PROJECT SUBMISSION FORM (ADIP05)

To be submitted with two copies of your dissertation.

CANDIDATE NUMBER: ADVH130892

PROJECT TITLE: A STUDY OF THE IMPACTS OF INFORMATION

TECHNOLOGY ON LOGISTICS AND SUPPLY CHAIN
OPERATIONS, IN ZIMBABWE. A CASE STUDY OF
SCHWEPPES ZIMBABWE LIMITED.

COLLEGE: SPECISS

SUPERVISOR’S NAME AND MR C. MAZHAZHATE

SIGNATURE:

I certify that this project is all my own work. Any material quoted or paraphrased from
reference books, critical work etc. has been identified and duly acknowledged.

NAME OF STUDENT : NJEKU SIMBARASHE

SIGNATURE:

DATE:

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A DISSERTATION PROPOSAL SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS OF FOR THE CHARTERED INSTITUTE OF LOGISTICS AND
TRANSPORT (CILT) INTERNATIONAL ADVANCED DIPLOMA.

TOPIC: AN INVESTIGATION ON THE IMPACTS OF INFORMATION TECHNOLOGY ON

LOGISTICS AND SUPPLY CHAIN OPERATIONS IN ZIMBABWE.
A CASE STUDY OF SCHWEPPES ZIMBABWE LIMITED.

JULY TO OCTOBER 2019

BY

SIMBARASHE NJEKU

STUDENT NUMBER: 180509017445

SUPERVISOR: MR C. MAZHAZHATE

YEAR: 2019

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1. INTRODUCTION

Technology is pervasive within contemporary organisations. It is brought into organisations by

people, is put to work by people and is discarded by people. This means that the ways
technology is used and the purposes for which it is used are primarily a result of the decisions
taken by members of the organisation and the contexts within which those decisions were
taken. It is therefore essential that managers have an understanding of the nature of
technological change and the organisational and human resource dimensions and
circumstances of use. (Mullins 2016)

Failure to deploy information technology systems is one of the major challenges that are
affecting the success of Supply Chain and Logistics companies in modern environment. Due to
poor use of Technology and inadequate resources especially in developing nations like Africa,
Logistics companies are encountering challenges in their operations. IT or information
technology refers to the development, maintenance, and use of computer software, systems,
and networks. It includes their use for the processing and distribution of data. Data means
information, facts, statistics, etc., gathered together for reference, storage, or analysis. The
evolution of technology is pushing the boundaries and changing how the world does business.
Today, we’re accustomed to everything being online and right at our fingertips for immediate
access. Through Amazon, the pioneer of fast-paced delivery service, it’s possible to receive a
package less than an hour after ordering, depending on where you live. Improved technology
has also increased productivity in the supply chain, minimizing costs and errors. These
advances benefit all areas of the logistics industry: trucking transportation, international
transportation (ocean and air), supply chain management, and shipment tracking. The rise of
new technologies and the Internet of Things will encourage logistics service providers to
increase adoption of mobile apps. There are apps for trucking miles driven, freight sent, freight
waiting to be sent, inbound orders, marketing leads, customer service interactions, warehouse
management, routing and scheduling, driver monitoring and more. Logistics companies can
leverage information and capabilities via an app to reduce demand and effectively manage it.
Freight sharing apps are one of the major app categories that will see a significant boost
throughout the Logistics Industry. Consumers are only demanding more, and technology is the
solution service providers should priorities to move more product with fewer resources.
Therefore, this research project will provide an overview of the impacts of Information
Technology Systems on Logistics and Supply chain companies on their operations. In addition,
it will propose a conceptual framework for managing the challenges.

2. AIM

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  To identify the challenges that are faced by SZL in doing business with its customers
and suppliers and also in trying to retain the regular customers and attract new ones.

3(a) RESEARCH OBJECTIVES

 To determine the importance of Information Technology to SZL company.

 To identify the challenges that are faced by SZL company in deploying Information
Technology.

 To review current practices and researches in regard to Information Technology at SZL

company.

 To establish a conceptual framework for the total Information Technology management

to Schweppes Zimbabwe Limited.

(b) RESEARCH QUESTIONS

 What is Information Technology ?

 Is Schweppes Zimbabwe Limited able to deploy technology in their operations?

 What are the main challenges affecting SZL company in deploying IT systems?

 What are the solutions that can be done on technology in enhancing SZL company
operations?

 What is the impact of Information Technology on Logistics companies?

