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Collaborative forecasting and planning in

supply chains the impact on Logistics &


Production performance in Pakistani
Industries
Authors
Abdul Momin
MBA - Supply Chain Management, Iqra University, Karachi Pakistan

Bashir Ahmed Khan


MBA Supply Chain Management, Iqra University, Karachi Pakistan

Bilal Habib
MBA Supply Chain Management, Iqra University, Karachi Pakistan

Saiyed. M. Fauzan Ali


MBA Supply Chain Management, Iqra University, Karachi Pakistan

Shakir Hussain
MBA Supply Chain Management, Iqra University, Karachi Pakistan

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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TABLE OF CONTENTS
Chapter 1: Introduction....................04
1.1 Background of the study.....................
04
1.2 Problem statement..................05
1.3 Research questions.............................................................................................................05
1.4 Operational definition.....................06
Chapter 2: Literature Review.......................07
2.1 Empirical Review.......................07
Chapter 3: Research Methodology...................................10
3.1 Conceptual framework...................10
3.2 Hypothesis..............11
3.3 Research Design.................11
3.3.1 Method of data collection......................11
3.3.2Statistical Technique...............12
Chapter 4: Results and interpretation...............................................................13

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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4.1 Factor Analysis (Exploratory): Hypothesized Model....................................13


4.2 Reliability analysis.................................................................................21
4.3 Reporting Factor Analysis Results....................................................................................23
4.4 Hypothesized Model...........................................................................................................24
Chapter 5: Conclusion and implications..................................................................................33
5.1Discussion.......................................................................................................................33
5.2 Conclusion..........................................................................................................................34
5.3 Implications.......................................................................................................................34
5.4 Significance of the study....................................................................................................34
5.5Limitation...........................................................................................................................35
REFERENCES........3637

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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1.

Introduction

1.1

Background of the Study


The research paper in the study has been centered around Collaborative forecasting

and its progressive, impact on production and logistics performance. According to the general
actuality, all the supply chain partners (collaborative Supply Chain Partners) have diverse and
particular objectives from one another along the whole supply chain, this worldwide
phenomena has its own particular effect on distinctive organizations and business. Because of
their unique and likewise business arena's the part of collaboration have dependably been an
exceptionally troublesome, tedious, yet the most critical and a huge part for organizations to
consider.
With the beginning of the 21st century, the trend of specialization in one field in the
industry has given birth to so many sub industries, the concept and Idea of a whole in home
production has almost vanished, people and firms with different core competencies have
emerged as a way out/ solution providers for all the business and Industries.
For collaborative business forms, between authoritative integrative exercises are
extremely huge. Along these lines, numerous studies have exactly inspected the effect of
integrative exercises on execution.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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1.2

Problem Statement
The importance of collaboration and joint effort can never be centered on enough in a

Supply Chain. Nonattendance of collaboration results in expanded demand variability


through the Supply Chain. Collaborative Forecasting and planning is driven by organizations
today in order to make their supply chains more responsive, enhance logistics and generation,
execution and keep all the supply chain people tuned into the end customer request. As per a
late concentrate, Supply Chain integration is found to have vital influence in the general
execution of the Supply Chain in an organization (Kim, 2006). Collaborative activities are
vital for an organization regarding production performance and collaborative activities have
been the objective of a few late studies, and the significance of joint effort and collaboration
in business change has been complemented, in this manner the essential issue articulation of
our research study is to distinguish the effect of internal and external collective impact on
logistics and production performance.
1.3

Research Question
Research Questions are the most key bit of a qualitative research, as we have to take
the feedback of the people groups which fall under our objective populace. As
demonstrated by our issue of the study, the research inquiries are as under;

To examine effects of Collaborative forecasting and planning with main Suppliers on

Logistics and Production Performance.


To examine effects of Collaborative forecasting and planning with main Customers on

Logistics and Production Performance.


