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INSTITUTE OF INNOVATION IN TECHNOLOGY AND

MANAGEMENT

NEW DELHI - 110058

BATCH (2009-2012)

SUMMER PROJECT REPORT

ON

A COMPARATIVE STUDY BETWEEN SUPPLY CHAIN MANAGEMENT IN

INDUSTRIAL MARKET AND CONSUMER MARKET

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF

BUSINESS ADMINISTRATION (COMPUTER AIDED MANAGEMENT) GURU GOBIND

SINGH INDRAPRASTHA UNIVERSITY

PAPER CODE (BBA (CAM) 213)

SUBMITTED TO: SUBMITTED BY:

MRS. SARMISTHA SARMA AKSHIT ARORA

ENROLLMENT NO:

04190301909

COURSE BBA (CAM)


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ACKNOWLEDGEMENT

My gratitude is due to my revered teacher, Mrs. Sarmistha sarma (marketing

faculty), INSTITUTE OF INNOVATION IN TECHNOLOGY AND

MANAGEMENT NEW DELHI. Her valuable suggestions and deep involvement

in the project motivated me to complete the study with great zeal. I am also

thankful to the institute for providing us with a resourceful library through

which I could create a better understanding of the subject and conduct an in

depth study of the topic.

PROJECT GUIDE: AKSHIT ARORA

MRS SARMISTHA SARMA Roll No. 04190301909


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INDEX

Signature:

Serial

No.

Title Page

No.

1. Introduction 4

2. What is supply chain management? 9

3. Objective of Study 25

4. Research Methodology 26

5. Analysis of the Study 30

6. Conclusion 39

7. Bibliography 40

8. Annexure 41


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INTRODUCTION

What is market?

A market is any one of a variety of different systems, institutions, procedures,

social relations and infrastructures whereby businesses sell their goods, servicesand labor to people in exchange for money. Goods and services are sold using a

legal tender such as fiat money. This activity forms part of the economy. It is an

arrangement that allows buyers and sellers to exchange items. Competition is

essential in markets, and separates market from trade. Two persons may trade,but it takes at least three persons to have a market, so that there is competition

on at least one of its two sides.

Markets vary in size, range, geographic scale,

location, types and variety of human communities, as well as the types of goodsand services traded. Some examples include local farmers' markets held in town

squares or parking lots, shopping centers and shopping malls, international

currency and commodity markets, legally created markets such as for pollution

permits, and illegal markets such as the market for illicit drugs.

In mainstream economics, the concept of a market is any structure that allowsbuyers and sellers to exchange any type of goods, services and information. The

exchange of goods or services for money is a transaction. Market participants

consist of all the buyers and sellers of a good who influence its price. This

influence is a major study of economics and has given rise to several theories

and models concerning the basic market forces of supply and demand. There aretwo roles in markets, buyers and sellers. The market facilitates trade and

enables the distribution and allocation of resources in a society. Markets allow

any tradable item to be evaluated and priced. A market emerges more or lessspontaneously or is constructed deliberately by human interaction in order to

enable the exchange of rights (cf. ownership) of services and goods.
http://en.wikipedia.org/wiki/Systemshttp://en.wikipedia.org/wiki/Institutionshttp://en.wikipedia.org/wiki/Procedureshttp://en.wikipedia.org/wiki/Social_relationshttp://en.wikipedia.org/wiki/Infrastructureshttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Buyershttp://en.wikipedia.org/wiki/Sellershttp://en.wikipedia.org/wiki/Farmers%27_marketshttp://en.wikipedia.org/wiki/Shopping_centershttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/wiki/Information_economyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Goodhttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Economic_modelshttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Allocation_of_resourceshttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Allocation_of_resourceshttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Sellerhttp://en.wikipedia.org/wiki/Buyerhttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Economic_modelshttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Goodhttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Information_economyhttp://en.wikipedia.org/wiki/Mainstream_economicshttp://en.wikipedia.org/wiki/Illegal_drug_tradehttp://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Shopping_centershttp://en.wikipedia.org/wiki/Farmers%27_marketshttp://en.wikipedia.org/wiki/Sellershttp://en.wikipedia.org/wiki/Buyershttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Infrastructureshttp://en.wikipedia.org/wiki/Social_relationshttp://en.wikipedia.org/wiki/Procedureshttp://en.wikipedia.org/wiki/Institutionshttp://en.wikipedia.org/wiki/Systems


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What is industrial market?

Industrial market segmentation is a scheme for categorizing industrial and

business customers to guide strategic and tactical decision -making, especially insales and marketing. While government agencies and industry associations use

standardized segmentation schemes for statistical surveys, most businessescreate their own segmentation scheme to meet their particular needs.

While similar to consumer market segmentation, segmenting industrial markets

is different and more challenging because of greater complexity in buyingprocesses, buying criteria, and the complexity of industrial products and

services themselves. Further complications include role of financing,

contracting, and complementary products/services.

The goal for every industrial market segmentation scheme is to identify the most

significant differences among current and potential customers that will influence

their purchase decisions or buying behavior, while keeping the scheme as simpleas possible (Occam's Razor). This will allow the industrial marketer to

differentiate their prices, programs, or solutions for maximum competitive

advantage.

An industrial market involves one business dealing goods or services to anotherbusiness instead of a consumer base. Also known as the business-to-business

market, this market encompasses three distinct variations, including businesses

selling goods, businesses selling raw materials and businesses selling services.

Each of these three happen in a variety of individual business. There are manyadvantages of this type of market over the traditional consumer market.

The industrial market focuses solely on the goods and services provided forproducing a separate end product. This is an o rganizational market with its own

advertising, distribution and sales. From automobiles to food, clothes and more,

consumer industrial products would not be available without the industrialmarket first being utilized.

Many companies within an industrial market specialize in selling goods to otherindustries in order to help them produce an end product. These companies

normally do not offer these products to the general public, because there would

be little use for them to an individual consumer. A company producing an

industrial loom for creating garments would be one example of a companyutilizing this market. Computer programs are another example, especially

networks or specialized programs that aid in the production of goods and

services.
http://en.wikipedia.org/wiki/Occam%27s_Razorhttp://www.wisegeek.com/what-are-goods-and-services.htmhttp://www.wisegeek.com/what-is-a-loom.htmhttp://www.wisegeek.com/what-is-a-computer.htmhttp://www.wisegeek.com/what-is-a-computer.htmhttp://www.wisegeek.com/what-is-a-loom.htmhttp://www.wisegeek.com/what-are-goods-and-services.htmhttp://en.wikipedia.org/wiki/Occam%27s_Razor


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The industrial market equally benefits from groups that sell raw materials toother companies that use them to create end products. The selling companiestend to have some products that would be useful to individual consumers, but

they generally sell goods in bulk numbers that are not practical for consumers.