4. BACKGROUND TO THE STUDY

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In recent years a number of organisations have adopted an open systems architecture
and moved away from being locked into particular computer suppliers/manufacturers,
thus flexibility is also achieved by using telecommunications to link different makes and
models of computers together, both within and across the same and different organisations and
workplaces (including homes – see, for example, the Butler Co. case study). The upshot of the
above characteristics of technology is that the ways in which it is utilised and therefore the
implications for such matters as the nature of managerial and employee work around the
technology, have much to do with social and economic processes (for example, decision
making) within and without workplaces and organisations. In other words, social choice is
significant. Thus, it is important to know who is making the choices and who gets involved in the
‘design space’ which is opened up by technology. (Mullins 2016)

Technology has brought a paradigm shift in Supply Chain management and logistics. The new
business processes and great innovations have changed the flow of goods from the
manufacturers, retailers or wholesalers until it gets to the customers. The face of logistics and
supply chain management have been hugely impacted by innovations in communication
technology, information technology and the transformation of identification technology from
manual to an automatic one. The improvement in efficiency, reduction of costs, increased
competitiveness and changes in strategies have changed in today’s business. In the trucking
business, lack to embrace new technology that is constantly updated will quickly push you out of
business due to stiff competition. Choosing the right technology that properly aligns with the
organization’s strategy, infrastructure and policies is a leeway to strategic opportunities and
success. It will lead to increased efficiency accompanied by quick delivery.
In supply chains, the use of information and communication technologies has been shown to
exert great impact on SC operational efficiency (Lee 2000) and to sustain the network of
relationships (Saraf , et , al.2007). information technologies (IT) used for SCM, including supply
chain management systems (SCM),Internet/Web, electronic data interchange (EDI), radio
frequency identification(RFID),vehicle tracking systems(VTS), warehouse management
systems(WMS) and mobile technologies according to IOSR Journal of Business and
Management.Firms needs to be able to fulfil the promises made to customers when offering
products or services for sale. On the time delivery of products and services is essential in the e-
business competitive environment. Some e-business products and services can be sent
electronically and distribution is relatively straightforward and cost effective, as stated by Bocij,
P, Chaffer,D (2014)
Today, the world has become a global village with the internet, mobile phones and satellite
networks shrinking time and space, bringing together computers and communications; resulting
in new ways of communication, processing, storing and distributing enormous amounts of
information. Organizations are increasingly using information technology to develop solutions to
business problems, to improve both the efficiency and effectiveness of the decision-making
process, to enhance productivity and service quality, to achieve dynamic stability, and compete
for new markets (Attewell & Rule, 1984; Molloy & Schwann, 1995; Boynton, 1993).

The word logistics has its origin from Greek word “logistike” which means the art of calculating.
However, the modern interpretation of the term logistics has its origin in the military, where it
was used to describe the activities related to the procurement of ammunitions, and essential
supplies for troops located at the front. Logistics not only includes activities related to the
physical movements of the goods but also manages relationship with suppliers and customers.

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However Logistic management is a means whereby the needs of customers are satisfied
through integration and coordination of the supply chain.( Journal of Business Management)
A supply chain is the network of suppliers, distributors and subcontractors used by a.
manufacturer to source its raw materials, components and supplies. Logistics companies store,
transport and distribute supplies and work-in-progress within the supply chain and distribute
finished products to customers or intermediaries. Integrating supply chain and logistics
operations improves efficiency and reduces costs, increasing the manufacturer’s competitive
advantage.
Schweppes Zimbabwe Limited is a leading manufacturer and distributor of non-carbonated still
beverages under license from The Coca-Cola Company. The product portfolio currently includes
well renowned brands in the following categories – cordials, fruit juices and bottled water. These
products are marketed under the following brand names, Mazoe Crushes and Syrups, Minute
Maid Juices, Just Juice, Bonaqua Still Water and Schweppes Still Water. The company has two
manufacturing plants in Harare and Bulawayo and nine distribution centers countrywide.
Schweppes Zimbabwe Limited has a total of 962 employees around the country. It has the
Inbound and outbound Logistics sections that it runs through its functional departments such as
Distribution and Warehousing department. Procurement, Information Technology, Human
Resources, Sales and Marketing departments are there also to support inbound and Outbound
Logistics activities. To cater for the deliveries to its customers, Schweppes Zimbabwe Limited
has a fleet of more than twenty (20) vehicles which they use for day to day delivery of their
manufactured products. The Procurement department of SZL is responsible for sourcing and
outsourcing of raw materials. With the ever-changing aspect of technology, keeping up with
new capabilities and best practices can be difficult for large companies who have deep
investments in older technology — it is a never-ending process. Although transitions take time,
leveraging new technologies is key in this competitive industry.
Furthermore, Information Technology is going beyond operational efficiency towards pursuing
higher-order goals, such as understanding the market dynamics and discovering
new partnering arrangements to provide greater customer value, the capabilities that are
needed for supply chains to sustain their competitive advantages need to be well understood by
researchers and practitioners. To fill this gap, this research investigates the impacts of IT on the
operations of Schweppes Zimbabwe Limited.

