMEDATIOS ................................................................. 56
Supply Chain Collaboration ..................................................................................................... 57
Why supply chain software? .................................................................................................... 57
Increasing the Usability of RFID ............................................................................................. 58
Steps To Be Taken For A Better Real Time Ict ................................................................... 59
Summary .................................................................................................................................. 60
BIBLIOGRAPHY ...................................................................................................................... 61






Shaktiraj Jena MBA Information systems University Of Wales






ABSTRACT



Many Regards to Dr Gajendran for his invaluable support throughout this project, and many
thanks for his supervision and dedication towards helping students. I also want to thank him for
the Idea about this topic on supply chain in PC World, and the feedbacks that he used to give me
for this interesting project.
I want to thank my Mother for her blessings and her emotional support without which my
dissertation wouldnt be possible.
The college support has been very good and their timely feedback was very important and
helpful.
My sincere regards to all the other professors and lecturers who helped me in understanding
many other aspects of managements which were out of the scope of my course.
Lastly I am very thankful to the Institution for providing me with such a good study
environment and study material
Thank you.












Shaktiraj Jena MBA Information systems University Of Wales

EXECUTIVE SUMMARY
In the research, I analyzed the concept of Supply Chain Management in detail and the
improvements the management of P C world can make with the pertinent use of Information
and Communication technology systems. In the introduction, the importance and objectives
of the study are explained in detail. The ethical issues involved in the study, project plans,
limitations of the study and the contributions which can be provided by the research are also
covered in the introduction part of research.
The main resources of my research are given and my courtesy to the authors of my resources
is conveyed in the theoretical review. This chapter covers an overall idea of the concepts of
SCM and the impact of ICT systems in it. The characteristics, activities, scope, and
problems of Supply Chain Management are explained in detail. The customer Relation
Management and its relation with supply chain management are the other content of this
chapter. The culture and attitude which is essential for the proper management of supply
chain in an organization with the help of the best literatures available is also given in this
section. In this part, slight information on importance of implementation of information and
communication technology is given as it is a part of culture where supply chain management
has its own significance. The supply chain control is the other important feature explained
here. Various theories based on the views of different authors of the literatures on supply
chain management are explicated in detail. Hereafter the sustainability of supply chain is
studied and then the major developments happened through the eras such as creation era,
integration era, globalization era, specialization era and second face of specialization era are
thoroughly researched as part of these studies. I tried to go with the important components
of supply chain management thereafter. The global supply chain and the customers of the
supply chain are the next area of concern in the research.
The research follows with the concept of Information and Communication Technology and
its impact on the system of supply chain management in an organization in detail. The
supply chain management is highly influenced by the internet based communication systems
in this modern era and different views of that are given in the literature review.
The third chapter involves the details of methods adopted for research. Both qualitative and
quantitative methods are adopted in the research. Different ways adopted in qualitative
methods such as participant observation, interviews, group meetings and historic research



Shaktiraj Jena MBA Information systems University Of Wales

are explained in the first part of this chapter. Second part of this chapter describes about the
quantitative analysis which I have done for the research.
In the fourth chapter, the whole analysis and findings of the research are explained. It
includes the story of P C World till date and the operations of P C World. The supply chain
management systems of the P C World are explained thereafter in the research. Different
kind of information and communication technology systems used in P C World and its
impact in the functioning of SCM and customer services in P C World is explicated in this
section.
The research concludes with the suggestions and recommendations for the improvements in
P C World to accomplish the goals and objectives of the organization. These
recommendations will guide the management to improve the quality and productivity of the
organization.














Shaktiraj Jena MBA Information systems University Of Wales

CHAPTER ONE
INTRODUCTION
I am undertaking a study on the current Supply Chain Management Systems at PC World,
United Kingdom. The study covers the processes in the organization, the value chain in the firm
and its analysis. I made an analysis of the ambiguities in the processes of the system and put
forth recommendations needed for the improvements in future. Relationship Management at the
value chain, the customer services in the organization, its impact, Information and
Communication Technologies (ICT) was given concentration in the studies.
Objectives of the Study:
There are multiple objectives for my studies of research. Mainly the supply chain system in PC
World is analysed in detail. Improvements for the development of the system of supply chain in
future is also aimed in my research as it has its own significance for a purchase led kind of
business. Information and Communication Technology systems in PC World and Supplier
Relationship Management in the work place are given importance as the secondary objective of
the studies. An analytic thinking over the improvement of customer satisfaction with use of
value chain has done as another objective of this research.

Why is this study important?

The economic crisis of 2009 was the most severe one after the Great Depression of 1929. The
much expected GDP growth had not happened in the third quarter of 2009 and the growth was
0.3 in the last quarter of the year (statistics.gov, 2010). Most of other European countries have
shown modest growth rates, UK is still in search of positive triggers. We have seen six
consecutive quarters of negative growth and the crisis has affected the economy very
dangerously. 5.7 per cent of the market capitalization has been wiped out in UK in the last 18
months. These numbers look worst when the economy faced inflation in the same time period.
The doldrums in the job market and the virtually frozen consumer spending have affected many



Shaktiraj Jena MBA Information systems University Of Wales

industries in the country (guardian, 2010). Still we are not at all survived from the crisis and
waiting for much horrific double dip recession. So the organizations which have better operating
systems only can survive in market. The organizations who serve an improved customer service
will be benefited in this situation. So the organizations are trying to improve the satisfaction of
customers, reduce costs and improve their profitability. Companies are in search of synergies
and positive triggers with restructuring and reorganizing their strategies and operations. The
Information and Communication Technology systems come across a lot of developments in this
period. This is the real opportunity for the companies to come up in the market with ideal
strategies and improvements in the operations. My research will be a benefit for the companies
which are eagerly in search of ways to improve their efficiency as it is done in the wake of these
tough situations.
Theoretical Framework
I would be guided on mostly by the studies of Geoff Walsham, Professor in University of
Cambridge. The series of publications of his works by University of Cambridge are well
respected in this area of study. Globalization and ICT: Working across culture by Geoff
Walsham would be the primary theoretical resources of my research. These works shows lights
on the significance of Information and Communication Technology in the present status of the
economies.
Another resource for my studies is "Supply chain management: more than a new name for
logistics", by M. C. Lambert and D. M. Pagh. These works are published in IJLM (International
Journal of Logistics Management). They formed a primary thought for the subject of my
proposed study.
Introduction to e-supply chain management: engaging technology to build market winning
business partnership by David Frederick Ross inspired me to work with the advanced methods
of improvements for supply chain management systems and its operations.
Problem of Research:
The problem of the proposed research is insufficiencies and the opportunities of improvements
for the improvements in the system of supply chain in PC World. Suggestions are made to
improve the efficiency and productivity of the PC World as a part of this research. The research
would be done concentrating on 3 dimensions. Implementation of Information and
Communication Technology in the operations, customer satisfaction and Supplier Relationship
Management are the three main points where the concentration has been given in this study.





Shaktiraj Jena MBA Information systems University Of Wales

The main questions raised for the purpose of this research are listed below:
How is the organisation of Supply Chain at P C World?
How is the value chain organized in P C World?
What role does the ICT system have in value chain?
How does the ERP system work in P C World and what is the impact of it on value
chain?
How does P C World manage the supplier relations of it?
In what way P C World manage the relations with its key suppliers?
How does the supply chain affect the satisfaction of customers?
What improvements can be made in P C World?
How can the proposed changes be implemented in P C World?
How will this change improve the efficiency of business?
Ethical Issues
In conducting this study, I would be guided by the Guidelines set out in the British Educational
Research Association (BERA) 2004 ethical issues for Educational research. The guidelines state
that the researches are wholly responsible to their sponsors, the research community and
participants of the research. The guidelines states that all research work must be conducted at
the highest levels of honesty. Research findings are to be published without falsifying and
misstating the work done. The guidelines set out the responsibilities of the researcher to
participants of the research, sponsors of the research and the research community. (BERA,
supply chain management is vital to provide the services and products to the consumers. It
seems that the impression on the management of supply chain system may be indirectly
affiliated with the issues of the behaviour of the surrounding consumer toward asserting and
otherwise driving the satisfaction of customer. According to a number of publications, the role
of management of supply chain is a significant factor in boosting the success of an organization.
On a different perspective, the behaviour of consumer is also crucial element towards the
viability of an organization. Qualitatively, basic researches have been done in concern with the
connection between the satisfaction of customer and the consumer behaviour, in attempting to
know the clear differentiation of each topic towards assuring the satisfaction of customers. This
study tries to disclose the importance of the issues connected in relation to the satisfaction of
customer. It is anticipated that the growing roles of the management of supply chain and
behaviour of consumer in organizations are capable of improving the performance of
organizations and its operations.




Shaktiraj Jena MBA Information systems University Of Wales

Limitations
I would be attempting the research in a much comprehensive way as possible, following
limitations may be underlying in the research
Time Constraints: A detailed and exhaustive study was not allowed by my course
semester as few significant areas are there where I was forced to leave out. However,
most of the significant disciplines would be covered in the research.
Security Issues: a supply chain in an organization, information on ERP and key supplier
contracts are very sensitive kind of company information and it would be too tough to
reproduce them. So I foresee myself as not being capable of publishing a few of my
findings. The support of management which I had secured beforehand for the research
would allow me to bring most of the findings out in the studies.
Financial Constraints: Some suppliers of the organization are located overseas. So it
would not be feasible for me to cover all major suppliers of the organization financially.
Thus the major suppliers who have their physical operations in UK are confined in my
research.
Contributions of the research
A dynamic and innovative concept of Supply Chain Management systems are anticipated as my
study is chiefly a research led exercise. Fast growing systems of ICT in Supply Chain and
management of Supplier Relationship would be invaluable resources academically. Different
paths would be shown for P C World to strengthen their existing not so good supply chain,
consolidate their supplier relations and to construe its customers needs in the research as a
sense of business, for increasing the efficiency of processes and profitability of business.
Project Plan of Research
The proposed work for research would be conducted within a period of ninety days. The studies
for research have being got worked since mid December and would be finished by March. The
first month of my studies has been utilized for background studies and literature review. Over
the next two months, twenty hours a day would be allocated for my work of research. The SCM
systems and various practices in the work place, the Information and Communication
Technology systems used, will be analysed in the actual company locations. Structured
questionnaires would be prepared for the empirical studies of my research and to interview the
customers of P C World and the suppliers of it. The last month of research would be used to
analyse the findings and data, bring up recommendations for the improvements of supply chain
and to get it slimmer and efficient, and to report the entire studies of research.



