Professional Documents
Culture Documents
Pupla Group
Bachelor’s thesis
Valkeakoski, International Business
Autumn 2022
Arnisa Blakqori
International Business Abstract
Author Arnisa Blakqori Year 2022
Subject Sustainable Competitive Advantage through Effective Supply Chain
Management: Case of Kosovo-Based Pulpa Group
Supervisors Sajal Kabiraj
This thesis prioritizes accumulating knowledge in-depth in the logistics field and to study the
way of managing the supplies to the deletion of Pupla Group. In addition, the thesis studies
the challenge the target area is and can arise in the current and future periods and analyzes
the solutions into prevents internal and external forces. Pupla group was established in
2015 to develop a distribution network across Kosovo covering a niche market of hygiene
products.
The knowledge base of the thesis includes a theoretical chapter based on supply chain,
management, and organization, as different frameworks can be used to measure the
performance of supply chain management.
The research method is qualitative research because the thesis is based on a case study to
show how supply chain management can provide a competitive advantage. An interview
that consisted of eight open-ended questions and also additional short questions were
conducted with the owner of the Pupla Group. The interview sought to inquire about the
state of the supply chain in Pupla Group and also which frameworks are known to the
management and which were actively used by them to measure and improve supply chain
management.
Based on the information obtained from the research, it is recommended that Pupla Group
should create a SCOR framework to measure and improve their supply chain management
as in the current situation the company trying to be effective but can have efficiency with
the known frameworks or tools available. This research mainly aims to answer the question
of different alternatives to provide a sustainable competitive advantage for Kosovo in Pupla
Group supply chain management.
Keywords: Supply Chain Management, Pupla Group, SCOR, VRIO Pages 37 pages
CONTENTS
1 INTRODUCTION ....................................................................................................................1
2 THEORETICAL FRAMEWORK.................................................................................................4
3 METHODOLOGY .................................................................................................................25
4 RESULTS ..............................................................................................................................31
5 RECOMMENDATIONS .........................................................................................................36
6 CONCLUSION ......................................................................................................................37
REFERENCES ..........................................................................................................................38
Appendix 1.............................................................................................................................43
LIST OF FIGURES
LIST OF TABLES
1 INTRODUCTION
Supply chain management has become increasingly important over the past decade as
a means of gaining a competitive advantage in markets (Collin, 2003, p. 8). The 1990s
showed many examples of companies making large investments in streamlining their
supply chains to increase customer satisfaction and internal productivity. Christopher
(1998) argues that companies nowadays are not so much competing with each other
as they are competing between rival supply chains. Companies' winning supply chains
are those that add the most value to customers with the lowest costs.
The author of this thesis has contacted the Pupla group during the last year and has
visited its premises several times and agreed to conduct this research. Pupla group
2
manager was keen and eager to see research conducted by a student studying abroad
so that he would get a different view on his operations and development strategy.
This thesis consists of six chapters. Chapter one is an introduction to the main points
of the thesis. It includes the project Background, research questions, the objectives of
the thesis, and the overall methodology used. Chapter two includes a theoretical
framework with a description of the key concepts, main theories in the field of supply
chain management, and the important factors influencing supply chain management
as well as the main theoretical frameworks which could improve supply chain
performance and supply chain effectiveness. Chapter three consists of a compact
overview of the methodology used during the thesis as well as the research
instruments and tools. Chapter four includes the results from theoretical research as
well as the results from the interview conducted. Chapter five gives recommendations
for the company based on the research that has been done. Chapter six offers
conclusions of the entire research.
How can supply chain management provide a sustainable competitive advantage for
the Kosovo-based Pupla group?
To gain a more accurate and detailed answer, the main research question is divided
into two sub-questions:
Sub-question 1. How to measure the supply chain performance of the Pupla Group?
2 THEORETICAL FRAMEWORK
Moreover, (Handfield, et al., 2002) claim that the supply chain ought to be efficient
and effective. In this case, efficiency implies playing down asset utilization to achieve
results being successful, in terms of planning dispersion channels. Effectiveness is
measured by conveyance execution, item quality, backorders, and stock level, though
adequacy is measured by benefit quality and benefit needs.
Due to that long-term competitive advantages depend on how well the businesses
fulfill customer demands in terms of service, price, quality, and adaptability, by
building a supply chain that will be more efficient than the supply chain of
competitors. Optimization of this equilibrium is a constant challenge for the companies
which are part of the supply chain network, shown in Figure 1.
5
S Inputs
COMPANY
Demand share
C
U Preferences U
Output
P S
P Service
T
Market
L Cost Quality O
Service response
I Flexibility M
E Cost E
Output Market size
R Quality
R
Inputs
S Competitor
Demand share
S
Flexibility
To be able to advance this balance, numerous key choices must be taken, and
numerous exercises facilitated. This requires cautious administration and planning of
the supply chain. The plan of supply chains speaks to an unmistakable implication by
which companies improve, separate, and make esteem.