Some of these companies focus a small portion of the business on consumer

goods but generally do only business-to-business deals. An excellent examplewould be selling raw wool to the same company that bought industrial looms,

with that company using the wool and looms to produce sweaters, socks and

scarf.

The third type of industrial market deals solely with selling services to otherbusinesses. These groups do not provide any physical goods but supply

manpower and expertise in particular areas. This can be a physical act, such as

cleaning up hazardous materials that are produced by industrial machinery. It

also can be more data-based, such as providing business accounting forcompanies.
http://www.wisegeek.com/what-are-consumer-goods.htmhttp://www.wisegeek.com/what-are-consumer-goods.htmhttp://www.wisegeek.com/what-is-wool.htmhttp://www.wisegeek.com/what-is-wool.htmhttp://www.wisegeek.com/what-are-consumer-goods.htmhttp://www.wisegeek.com/what-are-consumer-goods.htm


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What is consumer market?

The consumer market is composed of individuals who buy a specific good or

service.

Rarely does one product interest the entire population. This statement applieseven to staples, such as sugar, flour, and salt. A small percentage of householdsdo not eat these products, so even if a company did target the entire population,

not everyone would be a potential consumer.

The same statistical truth applies to cultural products. However, because of the

extremely fragmented nature of the cultural sector, some distinctions are in

order. For example, looking at this sector as a whole, it can be said that nearly

100% of the population consumes one type of cultural product or another.Indeed, in its broadest sense, the cultural sector encompasses everything from

the performing arts (high and popular), to heritage, compact disks, movies, book

and magazine publishing, and radio and television, with each of thesedisciplines appropriating a more or less important share of global demand.

In Canada, for example, statistics1 show that 37.0% of families attend a

performing arts event at least once a year: movies 62.2%, museums and artgalleries 32.9%. In the United States the figures for cultural consumption are:

classical music 15.6%, opera 4.7%, musicals 24.5%, plays 15.8%, ballet 5.8%,

art museums 34.5%, and historical parks 46.9%.2 In Australia3 the figures are:musical theatre 19.3%, classical music 7.7%, festivals 21.9%, concerts 23%, and

museums 27.8%. Of course, within each of these sectors, consumers cluster

according to specific poles of interest. This leads to sharper market

segmentation. The consumer makes a discriminating choice among variouscultural products to acquire or consume the type of product desired.

The distribution of consumers according to various market segments differs inboth time and space. Markets undergo and reflect the influence of opinion

leaders, trends, tastes, and societal characteristics. Markets also vary from

country to country according to different social structures.

Over the past 40 years, various surveys focusing on the sociodemographic

profile of consumers of cultural products have been carried out in nearly every

European country (both East and West), as well as in Canada, the United States,

Australia, and Japan.4 It is fascinating to note that, regardless of whether thesurveys were conducted in the 1970s, 1980s, or 1990s, they all obtained the

same attendance rates and the same sociodemographic profiles. Differences in

the measuring tools used can sometimes make it difficult to compare countries(different nomenclature for sectors, questions formulated differently, etc.);

nonetheless, these studies have consistently and systematically revealed strong

polarization of audiences between high art and popular culture across all


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countries over the past four decades. They show, for example, that cultural

products catering to high art attract e ducated consumers, whereas those cateringto popular culture draw on all segments of the population, in accordance with

the relative weight of each. The proportion of university graduates making up

Canadian audiences, for example, ranges between 50% and 70% for high art

(symphony orchestras, arts festivals, fine arts museums, etc.), compared with10% to 25% for popular culture (pop music, historical parks, etc.). By way of

comparison, the overall percentage of university graduates in Canada is 25%.

Similar results have been found in other countries, most notably in France5 butalso in Russia, where university graduates make up 50% of performing arts

audiences but only 7% of the general population.

Other sociodemographic variables are also linked to attendance, including

average income (higher among consumers of high art than consumers of popular

culture) and type of occupation (white-collar workers account for a larger

proportion of high art consumers while blue -collar workers are drawn to popular

culture in greater numbers). It should be pointed out once again that this profileis based on averages. Less-educated individuals with lower income may be great

consumers of culture, as is the case for students and those specialized orworking in the cultural milieu. Indeed, it is well known that, as a rule many

people active in the arts are highly educated yet so ill paid that they struggle to

stay above the poverty line. On the other hand, there are people with both veryhigh salaries and very high educational levels who are not interested in the arts

and gladly keep their distance. Four factors are known to influence an

individuals penchant for complex cultural products: family values that

encourage or discourage high art; the educational milieu and the value it placeson high art; the fact of having attended performances or visited museums as a

child; and amateur art practice.

A more detailed analysis of the typical cultural consumers traits reveals othernuances based on the different disciplines (see Capsule 3.1 for a discussion of

the development of tastes among arts consumers). For example, dance audiences

are relatively younger and even more female in composition than those of theother performing arts; similarly, more women than men read novels, although a

larger proportion of men read daily newspapers. In the film sector, there are two

very different segments of avid cinema-goers; one of these segments isdominated by a young clientele (15-25 years), while the other is made up of

educated people. The majority of consumers in the film sector belong to one or

the other of these two segments.


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What is supply chain management?

A supply chain, as opposed to supply chain management, is a set of

organizations directly linked by one or more of the upstream and downstream

flows of products, services, finances, and information from a source to a

customer. Managing a supply chain is 'supply chain management' (Mentzer et

al. , 2001).[ 5 ]

Supply chain management software includes tools or modules used to execute

supply chain transactions, manage supplier relationships and control associated

business processes.

Supply chain event management (abbreviated as SCEM) is a consideration of all

possible events and factors that can disrupt a supply chain. With SCEM possible

scenarios can be created and solutions devised.
http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-4http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-4http://en.wikipedia.org/wiki/Supply_chain_management_softwarehttp://en.wikipedia.org/wiki/Supply_chain_management_softwarehttp://en.wikipedia.org/wiki/Supply_chain_management#cite_note-4


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Problems addressed by Supply Chain Management

Supply chain management must address the following problems:

Distribution Network Configuration : number, location and networkmissions of suppliers, production facilities, distribution centers,

warehouses, cross-docks and customers.