To sight see that Internal Collaborative forecasting and planning can affect Logistics
and Production Performance.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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To examine the interrelationship between Collaborative forecasting and planning with

main suppliers and Internal Collaborative Forecasting and Planning


To find out the interrelationship between Collaborative Forecasting and Planning with

Main Customers and Internal Collaborative Forecasting and planning


To find out the Interrelationship between Collaborative Forecasting and Planning with
main Suppliers and Collaborative Forecasting and Planning with Main Customers

1.4 Operational Definitions


Collaboration (IV)
Collaboration characterizes as the readiness of divisions to cooperate. Collaborative
activities are normally immaterial, less effectively managed, and hard to support without
collaborative efforts, and speak to a more elevated amount of interrelationship.
Internal Collaboration (IV)
The Collaborative activities that are performed within the organization with joint
effort.
External Collaboration (IV)
The Collaborative activities that are performed outside the organization, the joint
efforts of organization with the main customers and main suppliers.
Logistics (DV)
The activity of transporting manufactured goods to customers.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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2.

Literature review

2.1

Empirical Review
Troilo, (2014) examined the part of internal and external collaborative forecasting

related to product innovation in the Chinese firms. Data was accumulated from 2700 firms,
spread across more than 25 urban groups' in 15 enterprises. Logistic regression, Poisson
regression, and least square methodologies were used. Results exhibited that foreign and
domestic Collaborations have a positive association with product innovation.
Bhakoo, Singh & Sohal, (2012) added to an understanding of the method for
collaborative planning that accomplices use to direct inventories in an Australian Hospital. A
Survey of 40 respondents was coordinated. The results highlighted the vicinity of a collection
of collaborative planning amongst wholesalers/vendors and clinics.
Winkelen, (2010) identified how associations can get more esteem from joining in
between hierarchical learning collaboration. Seven learning-based inter-organizational
collaborations were considered using a subjective exploratory research plan. Two discoveries
were seemed to affect, first individuals not translating the consequences of the learning and
second the associations not sharing and upgrading that learning. This complemented the
importance of intra-hierarchical learning exchange frameworks and furthermore the part
individuals play in exchanging information.
Singh and Power, (2009) explored a model of coordinated effort considering firms
having a strong working association with their suppliers and customers. Issues joined with
collaborative relationship among the organizations and their trading accomplices were tended
to in Supply Chain Management. Data was assembled from 418 Australian producing plants

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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to test the model. The outcomes upheld the collaboration model, with both collaborative
based develops influencing performance.
Maon, Lindgreen & Vanhamme, (2009) intended to highlight and recognize current
practices, particularities, and troubles in a debacle alleviation supply chain. Researchers
concentrated on the key missions of calamity relief enterprises: in the first case, counteractive
activity and arranging and, second, response and recovery. The technique used was both SCM
and logistics, organization composing and outlines drawn from veritable cases instruct the
change of the theoretical model. Results demonstrated that planned endeavors amidst
ventures and catastrophe alleviation associations help workplaces meet SCM challenging.
Sari, (2008) investigated the impact of inventory framework blunders on the
advantages of collaborative supply chain network under distinctive Supply Chain
circumstances. Examination sees in precise stock records result in performance diminishes in
addition, analyst in like manner comprehends the threatening impact of off course stock
information is more grounded where lead times are shorter and demand vulnerability in the
market place is lower. Two synergistic exercises were considered in four-stage supply chain
system. The fundamental practice is a merchant directed inventory framework where the
supplier takes the full commitment of managing the retailer's stock. The second practice is a
collaborative planning, expecting, and reviving task, where all people team up to organize,
gage, and restore the inventory. Results demonstrated that while the inaccurate stock records
result in significant performance diminishes for all supply chain networks, their impact is
liberally more important for the supply chains where people cooperate more about on key
supply chain activities.
Soosay, Hyland and Ferrer, (2008) analyzed how collaborative relationship enhances
development persistently in a supply chain system. A subjective methodology was grasped