The challenge of supply chain plan and administration is the capability to plan and
gather resources, organizations, aptitudes, and competencies. It envelops the group,
accomplices, items, and processes. To get the term of ply chain administration in
profundity, to begin with, the term supply chain will be clarified, then administration
and the part of the administration as a base for the total definition of supply chain
management.
As stated by (Mentzer, et al. 2001) the definition of “supply chain” is more solidified
than the definition of supply chain administration. In his paper, he attempted to create
a common definition of a supply chain, based on a comprehensive investigation
conducted by a few co-authors. They came up with the taking after definition: “A
supply chain is characterized as a set of three or more substances (organizations or
people) straightforwardly included within the upstream and downstream streams of
items, administrations, accounts, and/or data from a source to a customer” (p. 5).
6
The supply chain may incorporate inside divisions of the company as well as outside
providers that give input to a central company. A provider for this company has to
possess a set of providers that give input (called moment-level providers). Supply
chains are the arrangement of connected providers and clients until items reach the
extreme client (Handfield, 2002, p. 9).
The supply chain of a company consists of an up-stream supplier network and its
downstream distribution channel as shown in Figure 2.
R e la tio n s h ip M a n a g m e n t U
Flows of Information, Products, Services, Funds, Knowledge
L
T
SUPPLIER ENTERPRISE DISTRIBUTION I
NETWORK NETWORK M
A
Engeneering T
E
C
Sourcing Logistic
U
S
T
Operations O
M
E
R
S
Figure 2. Company and supply chain upstream and downstream (Handfield, 2002)
3. Ultimate supply chain, which incorporates all the organizations included in all
the upstream and downstream flows.
The truth is that diverse supply chains in each day’s world exist whether they are
overseen or not. If none of the organizations will effectively actualize any of the supply
chains and the administration concepts clarified assist within the proposal, the supply
chain as a marvel of trade will still exist but will likely not act in a judicious, facilitated
way. Supply chain administration hence requires dynamic administration endeavors by
the organizations inside the supply chain.
the individuals who oversee a company or organization, and finally, the way that
individuals control and organize diverse circumstances that happen in their lives or
their work. (Ldoeconline.com, 2022)
As shown in Table 1, the result of dividing work between people in an organization is,
that managers take over the organizational process and part of the business process
(planning and controlling), while the execution is delegated to non-managers.
Management is a formal process that deals with setting company goals, developing
policies, and directing and controlling the work of others (Pučko, 2005).
Most authors do not see a clear distinction between organizational and business
processes. As a result, management is most defined as planning, organizing, leading,
and controlling. Those authors use the word "planning" only to describe the planning
of business; by organizing they mean establishing an organization. Execution of
business is not a part of management, but implementing an organization is a part of
management and is known as staffing and leading. Control, most authors understand
the control of the business and the control of the organization or auditing (Rozman,
2000, p.6).
Ernst & Haar (2019, p. 107) defines management as the correspondence between
organizational and management processes. As for organizational processes, he defines
work processes, behavioral processes, and change processes. Within workflows, it
defines operational processes (producing goods and services that external customers
consume) and administrative processes (generating the information and plans that will
be used). Workflows define the critical activities required to get the job done and
achieve goals, and behavioral processes describe how to act/interact and determine
how to get things done, work, and decision making. Change management is a process
that helps organizations change in the way that is most appropriate for their business
needs.
The main purpose of direction setting is to establish direction and goals (part of the
business planning process as described earlier. The critical skills of managers include
synthesis, priority setting, communication, timing, sequencing, framing, and
presentation as well as questioning, listening, and interpreting data. The main
purpose of negotiation and selling is to obtain necessary resources and support in an
organization (can be also described as planning and actuating of an organization). Ernst
& Haar (2002, p. 107-125).
The critical skills required are timing and sequencing of activities, as well as the ability
to present the plans and to motivate people to achieve them. To be able to monitor
and control an organization, in terms of how the ongoing activities are executed, the
key skills required from managers are the ability to question and listen to people as
well as to interpret the information received in those conversations to be able to make
the right decisions.
Planning is therefore one of the primary functions of management and as Pučko (2005,
p. 3) says, the main role is to define the goals of the company and ways to achieve
those goals. Ansoff (1990, p. 2-16) defines planning as designing the desired future and
effective ways to achieve it. According to Rozman (Rozman. et al. 1993, p. 24),
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planning is the process of creative thinking about the future that ends with a plan. This
means the desired result and the ways to achieve it.
Further, Rozman (Rozman et al. 1993, p.72) describes planning mainly as a process of
coordinating goals, strategies, and targets, as well as decision-making, and delegating.
The main purpose of planning is to resolve and prevent problems, by evaluating
different possible scenarios. On the other hand, the organizational processes create a
certain structure of permanent relations among employees in the company. These
relations enable the execution of the plans and goals of the company. The most
important in that sense is leadership, meaning communication and motivation of
employees to execute the planned activities. Controlling is concentrated on auditing
the behavior of employees and achievements seen about those planned and acting in
case of deviations appear.