Shaktiraj Jena MBA Information systems University Of Wales


CHAPTER TWO
LITERATURE REVIEW

Literature Review
Other than the theoretical resources we discussed above, the following resources are also added
to the knowledge related to this study. Transition to B2B e-Market place enabled supply chain:
Readiness Assessment and Success Factors by Movahedi B., Lavassani, M K, Kumar V would
be the principal resource material of the research. A great gamut of management of supply
chain, role of information technology and recent development in the area of supply chain
management, and numerous case studies are discussed in the book. This book allowed me to
grasp a clear picture on the subject of research. Knowledge management systems: information
and communication technologies by Ronald Maier provided more detailed technical aspects for
the research. The latest developments and happenings in the field of research are updated with
the Journal of Supply Chain Management and Journal of E Commerce.
Supply Chain Management
Supply Chain Management is effective management by planning, implementing and controlling
the activities in the supply chain system in an organization. Activities from warehousing the
inventory to movement of products to the consumer are controlled and co-ordinated by the
supply chain management.
Supply Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management activities, it includes
coordination, cooperation and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers - APA (American Professional
Association).
Thus a non managed and static supply chain Can cause a severe Bull Whip effect on the supply
chain of a company



Shaktiraj Jena MBA Information systems University Of Wales


Characteristics of Supply Chains
The management of supply and demand in and across the companies are integrated by
supply chains
It coordinates the network of business operations which provide the products and
services.
The logistics and supply chain management are distinguished by some researchers. At
the same time some of them consider them as similar terms.
The management of supply chain can be used as a software also
A study on supply chain event management allows knowing how the system of supply
chain is coordinated in an organization and how resolutions are produced for the
problems that occur during the effectuation of supply chain in an organization.
Problems of Supply Chain Management
The management of supply chain should cover the following problems,

Distribution of Network Configuration: the location, number, facilities of production, suppliers
network mission, warehouses, centres of distribution, customers and cross docks.

Strategy of distribution: questions of control of operation (shared, centralised or decentralised);
Scheme of delivery such as pool point shipping, direct shipment, cross docking, closed loop
shipping, and direct store delivery; transportation modes, e.g., automotive carriers which
includes the truckloads, railroad, parcel, LTL, intermodal transport which includes trailer on
flat car(TOFC) and container on flat cars(COFC), airfreight, ocean freight, strategies of



Shaktiraj Jena MBA Information systems University Of Wales

replenishments and control of transportation( e.g., private vehicles, owner operated carriers,
contract carrier or common carrier).

Tradeoffs and activities of logistics: the activities above said should be organized well to
accomplish the total cost of logistics. The total cost may be increased by tradeoffs if one of the
processes is optimised, such as a full truck load.
The rates (FTL) are less expensive than shipments of truckload (LTL shipments) on expense per
palette basis. However, if a product of a full truckload is ordered to lessen the costs of
transportation, there will be a growth in holding costs of inventory by which eventually might
cause an increase in the Gross cost of the Logistics. So it is better to opt a systematic approach
while planning the activities of logistics. Thus these are one of the most vital things to be kept in
mind for an effective Supply chain.
Information: This integrates the business processes by sharing information which are valuable
including forecasts, Logistics, demand-management, inventory-management, potential-
collaboration, etc.
Management of Inventory: location and quantity of inventory involving the raw material,
finished goods and work in progress.
Cash-Flow: Arrangement of methodologies and terms of payment for fund exchange across
various stages of supply chain.
Supply Chain Execution: This is a bidirectional process which deals with the proper flow of the
information, cash, material and other entities across the supply chain
Activities involved in SCM
SCM is an approach which is Bi directional, the first including the management of raw-material
movements into a firm, the SCM is pretty much dynamic in nature since it includes all the
process staring from the collection of raw material, transformation of this raw material into
useful goods, and then movement of these goods to the outlets to reach the customers. The
firms endeavour in concentrating the important competencies and becoming more malliable,
their capability lessens in the possession of sources of raw materials including the channels of
distribution.
The logistics part of the supply chain is increasingly being outsourced to different companies
who are now concentrating on their core competencies. The organisation can now improve their
internal channels and leave the rest of the chain to other specialists. It is extremely important
part of the supply chain since a speedy logistics can only link the company supply chain to the
exits which is the final goal. This is greatly driven by the zeal to achieve a better interaction



Shaktiraj Jena MBA Information systems University Of Wales

with the customers and their relationship can remain healthy by improving the supply chain
since it connects directly the organisation with them.
Various models have been aimed to understand the processes which manage the movements of
material within functional and organizational margins.
SCOR is an SCM model encouraged by the council of supply chain. Other model is the supply
chain management model promoted by the Global Supply Chain Forum. A SCM model
projected by the GSCF (Global Supply Chain Forum) demonstrates that the activities in a
supply chain can be characterized as strategic, operational and tactical activities.
Strategic Activities
The optimization of strategies of an organization like number of warehouses,
locations, centres of distributions, locations and facilities of warehouses etc are
included in strategic activities.
Strategic activities include the communication network creation among the supply
chain members and it must develop an improvement in the activities of supply chain
such as shipping, docking, transport, and logistics etc.
The organization of designing of the products and development are included in
strategic activities of an organization and the strategic activities must integrate the
new and existing products into the supply chain.
It should support all the activities in supply chain.
All the activities of supply chain must be integrated with overall activities of the
organization by the strategic activities.
Tactical Activities
It includes decisions concerning to purchase of inventory and contracts.
It includes decisions pertained to production such as the location, schedule, contracts,
plans and definition of processes of production etc.
Decision making in relation with the quality, transport, quantity, location, and use of
inventory.
The strategy formulation in concern with freight like the transport frequency, the cost,
routes, contracts and logistics etc are included
It involves the best process benchmarking in the industry throughout its operations.






Shaktiraj Jena MBA Information systems University Of Wales


Operational Activities
It includes decisions and activities in relation with day to day activities connected to
production and planning at each levels of supply chain.
It involves forecasts of production facilities and necessities in supply chain in every
instant.
It involves forecasting and planning of Demand and converting the overall demand
into supply and share it with every the members of the supply chain. Forecasting,
coordinating and planning the demand forecast of each and every customer and share
bode with all suppliers.
Inward operations, such as movement and transport of goods and stocks in the
supply chain.
It involves operational decisions and planning from ingestion of inventory to the
current of finished goods in the chain of supply.
It includes the promises of orders, accounting for all processes in the supply chain
from suppliers to consumers or end users.
Scope of Supply Chain Management
To stand in the global arena, companies rely on effective networks of supply chain
According to Peter Drucker, business networking concept covers beyond the conventional
enterprise limitations and broadens to coordinate the all the business processes within the value
chain which includes all the companies related to it.
Outsourcing of Information Technology has enabled the organizations to be processed in such a
way that each partner of business concentrates in the few significant areas in which he is
specialized.
This inter organizational network is the innovative trend which enables achieving complex
activies. Structure of network is not a hierarchical structure or a market structure.
It is ambiguous of what kind of performance level impact that various supply network structures
could have on organization, and little is known about the conditions of coordination and
tradeoffs that may subsist among the whole players. Conventionally, organisations within the
supply chain network focuses on the various incoming and outgoing process, with little matter
of concern for the internal management of the firm working on other individual players.
Therefore, an internal management choice control structure is known to make a major impact on
performance of local companies (Mintzberg, 1979).



Shaktiraj Jena MBA Information systems University Of Wales

There have been large changes in environment of business which has contributed to the supply
chain networks developments. Primarily, as a result of globalization and with the increase of
big multi-national companies, strategic alliances, joint ventures and business partnerships, have
found to be making important factors of success, following the earlier practices of Just in
Time, Agile Manufacturing and Lean Management.

Secondly, changes of technology, in
particular the remarkable decrease in the outlay of ICT, which is a predominant element of
expenses of operation, have caused a change in the supply chain network (Coase, 1998).
The exceptional transformation towards activities of integration from managing functions of
individuals with processes of key supply chain in place could be the first significant step in
establishing a successful supply network. For example; the department of purchasing places
orders as necessities become appropriate only, when Department of Marketing responding to
consumer demands and convey the same with all the distributors and retailers across to go with
the demand of customers. The overall integration process leverages the whole shared
information among partners of supply chain of an organization towards its advantage.
The key to Successful consolidation of Supply chain business process is by employing the
collaborative work across suppliers and buyers, common systems along with the shared
information and joint product development.
In 2000, the Lambert and Cooper expressed their view as the whole as The continuous
information flows in the integrated supply chain process supports an organization to achieve
best product flows. Despite such expression, there subsists an opinion among organizations
and networks of management, that product channelling cannot be optimised without the
implantation of the process access to respective businesses.
The supply chain significant processes by Lambert (2004) are listed below:
Customer relationship management
Management customer service, management of demand, fulfilment of orders, management of
flow of manufacturing, management of returns, management of supplier relationship,
management of returns, development of a product and commercialization, management of
returns are the processes explained by Lambert as significant in supply chain. Procurement,
outsourcing and partnerships, measurement of performance and physical distribution are the
other significant keys in supply chain according to Lambert. Some of the important processes
are explained below.






Shaktiraj Jena MBA Information systems University Of Wales

1. Management of customer service process
As the information of customer is the basic source for service of customers, the important aspect
of Customer relationship Management is between the organization and its customers. This real-
time information makes customers cognisant on various details such as product availability,
product information, probable delivery dates through multiple interfaces of information about
the company's operations of production and distribution.
Steps to build an efficient relationship with customers:
Establish goals which are commonly rewarding between organization and customers
Customize and invest efforts to preserve customer resonance and support always
create positive outlook with customers in the organization
b) Process of procurement
In laying good strategic plans for process of procurement, the interests, opinions and support of
the suppliers is very important; because their confidence in the plans lay foundation for newly
build manufacturing flow management and it is the same in case of a development of a new
product.
When activities are global and far reach across, the companies need to accommodate processes
to manage and source them accordingly. For achieving success in creating the preferred product,
it is significant to have mutually beneficial relationship, cut down times cycles in design and
development of the new product play very important role.
Communication systems can be boosted by deploying tools like Internet connectivity and
electronic data interchange (EDI), of the purchasing function of a firm to drive activities.
These powerful systems of communication streamlines a lot of processes in managing,
obtaining and tracking information about products and materials and products, which supports
organization in dealing with issues successfully; supply sources, inbound transportation
negotiation phases, resource plans, order placement, delivery status, storage capabilities,
handling and quality assurance. Also, it actuates the organizations to handle the responsibility
and to organize commitment with suppliers over supply continuity, delivery scheduling,
misrepresentation, and research support studies in creating new product and sources of
programs.