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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for analyzing the segments and data were assembled from semi-sorted out meetings with 23
directors in ten contextual investigations. The objective was to acknowledge how these
associations possessed with collective relationship and their hugeness for productive
development and to demonstrate how differentiating connections can impact on the operation
of firms and their capacities to advance. Discoveries have exhibited diverse frameworks
where firms teamed up with customers and suppliers in the supply chain system. This was
evident in the viewpoints of administrators over each one of the associations broke down,
supporting the noteworthiness of collaborative effort and capable appropriation of assets all
through the supply chain network system.
Sandberg, (2007) dissected the results of a survey which looks at the situation in
authentic supply chains concerning logistics collaboration. A survey was created covering key
subjects from the writing. The review was sent to the logistics boss at Swedish manufacturing
associations and a net reaction rate of 37.8 percent (177/482) was accomplished. Beside
descriptive statistics, factor analysis and analysis for variance (ANOVA) was used for the
examination. Three essential conclusions were drawn. In any case, there is a sensible
relationship in the middle of coordinated effort and positive results experienced from the
cooperation. Second, the best management is a crucial driver for joint effort. Third, there are
not kidding contrasts between Supply Chain Management (SCM) theory and practice.
Kampstra and Ashayeri (2006) dissected the crevice between the interests in Supply
Chain Collaboration (SCC) and for the most part few recorded cases of fruitful applications.
Viewpoints of the creators rely on their total field experiences and writing. Three substances
of SCC were recognized setting up the essentials of the collaborative process; where the
methodology starts; and where it closes, extended care for experts in SCM by exhibiting

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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when collaborative effort is significant; what to change; what to change to; and how to get
changes going.
Vereecke, (2006) experimentally broke down the relationship between production
network Collaboration and execution change. Hypotheses were made with estimations of
supplier and customer collaboration and performance changes. Tests from 374 firms from the
designing/collecting industry transversely more than 11 European countries were considered.
Results exhibited that frail empirical support was available for a positive relationship between
supplier (or customer) collaboration and performance improvement.

3.

Research Methodology

3.1

Conceptual framework

The figure above is demonstrating Manufacturer (Internal), Supplier (External) and


Customer (External) as independent variables, whereas Logistics and Production performance
is the dependent variable. The degree of Collaborative forecasting and planning was
categorized into three dimensions: collaborative process operation, collaborative process
improvement and sharing resources.
3.2

Hypothesis

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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1. H1 breakdown:
a) H1a: The higher the degree of internal collaborative forecasting and planning, the

higher will be the degree of collaborative forecasting and planning with main
suppliers.
b) H1b: The higher the degree of internal collaborative forecasting and planning, the

higher will be the degree of collaborative forecasting and planning with main
wholesalers/retailers.
2. H2: The higher the degree of collaborative forecasting and planning with main

suppliers, the higher will be the degree of collaborative forecasting and planning with
main wholesalers/retailers.
3. H3: Internal collaborative forecasting and planning has a significant positive effect on

relative performance.
4. H4 break down:
a) H4a: Collaborative forecasting and planning with main suppliers has a significant

positive effect on relative performance.


b) H4b: Collaborative forecasting and planning with main wholesalers/retailers has a

significant positive effect on relative performance.


3.3

Design of the research


Data was collected from the Manufacturing Industry based in Karachi which includes

food, beverage, automobile, and FMCG companies. A questionnaire was sent to 50 supply
chain and logistics managers from among these companies.
3.3.1 Method of Data Collection:
A stratified sampling technique was used and data was collected using a quantitative
questionnaire and a bipolar scaling method called Likert Scale was utilized to measure the
response. Email Survey Method was utilized to collect data from our targeted respondents. A
link to the questionnaire was sent to each invitee and their response was recorded.
3.3.2

Statistical technique

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Bivariate correlation was used to test the type and strength of relationship between
our independent variables, Confirmatory factor analysis was utilized to evaluate our variables
using SPSS and Linear Regression was used to test the impact of our independent variables
on the dependant variable.

4.

Results and interpretation

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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This area deals in presenting the results and findings, analysis of data, and discussion
about the findings which we achieved through using the SPSS tool, Data was collected using
a quantitative questionnaire and a bipolar scaling method called Likert Scale was utilized to
measure the response. Email Survey Method was utilized to collect data from our targeted
respondents. A link to the questionnaire was sent to each invitee and their response was
recorded, and after that the reliability test was used to check the validity of the data and
confirmatory factor analysis was utilized to test our variables.
4.1.