The supply chain is traditionally divided into three stages: procurement, production, and
distribution. Each stage may consist of several facilities located around the world
(Thomas and Griffin, 1996). As an example, assembly plants in the automotive industry
are located in other countries than suppliers of different components and distribution
is worldwide. As described by Mentzer et al. (2001, p. 4), a supply chain is composed of
three or more entities (organizations or individuals) involved in the upstream and
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The essence of integrated SCM is supply chain planning and control, which has three
important dimensions. The first dimension is functional integration, which involves
decisions about purchasing, manufacturing, and distribution activities within the
company and between the company and its suppliers and customers. The second
dimension is the geographical integration of these functions across physical facilities
located on one or several continents. The third dimension is the inter-temporal
integration of strategic, tactical, and operational supply chain decisions (Shapiro, 2001,
p. 1).
In a very simplified way, management can also be described as the art of getting things
done by organizing other people following business plans. In terms of SCM, this
involves all companies that are part of a supply chain. (Shapiro, 2001, p. 2).
Although industry and the scholarly community have examined the concept of SCM for
the final decade, there's still no steady definition of the concept. As a result, there's by
and large a need for consistency in meaning and clarity over the different definitions of
supply chain administration accessible within the writing. A few of them are recorded
encourage.
Bolumole (2000, p. 2) has concluded that SCM offers a coordinates logic for overseeing
organizations’ obtaining and dispersion forms based on a showcasing point of view.
13
Likewise, Persson (1997, p. 58) concluded that supply chain administration could be a
homogenous administration concept. The general objective of supply chain
management is to contribute to advancements within the company’s foot line or
benefit. Related destinations incorporate lessening the costs primarily by diminishing
the stock level and expanding the incomes by moving forward client benefit through
coordination and integration along the fabric stream, win-win relationships, and
conclusion client center. These infer that in arrange to attain the targets of supply
chain administration person companies ought to arrange and coordinated their
exercises with other companies along the fabric stream in win-win connections and
center their joint exertion on the conclusion client.
SCM is the integration and administration of supply chain organizations and exercises
through agreeable organizational connections, viable trade forms, and a tall level of
data sharing to make tall performing esteem frameworks that give part organizations
feasible competitive advantage (Handfield, 2002, p. 8).
Although definitions of SCM differ across authors, they can be classified into three
categories (Mentzer, 2001, p.8): a management philosophy, implementation of a
management philosophy, and a set of management processes.
Porter’s five forces framework was developed by Michel Porter in Harvard Business
Review with the title "How Competitive Forces Shape Strategy” in 1979. (Porter, 1979)
As of today, it has become one of the most important and known frameworks for
searching for opportunities and identifying threats for companies already established
in an industry and for those planning to enter.
The Five Competitive Forces Framework by Porter is based on the main belief that the
strategy of an organization should use the opportunities and avoid the threats in the
organization’s business environment. It mainly focuses on establishing a better
understanding of the industry structure in which the organization operates by dividing
and analyzing the main forces that influence the shape of the industry.
Porter has identified five competitive forces that shape every industry and every
market. These forces determine the intensity of competition and hence the
profitability and attractiveness of an industry.
Porter’s five forces include - three forces from 'horizontal' competition: the threat of
substitute products or services, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of suppliers
and the bargaining power of customers.
Porter’s research is also referred to as “The Industry Based View”. The Five Forces
framework is a managerial tool for strategic decision-making, based on analysis of the
attractiveness and profitability of an industry or market. Porter defines an industry as a
market in which similar or related products or services are offered to a group of
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buyers. The appropriate level of analysis when using the theory is “company level”,
which aligns with the level of analysis for this thesis (Porter, 1980). The framework
relies on five industrial-organizational economic “forces”: The bargaining power of
suppliers, the bargaining power of buyers, threats of substitutes, threats of new
entrants, and rivalry among existing firms (Porter, 1980).
According to Porter (1980), the strength of these five forces determines the
profitability of an industry. The strength of the five forces ranges from mild to intense.
The stronger the forces are the less profitable and, therefore, less attractive the
market. When the strength of the forces increases, so does the rivalry among the
existing firms.
When the forces are at their strongest, the rivalry amongst the companies competing
in the market would drive prices to the lowest point possible. In microeconomic terms,
this is classified as a market with perfect competition and is characterized by marginal
revenue equal to marginal costs. Vice-versa, when the industry forces are mild, this
decreases competition and allows existing companies to enjoy large profit margins. Oil
and gas, legal services, and pharmaceuticals are industries characterized by large profit
margins which, according to the Five Forces-frameworks, are due to 23 of the
industries having mild forces, making the industry profitable. Industries like soft drink
production, tire manufacturing, and grocery stores are characterized by intense
strength of the five forces and, therefore, low profitability (Porter, 1979).
16
Figure 3. The Five Forces that Shape Industry Competition (Porter, 1979).
According to Porter (1980), the manager will evaluate the intensity of the five forces
and find the optimal market position. Hereafter, the managers should evaluate the
company’s ability to cope with the strongest force or forces by analyzing the
company's strengths and weaknesses. Finally, based on this, formulate strategies and
make decisions based on reaching or protecting the company's desired position in the
market (Porter, 1980).
