CHAPTER 1- INTRODUCTION

Background of the research

The supply chain comprises of the strategies that are responsible for the

implementation of such methods that manages the efficient, economical, cost effective ways to

transport products. The main focus on one of the supply chain strategies is the cost reduction

strategy which encourages the affordable, reasonable, and efficient methods of production of

products, transportation of those products and ensures the satisfaction and demands of

consumers. This cost reduction strategy requires the selection of the cheapest means of

manufacturing of products and carriers. Computerized logistics integration reduces the manual

work and moreover it opens the different ways to computerize the logistics operations and the

routes of transport. Computerized logistics gives a permit to monitoring the flows of

transportation so that to react on the unpredicted situations. Due to this the integration of newest

information and communication technologies (ICT) provides the better potential to enhance the

cost effectiveness in logistics and pass a warrant on newly business models which are based on

the real time economics. About 70% of the organizations have a deficiency in performance the

operational data besides the entire value chain. To face this problem, the European Union

focuses on the long term goals and the roadmaps of the European technology platform. The true

people planet and profit adjusts the logistics and the supply chain sectors which donates not only

the competitiveness in the industry but moreover in meeting environmental policy targets.

Problems
The companies such as pharmaceutical, beauty products, paper, industrial chemicals and

food industries are dealing with the cost reduction strategies in the manufacturing of products.

The average company faces approximately 7.6 percent rise in their logistics cost. To avoid this
increase, companies should transform their supply chain management strategies to reduce the

costs. In this steady era where there is innovation and evolution in the technology occurs every

single day, the companies cannot use their old supply chain plans to satisfy their costumers and

reduction in the cost. That’s why, most of the companies or organizations shifting their old

supply chain strategies to the new ones. Through the Aberdeen’s survey, we come to know that

nearly 75 percent companies have resigned their supply chains strategies. The shifting which

occurs in the markets for the purpose of the modification in the business’s strategies and the new

essentials are required to embrace thrive. The goal is crystal clear which is given the products

which the customers want when they are needed. The business which focuses on the fulfillment

of demand of the customers, changes occurs in the delivery time, day by day the increase in the

global competition, moreover to manage the huge and plenty of information providing this the

goal which the firm sets can get buried beneath the all kinds of time taking works.

Rationale

It has been witnessed in previous studies, that organizations have been adopting state of

the art strategies to reduce cost in their supply chain operations. The internet-Of- things is the

technology through which the location and state of the merchant’s products and vehicles could

be found. The companies can use real time data which may be in the form of location or IoT

sensor data to manage their logistics decision making strategies. The internet of things

technology is responsible to control and regulate the transportation activities of merchants. The

real time optimization logarithms and different terms are used to achieve IoT data collection

strategies.

The organizations focus on the innovative methods of transportation of their products

such as they have developed the information technology infrastructure which helps in providing
the easiness to costumers. The IT infrastructure gives customers the access to the services

provided by the company such as the websites on the internet and different apps provide facility

to the customers of booking their transport vehicles, make appointments for the products delivery

and online payments. Such approach is effective in reducing the transaction cost and helps the

company in attaining the reduction cost strategy.

Aims

The research aim of this thesis is, to analyse how effective technologies can be integrated

with in the supply chain management to reduce the costs that are impacting the overall value of

any business. The main objective of this research is to focus on the ways of categorizing the

technological solutions and how they will be assisting in logistics as well as supply chain

management. The research objective is to explore the visibility of supply chain network members

to the first rank suppliers because of the relationship of direct business. The data which is

collected from different sources are deep down stored in the databases. After the first ranked

supplier, the demanding of products in the supply chain gets increasingly unknown. The missing

interconnections between the warehouses of the business and the supply chain members or the

external data sources are the main purposes for the lack of end to end visibility. Solution of this

type of problem with the help of innovative technology solutions is the aim of this research.

Objectives and questions

The research objectives of this thesis are to:

1. To discuss the concept of cost reduction in the supply chain by using the evidence from

the present articles with the operation in companies.

2. To study the policies in the supply chain using digital technology in the enterprises.
 3. To focus on the evaluation of the cost reduction and its strategies in the supply chain

management.

4. To search secondary data for supply chain by academic articles, scholarly studies, and

organizational reports to keep the validity of the findings.

The research questions are

1. What is the supply chain, and why is this concept important using digital technology?

2. What are the cost reduction evaluations in the supply chain?

3. How does the cost affect the supply chain using digital technology?

Significance of the study

The current research plays a significant role in various domains. In this era of

globalization, the customizing requirement and as well as the cost pressure the companies are

awkward to be absorbed on the main capabilities of the company. Thus making the decisions or

to buy the decisions are followed by the outsourcing of the processes in business that makes a

connection between supply and the dynamic products. To reduce the uncertainty and the control

of dynamic networks of the supply, it is compulsory to make relations visible in the supply chain

network. So the visibility in supply chain network becomes an important topic in the research of

supply chain management. The performance of the product improves when the visibility is

clearer and moreover it helps in making the decisions. For transportation our goal is the

development of a decentralized and standard based infrastructure which gives the sufficient

technology for all the members in the market without any limitations make by the essential of

self-interest of the centralized platform model. The results of this result will be helpful for

organizations working worldwide as they will use researched data to focus on factors that may

affect their performance.

Dissertation structure

This research paper will aim in analysing Green IT adoption as a CSR strategy and its

impact on corporate reputation. The first section will be the background of the research.

Objectives of the research will be obtained and presented in the research. The next section will

be focusing on the literature review relevant to Green IT and its impact on CSR practices and

corporate reputation of the organization. The next section will comprise of the research

methodology that will be adopted for the analysis of the data in order to draw meaning full

conclusions and also to obtain the relevant findings that support the overall thesis statement.

Presentation and analysis of the findings through the adopted research methodology will also be

presented in the next section which will provide a structured understanding of all the relevant

findings. The next chapter will aim at providing a thorough conclusion which will summarize the

whole analysis of the research and will provide prospects for future research.