Factor Analysis (Exploratory): Hypothesized Model

Above model contains 4 variables, e.g. (Supplier, Customer, Organization and


Logistics & Production) three relationships between above model are identified to check the
significant positive impact of the independent variable on dependant variables.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Data Screening:
Missing Value:

The data were checked for missing value and in our sample of 50 respondents missing
values were identified.
Outlier:

The data were screened for Multivariate outliers and responses fall more than
0.996059 so there are no outliers in the data and the factor analysis was satisfied with a final
sample size of 50
Factor Analysis Test:

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of Sphericity

df
Sig.

.645
331.785
55
.000

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Communalities
Initial

Extraction

IC2

1.000

.747

IC4

1.000

.678

IC5

1.000

.776

IC6

1.000

.720

CS1

1.000

.925

CS2

1.000

.925

CC1

1.000

.943

LPP2

1.000

.835

LPP3

1.000

.842

LPP4

1.000

.912

LPP6

1.000

.679

Extraction Method: Principal


Component Analysis.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Total Variance Explained


Component

Initial Eigenvalues

Total

% of

Cumulative

Variance

Extraction Sums of Squared

Rotation Sums of Squared

Loadings

Loadings

Total

% of

Cumulative

Variance

Total

% of

Cumulative

Variance

3.510

31.907

31.907

3.510

31.907

31.907

3.036

27.599

27.599

3.133

28.479

60.387

3.133

28.479

60.387

2.996

27.237

54.836

1.492

13.561

73.947

1.492

13.561

73.947

1.851

16.825

71.661

.849

7.721

81.668

.849

7.721

81.668

1.101

10.007

81.668

.521

4.741

86.409

.454

4.131

90.540

.319

2.901

93.440

.283

2.573

96.013

.261

2.375

98.389

10

.109

.995

99.383

11

.068

.617

100.000

Extraction Method: Principal Component Analysis.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Component Matrixa
Component
1

IC2

.788

IC4

.772

IC6

.755

CS2

.750

.490

IC5

.744

-.448

LPP4

.917

LPP3

.870

LPP2

.838

LPP6

.686

CS1

.556

CC1

.716
.569

Extraction Method: Principal Component Analysis.


a. 4 components extracted.

.688

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Rotated Component Matrixa
Component
1

IC5

.870

IC6

.838

IC2

.825

IC4

.788

LPP4

.949

LPP3

.909

LPP2

.833

LPP6

.707

CS1

.938

CS2

.892

CC1
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

.938

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Component Transformation Matrix
Component

.845

.198

.491

.073

-.267

.944

.103

-.165

-.439

-.112

.723

.522

.148

.239

-.475

.834

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

Interpretation:
Factor Analysis:
Initially, 50 respondents were examined for factorability of a correlation in which
Kaiser-Meyer-Olkin value was greater than 0.5 and Bartletts test of sphericity was also
significant (2 (50) = 331.785, 0.000) which indicated that the Fitness of Model test was
appropriate, in the table Total Variance Explained the cumulative % in the column of
Extraction Sums of Squared Loadings was 81% which indicated a good fit.
The cross loading issue was resolved by removing the components IC1, IC3, CS3,
CS4, CS5, CS6, CC2, CC3, CC4, CC5, CC6, LPP1 and LPP5 through factor analysis.
Rotated Component Matrix indicated a correlation among variables. The first
dimension is found among IC5, IC6, IC2 and IC4 in which surrogate value of IC5 was found
to be 0.870. Second dimension was identified among LPP4, LPP3, LPP2 and LPP6 in which
surrogate value of LPP4 was 0.949. The third dimension was identified among CS1 and CS2
in which surrogate value of CS1 was 0.938. However, CC1 was the only variable for the
fourth dimension and its surrogate value was 0.938.
Screen Plot diagram indicated a drop of eigenvalue.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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4.2. Reliability Test


Reliability of IC Variables:

Reliability of 50 respondents was checked for components IC5, IC6, IC2 and IC4 in
which Cronbach's Alpha value was 0.863 which indicated that the components were reliable.
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the


procedure.
Reliability Statistics
Cronbach's

N of Items

Alpha
.863

Reliability of LPP Variables:

Reliability of 50 respondents was checked for variables LPP4, LPP3, LPP2 and LPP6
in which Cronbach's Alpha value was 0.881 which also indicated the reliability of the
components.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Case Processing Summary

N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the


procedure.
Reliability Statistics
Cronbach's

N of Items

Alpha
.881

Reliability of CS Variables:

Reliability of 50 respondents was checked for variables CS1 and CS2 in which
Cronbach's Alpha value was 0.898 which indicated that the components were reliable.

