“ASSESSMENT OF SUPPLY CHAIN MANAGEMENT PRACTICES - A CASE STUDY ON K O J J FOOD PROCESSING COMPLEX PLC”

Abstract

Supply Chain Management (SCM) is the means by which firms engaged in creating, distributing, and selling products, can join forces to establish a supply network with an unbeatable competitive advantage-has emerged as one of the most powerful business improvement tools around. Companies all over the world are pursuing supply chain as the latest methodology to reduce costs, increase customer satisfaction, better utilize assets and build new revenues. The purpose of this paper was to examine the practices of supply chain management from the five SCM practices perspectives i.e. Supplier and customer relationship, Internal operations, Information sharing, Information technology and Training and to see the integrations among SC partners. For the accomplishment of this, the study employed descriptive design. Both primary and secondary sources of data were used for this study. The selections of the respondents were carried out by using judgmental, purposive and convenience sampling techniques. The total numbers of K O J J Food Processing Complex PLC employees are 456 of these, 35 employees were considered as a sample unit. Furthermore, 40 customers were interviewed. Likert scaled questionnaire and interviews were used as instruments for data collection. The data was analysed by using descriptive statistics and presented in tables. The major findings indicated that, most SCM practices are moderately practiced with in the K O J J Food Processing Complex PLC’s SC. whereas IT and training practices are poorly applied. Sales forecast information sharing with customers is not good that convey 2.22 mean value. Based on both quantitative and qualitative analysis the case company has not that much good relationship with its customers and suppliers and poor customers’ services. Manufacturing, supply and demand uncertainties which conveys almost moderate mean values are the major headaches or challenges of the case company’s SC which prohibits effective implementation of SCM. Hence, the case company is suggested to improve its relationship with suppliers from simply buy-sale relationship to a modern supply chain relationship through establishing strategic or long term relationship, contract, and continuous information sharing in order to minimize supply uncertainty which resulted in demand and supply unmatched and dissatisfaction of customers.