Distribution Strategy : questions of operating control (centralized,decentralized or shared); delivery scheme, e.g., direct shipment, pool

point shipping, cross docking, DSD (direct store delivery), closed loop

shipping; mode of transportation, e.g., motor carrier, including truckload,LTL, parcel; railroad; intermodal transport, including TOFC (trailer on

flatcar) and COFC (container on flatcar); ocean freight; airfreight;

replenishment strategy (e.g., pull, push or hybrid); and transportation

control (e.g., owner-operated, private carrier, common carrier, contractcarrier, or 3PL).

Trade-Offs in Logistical Activities : The above activities must be wellcoordinated in order to achieve the lowest total logistics cost. Trade-offsmay increase the total cost if only one of the activities is optimized. For

example, full truckload (FTL) rates are more economical on a cost per

pallet basis than less than truckload (LTL) shipments. If, however, a fulltruckload of a product is ordered to reduce transportation costs, there will

be an increase in inventory holding costs which may increase total

logistics costs. It is therefore imperative to take a s ystems approach when

planning logistical activities. This trade-offs are key to developing the

most efficient and effective Logistics and SCM strategy. Information : Integration of processes through the supply chain to share

valuable information, including demand signals, forecasts, inventory,transportation, potential collaboration, etc.

Inventory Management : Quantity and location of inventory, includingraw materials, work-in-progress (WIP) and finished goods.

Cash-Flow : Arranging the payment terms and methodologies forexchanging funds across entities within the supply chain.
http://en.wikipedia.org/wiki/Direct_shipmenthttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Motor_carrierhttp://en.wikipedia.org/wiki/Less_than_truckloadhttp://en.wikipedia.org/wiki/Parcelhttp://en.wikipedia.org/wiki/Railroadhttp://en.wikipedia.org/wiki/Private_carrierhttp://en.wikipedia.org/wiki/Common_carrierhttp://en.wikipedia.org/wiki/3PLhttp://en.wikipedia.org/wiki/3PLhttp://en.wikipedia.org/wiki/Common_carrierhttp://en.wikipedia.org/wiki/Private_carrierhttp://en.wikipedia.org/wiki/Railroadhttp://en.wikipedia.org/wiki/Parcelhttp://en.wikipedia.org/wiki/Less_than_truckloadhttp://en.wikipedia.org/wiki/Motor_carrierhttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Direct_shipment


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Supply chain execution means managing and coordinating the movement ofmaterials, information and funds across the supply chain. The flow is bi-directional.

Activities/functions

Supply chain management is a cross-function approach including managing the

movement of raw materials into an organization, certain aspects of the internal

processing of materials into finished goods, and the movement of finished goodsout of the organization and toward the end-consumer. As organizations strive to

focus on core competencies and becoming more flexible, they reduce their

ownership of raw materials sources and distribution channels. These functions

are increasingly being outsourced to other entities that can perform theactivities better or more cost effectively. The effect is to increase the number of

organizations involved in satisfying customer demand, while reducingmanagement control of daily logistics operations. Less control and more supply

chain partners led to the creation of supply chain management concepts. Thepurpose of supply chain management is to improve trust and collaboration

among supply chain partners, thus improving inventory visibility and the

velocity of inventory movement.

Several models have been proposed for understanding the activities required tomanage material movements across organizational and functional boundaries.

SCOR is a supply chain management model promoted by the Supply Chain

Council. Another model is the SCM Model proposed by the Global Supply Chain

Forum (GSCF). Supply chain activities can be grouped into strategic, tactical,and operational levels. The CSCMP has adopted The American Productivity &

Quality Center (APQC) Process Classification Framework

a high-level, industry-neutral enterprise process model that allows organizations to see their businessprocesses from a cross-industry viewpoint.

Strategic Level

Strategic network optimization, including the number, location, and sizeof warehousing, distribution centers, and facilities.

Strategic partnerships with suppliers, distributors, and customers, creatingcommunication channels for critical information and operationalimprovements such as cross docking, direct shipping, and third-party

logistics. Product life cycle management, so that new and existing products can be

optimally integrated into the supply chain and capacity management

activities.

Information technology chain operations. Where-to-make and make-buy decisions. Aligning overall organizational strategy with supply strategy.
http://en.wikipedia.org/wiki/SCORhttp://en.wikipedia.org/wiki/Distribution_centerhttp://en.wikipedia.org/wiki/Strategic_partnershiphttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Third-party_logisticshttp://en.wikipedia.org/wiki/Third-party_logisticshttp://en.wikipedia.org/wiki/Product_life_cycle_managementhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/w/index.php?title=Make-buy_decision&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Make-buy_decision&action=edit&redlink=1http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Product_life_cycle_managementhttp://en.wikipedia.org/wiki/Third-party_logisticshttp://en.wikipedia.org/wiki/Third-party_logisticshttp://en.wikipedia.org/wiki/Cross_dockinghttp://en.wikipedia.org/wiki/Strategic_partnershiphttp://en.wikipedia.org/wiki/Distribution_centerhttp://en.wikipedia.org/wiki/SCOR


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It is for long term and needs resource commitment.Tactical Level

Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning

process definition.

Inventory decisions, including quantity, location, and quality ofinventory.

Transportation strategy, i ncluding frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of

best practices throughout the enterprise.

Milestone payments. Focus on customer demand.

Operational Level

Daily production and distribution planning, including all nodes in thesupply chain.

Production scheduling for each manufacturing facility in the supply chain(minute by minute).

Demand planning and forecasting, coordinating the demand forecast of allcustomers and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, incollaboration with all suppliers.

Inbound operations, including transportation from suppliers and receivinginventory.

Production operations, including the consumption of materials and flow offinished goods.

Outbound operations, including all fulfillment activities, warehousing andtransportation to customers.

Order promising, accounting for all constraints in the supply chain,including all suppliers, manufacturing facilities, distribution centers, andother customers.

From production level to supply level accounting all transit damage cases& arrange to settlement at customer level by maintaining company loss

through insurance company.
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Importance of Supply Chain Management

Organizations increasingly find that they must rely on effective supply chains,or networks, to compete in the global market and networked economy. In Peter

Drucker's (1998) new management paradigms, this concept of business

relationships extends beyond traditional enterprise boundaries and seeks toorganize entire business processes throughout a value chain of multiple

companies.