Case Processing Summary


N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the


procedure.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Reliability Statistics
Cronbach's

N of Items

Alpha
.898

4.3. Reporting Exploratory Factor Analysis Results

Component
Cronbach Alpha

IC

IC5

0.87

IC6

0.83
8

IC2

0.863

LPP

0.82
5

LPP4

0.9
49

LPP3

0.9
09

0.881
LPP2

0.8
33

LPP6

0.7
07
0.93
8

CS1
0.898

0.89
2

CS2

Eigenvalues

CC

0.78
8

IC4

CC1

CS

0.93
8

1
3.51

3.1
33

1.49
2

0.84
9

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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% of variance explained

31.9
07

28.
48

13.5
61

7.72
1

Cumulative % of variance explained

31.9
07

60.
39

73.9
47

81.6
68

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
Reduction of Data:

As reliability of data was tasted above, five new variables were created by taking
mean of below mentioned variables.

New

S.
No.
1
2
3
4

Varia

Description

Variables

ble
IC

Internal collaborative forecasting and

IC5, IC6, IC2, IC4

LPP

planning
Logistics and Production Performance

LPP4,

CS

Collaborative forecasting and planning

LPP6
CS1, CS2

CC

with Supplier
Collaborative forecasting and planning

CC1

with Customer

4.4. Hypothesized Model

LPP3,

LPP2,

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Hypothesis Test 1:
H1 breakdown:
H1a: The higher the degree of internal collaborative forecasting and planning
(IC), the higher will be the degree of collaborative forecasting and planning with
main suppliers (CS).

Correlations
IC
Pearson Correlation
IC

Sig. (2-tailed)
N
Pearson Correlation

CS

CS

Sig. (2-tailed)
N

.724**
.000

50

50

**

.724

.000
50

**. Correlation is significant at the 0.01 level (2-tailed).

50

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Interpretation:
-

Sig value in the above table is 0.000 which is less than value 0.05 so
there is a relationship between these variables.
The value of r shows the strength of relationship and if the value lies :
o Between 0 0.4; relationship is weak
o Between 0.4 0.6; relationship is moderate
o Between 0.6 above; relationship is strong
The value of r is 0.724 and it lies above 0.6 so the relationship is strong.
The sign of r shows the direction and here it is positive. It means that
there is a direct relationship between the IC and CS.

H1b: The higher the degree of internal collaborative forecasting and planning
(IC), the higher will be the degree of collaborative forecasting and planning with
main wholesalers/retailers (CC).

Correlations
IC
Pearson Correlation
IC

CC
1

Sig. (2-tailed)
N
Pearson Correlation

CC

Sig. (2-tailed)
N

.731**
.000

50

50

**

.731

.000
50

50

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:
-

Sig value in the above table is 0.000 which is less than value 0.05 so

there is a relationship between these variables.


The value of r shows the strength of relationship and if the value lies :
o Between 0 0.4; relationship is weak

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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o Between 0.4 0.6; relationship is moderate


o Between 0.6 above; relationship is strong
The value of r is 0.731 and it lies above 0.6 so the relationship is strong.
The sign of r shows the direction and here it is positive. It means that
there is a direct relationship between the IC and CC.

H2: The higher the degree of collaborative forecasting and planning with main
suppliers (CS), the higher will be the degree of collaborative forecasting and
planning with main wholesalers/retailers (CC).

Correlations
CC
Pearson Correlation
CC

CS
1

Sig. (2-tailed)
N
Pearson Correlation

CS

Sig. (2-tailed)
N

.700**
.000

50

50

**

.700

.000
50

50

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:
-

Sig value in the above table is 0.000 which is less than value 0.05 so
there is a relationship between these variables.
The value of r shows the strength of relationship and if the value lies :
o Between 0 0.4; relationship is weak
o Between 0.4 0.6; relationship is moderate
o Between 0.6 above; relationship is strong
The value of r is 0.700 and it lies above 0.6 so the relationship is strong.
The sign of r shows the direction and here it is positive. It means that
there is a direct relationship between the CC and CS.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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H3: (IC) Internal collaborative forecasting and planning has a significant positive
effect on relative performance (LPP).