Shaktiraj Jena MBA Information systems University Of Wales

c) Development of new product and commercialization
This helps organizations to reduce time cycles of development of product with aspects of
customers, suppliers so as to capture markets better by being competitive, innovations of
products, and scope to be ahead of competitors in exceeding expectations of customers.
Following points are suggested by Lambert and Cooper to Managers of product Development
and Commercialization:
Abreast management of customer relationship with real needs of customers by making right
choice of suppliers and materials in line with procurement, and by developing practices in
evolving different potential production technologies to improve manufacturing flows in
integrating them with best flows of supply chain of product-Market contexts.
d) Manufacturing flow management process
The earlier forecast mechanism and its whole information and details help in a great way in
designing better flexible manufacturing process procedures and supply efficiencies with
channels of distribution.
Thus mass customized and Flexible processes to market changes, operating processes to order
processes on just-in-time (JIT) basis of band sizes and reduce the time cycles of process of
manufacturing flow with improved efficiency in responding to demands of customer. So the
organization can easily develop efficiencies in work stream lining operations, planning,
scheduling, and inventory transportation, and scales the elasticity across geographies in meeting
production and distribution assemblies.
e) Physical distribution
In the context of physical distribution, the consumer standout as the final end of marketing
channel movement for any finished product or service, in continuous offers with the availability
of the product or service in each channel of distribution. Also, the space time of customer
service is of high value consolidation in the process of extending its customers like
manufacturers, wholesalers and retailers.
f) Outsourcing and partnerships
The basis of the concept of outsourcing by organizations has changed from typical procurement
of materials to employing different channels and sources to hand over the services too, thus
concentrating on areas of value chain and the advantages of it.
This trend is well comprehended in logistics domain, where organizations have picked and
create partnerships with transportation leaders, warehousing and control of inventory to measure
in the control collective partners and suppliers networks. This strategy allows the organizations



Shaktiraj Jena MBA Information systems University Of Wales

to monitor effectively over performance issues of supplier and managerial command on the
logistics partners on a daily basis.
g) Measurement of performance
The organization draws the best of profits and ascendances the market share is a direct result of
integration process of supplier and customer. It helps organizations to frame emphasis for
management of performance setting about competencies in logistics with the capabilities of
supplier and invests in long- term goals of customer relationships for advantages in the
competitive environment. The researchers along with A. T. Kearney Consultants noted that
firms equipped with broader measurements of performance have delivered consistent results and
below are some analysed internal measures for any organization:
Cost
Quality
Customer Service
Levels of Productivity
Asset measurement
The major and significant integration elements of SCM are
Standardization
Postponement
Customization
The integration and management elements of SCM:
To construe the level of management and integration of business process is a calculation of
function of number and level with drifts of low and high and the link of added constituents
(Ellram and Cooper, 1990; Houlihan, 1985).The third component of the four square circulation
model displays the components of supply chain management.
Application of the percept is in amalgamation of more components of management or increasing
level of each component can enhance the level of integration of any process of business.
Lambert and Cooper in 2000, proposed the below listed components, in balancing concept of
the literature on engineering of business process, buyer-supplier relationships and attract the
management attention to different possible components of SCM. Planning and control, structure
of organization, work structure, Structure of product flow facilities, structure of organization,
structure of product flow facilities, information flow facility structure, risk and reward structure,
methods of management and structure of power and leadership are the components (Lambert
and Cooper).




Shaktiraj Jena MBA Information systems University Of Wales

Culture and attitude:
A close look on the literature which is available will provide us more information about what
produces the best structure with clear details on branches and components for a process of
business related to customers and suppliers.
Bowersox and Closs expressed their view that Great heights of joint achievement can be
represented by the synergies exchanged mutually in establishing the cooperation (Bowersox
and Closs, 1996).
The chief participant is acute to achieve responsibilities of ownership of stocks or in accepting
the risk of finance along with other components of primary level (Bowersox and Closs, 1996).
The Secondary participant is more specialized, who is keen to perform services which are
essential for primary participants, along with constituting channel relationships, inclusive of
components of secondary level. The Third level channel participants includes the branches and
components of the participants of primary and secondary level channel.
Literature of The Lambert and Cooper do not help us to understand the specialized primary and
secondary level components of the supply chain comprehensively (Bowersox & Closs, 1996).
This expresses about the emphasis which is absent in understanding how these different
components should be considered, structured and analysed to lay an effectively integrated chain
of supply.
Reviewing the literature by Baziotopoulos to bring out components of supply chain and some
significant suggestions of the study are listed below:
Benchmarking, Customer service management and order fulfilment comprises the top priorities
for both the components of primary and secondary level.
The primary and secondary level components for Product Data Management (PDM) are;
development of product, commercialization customer satisfaction, profit margins, market share
and stakeholders ROI respectively.
The primary and secondary level components for enterprise resource planning (ERP), are;
physical distribution, manufacturing support, procurement, management of warehouse,
management of material, planning of manufacturing, personnel management, and postponement
or order management respectively.
The primary level components of logistics must be linked with facility of information flow
through internal structure of organization for measurement of performance.
Variant, direction, decision and measurement of policy level constitutes the four aspects of the
components of secondary level and in particular, total cost analysis , asset management and
customer profitability analysis , are carefully analysed.



Shaktiraj Jena MBA Information systems University Of Wales

The outsourcing constitutes of the management methods, and the objectives of strategy for
specific initiatives in significant areas of information technology, capabilities of manufacture
and operations as primary level components and logistics as component of secondary level.
The conceptions of reverse logistics are well known as "Aftermarket Customer Services", where
on any given time, the budgets of Warranty Reserve or Service Logistics allow withdrawing
money. The whole process of Reverse logistics is aspired to generate a purpose in recovering
value or pertinent authorization of information by planning, implementing, monitoring and
controlling the capable and valuable of inbound flow with storage of secondary goods.
Significant Changes from the Traditional Concept of Supply Chain Management:
Cut down life cycles of product.
Shorter cycles of product change-over
Scope for increased rate of new product development
Pint sized cycles of production process cycles.
Zero- defect integration of productivity and Quality.
Total Quality Management (TQM).
Possession of strategic resources like process technology and Equipment.
Adaptable Manufacturing Systems (FMS)
Rising importance for practices of project management.
Embracing changes of technology over needs of information and automation.
Deploying Computer Aided Design (CAD), and Manufacturing (CAM).
Depart employees strategic training on Technology work inputs, accountability and
performance.
There is a drastic development in the use of information and communications technology
(ICT) in logistics and management of supply chain. ICT is today being used in many
organisations in a broad range and areas of operations. It has provided new ways to store,
process, exchange and distribute information both within companies and with customers and
suppliers in the supply chain. ICT used to exchange information in the supply chain is often
named inter organisational ICT or inter organisational information systems (IOIS).In supply
chain management, ICT has especially been recognised as an enabler for information
sharing which companies in the supply chain can use for eliminating the so called bullwhip-
effect (Lee et al., 1997). Information-sharing is also a key component in many of the recent
automatic replenishment programs (ARP) (Daugherty et al., 1999). Initiatives such as
vendor managed inventory (VMI) and forecasting and replenishment , collaborative
planning are based on an increased level of automation in both the flow of physical materials



Shaktiraj Jena MBA Information systems University Of Wales

and goods and the flow of information between companies to improve the efficiency in the
entire supply chain. In a operations management perspective, companies seek to further
improve the efficiency in the supply chain by sharing information related to matching
demand and supply such as short- and long-term production planning, demand forecasting
and materials and capacity planning. Information that can be relevant to share between
customers and suppliers typically includes point-of-sales data, forecasts and inventory
levels. There is a significant amount of research demonstrating a positive impact of ICT in
the supply chain. As companies seek to develop the supply chain efficiency through
increased integration, ICT can be considered as a key enabler for supply chain management
through its ability to support information sharing and shortening information processing
time. Supply chain integration can however be expressed in a wide range of dimensions such
as integration of processes, information, organisations and systems (Bowersox et al., 1999;
Mouritsen, et al., 2003). Similarly, the impact of ICT can be demonstrated in terms of for
instance changes in relationships, inter organisational changes and performance (Wilson and
Vlosky, 1998). The many dimensions in which supply chain integration can be expressed
and the wide variation of factors in which the impact of ICT can be defined in terms of
integration indicates that previous researches have been limited to studying a few
dimensions and variables relationships at a time. The aspect of how to control and
coordinate the activity between the companies in the supply chain, and how ICT affects the
level of control integration in the supply chain is a poorly developed area. We propose in
this paper a research model for further research exploring the impact of ICT on integration
in supply chain control. The model is primarily based on theory within supply chain
integration and the impact of ICT. It also incorporates the supply chain control perspective,
which defines the scope of application of the model. In contrast with previous research, this
model does not intend to limited to a few pre-defined dimensions or variables for
investigation but can be used to examine situations involving any type of integration
dimension and influencing factor.










Shaktiraj Jena MBA Information systems University Of Wales

Supply Chain Control
The supply chain control is a very important process which allows an organisation to plan,
implement and control the entire supply chain process. The control process consists of six views
towards an organisation operations, with each view having various attributes to it
The views are on the aspects of resources, materials involved, information flow, business
process, organisation and controlling of the processes. And these views are aggregated to show
the overall control perspective of a company.
We have taken two examples of control and planning to explain the relationship of the supply
chain and its relevance in supply chain. We will see firstly, (Vollman, 2005) MPC standing for
manufacturing planning and control (MPC) system and then we will see the materials and
capacity planning perspective (Mattsson and Jonsson, 2003).
The MPC framework basically means Manufacturing planning and control
Consisting of the front end, engine and back end.



Shaktiraj Jena MBA Information systems University Of Wales

Front end phase of the framework considers all the actions and related operations towards the
establishment of the companys overall planning and controlling. The aspects of Managing
Demand, sales and operations planning (SOP), resource plan and master production scheduling
(MPS) etc are taken into consideration.
The demand is subjected to the customers trend, hence this management allows to forecast the
demand depending on customers choice.

The engine phase deals with the capacity of production and the resources available based on
the MPS. Material requirement planning (MRP) determines the time and quantity constraints for
the components and other parts required for the manufacturing of the products.

The back end phase plans the orders and provides them to the factories and vendors for the
carrying out of material and capacity procedure. Finally a detailed array and control of
scheduling the activities at shop floor and vendor management is met.

The planning outline is analogous to the MPC framework. The only difference being the overall
center of attention on planning mostly. In MPC both planning and measurement are held
important but in Planning framework the material and capacity planning are performed. In the
material perspective, planning deals with decisions regarding the deliveries in terms of product
types, quantities and timing while in a capacity perspective, decisions regarding the capacity
needed to produce required quantities and what capacity is available are dealt with. The
planning framework is based on four levels:



Shaktiraj Jena MBA Information systems University Of Wales



The sales and operations planning (SOP) deals with the overall planning of the sales and
production. Future demand are forecasted at an operational level and the sales are analysed for
taking decisions regarding purchasing and utilisation of resources and other decisions on the
current operations.
The master planning process uses the information provided by the customers purchase orders
to make the forecast, since customer orders are specific and vary in product types and depends
whether products manufactured are required to stock or to orders. Master planning deals with
the establishment of sales and production planning showing quantity and the type of various
products which will be produced in a specified time.
The order planning executes the plans which have been defined on a strategic and tactical
level. The Material flow is controlled based on the operational level within a defined production
and distribution structure.
Workshop planning demands the superior levels to establish the production orders which are
then planned in detailed and executed. This planning balances the available production capacity
with the current order and operations capacity needs.
With the obvious need of these frameworks in the overall division of the available frameworks,
time dimension is the most valued in both the cases



Shaktiraj Jena MBA Information systems University Of Wales

Theories of SCM
Presently there is a break in the available literature on the studies of supply chain management,
as there is no support of theory on explanation of existence and the limits of the management of
supply chain. Authors like Lavassani (2008) have attempted to furnish theoretical foundations
for various areas associated to supply chain by applying organizational theories. Such theories
include, knowledge based view, resource based view, strategic choice theory, and transaction
cost analysis, agency theory, network perspective, institutional theory, network perspective and
systems theory.