During the past decades, globalization, outsourcing and information technology

have enabled many organizations, such as Dell and Hewlett Packard, to

successfully operate solid collaborative supply networks in which each

specialized business partner focuses on only a few key strategic activities(Scott, 1993). This inter-organizational supply network can be acknowledged as

a new form of organization. However, with the complicated interactions amongthe players, the network structure fits neither "market" nor "hierarchy"

categories (Powell, 1990). It is not clear what kind of performance impactsdifferent supply network structures could have on firms, and little is known

about the coordination conditions and trade-offs that may exist among the

players. From a systems perspective, a complex network structure can bedecomposed into individual component firms (Zhang and Dilts, 2004).

Traditionally, companies in a supply network concentrate on the inputs and

outputs of the processes, with little concern for the internal managementworking of other individual players. Therefore, the choice of an internal

management control structure is known to impact local firm performance

(Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to thedevelopment of supply chain networks. First, as an outcome of globalization andthe proliferation of multinational companies, joint ventures, strategic alliances

and business partnerships, significant success factors were identified,

complementing the earlier "Just-In-Time", "Lean Manufacturing" and "Agile

Manufacturing" practices. Second, technological changes, particularly thedramatic fall in information communication costs, which are a significant

component of transaction costs, have led to changes in coordination among the

members of the supply chain network (Coase, 1998).

Many researchers have recognized these kinds of supply network structures as a

new organization form, using terms such as " Keiretsu", "Extended Enterprise","Virtual Corporation", "Global Production Network", and "Next Generation

Manufacturing System".[9 ]

In general, such a structure can be defined as "a

group of semi-independent organizations, each with their capabilities, whichcollaborate in ever-changing constellations to serve one or more markets in

order to achieve some business goal specific to that collaboration" (Akkermans,

2001).
http://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Hewlett_Packardhttp://en.wikipedia.org/wiki/Just_In_Time_%28business%29http://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Supply_chain_management#cite_note-8http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-8http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-8http://en.wikipedia.org/wiki/Keiretsuhttp://en.wikipedia.org/wiki/Just_In_Time_%28business%29http://en.wikipedia.org/wiki/Hewlett_Packardhttp://en.wikipedia.org/wiki/Dellhttp://en.wikipedia.org/wiki/Information_technology


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The security management system for supply chains is described in ISO/IEC

28000 and ISO/IEC 28001 and related standards published jointly by ISO andIEC.

Historical developments in Supply Chain Management

Six major movements can be observed in the evolution of supply chain

management studies: Creation, Integration, and Globalization (Lavassani et al.,

2008a), Specialization Phases One and Two, and SCM 2.0.

1. Creation Era

The term supply chain management was first coined by a U.S. industry

consultant in the early 1980s. However, the concept of a supply chain in

management was of great importance long before, in the early 20th century,especially with the creation of the assembly line. The characteristics of this era

of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and widespreadattention to the J apanese practice of management.

2. Integration Era

This era of supply chain management studies was highlighted with the

development of Electronic Data Interchange (EDI) systems in the 1960s anddeveloped through the 1990s by the introduction of Enterprise Resource

Planning (ERP) systems. This era has continued to develop into the 21st century

with the expansion of internet-based collaborative systems. This era of supply

chain evolution is characterized by both increasing value-adding and costreductions through integration.

3. Globalization Era

The third movement of supply chain management development, the globalizationera, can be characterized by the attention given to global systems of supplier

relationships and the expansion of supply chains over national boundaries and

into other continents. Although the use of global sources in the supply chain oforganizations can be traced back several decades (e.g., in the oil industry), it

was not until the late 1980s that a considerable number of organizations started

to integrate global sources into their core business. This era is characterized bythe globalization of supply chain management in organizations with the goal ofincreasing their competitive advantage, value-adding, and reducing costs

through global sourcing.

4. Specialization EraPhase One: Outsourced Manufacturing and

Distribution
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In the 1990s industries began to focus on core competencies and adopted a

specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This

changed management requirements by extending the supply chain well beyond

company walls and distributing management across specialized supply chain

partnerships.

This transition also re-focused the fundamental perspectives of each respectiveorganization. OEMs became brand owners that needed deep visibility into their

supply base. They had to control the entire supply chain from above instead of

from within. Contract manufacturers had to manage bills of material withdifferent part numbering schemes from multiple OEMs and support customer

requests for work -in-process visibility and vendor-managed inventory (VMI).

The specialization model creates manufacturing and distribution networkscomposed of multiple, individual supply chains specific to products, suppliers,

and customers, who work together to design, manufacture, distribute, market,sell, and service a product. The set of partners may change according to a givenmarket, region, or channel, resulting in a proliferation of trading partner

environments, each with its own unique characteristics and demands.

5. Specialization EraPhase Two: Supply Chain Management as a Service

Specialization within the supply chain began in the 1980s with the inception of

transportation brokerages, warehouse management, and non-asset-based carriers

and has matured beyond transportation and logistics into aspects of supply

planning, collaboration, execution and performance management.

At any given moment, market forces could demand changes from suppliers,

logistics providers, locations and customers, and from any number of thesespecialized participants as components of supply chain networks. This

variability has significant effects on the supply chain infrastructure, from the

foundation layers of establishing and managing the electronic communicationbetween the trading partners to more complex requirements including the

configuration of the processes and work flows that are essential to the

management of the network itself.

Supply chain specialization enables companies to improve their overall

competencies in the same way that outsourced manufacturing and distribution

has done; it allows them to focus on their core competencies and assemblenetworks of specific, best-in-class partners to contribute to the overall value

chain itself, thereby increasing overall performance and efficiency. The ability

to quickly obtain and deploy this domain-specific supply chain expertise withoutdeveloping and maintaining an entirely unique and complex competency in


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house is the leading reason why supply chain specialization is gaining

popularity.

Outsourced technology hosting for supply chain solutions debuted in the late

1990s and has taken root primarily in transportation and collaboration

categories. This has progressed from the Application Service Provider (ASP)model from approximately 1998 through 2003 to the On-Demand model from

approximately 2003-2006 to the Software as a Service (SaaS) model currently infocus today.

6. Supply Chain Management 2.0 (SCM 2.0)

Building on globalization and specialization, the term SCM 2.0 has been coined

to describe both the changes within the supply chain itself as well as theevolution of the processes, methods and tools that manage it in this new "era".