According to Porter, the threat of entry in an industry depends on the height of entry
barriers that are present and on the reaction entrants can expect from incumbents. If
entry barriers are low and newcomers expect little retaliation from the entrenched
competitors, the threat of entry is high and industry profitability is moderated. It is the
threat of entry, not whether entry occurs, that holds down profitability (Porter, 2008).
Porter has identified the main sources that influence the gravity of the new entry
threats and those are supply-side economies of scale, demand-side benefits of scale,
customer switching costs, capital requirements, incumbency advantages independent
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The substitute products of different markets and industries may fulfill the same needs.
The extra substitutes for any product created a more competitive environment, which
results in a lower likelihood of high profits. The number and quality of substituting
products will grow the sensitivity customers have to price which causes the industry to
be less beneficial in terms of profit (Porter, 1979).
When buyers carry less power to meet product prices, it becomes an important issue
for the company to consider (Rajasekar and Raee, 2013).
The power of buyers is influenced by different factors such as the number of buyers in
the industry, substitute products; the number of competitors in the industry, price
sensibility of the buyers, the percentage the price of the product has on the overall
income of the buyers as well as other factors. An industry with powerful buyers will
dictate the profitability of the industry (Porter, 1980).
Powerful suppliers, counting providers of labor, can lower the profit of an industry
when the companies in it are not able to increase the price of the products to balance
the costs of suppliers.
Porter explains this with the example of Microsoft in the industry of computer makers
which has limited freedom to pass the raise in price for Microsoft products to their
customers due to the high competitiveness of the industry and the customer
sensibility to price (Porter, 2008).
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According to Porter, rivalry among existing competitors takes many familiar forms,
including price discounting, new product introductions, advertising campaigns, and
service improvements. High rivalry limits the profitability of an industry. The degree to
which rivalry drives down an industry’s profit potential depends, first, on the intensity
with which companies compete and, second, on the basis on which they compete
(Porter, 2008).
The rivalry in the industry is influenced by the number of competitors, the industry
growth as well as barriers of exit, customer sensibility to price, the inimitability of the
product, and so on.
SWOT Analysis is a tool used to analyze the internal and external factors that help
make decisions in strategic planning and strategic management in organizations. It is
one of the most used and known analyses in the economic field. The process of
examining and analyzing the organization and the environment in which it operates is
termed SWOT Analysis.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, where the first
analyzes the internal factors, and the last analyze the environmental factors that
influence the organization or company.
19
Strengths Weaknesses
SWOT
Opportunities Threats
2.5.1 Strengths
Pearce and Robinson identify that the strengths of each organization may vary and can
be something else for different organizations, such as financial resources, image,
market leadership, buyer/supplier relations, and other factors” (Pearce and Robinson,
1991).
Effective and high-performance supply chain management can also be part of the
Strengths of an organization.
20
2.5.2 Weaknesses
Pearce and Robinson identify that the weaknesses of each organization may vary and
can be something else for different organizations, such as Facilities, financial
resources, management capabilities, marketing skills, and brand image (Pearce and
Robinson, 1991).
2.5.3 Opportunities
According to Harrison and St. John (2004: 164), opportunities are conditions in the
external environment that allow an organization to take advantage of organizational
strengths, overcome organizational weaknesses or neutralize environmental threats.
2.5.4 Threats
Over twenty years ago, Jay Barney edited a special forum in the Journal of
Management on the Resource-Based View of the Firm (Barney, 1991). In his article,
Barney argued that sustained competitive advantage derives from the resources and
capabilities of firm control that are valuable, rare, imperfectly imitable, and not
21
• Financial resources
• Human resources
• Material resources
• Non-material resources (information, knowledge)
The framework helps organizations and managers to understand and measure which
are the most important resources that make organizations gain competitive
advantages.
• Value: Resources must be valuable such that they enable a firm to implement
strategies that improve a firm’s efficiency.
• Rarity: Resources must be rare such that they may only be acquired by one or a
few companies.
• Inimitability: Resources should be hard and costly to imitate or substitute.
• Organization: There needs to be an organization to acquire, use and monitor
the resources involved.
SCOR is the standard industry process reference model which dramatically improves
supply chain operations. It contains a standard description of management processes,
a framework of relationships among the standard processes, standard metrics to
measure process performance, management practices that produce best-in-class
performance, and a standard alignment to software features and functionality. SCOR
helps manage a common set of business problems through a standardized language,
standardized metrics, and common business practices which accelerate business
change and improve performance (Huan et al., 2004).
Each of these processes is implemented in four levels of detail. Level one defines the
number of supply chains as well as what metrics will be used. Level two defines the
planning and execution of processing material flow. Level three defines the inputs,
outputs, and flow of each transitional element (Lambert, et al. 2005). Each process is
analyzed and implemented around three components: business process reengineering,
benchmarking, and best practice analysis.
The main purpose of the SCOR framework model is to measure and improve the
performance measure of the supply chain and compare it against internal and external
industry goals (Huan et al., 2004).