Supply Chain Sustainability
Supply chain sustainability is an issue of business which affect the supply chain of an
organization or network of logistics and is often measured by comparison with the ratings of
SECH. SECH ratings are determined as social, cultural, health and ethical footprints. Customers
have got more known about the impact of environment of their purchases and organizations
SECH ratings and across the nongovernmental organizations, are making the schedules for
conversions to locally produced goods and anti-sweat shop labour that support independent
businesses. As supply chains often account for more than 75% of an organizations carbon
footprint, many companies are exploring how such organization can reduce this and hence
improve their rating of SECH.
Developments in Supply Chain Management
Six significant movements can be discovered in the introduction of studies on supply chain
management; creation, integration and globalization (Lavassani, 2008) Specialization phases 1,
2 and SCM 2.0
1. Creation Era
The term of supply chain management was coined first by an industry consultant in U.S in the
early years of 1980s. The idea of supply chain management was of great significance long
before in the starting stage of 20
th
century however, particularly with the introduction of
assembly line. The features of this age of supply chain management include the necessity for
large scale changes, downsizing and re- engineering determined by programs of cost reduction
and far-flung attention to the management practice in Japan.







Shaktiraj Jena MBA Information systems University Of Wales

2. Integration Era
This era of studies on supply chain management was spotlight with the growth of systems of
Electronic Data Interchange in the 1960s and grown through the 1990s by the evolution of
Enterprise Resource Planning systems. This era has extended its development into the twenty
first century with the development of collaborative systems based on internet. This supply chain
evolution era is characterised by increasing the addition of value and reductions of cost through
integration.
3. Globalization Era
The next movement of development of supply chain management is the era of globalization.
This era can be characterised by attention provided to global systems of relations with suppliers
and the elaboration of supply chain over the boundaries of nations and even into other
continents. Though the application of global sources in the organizations supply chains can be
hounded back various decades such as of the industry of oil, an appreciable number of
organizations began to incorporate global sources into their main business. This era is featured
by the globalization of the supply chain management in firms with an objective of improving
their competitive advantage, cost reductions and value adding with the help of global sourcing.
4. Specialization Era- Phase One
Industries started to concentrate on core competencies and used a specialisation model.
Organizations abandoned integration in vertical manner, sold off operations which are noncore
and outsourced those activities to other organizations. This altered the needs of management by
continuing the supply chain well outside the walls of the organization and management
distribution all around the specialised partnerships of supply chain.
This conversion also re- concentrated the basic perspectives of every separate organization.
OEMs have become the brand owners that required good visibility to their supply base. The
total supply chain had to be controlled by them from above rather than from within.
The manufactures of contract had to bring off bills of goods with different schemes part
numbering from various OEMs and support customer calls for the visibility of work in process
and vendor managed inventory. The specialisation model produces networks of manufacture
and distribution composed of various individual supply chains particular to products, customers
and suppliers who work along to design, manufacture, and market, distribute, service and sell a
product. The group of partners may change in accordance with a given market, channel, or
region, leading in a proliferation of environments of trading partner, each with its own peculiar
features and demands




Shaktiraj Jena MBA Information systems University Of Wales

5. Specialisation Era- phase 2
The supply chain specialization started in the 1980s with origin of warehouse management,
transportation brokerages and non asset based carriers and has full blown beyond logistics and
transporting into the facets of planning of supply, execution, collaboration and management of
performance. The forces of market could demand alterations from logistics providers, suppliers,
customers, locations and from these various specialised participants as elements of networks of
supply chain. This unevenness has important effects on infrastructure of supply chain, from the
layers of foundation of managing and establishing the electronic communication among the
partners of trade to more complex needs including the constellation of the activities and flows of
work which are crucial to the network management itself.
Specialization of supply chain modifies organizations to develop their overall competences in
the similar way which outsourced distribution and manufacturing has executed; it helps them to
concentrate on their core competencies and set up networks of particular, partners who are best
in class to contribute to the whole value chain itself, thus by increasing the expertise of supply
chain without improving and maintaining a whole complex and unique competence in house is
the main reason why the specialization of supply chain is acquiring popularity.
Hosting of outsourced technology for solutions of supply chain introduced in the late 1990s and
has accepted primarily in collaboration and transportation categories. This has developed from
the model of application service provider from about 1998 through 2003 to the on demand
model from about 2003 to 2006 to the software as a service model presently in concentration
today.
The Management Components of SCM
The components of SCM are third component of the framework of four squire circulation. The
level of management and integration of a business process link is a purpose of number and level
ranges from high to low, of elements added to the link. Eventually, addition of more
management elements or altering the level of each element can increase the integration level of
the process link of the business. The researches on reengineering of business process,
relationships of supplier and buyer, and supply chain management suggest different components
which should receive the attention of management while managing the relationships of supply
chain. Lambert and Cooper (2000) gave the importance of concepts of planning and control,
product-flow-facility structure, importance of structure in work, methods of managing,
organizational structure, the structure of leadership, risk and rewarding structure and
information-flow-facility structure.



Shaktiraj Jena MBA Information systems University Of Wales

A detailed analysis gives the effect and the relationship between all the business processes and
examines the impact on the roles of the business processes, it broadly explains the relationship
of the customers with the suppliers and the effect each other have, this forms a vicious cycle in
which both parties tend to depend heavily on each others action.
Bowersox and Closs elucidate that the strain on carrying out of a group work denote the synergy
which leads to the highest level of joint undertakings (Bowersox and Closs, 1996).
A participant in primary level channel is a business which is leaving to participate in the
ownership responsibility of inventory or assume other expressions of risks of finance, thus
including the components of primary level (Bowersox and Closs, 1996).
A business is said to be an expert contestant in a of secondary level which takes part in channel
dealings by presenting diverse important services to the participants which lie in the main level.
The global supply chain management has got its own issues to solve which include,
Different currencies and valuations in different countries
Different protocols of trading
Different tax laws
Lack of transparency of cost and profit
Customers of a supply chain
Supplier and organization are seen as two important peers who depend on each other for a
healthy growth. Supplier produces and supplies goods to the organisation who tell the suppliers
of their requirements. So to meet each others needs they need to operate very closely and
should know about each others constraints, because the customers needs can be met only from
each other support. These two peers of the supply chain have their own internal and external
customers. Organizations, governments, etc constitute the external suppliers of the suppliers
who buy goods from them and their employees are the internal suppliers. For meeting the
demands of the external customers internal customers must be satisfied as we can see what can
happen if the supplier does not meet the needs of its employees, which may be appropriate
training or rewarding or culture, there may be a sense of dissatisfaction and can lead to
deterioration in the quality of work achieved and henceforth the External customers who depend
and feed the supplier wont be happy about it if the goods received is not upto the standard.
If the organisation starts selling inferior quality of products without knowing that the suppliers
are giving the goods of low grade can result in dissatisfaction in the customers who might
conclude not to buy the goods from that organisation anymore so this will result in theloss for
the organisation leading to the loss of the suppliers, so it is evident that the dissatisfaction of the
internal customers which are the employees resulted in the failure of the whole organisation .



Shaktiraj Jena MBA Information systems University Of Wales

Whereas, a good supply chain relationship will result in the growth of both the external
customers and the employees, this will help in the growth of both the parties. Hence we can
conclude that SCM model is successful only when other management issues are properly
addressed.

The impact of ICT
ICT stands for Information and communication management which is the backbone of almost
all the management systems. It can-not be thought of running an organisation without an ICT.
For us ICT is a mode of communication but for an organisation such as PC World it means
more and is utmost imperative to have a good and a modern ICT as the possibilities are vast. If
we think as how the organisations used to run in the past we can very well see how things have
changed drastically over past years due to the changing trends.
IT as an entertainment:
It is seen and its apparent that the gaming sector is one of the biggest industries in the world
with billions of dollars worths of profit. There is an ever increasing rivalry between the
organisations like Electronic Arts and Activision which are trying to replace the top place, the
devices like X-Box and Play station have revolutionised the approach to games and the arena
has changed from 2d to 3d graphics. Television will be a thing of past as the companies like
Youtube will be offering the video streaming live on TVs thus giving a wide range of options
for the customers, people can watch youtube on their mobile phones, ps3s etc and thus the
demand will eventually move from a plain television to youtube television on a mobile.
ICT as a service:
Internet is such a boom for mankind as it connects the world literally from anywhere. A
company like Wall-mart couldnt have become such a company like it is today as the vision
would be myopic, they would have never be possible to maintain their organisation across the
borders.
E-bay is such a hit, because it offers a marketplace which is completely online and the
customers can sit in ease and buy and sell their goods. Thus it is very convenient and has
changed the very perspective of business.








Shaktiraj Jena MBA Information systems University Of Wales


ICT in management:
ICT has played a very vital role in todays business arena. PC world is today relied on its
Software systems so heavily that the company would come to a grinding halt without it. It
allows people to buy things online on the internet and on the other hand provides the managers
with vital information on how the things are to be done by showing the sales statistics and the
other important facts which provides a very good insight in the position of the company and
thus there is a very little room of mistake in the forecasting.
ICT thus has changed the way things were done by allowing us to do things better and quicker,
as they are lot better and they have a very deep impact on us.
Supply chain operations can be improved by improving the Five aspects of Operations
management which are Speed, Cost, Dependability, Quality and Flexibility


Prices Low, Margins are high



Short Timing Delivery Delivery is reliable











Properties As-per the Specification A good range of products


Cost



Speed Dependability




Quality Flexibility




Shaktiraj Jena MBA Information systems University Of Wales

ICT Can improve these properties with a highly accurate and quick service, thus is considered
as a bridge between all the nodes of management in a company, It is the bridge between the
customers and the organisation. It provides better control and planning, it provides better
response, provides the fastest way to share information as EDI(Electronic Data Interchange).
The ICT is thus the most important invention of the 21
st
century.