Web 2.0 is defined as a trend in the use of the World Wide Web that is meant toincrease creativity, information sharing, and collaboration among users. At its

core, the common attribute that Web 2.0 brings is to help navigate the vast

amount of information available on the Web in order to find what is beingsought. It is the notion of a usable pathway. SCM 2.0 follows this notion into

supply chain operations. It is the pathway to SCM results, a combination of theprocesses, methodologies, tools and delivery options to guide companies to theirresults quickly as the complexity and speed of the supply chain increase due to

the effects of global competition, rapid price fluctuations, surging oil prices,

short product life cycles, expanded specialization, near-/far- and off-shoring,

and talent scarcity.

SCM 2.0 leverages proven solutions designed to rapidly deliver results with the

ability to quickly manage future change for continuous flexibility, value andsuccess. This is delivered through competency networks composed of best-of-

breed supply chain domain expertise to understand which elements, both

operationally and organizationally, are the critical few that deliver th e results aswell as through intimate understanding of how to manage these elements to

achieve desired results. Finally, the solutions are delivered in a variety of

options, such as no-touch via business process outsourcing, mid-touch viamanaged services and software as a service (SaaS), or high touch in the

traditional software deployment model.

Supply chain business process integration

Successful SCM requires a change from managing individual functions tointegrating activities into key supply chain processes. An example scenario: the

purchasing department places orders as requirements become known. The

marketing department, responding to customer demand, communicates with


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several distributors and retailers as it attempts to determine ways to satisfy this

demand. Information shared between supply chains partners can only be fullyleveraged through process integration.

Supply chain business process integration involves collaborative work between

buyers and suppliers, joint product development, common systems and sharedinformation. According to Lambert and Cooper (2000), operating an integrated

supply chain requires a continuous information flow. However, in manycompanies, management has reached the conclusion that optimizing the product

flows cannot be accomplished without implementing a process approach to the

business. The key supply chain processes stated by Lambert (2004) are:

Customer relationship management Customer service management Demand management Order fulfillment

Manufacturing flow management Supplier relationship management Product development and commercialization Returns management

Much has been written about demand management. Best-in-Class companies

have similar characteristics, which include the following: a) Internal and

external collaboration b) Lead time reduction initiatives c) Tighter feedbackfrom customer and market demand d) Customer level forecasting

One could suggest other key critical supply business processes which combine

these processes stated by Lambert such as:

a. Customer service managementb. Procurementc. Product development and commercializationd. Manufacturing flow management/supporte. Physical distributionf. Outsourcing/partnershipsg. Performance measurement

a) Customer service management process

Customer Relationship Management concerns the relationship between the

organization and its customers. Customer service is the source of customer

information. It also provides the customer with real-time information onscheduling and product availability through interfaces with the company's

production and distribution operations. Successful organizations use the

following steps to build customer relationships:
http://en.wikipedia.org/wiki/Process_integrationhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Service_managementhttp://en.wikipedia.org/wiki/Service_managementhttp://en.wikipedia.org/wiki/Service_managementhttp://en.wikipedia.org/wiki/Service_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Process_integration


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determine mutually satisfying goals for organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers

b) Procurement process

Strategic plans are drawn up with suppliers to support the manufacturing flowmanagement process and the development of new products. In firms where

operations extend globally, sourcing should be managed on a global basis. The

desired outcome is a win-win relationship where both parties benefit, and areduction in time required for the design cycle and product development. Also,the purchasing function develops rapid communication systems, such as

electronic data interchange (EDI) and Internet linkage to convey possible

requirements more rapidly. Activities related to obtaining products and

materials from outside suppliers involve resource planning, supply sourcing,negotiation, order placement, inbound transportation, storage, handling and

quality assurance, many of which include the responsibility to coordinate withsuppliers on matters of scheduling, supply continuity, hedging, and research intonew sources or programs.

c) Product development and commercialization

Here, customers and suppliers must be integrated into the product developmentprocess in order to reduce time to market. As product life cycles shorten, the

appropriate products must be developed and successfully launched with ever

shorter time-schedules to remain competitive. According to Lambert and Cooper

(2000), managers of the product development and commercialization process

must:

1. coordinate with customer relationship management to identify customer-articulated needs;

2. select materials and suppliers in conjunction with procurement, and3. develop production technology in manufacturing flow to manufacture and

integrate into the best supply chain flow for the product/market

combination.

d) Manufacturing flow management process

The manufacturing process produces and supplies products to the distributionchannels based on past forecasts. Manufacturing processes must be flexible to

respond to market changes and must accommodate mass customization. Orders

are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also,changes in the manufacturing flow process lead to shorter cycle times, meaning

improved responsiveness and efficiency in meeting customer demand. Activities

related to planning, scheduling and supporting manufacturing operations, such
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as work-in-process storage, handling, transportation, and time phasing of

components, inventory at manufacturing sites and maximum flexibility in thecoordination of geographic and final assemblies postponement of physical

distribution operations.

e) Physical distribution

This concerns movement of a finished product/service to customers. In physical

distribution, the customer is the final destination of a marketing channel, and

the availability of the product/service is a vital part of each channelparticipant's marketing effort. It is also through the physical distributionprocess that the time and space of customer service become an integral part of

marketing, thus it links a marketing channel with its customers (e.g., links

manufacturers, wholesalers, retailers).

f) Outsourcing/partnerships

This is not just outsourcing the procurement of materials and components, butalso outsourcing of services that traditionally have been provided in -house. The

logic of this trend is that the company will increasingly focus on those activitiesin the value chain where it has a distinctive advantage, and outsource everything

else. This movement has been particularly evident in logistics where the

provision of transport, warehousing and inventory control is increasinglysubcontracted to specialists or logistics partners. Also, managing and

controlling this network of partners and suppliers requires a blend of both

central and local involvement. Hence, strategic decisions need to be taken

centrally, with the monitoring and control of supplier performance and day-to-

day liaison with logistics partners being best managed at a local l evel.

g) Performance measurement

Experts found a strong relationship from the largest arcs of supplier andcustomer integration to market share and profitability. Taking advantage ofsupplier capabilities and emphasizing a long-term supply chain perspective in

customer relationships can both be correlated with firm performance. As

logistics competency becomes a more critical factor in creating and maintaining

competitive advantage, logistics measurement becomes increasingly importantbecause the difference between profitable and unprofitable operations becomes

narrower. A.T. Kearney Consultants (1985) noted that firms engaging in

comprehensive performance measurement realized improvements in overallproductivity. According to experts, internal measures are generally collected

and analyzed by the firm including
http://en.wikipedia.org/wiki/Logisticshttp://en.wikipedia.org/wiki/Logistics


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1. Cost2. Customer Service3. Productivity measures4. Asset measurement, and5. Quality.