Variables Entered/Removeda
Model

Variables

Variables

Entered

Removed

Method

ICb

. Enter

a. Dependent Variable: LPP


b. All requested variables entered.

Model Summary
Model

.109

R Square

Adjusted R

Std. Error of the

Square

Estimate

.012

-.009

1.44441

a. Predictors: (Constant), IC

ANOVAa
Model

Sum of Squares
Regression

df

Mean Square

1.208

1.208

Residual

100.144

48

2.086

Total

101.351

49

Sig.
.579

.450b

Sig.

a. Dependent Variable: LPP


b. Predictors: (Constant), IC

Coefficientsa
Model

Unstandardized Coefficients

Standardized
Coefficients

B
1

Std. Error

(Constant)

4.331

.885

IC

-.191

.252

a. Dependent Variable: LPP

Beta

-.109

4.893

.000

-.761

.450

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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Interpretation:

R Square (also called the coefficient of determination) value is .012 which indicates
the percent of the variance in independent variable due to change in dependent variable.
ANOVAb table tests whether the overall regression model is a good fit for the data. The sig.
value is 0.000 indicating the regression model is a good fit of the data. The B column of
Coefficients a table shows the relationship between dependent and independent variable.
The value of IC is -0.191426 and sig. value is 0.450 which is greater than 0.05 so CS
has no significant negative impact on LPP.
H4 break down:
H4a: (CS) Collaborative forecasting and planning with main suppliers has a
significant positive effect on relative performance (LPP).

Variables Entered/Removeda
Model

Variables

Variables

Entered

Removed

CSb

Method

. Enter

a. Dependent Variable: LPP


b. All requested variables entered.
Model Summary
Model

R Square

Adjusted R
Square

Std. Error of the Estimate

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Collaborative forecasting and planning in supply chains The impact on Logistics &
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.200a

.040

.020

.90117

a. Predictors: (Constant), CS

ANOVAa
Model

Sum of Squares
Regression

df

Mean Square

1.624

1.624

Residual

38.981

48

.812

Total

40.605

49

Sig.

2.000

.164b

a. Dependent Variable: LPP


b. Predictors: (Constant), CS

Coefficientsa
Model

Unstandardized Coefficients

Standardized

Sig.

Coefficients
B
(Constant)

Std. Error
2.873

.475

.185

.131

Beta
6.048

.000

1.414

.164

1
CS

.200

a. Dependent Variable: LPP

Interpretation:

R Square (also called the coefficient of determination) value is .040 which indicates
the percent of the variance in independent variable due to change in dependent variable.
ANOVAb table tests whether the overall regression model is a good fit for the data. The sig.
value is 0.000 indicating that the regression model is a good fit of the data. The B column of
Coefficientsa table indicates the relationship between dependent and independent variable.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

The value of CS is 0.185 and sig. value is 0.164 which is greater than 0.05 so CS has
no significant positive impact on LPP.
H4b: (CC) Collaborative forecasting and planning with main wholesalers/retailers
has a significant positive effect on relative performance (LPP).

Variables Entered/Removeda
Model

Variables

Variables

Entered

Removed

CCb

Method

. Enter

a. Dependent Variable: LPP


b. All requested variables entered.
Model Summary
Model

R Square

Adjusted R

Std. Error of the Estimate

Square
.209a

.044

.024

.89950

a. Predictors: (Constant), CC

ANOVAa
Model

Sum of Squares
Regression

df

Mean Square

1.768

1.768

Residual

38.837

48

.809

Total

40.605

49

a. Dependent Variable: LPP


b. Predictors: (Constant), CC

F
2.186

Sig.
.146b

32
Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

Coefficientsa
Model

Unstandardized Coefficients

Standardized

Sig.