25
3 METHODOLOGY
To be able to reach the goals of the thesis different methods are used:
The primary research technique is also being used to evaluate the materials that are
gathered from the questionnaires, observation, and interviews to ensure the data or
information accumulated comprehends the knowledge and idea about the ways of
managing the supplies of the organization.
The next method used in the thesis is an evaluation of the current supply chain
performance based on existing key performance indicators presented in the relevant
literature.
The flow chart of methodology has been presented below to understand the
sequences and processes that are interrelated in this thesis.
26
-Pulpa Group
Selecting the study area
Conclusion
As the prominent purpose of this thesis is to understand the theory of making efficient
and effective logistics to perform sustainable supply chain management, the
methodology of this chapter is a key to identifying the appropriate approach,
philosophies, methods, and so forth. Taking into consideration, these philosophies,
paradigms, and methods have been evaluated and have been executed to get the
result of the research questions, mentioned earlier in this thesis.
There are three approaches in total for research: Deductive, Inductive, and Abduction
approach. Among these approaches, it can be stated that this research adopts a
deductive approach rather than inductive or abduction. As abduction is a composition
of deductive and inductive (Saunders, et al., 2015, p148), this study disregards
induction and this approach is not specified on the definite criteria that can be applied
in the research. Likewise, the study also eliminates the inductive approach as inductive
27
refers to scarce sources, takes a long to complete the study, and has a high possibility
to accept the risk, such as a false conclusion of the research while deductive is the
opposite of them all (Dudoskiy, 2018).
Even though this thesis has applied deductive reasoning along with the positivism
paradigm, the research chooses to implement the qualitative method. Generally,
qualitative research is affiliated with the induction of an interpretive philosophy as it is
believed that the philosophy can help a researcher to understand and construct the
meaning expressed in the phenomena that are being studied (Saunders, et al., 2015,
p168). Conversely, Ormston et al (2013, p2) claim that the qualitative method is a
broad concept that has no distinctive set of methods or philosophies that are entirely
it's own. Similarly, Saunders, et al., (2015, p168) stated that as the qualitative study
can be positive and leads to one set of conclusions, it can be implemented qualitative
method along with the deductive approach.
In addition, the other major reason to imply the qualitative method in this research is
as the qualitative method is easy to understand the behavior in a wider context
(Saunders, et al., 2015, p200), it is easier to deal with the actual and factual images,
visions, events as well as verbal words to collect the information about the supply
chain of Pulpa Group.
the nature of the research questions and objectives as well that is directly
proportionate to the performance in the supply chain of the company.
The main research method for this thesis is the case study that was conducted in one
company in Kosovo.
With a case study, the researcher gains a more detailed and multi-dimensional picture
of the studied object. In the case study, the number of studied subjects or companies
is very restricted, often only one (Lundahl et al., 1992). Typically, case studies focus on
subjects in real-life environments and situations and problems the subjects are facing.
It means the researcher can enforce the topic to evaluate the process and outcomes in
a wide range. According to Wiedersheim-Paul et al. (1991) case studies can be used for
four different functions: to illustrate reality, as a tool to create hypotheses, as a
method of reform, or as a tool to create new theories. This might result in the
emergence of the critical and creative thinking of the researcher through these various
functions, which is useful to construct the validity of the research.
Similarly, this thesis is used to illustrate the reality of the industry of hygienic products
in Kosovo, to measure the ways of performing in the supply chain and the alternative
way to provide a sustainable competitive advantage, and the way to improvise the
performance via different theoretical frameworks.
Apart from this, the case study is being conducted by gathering information about the
case company to acknowledge the company’s environment as well as the operation of
the industry. Regarding collecting the materials from this study, an interview is being
approached with the owner of the company Arben Prebreza.
29
As the research has applied the qualitative interview, the research is based on the
semi-structured interview. The main motive to regulate the semi-structured interview
is to collect the relevant information in depth and to emerge unexpected solutions
that can be predicted from the specified topic (Hardon, et al. 2004, p28). Undoubtedly,
the questions were sent beforehand for the preparation of the interview, however,
additional questions were asked to elaborate on the unclear responses to certain
questions. This means the interview is being operated face-to-face with the audio
record on and with the notes taken at the same time to make it easier to review the
perpetual relationships and to analyze the response.
Indeed, the interview with Prebreza was conducted individually in the company offices
in Fushë Kosovë and it lasted around more or less 45 minutes.
Prebreza was interviewed with eight open questions about current supply chain
management, and overall company strategies to enhance the supplies to other places
or countries. Without a doubt, the interviewees were asked about their current
positions and their responsibilities.
Thereafter, the questions were asked in the Albanian language with the consent of Mr.
Prebreza about the supply chain and the ways to manage it in general. Then he was
asked about the focus on the current business environment, the supply chain of Pupla
Group, and which frameworks are used by the management to measure and improve
the performance and effectiveness of the current supply chain. Besides, the analysis
was done with an overview of the competitors as well as the main factors influencing
supply chain management. Subsequently, questions at the end were asked about the
challenges that might or will arise in the future and the possible ways to overcome the
risks and to implement the possible automated endeavor in improving the quality of
supply and to make the supply chain smoother and more organized.