External performance measurement is examined through customer perception

measures and "best practice" benchmarking, and includes 1) customer perceptionmeasurement, and 2) best practice benchmarking.

h) Warehousing Management :

As a case of reducing company cost & expenses, warehousing management is

carrying the valuable role against operations. In case of perfect storing & officewith all convenient facilities in company level, reducing manpower cost,

dispatching authority with on time delivery, loading & unloading facilities with

proper area, area for service station, stock management system etc. Componentsof Supply Chain Management are as follows:

1. Standardization

2. Postponement

3. Customization

Theories of supply chain management

Currently there is a gap in the literature available on supply chain managementstudies: there is no theoretical support for explaining the existence and the

boundaries of supply chain management. A few authors such as Halldorsson, et

al. (2003), Ketchen and Hult (2006) and Lavassani, et al. (2008b) have tried to

provide theoretical foundations for different areas related to supply chain by

employing organizational theories. These theories include:

Resource-Based View (RBV) Transaction Cost Analysis (TCA) Knowledge-Based View (KBV) Strategic Choice Theory (SCT)

Agency Theory (AT) Institutional theory (InT) Systems Theory (ST) Network Perspective (NP)
http://en.wikipedia.org/wiki/Best_practicehttp://en.wikipedia.org/wiki/Best_practice


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Supply Chain Centroids

In the study of supply chain management, the concept of centroids has becomean important economic consideration. A centroid is place that has a high

proportion of a countrys population and a high proportion of its manufacturing,

generally within 500 mi (805 km). In the U.S., two major supply chain centroidshave been defined, one near Dayton, Ohio and a second near Riverside,

California.

The centroid near Dayton is particularly important because it is closest to the

population center of the US and Canada. Dayton is within 500 miles of 60% of

the population and manufacturing capacity of the U.S., as well as 60 percent of

Canadas population. The region includes the Interstate 70/75 i nterchange,which is one of the busiest in the nation with 154,000 vehicles passing through

in a day. Of those, anywhere between 30 percent and 35 percent are truckshauling goods. In addition, the I-75 corridor is home to the busiest north-south

rail route east of the Mississippi.[12 ]

Tax efficient supply chain management

Tax Efficient Supply Chain Management is a business model which considers

the effect ofTax in design and implementation of supply chain management. As

the consequence of Globalization, business which is cross-nation should paydifferent tax rates in different countries. Due to the differences, global players

have the opportunity to calculate and optimize supply chain based on tax

efficiency legally. It is used as a method of gaining more profit for company

which owns global supply chain.

Supply chain sustainability

Supply chain sustainability is a business issue affecting an organizationssupply chain or logistics network and is frequently quantified by comparison

with SECH ratings. SECH ratings are defined as social, ethical, cultural andhealth footprints. Consumers have become more aware of the environmental

impact of their purchases and companies SECH ratings and, along with non -

governmental organizations ([NGO]s), are setting the agenda for transitions to

organically-grown foods, anti-sweatshop labor codes and locally-produced

goods that support independent and small businesses. Because supply chainsfrequently account for over 75% of a companys carbon footprint many

organizations are exploring how they can reduce this and thus improve their

SECH rating.

For example, in July, 2009 the U.S. based Wal-Mart corporation announced its

intentions to create a global sustainability index that would rate products
http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-11http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-11http://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Supply_chain_sustainabilityhttp://en.wikipedia.org/wiki/Carbon_footprinthttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Sustainabilityhttp://en.wikipedia.org/wiki/Sustainabilityhttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Carbon_footprinthttp://en.wikipedia.org/wiki/Supply_chain_sustainabilityhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Taxhttp://en.wikipedia.org/wiki/Supply_chain_management#cite_note-11


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according to the environmental and social impact made while the products were

manufactured and distributed. The sustainability rating index is intended tocreate environmental accountability in Wal -Mart's supply chain, and provide the

motivation and infrastructure for other retail industry companies to do the same.

Components of supply chain management integration

The management components of SCM

The SCM components are the third element of the four-square circulation

framework. The level of integration and management of a business process link

is a function of the number and level, ranging from low to high, of components

added to the link (Ellram and Cooper, 1990; Houlihan, 1985). Consequently,adding more management components or increasing the level of each component

can increase the level of integration of the business process link. The literature

on business process re-engineering,[16 ]

buyer-supplier relationships, and SCMsuggests various possible components that must receive managerial attention

when managing supply relationships. Lambert and Cooper (2000) identified the

following components:

Planning and control Work structure Organization structure Product flow facility structure Information flow facility structure Management methods Power and leadership structure Risk and reward structure Culture and attitude

However, a more careful examination of the existing literature[19 ]

leads to amore comprehensive understanding of what should be the key critical supply

chain components, the "branches" of the previous identified supply chain

business processes, that is, what kind of relationship the components may have

that are related to suppliers and customers. Bowersox and Closs states that theemphasis on cooperation represents the synergism leading to the highest level of

joint achievement (Bo wersox and Closs, 1996) . A primary level channel

participant is a business that is willing to participate in the i nventory ownershipresponsibility or assume other aspects of financial risk, thus including primary

level components (Bowersox and Closs, 1996). A secondary level participant

(specialized) is a business that participates in channel relationships by
http://en.wikipedia.org/wiki/Infrastructurehttp://en.wikipedia.org/wiki/Supply_chain_management#cite_note-15http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-15http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-18http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-18http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-18http://en.wikipedia.org/wiki/Supply_chain_management#cite_note-15http://en.wikipedia.org/wiki/Infrastructure


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performing essential services for primary participants, including secondary level

components, which support primary participants. Third level channelparticipants and components that support the primary level channel participants

and are the fundamental branches of the secondary level components may also

be included.

More common and accepted definitions of Supply Chain Management are:

Supply Chain Management is the systemic, strategic coordination of thetraditional business functions and the tactics across these business

functions within a particular company and across businesses within thesupply chain, for the purposes of improving the long-term performance of

the individual companies and the supply chain as a whole (Mentzer et al. ,

2001).