1.1 VISION

A vision statement is a vivid idealized description of a desired outcome that inspires, energizes
and helps you create a mental picture of your target. It could be a vision of a part of your life, or
the outcome of a project or goal, in this case the vision of Schweppes Zim Limited is:
To be the number one liquid food and beverages business in Africa.

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1.2 MISSION
The study of mission statements started in the early 1970s, and Drucker (1971) referred to
them as a precursor to ``clear and realistic business objectives’’. The mission statement also
provides clarity on the purpose and how the organisation is going to operate. The mission
statement for SZLN is:
We commit ourselves to maximize stakeholder value by developing and supplying high liquid
foods and beverages.

1.3 CORE VALUES

 Accountability
 Creativity
 Excellence
 Integrity
 Teamwork
PROBLEM STATEMENT

The importance of introducing and acquiring Information Technology Equipment to a Logistics

company has long been recognized by the Supply Chain and Logistics Industry. However,
Schweppes Zimbabwe Limited Company is still plagued by inefficiencies and unnecessary costs
of operations, which can be traced to ineffective identification and deployment of Information
Technology System. Firstly, when outdated equipment is being used in operations, subsequent
conflicts and costs in the field are totally inevitable. Today’s markets are becoming more and
more virtual and logistically challenging, which exposes Logistics companies to more operating
challenges. Second, the traditional way of doing business which used less technology has come
to pass and has a limit on companies to access Global markets and enhance performance. In
summary, there is a need for a better understanding of using Information Technology Systems
in Logistics to ensure minimum delays and increase company profits.

1.4 SIGNIFICANCE TO THE STUDY

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In this modern business environment, Information Technology is the main dominant aspect in all
organizations that are enjoying the Competitive advantage and also for those which want to
sustain their Competitive advantage especially in Logistics and Supply chain organizations. An
organization can be vulnerable to its competitors through the use of advanced technology which
is common in nowadays. Through this study Logistics and supply chain companies like SZL
should be able to use grasp the concept of Information Technology and also able to use it
correctly. It is therefore the intent of this study to investigate the impact of Information
Technology to Schweppes Zimbabwe Ltd.

1.5 ASSUMPTIONS OF THE STUDY

The study was initiated in the following assumptions:
 The respondents are eager to answer the questions correctly and to give good attention
to the questionnaires.
 The sample preferred by the researcher is representing the whole population.
 Authorities can render their full support to the researcher through provision of clear
information as required.
 The research should be carried out within a specified time frame.
 The researcher is going to have all the resources needed to come up with a good
research.
 The sample is honest and participant to respond to the questions

1.6 DELIMITATIONS OF THE STUDY

The researcher has failed to look at the Logistics and Supply chain companies as a whole due
to lack of information required from other companies since they don’t trust strangers. However,
it was not easy for the researcher to get the permission to carry out a study of a company
because some companies are afraid of being unpositioned in the market they operate o

1.7 LIMITATIONS OF THE STUDY

To come up with this research was a big challenge since the researcher had encountering a lot
of disturbances along the process. To get the correct information on time was the major problem
since the researcher was working against a time frame.
Moreover, due to economic hardship it was not easy for the researcher to acquire the required
materials to carry out the research such as stationery and also to get the money for transport to
collect the questionnaires.

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Apart from the above, the time frame was very short for the researcher to come up with a well
presentable report.