30
After the interview, the main answers were reviewed, filtered, analyzed, and written
down to shape a better structure following the concepts.
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4 RESULTS
This chapter shows results which include the use of different frameworks mentioned in
the theory as well as the reviews done during the face-to-face interview.
• Manilla sh.p.k.
• Aksan
Suppliers • Deep Fresh
• Savon de Royal
• Interex
• ETC
• Albi Mall
Customers • Emona
• Small markets
• Final customer -online sales
• over 200 point of sale
• four countries
Distribution • 24/7 contact
• 24h delivery inside Kosovo
As shown in Figure 7 the overall attractiveness of the industry is low. The industry is
characterized by a high threat of substitutes in each of the products the group offers,
high power of suppliers, medium to high industry rivalry as well as the power of
buyers.
Threat of new
entrants
(Medium)
Industry
Bargaining power rivalry Threats of
of suppliers substitutes
(Medium to
(High) High) (High)
Bargaining power of
buyers
(Medium /High)
Figure 8. Porter’s five forces of the hygiene products industry- Pupla Group, Author’s
own work,2022
As shown in Figure 8 the Pupla Group has a lot of Strengths and Opportunities to gain
market share as well as achieve profits and growth. However, Pupla Group also has a
considerable among of weaknesses that the company has to overcome to be more
successful as well as to face the threats from the environment it operates in.
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Weaknesses
Strengths
-Product with less brand awarness
-Affordable prices
-High dependability of suppliers
-Knowledg of the market
-High tranport costs due to higher gas
-Customer retention is high prices
-Fast delivery -Unpredictible demand
-Use of social media to sell -No online pay options on the web
-Good distribution channels
Opportunities
SWOT
-The rise in demand of hygienic due to
Threats
COVID-19 - International competitors
-The rise in prices of competative -Supplier-dependence
product due to COVID-19 -Intolerable price increase by foreign
-Online shopping suppliers may occure
- Use social media and blogging to build -Lack of reputation
brand name and gain new customers -Existing and new entry competitors
Finally, Table 5 is the analysis to evaluate the supply chain for effectiveness and
efficiency of the Pupla group.
Plan Pupla Group uses their Database of past demands of each of their big
customers such as Inter-ex, ETC, Albi Mall, and Emona as well as their
smaller business customers, whereas they have also one measure to
measure and forecast the demand of final customers through online
orders. This is made possible by using the Point of Sales system to monitor
the state of the stocks at retail stores.
This allows Pupla Group to predict how much product is needed and so
reduce the costs of leftover inventory as well as optimize the
transportation of their product by combining product orders by region.
According to the owner of Pupla Group Mr. Prebreza it helps the company
keep their transport cost the below the average transport cost in the
industry.
Source The suppliers whose products are sold by Pupla Group include Manilla sh.
p.k, Aksan, Deep Fresh, Savon de Royal
35
Make Pupla Group operates from one central location in Fushë Kosovë where it
also has its Headquarters. Due to its on-point planning, the time and space
for the products to be kept in the warehouse are reduced.
Delivery Pupla Group’s distribution process is highly efficient since it uses three
separate stages, and it has a high level of communication between each
part of the distribution chain. Pupla Group uses its vehicles, which are
divided into different regions of Kosovo this helps to easier manage the
different retail stores they deliver to.
Return Most store items can be exchanged or refunded with a receipt within 10
days of purchase, and due to the nature of the products offered by Pupla
group, the expiration date of the products is not of high concern.
According to Mr. Prebreza, the return policy overall is not an issue of high
importance in their supply chain management.
5 RECOMMENDATIONS
6 CONCLUSION
This research aimed to develop and highlight the theoretical frameworks which could
improve supply chain performance, especially in terms of supply chain effectiveness.
Based on the literature research as well as the interview with the owner of Pupla
Group different frameworks can be used to identify problematic areas in the supply
chain management which can be solved and so improve the performance and also the
effectiveness of the supply chain.
As seen during the analysis of Porter's Five Forces the industry Pupla group operates in
is now very attractive in terms of overall indicators of this analysis. However, when
analyzing the Strengths and Opportunities of the company, it was shown that a
considered number of factors were focused on supply management and distribution.
The importance of supply chain management was also reinforced by the results of the
VRIO analyses in which Lower prices, Inventory management, social media use, and
Supply Chain Management came out to be the main sources of competitive
advantages of the Pupla Group.
The frameworks that help to measure the performance of the supply chain such as
VRIO and SCOR. As shown in the fourth chapter of this thesis both of these tools have
their importance. On the one hand, VRIO values different assets of the company on
the competitive advantages, which helps to understand the use of assets in the best
way possible or to prepare for challenges like internal and external forces. On the
other hand, the SCOR model helps managers to measure and improve the
performance of the supply chain, which can be compared to internal and external
industrial goals.