Internet based communication systems and supply chain management
Move to the market hypothesis
The chief argument of this hypothesis says that reduction in the costs of transaction with the use
of new communication technology would change overall mechanisms of governance from either
hierarchical or cooperative relationships to a market system which is decentralised. Malone,
Yates and Benjamin (1987) had done a research and it is regarded as the basis of the debate on
the technology of communication and mechanisms of governance under the TCA paradigm.
There has not been any important explication of the move to market claim as it itself appears
self evident. Wigand and Benjamin (1995) defined a number of pre requisites for the electronic
market like high connection rate, high bandwidth connection, cheap and fast computer
capability, and absence of market access favouritism. Picot, Bortenlaenger and Roehrl (1997)
appended that fully fledged transactions in electronic market need changes in market organizers
like price discovery institutions, transparency institutions, access institutions and settlement
institutions. The most prominent weakness of the move to market hypothesis consists in the
assumption that a reduction on costs of transaction would adopt the introduction of internet.
Malone and his co workers identified major transaction course sources to be asset specificity,
coordination costs, product description and complexity. Their prediction was that the new
communication technology will reduce all these costs. The position of these scholars on this
issue was again affirmed later (Malone, Yates and Benjamin, 1989). The same problem can be
observed in the argument of Picot (1997). Picot and his co-workers believed that asset
specificity reduction was one of the basic changes leading towards the market. Their argument
was the acceptance of the tends of internet to accelerate knowledge diffusion and so reduce the
goods specificity, which prefers the market as a mechanism of coordination. These scholars
could have experienced more credit for their arguments in both the cases, if they had watched
the specificity of asset more closely. Transaction of specific asset bears on the assets which
cannot be deployed again to alternative purposes without significant sacrifice of productive



Shaktiraj Jena MBA Information systems University Of Wales

value (Williamson, 1991). As the advocates of this hypothesis specified, some of them are
anticipated to lose their specificity of transaction to a significant degree with a wide acceptance
of the internet in supply chain management. Communication technology itself is one type of
specific asset transaction. Network of inter organizational communication were believed
transaction specific assets before the introduction of internet. Internet is likely to make other
closed networks of communication highly, disuse eventually, though there were some delays.
Another class included the services and products for which the production depends to a great
extent on specialized skills and knowledge. The transaction specificity will be lost by these
assets because of drastically grown information transferability and duplicability. Temporal
specificity is type of specificity in which timely reactivity by on site human assets is significant
(Williamson, 1991) will also be reduced to a great extent by fast and accurate exchange of
information. Since the heavy dependence on information is common in all these assets, they
may be called information based specific assets jointly. Other than these, most of transaction
specific assets are based on more physical capitals however. The five transaction specific assets
out of six identified by Williamson are considered as not to be specific assets which are
information based. Site specificity cites to a condition in which stations which are successive are
situated in near proximity to each other to economise on transportation and inventory expenses.
Human asset specificity includes both experienced sales staff and skilled labour in a peculiar
product or area of service accomplished personal connections. Discrete investments are
dedicated assets made for a peculiar consumer in plants for general purpose and brand name
capital cites to investment made to brand products exclusively or services together with a
partner of transaction. These types of assets are not likely to be affected by internet in any vital
way. This hypothesis was only acceptable partially. The researchers appeared to have been
known the problems in the scholars arguments. Paradoxical to the chief theses somewhat,
Malone(1987) allowed room for electronic hierarchies and fully organized inter organizational
relationships Wigand and Benjamin (1995) too mentioned briefly that low specificity of asset
and easiness of description are needed for goods to be tradable in markets of electronics and it
makes the overall process simple and easy.






Shaktiraj Jena MBA Information systems University Of Wales

Move to middle hypothesis
The main idea of the move to middle hypothesis was the new technology of communication
would call organizations into a middle base from both the end (decentralised or hierarchy
market). According to this concept, close organized inter dependent organization would be
commanding mechanisms of governance in supply chain management. Other than the move to
market hypothesis, there were however a number of various reasons for backing the same
diagnosis. Various organizational and economic theories were employed in some cases.
Business networks are the base of one of furcates of move to middle hypothesis. Though every
sub unit of the network of business is highly incorporated dynamic relationship, a network could
be differentiated from a relationship which is dynamic as groups of connected relationship
moving above the dyad (Anderson, Johanson and Hkansson, 1994). Johnston and Lawrence
(1988) debated that partnerships which are value adding groups of small scale companies which
shares information freely emerged rapidly and eventually would become much prevalent mode
of coordination of organization. The idea of network was arisen further by a number of other
researchers. Steinfield (1995) anticipated that organizations would be using the networks of
inter organization to construct close relationships with their partners of trade than to use spot
markets. Nouwens and Bouwman(1995) also debated that the new technology of
communication would get rid of the conventional dichotomy between hierarchy and market and
finally lead to the growth of organization of network, a group of firm which are independent that
organize to carry off the flow of services and products in the value chain. Another concept has
originated from the observation that with the wide acceptance of new technology of
communication, the supplier basis for the organizations in many industries lessened rather
increased, in contradiction to what had been anticipated by Malone (1987). Bakos and
Brynjolfsson believed various alternative explanations intrigued by this phenomenon and
eventually developed a conclusion on the basis of incomplete theory of contract( Bakos, 1991).
New information technology contributed more importance to investments which are
noncontractible by the suppliers, like quality, innovation and responsiveness. Successively,
when such kind of investments was specifically needed, organizations would employ less
number of suppliers. On the basis of a continuum of the theory explanation of the incomplete
contract, (Brynjolfsson, 1994) developed a model depicting the influence of new technology of
communication would make smaller firms and less integration by reducing the specificity of
assets. Other than other exponents of the move to middle hypothesis, Clemons and his
colleagues examined each component of costs of transaction one by one(Clemons, Row and
Reddy, 1993 and Row, 1992). Their analysis says the selection of mechanisms of governance



Shaktiraj Jena MBA Information systems University Of Wales

was dependent on the expenses of the categorisation and risk of transaction associated with the
categorisation. Generally decreases in the costs of coordination would result in increase in the
risk of transaction. However the new technology of communication would make a unique
environment where the related risk of transaction and coordination costs could be lessened
simultaneously and so two extremely coordinated, interdependent organizations would be
commanding the mechanism of governance in supply chain management. Since this hypothesis
developed from various perspectives, every thought lines had their own problems in the
argument. Followers of networks of electronic business had a same dilemma with the followers
of the hypothesis of move to the hierarchy. Even though they powerfully argued that the
organizations with networks would be the future of choice of organisational governance, they
were known about the possibility that innovation of technology might make opportunity for
deconcentrated pure market (Nouwens and Bouwman, 1995, Stenfield, 1995). They allowed an
opportunity for hierarchy by mentioning the attributes of product briefly. Their care for
attributes of product was not fully incorporated in those scholars argument. Even though bakos
and Brynjolfsson (1993) captivated components of the reality and their logical thinking seemed
unlined, they did not explicate why they believed that new technology of communication would
step up the importance of non contractible investments. In contradiction to their assumption,
many forms of non contractible investments got more procurable with new technology of
communication in reality. Brynjolfsson (1994)s explanation was especially concerned with
assets of information, contradicted to other sorts of specific assets like physically specific assets
and site specific assets. Therefore, practical application of the model of him must be limited to
positions where specific assets which are information based are included. The studies by
Clemons and friends were on basis of a notion that the affect of new communication technology
on coordination of firms must be anticipated by decomposing the costs of transactions. Clemons
and Row (1992) collapsed the costs of transaction as formulated below:
The costs of transaction = coordination costs + transaction costs
Risk of transaction = Transaction specific capital + resource loss
Firstly, Clemons and Row (1992) debated that new communication technology would bring
down the costs for coordination. They also expressed that the costs of coordination are highly
independent of whether an interaction happens within a single organization or the boundaries
across the organization. They concluded new communication technology would bring down the
risk of transaction by bringing down the degree of transaction specific capital and by cutting
down the cost of control and monitoring among different firms. Afterwards Clemons, Row and



Shaktiraj Jena MBA Information systems University Of Wales

Reddy (1993) slightly altered their former argument and examined the costs of transaction as
follows
Cost of transaction = cost of coordination + operations risk + risk of opportunism
They determined cost of coordination as the exchanging information cost and comprising the
information into processes of decision in an extensive sense. The risk of operations was
determined as risks that the other parties in the dealing wilfully manipulate themselves recoup
information, or underachieve their accorded upon duties. They appended that the risk of
operations stems from deviations in goals among interacting parties and is affirmed by
asymmetries of information between the parties or by troubles in imposing agreements. The
final element of costs of transaction, risk of opportunism was cited to as the danger associated
with a deficiency of power of bargaining, resource control loss. The ideas under this analysis of
costs of transaction were the same. New communication technology would contribute to more
closely coupled inter organizational relationships all around different industries by bringing
down costs of coordination while not increasing risks of transaction previously obtained by high
categorization. So this impression comprises a great deal of truth. However we cannot assist
disagreeing on four significant points. Firstly we affirm that costs of coordination are not
autonomous of whether the interaction happens within a single organization or all around the
boundaries of the organization. In contradiction to that costs of coordination are affected by
whether an organization purchases in-house or purchases in a market. If costs of coordination
were not different in both the cases appreciably, outsourcing would be much suited for any
organization as long as its dealings with suppliers do not include a vital amount of transaction
specific assets. Secondly opportunism is not at all limited to a little part of costs of transaction.
Instead, opportunism is one of the two main assumptions of behaviour of TCA and spread
widely all around the process of activities of transaction (Williamson, 1985). Thirdly they did
not demonstrate how new technology of communication could depress asset specificity rather
than asset specificity which is information based. Therefore their anticipation could be genuine
only within a fixed range. Finally, it appeared that they were breaching a main assumption of
TCA. In accordance with their logical thinking, the most suitable mechanism of governance was
a middle field between hierarchy and market, a well known cooperative relationship which was
inaccessible only because of higher costs of coordination and risks of transaction. In this
assumption, the largest contribution of new communication technology would be reducing the
costs of coordination and transaction which modifies cooperative relations between buyers and
suppliers. Rather differently, TCA considers a market as the choice of ideal governance. Only
when procurance through mechanisms in market becomes also costly as chances of great



Shaktiraj Jena MBA Information systems University Of Wales

uncertainties and specificity of asset will be the search firmly for more beneficial alternatives
like tightly coordinated cooperative bond or hierarchy. While most of the debates supporting the
move to the middle hypothesis were on basis of theoretical hypothesis or conceptual modelling,
Stump and Sriram (1997) checked the move to the middle hypothesis with empiric data. They
failed to demonstrate a direct bond between an investment of a buyer in a new communication
technology and the overall closeness of the relationship between buyer and supplier. A
mediating variable associated indirectly with the two variables, the percentage of transactions of
purchase using new technology. The troubles in these hypothesises should be attributable to the
different directions that growth of communication technology have adopted since the
establishments of the hypothesis.
















Shaktiraj Jena MBA Information systems University Of Wales


CHAPTER THREE
RESEARCH METHODOLOGY
I undertook methodologies which were qualitative and quantitative for understanding the
Supply Chain Management system and its functioning within P C World. Though great
importance is given to the analysis of secondary data collected for the purpose of research, the
real crux of my studies would be the primary research which I had done. Certain areas
necessitated the collection of secondary data instead of primary as I assume it will be more
helpful for the analysis of my findings towards the improvement of the Supply Chain
Management and the relation of it with the Information and Communication Technology.

Qualitative Analysis
For the examinination, primarily the main source of the information was qualitative in nature. I
took every care to be aloof as much as possible since I know upto what extent the qualitative
values can vary. I applied the shadowing mode to observe the business functioning. I
examined the Supply Chain Management System in P C World by using my time for discussion
with different staff within the organisation to figure out the supply chain in the organization and
the pertinent use of I C T in that system. In addition to this, I have applied various other
methods of which helped me in the analysis and finding out the issues, some of the methods
used are as follows.
Participant Observation: People performing various roles were chosen, for which I had to find
people randomly with different nationality, different locality, different usability and different
preferences. This was very important to be as random as possible because if I were to collect
data in one locality, the chances of me drawing a similar conclusion were more.
Group Meetings: They were undertaken with the PC World staff and the normal populace who
are the customers. I went to various stores located at different places which obviously had
different type of customers with different choices, also the People were preferred from different
locations to get a more vivid results


.