A customer focused definition is given by Hines (2004:p76) "Supply chainstrategies require a total systems view of the linkages in the chain thatwork together efficiently to create customer satisfaction at the end point

of delivery to the consumer. As a consequence costs must be lowered

throughout the chain by driving out unnecessary costs and focusing

attention on adding value. Throughput efficiency must be increased,bottlenecks removed and performance measurement must focus on total

systems efficiency and equitable reward distribution to those in the supply

chain adding value. The supply chain system must be responsive tocustomer requirements."

Global Supply Chain Forum - Supply Chain Management is the integrationof key business processes across the supply chain for the purpose ofcreating value for customers and stakeholders (Lambert, 2008).

According to the Council of Supply Chain Management Professionals(CSCMP), Supply chain management encompasses the planning and

management of all activities involved in sourcing, procurement,conversion, and logistics management. It also includes the crucial

components of coordination and collaboration with channel partners,

which can be suppliers, intermediaries, third-party service providers, andcustomers. In essence, supply chain management integrates supply and

demand management within and across companies. More recently, the

loosely coupled, self-organizing network of businesses that cooperate to

provide product and service offerings has been called the Extended

Enterprise .
http://en.wikipedia.org/wiki/Council_of_Supply_Chain_Management_Professionalshttp://en.wikipedia.org/wiki/Sourcinghttp://en.wikipedia.org/wiki/Procurementhttp://en.wikipedia.org/wiki/Logistics_managementhttp://en.wikipedia.org/wiki/Channel_partnerhttp://en.wikipedia.org/wiki/Suppliershttp://en.wikipedia.org/wiki/Intermediarieshttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Extended_Enterprisehttp://en.wikipedia.org/wiki/Extended_Enterprisehttp://en.wikipedia.org/wiki/Extended_Enterprisehttp://en.wikipedia.org/wiki/Extended_Enterprisehttp://en.wikipedia.org/wiki/Extended_Enterprisehttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Supply_and_demandhttp://en.wikipedia.org/wiki/Customershttp://en.wikipedia.org/wiki/Intermediarieshttp://en.wikipedia.org/wiki/Suppliershttp://en.wikipedia.org/wiki/Channel_partnerhttp://en.wikipedia.org/wiki/Logistics_managementhttp://en.wikipedia.org/wiki/Procurementhttp://en.wikipedia.org/wiki/Sourcinghttp://en.wikipedia.org/wiki/Council_of_Supply_Chain_Management_Professionals


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OBJECTIVE OF STUDY

The global objective of a Supply Chain is customers satisfaction. At the same

time, individual components of the Supply Chain aim at maximizing their

shareholder value by maximizing the Return on Investment (ROI) of their

investors. ROI is the ratio of profit to capital employed over one year. The main

objective of studying is :

a) To understand the driving forces of industrial market and consumer market.b) To analyze the role of effective supply chain management in industrial

market and consumer market.


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RESARCH METHODOLOGY

c)What is primary data?Primary data is important for all areas of research because it is unvarnishedinformation about the results of an experiment or observation. It is like the

eyewitness testimony at a trial. No one has tarnished it or spun it by adding

their own opinion or bias so it can form the basis of objective conclusions.

1. Primary data is the specific information collected by the person who isdoing the research. It can be obtained through clinical trials, case studies,

true experiments and randomized controlled studies. This information canbe analyzed by other experts who may decide to test the validity of the

data by repeating the same experiments.

2. Suppose that you are researching the effects of a certain new substance onthe nervous system of mice. Because yours will be the first such

experiment, the data that you collect will be considered prospective in

nature. It can be used to establish a baseline from which other follow-upexperiments can be devised. In the education context, prospective primary

data about the kindergartners in a school district might be to collect the

actual test results from the first day of school showing how many couldwrite their names, count to 20, and retell a simple story in a logical way.

The information forms the base-line from which the district must move

their students so that they can meet the state standards for entering first

graders within the next 180 days.

3. Primary data can also be retrospective, interventional and observational innature. Retrospective primary data gathers information about pastconditions or behaviors. The researcher may be investigating a cause of a

preventable disease, for instant as in t he connection between smoking and

lung cancer. Interventional primary data may be gathered to see the effect

of a new drug or therapy. A recent study reported in the Journal ofOphthalmology, for example, described an interventional study about

treatments for convergence insufficiency. Patients with this diagnosisreceived one of three treatments over a 12-week period to determinewhich intervention would be the most effective. Observational studies
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gather primary data by means of case studies such as the work done by

naturalists like Jane Goodall on chimpanzees in the wild.

4.

Two strategies are commonly employed when researchers gather primarydata: randomizing and blinding. Both of these strategies serve to keep theresults objective. Both involve limiting the information given either t o the

researcher or the subject about which test group to which a subject has

been assigned. The researcher is prevented from imposing her bias on the

data so she may be a more careful observer. The subject is prevented frombecoming either encouraged or discouraged by any previous opinions

about the treatment, in a drug trial for example, that he may have started

with.

5. Once the primary data has been gathered, analysts study it using otherresearch methods. They look for relationships between factors that may

suggest the designs for new studies. When they combine the primary datafrom more than one study, they are using integrative methods. Their

findings present secondary data, a synthesis of several streams of primarydata.

d)What is secondary data?Secondary data is data collected by someone other than the user. Common

sources of secondary data for social science include censuses, surveys,

organizational records and data collected through qualitative methodologies or

qualitative research. Primary data, by contrast, are collected by the investigatorconducting the research.

Secondary data analysis saves time that would otherwise be spent collecting

data and, particularly in the case of quantitative data, provides larger and

higher-quality databases than would be unfeasible for any individual researcher

to collect on their own. In addition to that, analysts of social and economic

change consider secondary data essential, since it is impossible to conduct anew survey that can adequately capture past change and/or developments.

Sources of secondary data

As is the case in primary research, secondary data can be obtained from twodifferent research strands:
http://www.ehow.com/careers/http://en.wikipedia.org/wiki/Datahttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Datahttp://www.ehow.com/careers/


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Quantitative : Census, housing, social security as well as electoralstatistics and other related databases.

Qualitative : Semi-structured and structured interviews, focus groupstranscripts, field notes, observation records and other personal, research-

related documents.

A clear benefit of using secondary data is that much of the background work

needed has been already been carried out, for example: literature reviews, case

studies might have been carried out, published texts and statistic could have

been already used elsewhere, media promotion and personal contacts have alsobeen utilized.

This wealth of background work means that secondary data generally have a pre -established degree of validity and reliability which need not be re-examined by

the researcher who is re-using such data.