Coefficients
B

Std. Error

(Constant)

4.212

.485

CC

-.187

.127

Beta
8.680

.000

-1.478

.146

1
-.209

a. Dependent Variable: LPP

Interpretation:

R Square (also called the coefficient of determination) value is .044 indicating that the
percent of the variance in independent variable due to change in dependent variable.
ANOVAb table tests whether the overall regression model is a good fit for the data. The sig.
value is 0.000 and indicating that the regression model is a good fit of the data. The B column
of Coefficients table indicates the relationship between dependent and independent variable.
The value of CS is -0.187 and sig. value is 0.146 which is greater than 0.05 so CC has
no significant positive impact on LPP.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

5.

Conclusion and implications


The conclusion of the study stated that there is a direct relationship between the

variables, Internal collaborative forecasting and planning (IC), Collaborative forecasting and
planning with suppliers (CS), Collaborative forecasting and planning with customers (CC),
however Internal Collaborative forecasting and planning, Collaborative Forecasting and
planning with Customers and Collaborative forecasting and planning with suppliers have no
significant positive impact on Logistics and production performance, the results are discussed
as under;
5.1.

Discussion:
The research indicates that the tests that we have run including reliability,

confirmatory factor analysis, and regression in which we tested the hypothesis where H1
stated that IC has significant relationship with CS and CC and from the correlation analysis
the value of the r was found to be above 0.6, which shows that there is a strong relationship
between internal collaboration and external collaboration, H2 stated that CS has significant
relationship with CC, and in this case the value of r was found to be above 0.6, thus
indicating a strong positive relationship between Collaboration with potential customers and
collaboration with potential suppliers. Regression analysis was run to check whether a unit
change in one variable will have impact on the other variable, the sig. value for H3 which

34
Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

stated that Internal Collaborative forecasting and planning (IC) has positive and significant
impact on relative performance (LPP) was greater than 0.05 and thus accepting the nul it was
found that Internal collaboration has no impact on relative performance in Pakistani
Industries. Likewise H4 stated that Collaboration with Customers and Collaboration with
Suppliers have positive and significant impact on LPP however, sig. value here were was
found to be above 0.05 and thus accepting the nul it was concluded that neither collaboration
with upstream nor collaboration with downstream have any significant impact on relative
performance.
5.2.

Conclusion
In Pakistan a great part of the collaboration is directed towards external organizations

(upstream and downstream), where collaborating can win and execute projects, lessen costs
and oversee dangers, and create extra value.
Be that as it may, internal collaborative activities are additionally turning out to be
progressively critical. gaining excellence in internal collaboration can lessen practical
hindrances, exchange information and free individuals' potential prompting a general
change in efficiency. Internal and External Collaboration have a solid relationship as
organizations who concentrate on external collaboration additionally concentrate on
advancing an internal collaborative culture. Be that as it may, Collaborative activities don't
necessarily enhance business performance, at least not in our considered sample..
5.3.

Implications
The results demonstrate that, indicate that Internal Collaborative forecasting and

planning and collaborative forecasting and planning with customers and suppliers contribute
an important role in an organization as one increases the other will also increase, however

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Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

they do not have any contributing role in improving the organizations logistics and
production performance.
5.4.

Significance of the Study.


The significance of this study is to identify the impact of Collaborative forecasting

and planning with customer and supplier on logistics and production performance. The
significance of the study was assessed and for this purpose KMO test and Bartlett test of
sphericity was used which produced a value .645> .6, which shows that the study is
significant. Numerous of studies can be found in the literature that argue over the relationship
between Collaborative forecasting and planning and supply chain performance and many
studies have indicated a relationship between collaborative constructs and performance.
Organizations should not only focus on collaborative forecasting and planning in order to
improve their overall supply chain performance, they should also focus on continuous
improvement in order to improve production performance.

5.5.

Limitation.
This research has some limitations. It is highly important to discuss, it is better to

consider the research limitation rather than to reject it, because some issues need to be
addressed as if they are linked to the quality of the results. Due to limitation of time the
population sample comprised of only 50 respondents, whereas using an adequate sample with
high quality data collection efforts results in reliable, valid and generalizable results (Bartlett,
Kotrlik, & Higgins, 2001).It is suggested that sampling of data and method of collection
should be considered important in order to save resources and produce quality results.

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Collaborative forecasting and planning in supply chains The impact on Logistics &
Production performance in Pakistani Industries

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