Shaktiraj Jena MBA Information systems University Of Wales

Interviews: The interviews that were of the staff and the public which were highly structured
and unstructured in nature, It was very important to get a clear and unbiased result which
wouldve be possible only be taking both informal and a formally structured interview. The
Unstructured interview helped me to get the minute details which were obtained from the staff
mainly and the structured interview was mainly taken from the public and the staff.

Historic Research: The observers views were very much of a skeleton of my whole research. I
read various journals which speak of various aspects of the supply chain and the various
methods that were applied and resulted in the success of supply chain management were
followed. It gave me an insight of the happenings and what possibilities apply to a regular
management change. And for the analysis of data I had to use the following methods

Coding: I made it clear that the data is to be maintained and shown properly as they are the
backbone of any research. This had to be done by applying a holistic approach. The conclusion
were drawn from the extrapolation of various parties which provided with different results while
the interviews.

Personal Judgement: I also had to apply my personal judgement, as my views were based on
my experience. I also decided to undertake different locations and different people for the data
collection on my intuition. Hence some of the outcomes are concluded by me.

Recursive Abstraction: Pc World is an MNC with having various stores, but the way of doing
things varied slightly due to the change and effect of their organisation culture. Its departments
were randomly chosen which were preferred abstractly. Also no two departments from the same
store were chosen to get a sense of abstractness.

Quantitative Analysis
For collecting quantitative value I had to conduct Unstructural and structured ways, different
people which included the staff and the customers were asked with a premeditated set of
questionnaire, the results were then mapped against the overall number of people interviewed.
This provided me a much insight and the understanding of the organisation. These results helped
in my study of the importance of the cause of SCM and ICT systems in P C World and it
identified ways to improve its functions.



Shaktiraj Jena MBA Information systems University Of Wales

Primarily the research was taken to analyse the relationship between the customers and
the organisation. It thus greatly emphasises the role of services on the response of the customers.
Tech Guys which just started as a kind of Repair and maintenance service was a great hit
among the customers. This thus greatly drove to a conclusion that a good relationship between
the organisation and the customers are absolutely vital. Hence I undertook interviews from the
staff and also the customers who are impacted by P C World with their extra ordinary trouble
shooting and services to the customers.
The people interviewed were asked questions to find out the effect of,
A price increase and bundled more items
A price increase without any extra offerings
A price decrease with lesser items
A price decrease for the same product
I used statistics for the analysis of the response and the effect. This helped me gain an insight
required in the supply chain management.
I used the following methods for interviews with the consumers and suppliers of P C World to
get the Structured and unstructured data.
Face to face interviews
Electronic interviews
Telephonic interviews
I used statistics for the analysis and conclusion of the data collected and this was applied to
examine the data primarily, I had to use the Z-Statistics as I undertook interviews from more
than 25 people. The analysis of the data first revealed the relationship between the data with the
current practices and problems. This helped me to give the recommendations towards the
findings.
There were different dimensions which were sometime irrelevant and bore little usability in the
improvement of the business. My motive was to find the current practice in the supply chain and
the ways it can be improved. This explained me the concept of SCM and the role I C T can
play in reshaping it, Finally I have examined the effect of the implementation, the difficulties
that the organisation will face, this was conveyed by the senior members who provided the data
required.






Shaktiraj Jena MBA Information systems University Of Wales



I would be addressing the issues relating the following issues and we can see that supply chain
is such an inevitable field

Problem Function attributed to.
Intended item out of stock Supply Chain malfunction
Delivery outside acceptable timelines Supply Chain malfunction
Home delivery too pricey Supply Chain malfunction
Problems with making online purchases Supply Chain malfunction (ICT), Corporate
Tech Team
Did not receive confirmation Supply Chain malfunction (ICT), Sales
Service
Limited choice Supply Chain malfunction, Product Planning,
Inventory Management
Website not user friendly Supply Chain malfunction (ICT), Corporate
Tech Team
Non Competitive Prices Supply Chain malfunction, Marketing/
Assortment
Not enough Gift items/ Value adds Supply Chain malfunction, Promotion
Web site doesnt have enough product
information to induce a sale.
Supply Chain malfunction (ICT), Corporate
Tech Team













Shaktiraj Jena MBA Information systems University Of Wales

DATA COLLECTION

I had to collect data by conducting interviews as that is the best way to gain an internal aspect
rather than collecting information arbitrarily

CUSTOMERS

Respondent 1:

What is your designation?
Doctor, I am a General practitioner in NHS

Do you own any PC or Laptop and engage yourself in Technology?
Yes I have a Desktop which is custom made by Dell, Two laptops made by Sony and
Advent, also I have bought my kids an Xbox Recently

Where have you bought most of your IT stuff from?

I have bought mostly from Pc world and Maplins but I normally buy my things online by
online shopping. It is more convenient for me with exceptions of some technical glitches
on their websites.

Which company has a better customer service?
I personally prefer PC world as they have larger stores and they provide extended
services and they have a really good team of technicians like the Tech-Guys, their
service is impeccable

Would you prefer in store purchasing or online?
I am a busy man so my preference would be online

Are you happy with the service?
Frankly speaking I am happy but there is always a room for improvement especially
their prices are expensive sometimes compared to other companies



Shaktiraj Jena MBA Information systems University Of Wales



Respondent 2:

What is your designation?
I am a Software Engineer in Accenture

Do you own any PC or Laptop and engage yourself in Technology?
I have two laptops, Mac and IBM; Also I am a game Geek so you would find many
gaming stations in my house

Where have you bought most of your IT stuff from?
I have bought my IT stuff from E-bay and Maplins

Which company has a better customer service?
I personally like E-Bay as they are cheap and I can buy my goods online and they are
secured. PC world service is good but their prices are a bit steep, but no doubt PC world
values their customers more

Would you prefer in store purchase or online?
Online definitely

Do you like their service?
Yes but obviously there service is not comparable to PC World and you hardly find any
complain as their marketed products are best valued and they provide












Shaktiraj Jena MBA Information systems University Of Wales

Respondent 3:

What is your designation?
I am a Shopkeeper

Do you own any PC or Laptop and engage yourself in Technology?
Yes I have a Desktop, one laptop, one projector, Broadband Modem Router, I pod etc

Where have you bought most of your IT stuff from?
Pc world and currys

Which company has a better customer service?
PC world as they have well trained and Dedicated Customer advisors, I dont have much
knowledge in technology, these advisors are highly trained and are a great help for
people like me who are not that technically sound.

Would you prefer in store purchasing or online?
Online if I am busy or if I have to buy something expensive then I prefer going to the
shop

Are you happy with the service?
Excellent service, I dont like the online service though as it is complicated for me, they
should make the website more simpler.














Shaktiraj Jena MBA Information systems University Of Wales

Respondent 4:

What is your designation?
I am a House Wife

Do you own any PC or Laptop and engage yourself in Technology?
Yes I have a Laptop and an I Pod

Where have you bought most of your IT stuff from?

Pc world and Currys

Which company has a better customer service?
Both are good

Would you prefer in store purchasing or online?
I would go for in store purchasing as I can See and evaluate the product, I can get a good
idea of the product by interacting the customer advisors who are very professional and
very helpful

Are you happy with the service?
Excellent service











Shaktiraj Jena MBA Information systems University Of Wales

EMPLOYEES
Respondent 1:

What is your Designation?
Store manager, I have to monitor what all is happening in the store, All the staff
including the customer advisors, the middle managers and the technicians have to report me and
I have to report to the managers in Head-Quarters
What is your Experience in this field?
I have worked as a store manager for almost 10 years

Do you think there is a need of improvement in the Supply chain process?
Our company is no doubt the leader in customer services, We have utmost respect for
our customers, Business customers are valued and are served by our specialised Business
managers, Earlier we had difficulties in serving the customers as the Demand for goods
fluctuated and hence the warehouse management had extremely painful and difficult
times, but now its been changed with the application of Warehouse management systems
and Eclipse which is linked to the Warehouse management systems

Are there any changes in customer Behaviour?
Customers always remain customer and for us they are every thing as we rely on
customers for our wages at the end of the day. And the customer behaviour is Tech
Savvy as they tend to move on with changing technology

If you were able to modify the system what changes would you suggest?
I cant think for any change as for me managing the store has become more and easier
with the ever changing technology.











Shaktiraj Jena MBA Information systems University Of Wales

Respondent 2:

What is your Designation?
I am an inventory manager and my job is the management of Inventory and report
regarding the same to the store manager.
What is your experience in this field?
I used to work as a Customer advisor for 3 years and recently I got promoted as an
Inventory manager
Do you think there is a need of improvement in the Supply chain process?
Yes especially handling of goods, as it is very time consuming to count the pallets. We
use Scanning guns for scanning the bar codes during the Auditing which we normally
organise in Sundays and then we match them against the sales and the demand. Overall
speaking the supply chain is good.
Are there any changes in customer Behaviour?
My job description doesnt tell me to interact to customers as I spend most of the day in
inventory management, Replenishment of the stock on the floor and reporting to my
Senior Inventory manager

If you were able to modify the system what changes would you suggest?
I would go for increasing the speed of inventory management which often takes hours
and hours for counting.














Shaktiraj Jena MBA Information systems University Of Wales


Respondent 3:

What is your Designation?
I am a senior inventory manager. I contact our suppliers and the Sales staff directly,
there is a team who works below me and I report to my Store manager frequently

What is your experience in this field?
I have worked for over 10 years and 5 years as an Inventory manager.

Do you think there is a need of improvement in the Supply chain process?
PC World has a very good business and the demand increases day by day. I opine that
the company should increase the speed of delivery maybe by sharing the Transportation
routes with other companies hence reducing the trips and increasing the speed. Apart
from that rest is going good

Are there any changes in customer Behaviour?
Customer behaviour has recently shifted to online purchasing hence we need to be
dynamic in our service which changes accordingly to the increase and decrease in
demand.
If you were able to modify the system what changes would you suggest?
I would try to increase the delivery speed due to the ever increasing demand of goods
may be by streamlining the transportation and reducing the trips and increasing
coordination between all DSGI companies for increasing the operational speed












Shaktiraj Jena MBA Information systems University Of Wales


Respondent 4:

What is your Designation?
I am a Sales manager my duty is to manage the day to day sales and monitor the
interaction with customers
What is your experience in this field?
I have about 10 years of experience in this field of sales, As a manager i have recently
been promoted to this rank, but I have experience in Business 2 Business (B2B) too. The B2B
experience was much shallow compared to this consumer perspective as they have a different
tendency.
Do you think there is a need of improvement in the Supply chain process?
Yes, I think the changing trends of technology should be more precise and clearly be
conveyed to our management, As sometime we dont have the required stock maybe due
to a delay in logistics? Also we had complaints of faulty products for some time as The
new entrant supplier companies must be rigorously checked for compliance with our
standard
Are there any changes in customer Behaviour?
I have observed that customer behaviour is changing hugely and dramatically. A reason
could be booming technological advances, new competitors in the market, a demand for
latest gadget and so on. Customers are also sensitive to a good customer service which
we provide.
If you were able to modify the system what changes would you suggest?
I would like to have Software services playing a bigger role on which the whole
management system is to be linked to the external interfaces like the websites which
allows the customers to virtually enjoy the benefit of in-store purchasing on a computer.