1.8 DEFINATION OF TERMS

LOGISTICS
Logistics refer to the overall process of managing how resources are acquired, stored, and
transported to their final destination. Logistics management involves identifying prospective
distributors and suppliers and determining their effectiveness and accessibility. Logistics
managers are referred to as logisticians.
SUPPLY CHAIN
A supply chain is the network of all the individuals, organizations, resources, activities and
technology involved in the creation and sale of a product, from the delivery of source materials
from the supplier to the manufacturer, through to its eventual delivery to the end user. The
supply chain segment involved with getting the finished product from the manufacturer to the
consumer is known as the distribution channel.
INBOUND LOGISTICS
The transportation, storage and delivery of incoming goods into a business is referred to as
inbound logistics. It includes essential processes like receiving of materials, storage and
distribution of raw materials and final goods, thus forming an integral part of the operations for a
firm.
OUTBOUND LOGISTICS

Outbound logistics is the process of storing, transporting and distributing goods to customers.
The outbound logistics process starts with a customer sales order, moves on to warehouse
packing and ends with product delivery. To make outbound logistics run smoothly, businesses
must pick the right distribution channels, maintain a sensible inventory stocking system and
optimize delivery options.

INFORMATION TECHNOLOGY

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Information technology (IT) is the use of any computers, storage, networking and other physical
devices, infrastructure and processes to create, process, store, secure and exchange all forms
of electronic data. Typically, IT is used in the context of enterprise operations as opposed to
personal or entertainment technologies. The commercial use of IT encompasses both computer
technology and telephone

ROUTING
Routing is the process of selecting a path for traffic in a network or between or across multiple
networks. Broadly, routing is performed in many types of networks, including circuit-switched
networks, such as the public switched telephone network, and computer networks, such as the
Internet.

SCHEDULLING
Scheduling is the process of arranging, controlling and optimizing work and workloads in a
production process. Companies use backward and forward scheduling to allocate plant and
machinery resources, plan human resources, plan production processes and purchase
materials.

ORDER GENERATION
The order generation function is generating the customer sales order according to general sales
guidelines, pre-set order schemes and persuasive selling skills.

COMPETITIVE ADVANTAGE
Competitive advantages are conditions that allow a company or country to produce a good or
service of equal value at a lower price or in a more desirable fashion. These conditions allow the
productive entity to generate more sales or superior margins compared to its market rivals. Is
the position of enduring superiority over competitors.

1.9 DISSERTATION OUTLINE

This chapter focused on the introduction and background of the study of the dissertation. The
rest of the chapters will comprise of literature review, research methodology, and data
presentation, discussion of the study and conclusions and recommendations respectively

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1.10 CLOSING REMARKS
In summary, this chapter gave the introduction and background of the study which laid the
foundation of the problem statement. The problem statement was then provided to illustrate the
inspiration of conducting the research study. In this chapter, the outline of the dissertation,
scope of the research, significance of the study, delimitations of the study, research questions
as well as well as the objectives of the study were exposed. In the following chapter, the focus
will be reviewing literature that will clarify the concept of the impact of Information Technology
on Logistics and Supply chain Companies (a case of SZL) as well as the exploration of other
related researches that were conducted in the past.

CHAPTER 2

LITERATURE REVIEW

2.0 INTRODUCTION
It has been a strategy of the company to work in the most efficient way possible, and a
necessity of the market. We cannot afford a complex and rigid administrative structure which
limits our flexibility, that’s why the company is driven from the top. All the troops have to worry
about is doing their job, we pay them well enough for it. I know that may sound draconian, but in
such a competitive market we cannot afford the luxury of pluralism, decisions must be made
and acted on as quickly as possible. Information technology plays a central role in that, in fact
without it would not be possible for us to be such an aggressive market-led company. Mullins
2016.

According to Maurer (2011) the time taken to handle any customer issues
, timely delivery, operational flexibility and sustained quality have become fundamental in
successful business today. The success of aligning a supply chain to attain these results
depends largely on the use of efficient communication and information technology.
Communication between
members of supply chain requires that relevant information is transferred
from its point of inception to the point of use. Maurer (2011) also noted that
the transfer of information entails an efficient flow of information between
systems, systems and human being which is directly associated with the effective
interoperability between the various entities handling the relevant information.

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It is therefore the focus of this chapter to provide the theoretical framework of the research by
exploring the literature that underpins the impacts of Information and Technology on SZL. The
areas to be reviewed are:
 Definition of literature review,
 Reasons for doing literature review,
 The impacts of IT on the operations of Schweppes Zim ltd.

The combination of these developments is giving us a new kind of world, “one that is hyper
connected and data saturated, a world where an Internet of everyone is linked to an Internet
of everything”(Wooldridge 2015, p. 29).

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