38
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43
Customer 1
1. I was approached by one of Pupla Group representatives.
2. There have been 3 years that we work together now.
3. I would like it if they would have a seller for each line of products sometimes it gets So
too complicated when we order because they have many products.
4. far, they have been very good and given offers to us.
5. They make sure to have sales at least 4 times a year and they inform us quite
sometime before that so we can get ready if we want to order more than usual.
Customer 2
1. I got approached by their representative.
2. From 2017
3. 3.No
4. Yes, they do a good job regarding that.
5. They have many offers per year, but the size of our shop doesn’t give us the leverage
to get more products from them.
Customer 3
1. I saw a sponsored post on Instagram and did some research after that.
2. We have been working with them since July 2018.
3. To try and have same-day deliveries.
4. Yes, they have been so good at it from the beginning.
44
5. They make sure to have offered so often and even for holidays and we are always
informed about that.
Customer 4
Customer 5
1. We got firstly an email for a possible meeting and then their CEO and General manager
informed us about their products.
2. We started working with them in January 2019.
3. To have separate deliveries for their products.
4. Yes, they have.
5. Since we are a chain of shops, they inform us at least 1 month in advance so we do the
planning.
Customer 6
Customer 7
45
1. Since we are a big company, they emailed us, and then we set a meeting to talk more
about their products.
2. We started working in March 2017.
3. There isn’t anything now.
4. We are satisfied with how they manage discounts and offers.
5. Based on the working contract that we have with them they must inform us at least 1
month before and they do that, and we get many campaign offers.
Customer 8
1. One of our Store managers is a friend of the Pupla Group CEO so we got an offer from
him.
2. Our partnership with them started 2 years ago.
3. To make it possible to order products by email.
4. Yes, they manage that very well.
5. We are informed around a month upfront about big campaigns or sales, so we have time
to decide on how much we want to buy from them.
Customer 9
Customer 10
Customer 11
1. We saw their products in another store, and we wanted to know more about their
services, so we gave them a call.
2. Our partnership with them started in early 2018.
3. To focus on providing us with more marketing posters.
4. Somehow, they manage to do a good job on that.
5. Yeah, we receive quite many offers from them, but we are unable to get all of them
because of our story size.
Customer 12
Customer 13
1. One of Pupla’s representatives visited us and informed us of their services.
2. Our partnership with them started in early 2019.
3. To do email invoicing and remove paper invoices.
4. We are quite satisfied with their way of doing it.
5. They offer us many sales per year at least 7 and we try to use them all if we are in a
position to.
Customer 14
47
Customer 15
1. We saw an ad on the internet and called them.
2. We started working With Pupla Group in 2019.
3. To visit us twice a week.
4. From the information we have they do.
5. Yes, they have quite many few offers and also inform us about them.
Customer 16
1. They approached us.
2. For 3 years now.
3. No at the moment.
4. Yes, I think they do.
5. They have many offers, but we can’t get all of them due to our capacity.
Customer 17
1. We received an email with their information and a possibility of partnership.
2. We have been working with them since 2018.
3. To try and use more small vans they always come with big ones.
4. I think they do.
5. Yes, we receive many offers from them.
Customer 18
Customer 19
1. We got to know them from ads.
2. From 2021.
3. No, we don’t have.
4. Yes, they do.
5. We are informed a lot about them, and they have way too many.
Customer 20
6. Their Ceo is a close friend, so we have known about their services directly from him.
7. Since they started the company.
8. No, they are doing a great job.
9. Of course, they do.
10. Yes, we have many offers from them and they inform us.
Customer 21
1. From Facebook ads.
2. For 2 years now.
3. To visit us 2 times per week.
4. Yes, I think they have a proper way.
5. They have many offers, and we are always informed about them.
Customer 22
1. One of our close partners is a friend of their CEO so he introduces them to us.
2. From 2018.
3. To have paperless invoices.
4. Yes, they have the proper way.
5. We receive many sales offers so like that we know that we are informed for them.
Customer 23
1. One of their representatives visited us and informed us of their services.
2. We are working with them since 2016.
49
Customer 24
1. They were working with our other company, which is a warehouse, so we got to know
about them from our warehouse workers.
2. We work with Pupla Group since 2016.
3. We suggested they have more visits per week but they are trying to be more sustainable
they told us so there isn’t anything else.
4. Based on the information we have they have a proper way of doing that and working
with them for so long makes it easier for us to know they do a good job on that.
5. We get many offers from them for different sales or campaigns, but we focus mostly on
the ones that happen for holidays are we are informed about them.
Customer 25
1. We received an email from their company that informed us of their services and asked
us for a meeting to explain more about them.
2. Our partnership started in January 2017.
3. At this point, we don't have any suggestions for them.
4. We are quite satisfied with the way they distribute discounts and how they make sure
nobody feels undervalued.
5. All the offers they have we get firstly sent by email and then they make the visit so we
can discuss all the possibilities.
Customer 26
1. Since we are a chain of Markets, we got to know them from another store that we own.
2. We are working with Pupla Group for 4 years now.
3. Paperless invoices.
4. We are happy with how they manage this.
5. They have many sales or campaigns we usually try to be part of 5 of them, and yes, we
get so informed about their campaigns.