Summary
From the research, we understood the overall concept of supply chain management, Information
and communication technology and the relation between them. Let us find out how these
systems are used in P C World in further analysis.



Shaktiraj Jena MBA Information systems University Of Wales

CHAPTER FOUR
ANALYSIS AND FINDINGS

PC World Today


In 1993, DSGi plc bought VTA (Vision Technology Group Ltd), who had the ownership of four
P C World Stores. P C World stores were based on Croyden, Lakeside Retail Park at West
Thurrock, Staples Corner at North London, and Brentford. It was a period of successive growth
for P C World from there. It was from 2000, the name of Dixons Group plc renamed as DSG
International to reflect its growing status in international market better.
PC World UK acquired the management control of its French subsidiary in September 2006.
PC World was undergone a change of style at the beginning of 2008, including a new logo, staff
uniforms and store layouts for re-branding its image. In 2009, P C World and Currys opened
first dual branded megastore in Fulham on October 15
th
which provided a better experience for
the customers. DSGi announced in November 2009 that 162 stores were reformatted in UK and
Nordics and it has confirmed its plans to reform its stores all over Europe. P C World has its
operation in different countries. The operation of P C World extends to UK, Ireland, Italy,
Spain, and Sweden. In Italy, Spain and Sweden, the retailer is known as P C City.
PC world works under the DSGI which is the supplier. DSGI supplies to Currys, PC World and
Comets.

DSGI
(Supplier)
PC World
(Reseller)
CURRYS
(Reseller)
CURRYS
DIGITAL
(Reseller)



Shaktiraj Jena MBA Information systems University Of Wales



P C World and its Supply Chain Management Systems

P C World has got an efficient system of management of supply chains. It has been maintaining
good relation with its customers and suppliers. It is the success of the organization and it allows
them to compete with the rivals in the competitive business environment. Efficient supply
chains are the way to success in a business of an organization where products in the stores are
immediately replaced by new upgraded products. One way to make efficiency from a
environmental and logical standpoint is to share routes of supply with corporate partners.
P C World is focused on renewable and more on sustainability, such as creating ways in which
they can use networks and bases (locations which are away from the company's main
distribution center) with Curry's stores (another electronics retailer owned by the same
conglomerate as PC World), so they only need one vehicle between us, Christian Brown,
Manager of P C World, Croydon says. ''We have managed to achieve a substantial increase in
supplier backhaul, which has both reduced empty running and allowed us to take more control
of the inbound process.''
Other sustainability initiatives at PC World include powering road fleets with
biodiesel, redesigning delivery trucks to improve aerodynamics, using more roll-cages to reduce
the need for cardboard, and returning delivery pallets to suppliers for re use.
Impact of ICT in P C World
I would be analysing the various systems used by PC World in the Supply Chain process, will
be presenting their basic architecture and discussing their prominence. At this stage, I
concentrate mainly on the activities downstream of the value chain. Online purchases account
for over 30% of PC Worlds top lines. The customer satisfaction is given great priority by the
top management of P C World. The online services and the telephonic services of P C World
keep them top on the market. The success of P C World is related mainly to the adaptation of
highly advanced systems of information and communication technology. I would be
concentrating on the virtual books are affected by these activities. P C World is much focused
on new technological advances in relevant field and keen to implement them according to the
requirements of the organization for the better performance of the supply chain management.



Shaktiraj Jena MBA Information systems University Of Wales

Impact on the Customer Services
The customer services of P C World were criticised critically by the customers in the past. With
the improvement in their supply chain management and the information and communication
technology systems, the customer services are better nowadays. The large queues when they
open new shops shows the change in the concept of consumers and they are attracted rather than
before towards the P C World. Now the services of this company had been bettered according to
the opinions of the Customers. Today, P C World tries to make every effort to resolve the
queries of the customers speedily and smoothly.
The P C World has a team called Tech Guys to help its customers with all kind of technical
aspects related to their products and services such as to install, to connect and to repair goods if
they go wrong the telephone team of P C World has been awarded for their performance in
2009. They handled 3.6 million calls previous year and more than 80 per cent of problems of
callers were resolved over the phone itself. Service hotline number with the products of P C
World allows the customers to call twenty four hours to solve their problems and advices.
Still in the interviews with structured questionnaires, a lot of customers are unhappy with the
customer services of P C World. Some customers opt Currys instead of PC World for
purchasing the same items. This shows the insufficiency of their system of customer services.
Now the new combined show rooms of Currys and P C World is a boon for its customers. In
this modern era, if a company could not satisfy the demands of the customers, it cannot survive
in the market even if the products of the organization are the best in market. The satisfaction of
customers should be well maintained in P C World. The approach of P C World towards its
customers is getting better day by day with their improved Information and Communication
Technology. This is a good sign for the company and the facet of P C World is changing now
with better customer services. Improvements are necessary as the company should maintain the
satisfaction of customers and should create a loyalty in their customers towards the firm.












Shaktiraj Jena MBA Information systems University Of Wales


The questions designed for customers in the group meeting
Are they satisfied with the services of P C World?
What makes them unique in comparison with the competitors?
Is there any suggestions by which the service of P C World can be improved?
Questions designed for suppliers in the group meeting
What approach does P C World follow with the suppliers?
How P C World maintains their relationship with the suppliers?
How P C World upgrade the standards of facilities to develop the supply chain?
Questions framed for the management in the group meeting
How the management maintains the relations with the suppliers and customers?
How vital is the satisfaction of customers and suppliers for the organization?
How they upgrade the technology to improve the supply chain management?
What is their style of operation with their customers and suppliers?






























Shaktiraj Jena MBA Information systems University Of Wales

The findings from the group meetings and interviews with
customers and suppliers
The customers:
B2B customers are suffering and the sales of PC world has declined to 6% a drop of nearly 13%
in Curry's and a staggering 17% in PC Worlds reseller Branch. Recently this change of
perspective has caused this severe drop. The SMEs which form the core and the backbone of
the reseller arm have taken aback because of the lack of dependability. PC World was supposed
to ease the supply chain between the Vendor and the customer. The chain can be seen as below.










Here we see the gaps between the Business customers and the vendors. PC World has much less
options as the products are given away by the supplier and the local business dont have the
same options available as the normal customers.

The B2C customers are highly satisfied with the services provided by the P C World. The
purchases through online provides them great convenience and gratification. In an interview
with a group of customers, most of the customers conveyed this kind of information. The
current status of P C World is much convenient for the customers as everything can be done
with finger tips. Exceptions were also there in the opinions. Some were having the suggestion
that the services can be improved by the P C World. The services by the tech guys are a great
advantage for P C World. The immediate services executed by the tech guys developed the
brand image of P C World. Telephonic services done by tech guys have achieved a great
appreciation by the consumers of the organization as it is being done in a much convenient and
speedy manner. The combined retail shops by the Currys and P C World is also welcomed by
the customers as they can enjoy a variety experience of shopping. The P C Worlds speedy up
gradation of existing goods and introduction of new products makes the customers always
happy and attracts towards the showroom and their web site again and again. Among all the
services, the online applications of P C World are really comprehended by the customers.
Dixons Group Plc
The suppliers
who supply to PC
World and SMEs
PC-World( The
vendors who deal
with Local
Business, PCWB)
Local Small and
Medium Scale
Industries
Products are transported off to the SMEs



Shaktiraj Jena MBA Information systems University Of Wales

Suppliers:
According to the opinion of the suppliers of P C World, the management of P C World is keenly
careful to maintain the relationship with them. The organization provides all requirements of the
suppliers for timely delivery of the products. The suppliers of P C World are happy on the
facilities provided by the organization. The strategies of logistics of P C World make the job of
the suppliers easy and comfortable. The transportation is done by various methods. The modes
of transportations are either arranged by the company itself and they render the service of
suppliers or other private firms according to the demands of the situations. From these data, I
analyse that the success of P C World is mainly counted on their effective relationships with the
suppliers of the organization. The suppliers of P C World enable them for delivery of goods and
other jobs within time, reasonable cost, and technical performance with a team work with the
management of the organization.
The management:
The management of P C World is always careful in maintaining the supply chain management
according to the needs of the organization. The significance of the management of supply chains
increases as per the vision of management according to the changes in the highly competitive
environment. The management believes the success of the organization firmly related to the
satisfaction of the customers and suppliers. The relationship with the customers and suppliers
are glorified as a basic culture in the P C World according to the management of the
organization. All the components in the supply chain management are taken care of by the
management for the beneficial operations of the system of supply chain. The top management is
really careful in the innovative systems of information and communication technology. This
observation on the technology allows the company to implement pertinent information systems
as per the demands of the situations and this stands as the key element of success of P C World.
Teaming up with customers and suppliers is the way of the processes of P C World in the words
of management. They offer value added services to both customers and suppliers. These
services are continued to be delivered till the satisfaction of them is guaranteed by the
management for the accomplishments of the goals and objectives of the organization.



Shaktiraj Jena MBA Information systems University Of Wales



Summary
The study on the supply chain management and the implementation of information and
communication technology systems within SCM in P C World has done here with the
qualitative and quantitative analyses and the findings as described above. The conclusions and
the recommendations which I found out as the result of this research for the improvements of
the supply chain management system and the processes of the organization are explained below.




























Shaktiraj Jena MBA Information systems University Of Wales


CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
The recent studies and implementation of successful supply chain strategies have earned respect
and fame to some of the very famous companies like Wal- Mart, Dell, Procter and Gamble, and
H-E-B. Supply chain is changing every day with the advent of new technology change od
customer choices, better and fast ways to remove the excess costs and increase the speed of an
organisations response to a change in its operating environment. This has shown how supply
chain can become ones strength and how can it affect an organisations performance if it is ill
managed. We have extensively researched about the impact of supply chain and how it is related
to the marketing, operations, sales etc processes and we have established the leading role of ICT
in their collaboration. Every business process we know has been shown with the effect of ICT.
It is thus established that that the operation superiority can be achieved only by streamlining
them, SAAS which stands for software as a service clearly shows the whole mechanism behind
the operation of the company. The opinions and an exhaustive interviews with 15 professionals,
12 costumers and 2 suppliers were interviewed and examined and used for forming a hypothesis
and then seeking an explanation for that view.
The finding talks extensively of the need of a continuous upgrading of the ICT and shows the
huge gap between the managerial and the Customer perspective. The models which are already
in academics are either too unrealistic or are too ambitious which thus bars them from
implementation into the field
Literary findings suggest that price has a very deep impact on the customers and the
organisations supply chain. The demand can decrease or surge abruptly and these fluctuations
should be carefully managed by improving the response, this is possible only by ICT
implementation which allows to monitor and implement the changes almost in real time.
Price coordination is another such fact which should be carefully managed, price coordination
with quantity discounts is a must as an unmapped quantity discount can cause uncounted change
in the supply and demand which can cause the bullwhip effect as stated by Lee,
Padhamanabhan, and Whang (1997),
From the research, we have understood that PC World need to map the price and non-price
mechanisms more accurately to reduce the Bull Whip. Similarly, the need for standardization of
processes for success with the mechanisms with pertinent application of new and feasible
information and communication technology systems is increased day by day in this competitive



Shaktiraj Jena MBA Information systems University Of Wales

market. Managers established that a more deep involvement of the learning and implementing
of supply chain management is needed for getting a better coordination of the channel.
Managers view them as means to enhance the effectiveness of flow coordination mechanisms.
So it is necessary to update the technological advantages and implement feasible ways to
improve the supply chain management to be survived in market for P C World.