Furthermore, secondary data can also be helpful in the research design of

subsequent primary research and can provide a baseline with which the collected

primary data results can be compared to. Therefore, it is always wise to beginany research activity with a review of the secondary data.

Secondary analysis or re-use of qualitative data

Qualitative data re-use provides a unique opportunity to study the raw materials

of the recent or more distant past to gain insights for both methodological andtheoretical purposes.

In the secondary analysis of qualitative data, good documentation cannot be

underestimated as it provides necessary background and much needed context

both of which make re-use a more worthwhile and systematic endeavor. Actually

one could go as far as claim that qualitative secondary data analysis can beunderstood, not so much as the analysis of pre-existing data; rather as involving

a process of re-contextualizing, and re-constructing, data.

Overall challenges of secondary data analysis

There are several things to take into consideration when using pre-existing data.

Secondary data does not permit the progression from formulating a researchquestion to designing methods to answer that question. It is also not feasible for

a secondary data analyst to engage in the habitual process of makingobservations and developing concepts. These limitations hinder the ability of the

researcher to focus on the original research question.
http://en.wikipedia.org/wiki/Semi-structured_interviewhttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Reliability_%28statistics%29http://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Research_designhttp://en.wikipedia.org/wiki/Reliability_%28statistics%29http://en.wikipedia.org/wiki/Validityhttp://en.wikipedia.org/wiki/Observationshttp://en.wikipedia.org/wiki/Field_noteshttp://en.wikipedia.org/wiki/Focus_groupshttp://en.wikipedia.org/wiki/Structured_interviewhttp://en.wikipedia.org/wiki/Semi-structured_interview


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Data quality is always a concern because its source may not be trusted. Even

data from official records may be unreliable because the data is only as good asthe records themselves, in terms of methodological validity and reliability.

Furthermore, in the case of qualitative material, primary researchers are often

reluctant to share their less -than-polished early and intermediary materials, notwanting to expose false starts, mistakes, etc.


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ANALYSIS OF THE STUDY

The analysis of the study is done by gathering information from 20 sellers through a

questionnaire.

The results are as follows:-

1. How many industrial buyers do you have in a month?

a) Less than 50 b) more than 50

0

2

4

6

8

10

12

14

Less than 50 More than 50

No. of industrial buyers


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2. How many individual buyers do you have in a month?

a) Less than 50 b) More than 50

0

2

4

6

8

10

12

14

16

18

Less than 50 More than 50

No. of individual buyers


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3. The retention rate of which of the following is more?

a) Industrial b) Individual

0

2

4

6

8

10

12

Industrial Individual

Retention Rate


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4. Which factor is the key to satisfaction of industrial buyers?

a) Timely Delivery b) Quality Productc) Competent Pricing d) Add on Benefits

0

1

2

3

4

5

6

7

8

9

Timely Delivery Quality Product Competent Pricing Add on Benefits

Series 1


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5. Which factor is the key to satisfaction of individual buyers?

a) Timely Delivery b) Quality Productc) Competent Pricing d) Add on Benefits

0

1

2

3

4

5

6

7

8

Timely Delivery Quality Product Competent Pricing Add on Benefits

Series 1


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6. Do you think that length of channel affects the price of the product?

a) Yes b) No

0

2

4

6

8

10

12

14

16

18

20

YES NO

YES

NO


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7. When you purchase any commodity then would you like to know itschannel of distribution?

a)

Yes b) No

0

2

4

6

8

10

12

14

16

18

20

YES NO

YES

NO


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8. Does channel of distribution effects after sale service s?

a) Yes b) No

0

2

4

6

8

10

12

14

16

18

20

YES NO

YES

NO


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9. Which type of goods you generally purchase more?

a) Consumer Goods b) Production Goods

0

2

4

6

8

10

12

14

Consumer Goods Production Goods

Type of Goods Purchase


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10. You generally prefer to purchase goods from whom?

a) Producer b) Agent

c) Wholesaler d) Retailer

0

1

2

3

4

5

6

7

8

9

Producer Agent Wholesaler Retailer

Series 1


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CONCLUSION

The study shows that both the industrial market and the consumer market if

based on the preferences of the customer. The anecdote customer is the king applies well to both these two markets. The marketer must design all the supply

chain variables to provide the necessary benefits to the customer. The study hasalso shown that the after sales services are not affected by the type of channel

of distribution used for the sale of the product. It is also seen that all the tools

of supply chain management much complement each other to ultimately get the

product reach the consumer in the right ti me.


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BIBLIOGRAPHY

Malhotra, Naresh K. and Birks, David F. (2007).

Marketing Research, An applied Approach, 3

rd

ed. Prentice Hall, Inc.

Naichiamas, D. and FrankfortNachiamas, C. (1996). Research Methods in the Social Sciences

5th

ed., Arnold, Santa Crux.

Robson (2002). Real World Research: A Resource for Social Scientists and Practitioners, 2nd

Edition. Paperback, pp113:59.

Salant and Dilman (1994). How to conduct your own survey,John Wiley and Sons Inc.


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ANNEXURES


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QUESTIONNAIRE

Dear Sir/Madam,

I am the student of Institute of Innovation in Technology and Management

, BBA (CAM)- III Semester, Janak puri , Delhi and presently doing a project on A

COMPARATIVE STUDY BETWEEN SUPPLY CHAIN MANAGEMENT IN

INDUSTRIAL MARKET AND CONSUMER MARKET . I request you to kindly fill

the questionnaire below and assure you that the data generated shall be kept confidential.

GENDER : MALE

FEMALE

NAME :

1. How many industrial buyers do you have in a month?a) Less than 50 b) more than 50

2. How many individual buyers do youu have in a month?

b) Less than 50 b) More than 50

3. The retention rate of which of the following is more?

a) Industrial b) Individual

4. Which factor is the key to satisfaction of industrial buyers?

a) Timely Delivery b) Quality Product

c) Competent Pricing d) Add on Benefits


43/43

5. Which factor is the key to satisfaction of individual buyers?

a) Timely Delivery b) Quality Product

c) Competent Pricing d) Add on Benefits

6. Do you think that length of channel affects the price of the product?

a) Yes b) No

7. When you purchase any commodity then would you like to know itschannel of distribution?

a) Yes b) No

8. Does channel of distribution effects after sale services?

a) Yes b) No

9. Which type of goods you generally purchase more?

a) Consumer Goods b) Production Goods

10. You generally prefer to purchase goods from whom?

a) Producer b) Agent

c) Wholesaler d) Retailer

mktin prjct[1]

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