50
Customer 27
Customer 28
Customer 29
1. Their sales representatives visited us and informed us of their services.
2. We work with them since 2018.
3. No now.
4. Yes, they have a proper way.
5. Our store's not so big so we mentioned to them that we can be part of at least 2 big
sales per year and we get them.
Customer 30
1. We got to know about them from internet ads.
2. Our partnership began in 2017.
3. We don’t have any suggestions for now.
4. Their approach is professional when it comes to this.
5. We receive many sales or offers from them, so we think we are informed for them.
51
Customer 31
1. Pupla Group representative approached us and informed us of their services.
2. We started to work with them in August 2019.
3. To have separate sellers for different programs.
4. Yes, they have a proper way.
5. All the offers they have we get on email and usually there are quite many so we are
informed.
Customer 32
1. We are good friends with their CEO, so we got to know from him for their services.
2. Since 2016.
3. No at the moment.
4. Yes, we think they have a proper way.
5. We are a part of at least 5 to 6 different offers per year and I would say we are informed
of all of them.
Customer 33
1. In our store, we got a visit from one of their managers who informed us of their services
and products.
2. Our partnership with Pupla started in 2017.
3. From time to time, they used to offer other shampoos and deodorants that other
companies had but with cheaper prices they haven't done that in quite some time. I
suggest they do it again.
4. Yes, we think they do, and we are satisfied with that.
5. We get many sales offers per year so I would say we are informed.
Customer 34
1. We got to know about their services from internet ads, and then we contacted them,
and we started with our partnership.
2. We have started to work with them since September 2020.
3. There isn’t anything at the moment.
4. Yes, they have a proper way.
5. Yes, they have many sales per year, and they make sure to inform us.
52
Customer 35
1. We heard about them from ads on Instagram and Facebook.
2. Since 2019.
3. Email invoicing.
4. Yes, in general, they do good work about that.
5. We are always informed about their sales, and they have quite many.
Customer 36
1. We are a sort of retail seller when small shops come and get most of their products, so
they visited us and informed us about their services and products.
2. We have been working with the Pulpa group for almost 4 years now.
3. We get a visit from their representative once a month it would be great if they could
visit us more often.
4. We usually get a lot of stock from them, so we have a good price, and we are not
included in sales.
5. It's already mentioned in the last question.
Customer 37
1. We were buying their products from another seller in a big warehouse and then
contacted them directly since they had many products.
2. We started to work with Pupla group in 2019.
3. We don’t have any suggestions for them right now.
4. Since we started working with them, they have done a good job of that.
5. They, have many sales and ofc inform us.
Customer 38
1. We got to know Pupla Group is one of the affairs that were held in our capital city.
2. We have been working with Pupla since 2019.
3. We don’t have any suggestions for them at the moment.
4. Yes, they have a proper way they usually have their representative inform us.
5. There are at least 5 or 6 sales campaigns that they have and for sure inform us.
53
Customer 39
1. While we were in another store, we saw their products and then decided to give them
a call and get to know more about them.
2. We have been working with them for 4 years now.
3. They usually visit us once in two weeks, so we suggest they visit us more often.
4. Yeah, we think they do.
5. There are many sales they have and for sure they inform us about them.
Customer 40
1. Pupla Group CEO and their manager approached us to inform us about their services
and products.
2. We have been working with them for 5 years now.
3. No, we don’t have any
4. Yes, they have a proper way.
5. We got an agreement with them when we started working to get some of the cheapest
prices since we are one of the places that sell most of their products.
Customer 41
1. We received an email from Pupla to inform us of the potential partnership then we set
a meeting and got to know more about them.
2. Since 2017.
3. There isn’t any suggestion we have for them right now.
4. Yes, they have a proper way.
5. Yes, they do and also inform us.
54
Customer 42
1. We got a visit from their representatives to inform us about their services.
2. We are working with Pupla Group since November 2017.
3. Email invoicing.
4. Yes, we think they do that.
5. They have many offers and inform us as well.
Customer 43
1. Their manager approached us and informed us of their services and products.
2. We have been working with them since 2017
3. No at the moment.
4. How they give us discounts and offers is one of the best.
5. There are many sales and offers they have and also make sure to inform us.
Customer 44
1. We got to know them from advertisements and then contacted them and reach an
agreement.
2. There have been 3 years since we worked together.
3. Maybe to try and get more lines of products.
4. Yes, they have a proper way like emails and visit from managers to inform us.
5. As of now, there has been a few sales or big offers and I would say we are informed.
Customer 45
1. We have another big warehouse that has been working with them so then we got
information from them about their services.
2. Our partnership with them has been going on since 2017.
3. We don’t have any at this moment.
4. Yes, they have.
5. In general, there are many sales offers or big discounts they have and the reason I
know for them it’s a clear fact they inform us.
55
Customer 46
1. They approached us and let us know about their services.
2. Since 2016.
3. Sorry we don’t
4. Yes, they send emails, call us.
5. I think there are many sales they have and also inform us about them.