The P C World is undergoing a lot of reforming programs to make the efficiency and
productivity of the organization. The results of them are clearly visible in the operations of P C
World. Continuous improvements are essentially needed for maintaining this impact in the
market. New technological advantages should be used to update the information and
communication technology of P C world. The customer satisfaction should be given the most
concentration.
Supply Chain Collaboration
The best example of the effect of a good supply chain network can be seen in the collaboration
between Wall-Mart and Proctor & Gamble, Whenever product runs out of the wall mart store a
software sent alarm in Proctor and gamble and the amount of items and the type and name of
items, thus the replenishment of goods is continuous and there are no log-heads. I found that
some of the areas can be looked into and the overall efficiency can be achieved. (Eggert and
Helm, 2003) suggests the ways and benefits of sharing information, sharing The information by
the local SMEs with PC World and Dixons will increase the speed and transparency. (Liker and
choi, 2004, page 112) further state that Sharing too much information is will ensure the right
information is unavailable when needed
Why supply chain software?
Normally how the supply chain worked was that the sales managers, the store managers and the
warehouse manager analyse the performance of the items by conducting audits, a purchase order
was made and the goods are sent by the headquarters, this traditional approach depends on the
forecasts made precisely by the able managers automation now saves time, effort and
increase the efficiency of the company, and will reduce the Bullwhip Effect and increase its
response to the market fluctuations, well the supply chain software is no doubt one of the
worlds most fractured softwares but one software like Advanced Planner and Optimiser by
SAP is one such solution.



Shaktiraj Jena MBA Information systems University Of Wales

SMEs which form the business customers to PC World can share EDIs with PC World and
Dixons group, sharing information should be done Clearly without allowing cluttering of excess
information. This will improve the interaction between the suppliers, the vendors and the
customers and a better analysis can be done on PC Worlds part.













Increasing the Usability of RFID
RFID normally are used as a security feature which normally are put on the items as security
tags, these tags after the item being sold are deactivated and thus the lifespan of the usability of
an RFID is limited, but as a matter of fact the usability of an RFID is much more, the
Storehouse can have all the pallets and goods tagged with the RFID reader installed on the
gates, thus counting of goods will be very quick and efficient.The customer satisfaction should
be given the most concentration.





SUPPLIERS, SMEs AND RESELLER
SHARING EDIs
(ELECTRONIC DATA INTERCHANGE)
DIXONS GROUP
(SUPPLIER)
LOCAL SMEs
PC WORLD
(RESELLER)




Shaktiraj Jena MBA Information systems University Of Wales

STEPS TO BE TAKE FOR A BETTER REAL TIME ICT
According to Craig Conway, the CEO of PeopleSoft, there are twelve points which must be
applied for a snag-free operation of real time ICT :
1. Business process should be standard: regardless of the geography or the location of the
client the business process must be standardised
2. Pure Internet Architecture: This will make support even cheaper and flexible
3. Using Standard software: Using a standard software will promote sharing of EDIs easily, a
little customisation must be allowed
4. Collaborating with Software Specialists: Using help from a good software vendor and their
service will ensure continuity of service.
5. Sharing Databases: Using and sharing multiple Databases will ensure a good data sharing
and a good disaster recovery
6. Applications must be Better Scalable: since millions of users will be directly connecting to
business processes, the applications must be highly scalable
7. Multi Language and Currency based : If the company needs to expand throughout the
globe the Online process must be done in Multilanguage and multi currency based
8. Vendors must be Interactive: All the vendors must increase their engagement with each
other operations and must receive each others information in real time
9. Availability of Online Analytics: Analytics must be embedded which will allow customers
and vendors for making better decisions and better interactions.
10. More products and Few vendors: Less vendors and broader product line should be
available for ensuring a more reliable system
11. Managing Change: The change to be brought must be dealt sensibly according to the laws
of change management for ensuring better acceptability
12. Tough CIO: Lastly it all depends on the Chief Information Officer to ensure the team is
upto the mark.



Shaktiraj Jena MBA Information systems University Of Wales


Summary
I conclude the research of Supply Chain Management System and Information and
Communication Technologies in PC World, and what I have apprehended is that Information
and Communication technology is one of the most Vital and Misunderstood areas of
management, if they are to be ignored an organisation is zero, it is thus imperative for an
organisation to keep itself in pace with the changing technology. The recommendations given
will help to improve the productivity and efficiency of the organization. As we know as a fact
that PC World is highly committed to a good service to its customers, it is imperative that the
company maintains and improves its existing service quality. Eventually it will add to the
profitability of P C World
































Shaktiraj Jena MBA Information systems University Of Wales


BIBLIOGRAPHY
References

1. S.R.Nidumolu (1995), Interorganizational information systems and the structure a
climate of seller buyer relationships, Information and Management, Vol. 28, No 2, page
90 104

2. David Frederick Ross (2003), Introduction to e-supply chain management, USA: St.
Lucie Press. page. 81-90.


3. V.Sriram and R.Stump (2004), Information Technology Investments Purchasing, The
International Journal of Management Science, Omega,Vol. 32, No 1, page 41- 50


4. T P Stank, S B Keller and P J Daugherty (2001), Supply chain collaboration and
logistical service performance, Journal of Business Logistics, Volume 22, No 1, page
28-30

5. N R Sanders and R Premus (2005), Modelling Relationship between firm IT
capability, Journal of Business Logistics, Volume 26, No. 1, page 2

6. P Hart and C Saunders (1997), Power and trust: critical factors in the adoption and use
of electronic data interchange, Organization Science, volume 8, no 1, page 22-24

7. J Kent and J T Mentzer (2003), The effect of investment in inter organizational IT in a
retail supply chain, Journal of Business Logistics, Volume 24, No 2, page 154-157


8. D. T Wilson, and R Vlosky, (1998), "Inter organizational information system technology
and buyer-seller relationships, The Journal of Business & Industrial Marketing, Vol. 13,
No. 3, page. 214.




Shaktiraj Jena MBA Information systems University Of Wales

9. V Chaoudhury (1997), Strategic Choices in the development of inter organizational
information systems, Information Systems Research, Volume 8, No 1, page 1- 20

10. S. Barrett, and B. Konsynski (1982), Inter-organization information sharing systems,
MIS Quarterly, Special issue.

11. F. Kaufman, (1966), Data systems that cross company boundaries, Harvard Business
Review, Jan-Feb.


12. V Padmanabhan and S Whang (1997), Information distortion in a supply chain, H L
Lee, ,management Science, Volume 43, No 4, page 545-555


13. P J Daugherty, M B Myers and C W Autry (1999), Automatic replenishment
programs, Journal of Business Logistics, Volume 20, No 2, page 63-79

14. D J Bowersox, D J Closs and T P Stank (1999), 21
st
Century logistics making supply
chain integration a reality, Council of Logistics Management, Volume 12, page 37


15. J Mouritsen, K T Skjoett Larsen and C H kotzab (2003), Exploring the contours of
supply chain management, Integrated manufacturing systems, volume 14, No 8, page
685- 690

16. Gopal K Kanji and Alfred Wong (1999), Business excellence model for supply chain
management, total quality management, volume 10, No. 8

17. www.guardian.co.uk,(2010) (available at)
http://www.guardian.co.uk/business/2009/jan/26/road-ruin-recession-individuals-
economy Last visited: 20/03/2010





Shaktiraj Jena MBA Information systems University Of Wales

18. M C Cooper, D M Lambert and J D Pagh(1997), Supply chain management, The
international journal of logistics management, volume 8, No 1, page 2-12

19. www.statistics.gov.uk. (2010) available at:
http://www.statistics.gov.uk/cci/nugget.asp?id=192 Last Visited: 21/03/2010

20. A Picot, C Bortenlaenger and H Roehrl (1997), organization of electronic markets The
information society, volume 13, No 1, page 110-119


21. T W Malone, J Yates and R I Benjamin (1987),Electronic markets and electronic
hierarchies, Communications of the ACM, page 484-490

22. T W Malone, J Yates and R I Benjamin (1989), the logic of electronic markets
Harvard business review, No 5, page 166-169
.
23. O. E. Williamson (1991), Comparative economic organization: The analysis of discrete
structural alternatives, Administrative Science Quarterly, 36, page 269-296.

24. J C Anderson, H Hakansson and J Johanson (1994), dyadic business relationships
within a network context Journal of marketing, Volume 58, page 1-10


25. R Johnston and P R Lawrence(1988), beyond vertical integration, Harvard business
review, page 95-100

26. C.Steinfield, R Kraut and A plummer (1995), The impact of inter organizational
networks on buyer seller relationships, Journal of computer mediated communication,
Volume 3, No 1


27. J Nouwens and H Bouwman (1995), living apart together in electronic commerce,
Journal of computer mediated communication, volume 3, No 1, page 5-9




Shaktiraj Jena MBA Information systems University Of Wales

28. J Y Bakos (1991), A strategic analysis of electronic market paces MIS, Volume 15, no
3, page 296-303.
29. E Brynjolfsson (1994), Information assets,technology and organization, Management
science, volume40, No 12, page 1645-1660

30. E K Clemens, S P Reddy and M C Row(1993), the impact of information technology
on the organization of the economic activity, Journal of management information
systems, volume 10, No 2, page 10-21


31. E K Clemens and MC Row (1992), information technology and industrial cooperation,
Journal of management information systems, volume 9, No 2, Page 9-20

32. R Stump and V Sriram (1997), Employing information in purchasing, Industrial
Marketing management, volume 26, page 130-136

33. C Wilde(1997), Intranets Internet- New life for EDI?, information week- march, page
65-67


34. A Picot, C Bortenlaenger, and H Roehrl (1995), The automation of capital markets,
Journal of computer mediated communication, volume 3, No 1

35. British Educational Research Association, 2004. Revised Ethical Guidelines for
Educational Research (2004) [internet] London. Available at:
http://www.bera.ac.uk/files/guidelines/ethica1.pdf [Accessed 05 Jan 2010].


36. Dr. C.R. Kothari, (2006), Research Methodology: Methods and Techniques, Himalaya
Publishers, New Delhi.

37. M.C Cooper, D.M Lambert, & J. Pagh, (1997), Supply Chain Management: More
Than a New Name for Logistics, The International Journal of Logistics Management,
USA



Shaktiraj Jena MBA Information systems University Of Wales



38. Douglas Lambert (2008), Supply Chain Management: Processes, Partnerships,
Performance, 3rd edition. PHI, USA.

39. M. K., Lavassani, B Movahedi, V Kumar (2008), Transition to B2B e-Marketplace
enabled Supply Chain: Readiness by Assessment and Success Factors, Conference of
Information Resources Management, Canada.

40. G Ketchen Jr, & T.M. Hult (2006), Bridging organization theory and supply chain
management, Journal of Operations Management.
























Shaktiraj Jena MBA Information systems University Of Wales