Research for Strategic Development

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Unit M/615/2675 Research for Strategic Development

Development of Strategic Supply Chain Management System in the UK Based Automobile Organisations

Name of the Student:

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Table of Contents

Task 2 – Carry Out the Research Using Different Research Methodologies

2.1 Literature Review

2.1.1 Identification of the Challenges Facing by Different UK based Automobile Organisations within the Supply Chain Management System

According to the statement of Cole, Stevenson and Aitken (2019), there are 30,000 components in an ordinary car, which means that it relies on supply lines that come together as and when manufacturing demands. It’s because of this those blind spots may have major implications on the whole procurement process, frequently in the form of shortages in inventory and occasionally substantial delay. As a result, it should come as no surprise that the automobile industry is more worried with visibility than other industries, at 81%. Due to the industry’s “just-in-time” processes, a single oversight or error might have far-reaching consequences. As per the statement of Yadav et al. (2020), cars are fuelled by global supply networks, but these distances might put productive connections at risk. Even platforms that seek to solve the issue of inefficient communications are rendered outdated by the fact that they use different standards, protocols, and software.

As a result of these operational challenges, there is a risk of misinterpretation and misunderstandings, which may lead to the demise of trade relationships entirely. Based on the statement of Li and Mathiyazhagan (2018), as lockdown emissions fell by as much as 7% and EV registrations increased by 185%, the sector now faces a situation where it must prioritise environmental issues. Whether it’s with current partners or new ones that make EVs a reality and implement emissions standards, this is true in the short and long term. Due to geographical disparities and complicated onboarding, it is difficult to implement these changes. Regional environmental priorities will be missed if existing third-party logistics partners aren’t made aware of them via education, outreach, and software.

2.1.2 Evaluation of the Impact of Different Supply Chain Management Challenges on the Automobile Organisations

As stated by Belhadi et al. (2021), the automotive supply chain will be directly impacted, and this effect will be overwhelmingly favourable. The automotive organisations can anticipate the industry to develop organically, producing new employment and economic prospects for both established and new providers. In various sectors including car assembly, transportation and the burgeoning aftermarket, new problems must be met. Over 1.6 million cars and 2.5 million engines were created by OEMs in 2014, with over 80% of the UK manufacturing exported. Luthra et al. (2018) stated that advanced technical features and premium materials and finishes are being demanded by OEMs. There are more than 30 000 components in a modern car, and demand for these parts will be particularly beneficial to Tier 2 and Tier 3 suppliers in the sector. Supply chains for the manufacture of new automobiles and the delivery of aftermarket items both need to be more dependable and shorter for OEM firms.

According to the viewpoint of Xu et al. (2019), the manufacture of component components from Europe will be “on-shored” in the future, which will shorten lead times, increase supplier availability, and lower shipping costs. New supply chain issues will arise in distribution centres, storage and inventory, sub-assembly, and transportation logistics as a result of these advancements. As per the viewpoint of Delic and Eyers (2020), in the assembly area, the requirement and supply of component components are defined by communication from the production line JIS, an approach also known as “In-Line Vehicle Sequencing” (ILVS), aims to guarantee that materials and parts arrive at a manufacturing line only when they’re necessary. As a result, it is impossible to plan every detail of the filmmaking process.

2.1.3 Utilisation of Different Advance Technological Approaches for Developing Supply Chain Management System

Based on the viewpoint of Ghadge et al. (2020), vehicle manufacturers and their supplier chains will be linked in the next stage of digitalization. MMOG-LE4 facilitates data exchange between manufacturers and suppliers in the automobile sector. With the help of digital models, manufacturers can quickly analyse the effect of traffic disruptions on their production schedules and keep track of supplier deliveries in real time. The whole supply chain benefits from better scheduling, reduced downtime, overtime, and buffered inventory as a result of providing suppliers with better insight into changes in client demand. As a result of this problem, manufacturers are still need to devote a large amount of time to assessing the preparedness of suppliers for new model releases. As viewed by Lezoche et al. (2020), remote monitoring of new model launch preparedness may be achieved by exchanging data on production test runs. This increases manufacturing’s confidence, which in turn reduces costs and development time.

The auto manufacturer will adjust its manufacturing schedule based on variations in client demand. One factor to evaluate is the supplier’s ability to adapt to and fulfil growing demand. Bag, Gupta and Kumar (2021) viewed that to make this choice easier, automakers are creating supply chain models that include capacity information. The value contributed by UK suppliers to the automobile sector remained constant in 2018 at about 4.9 billion British pounds. As a result, “the amount of added value declined by eight percent in 2019, totalling roughly 4.5 billion British pounds, compared to 2018. In 2020, the added value is expected to fall even more to 4.2 billion British pounds”.

2.1.4 Different Strategies for Developing Supply Chain Management System in the Automobile Industry

According to the opinion of Belhadi et al. (2021), vehicle manufacturers and their supplier chains will be linked in the next stage of digitalization. MMOG-LE4 facilitates data exchange between manufacturers and suppliers in the automobile sector. With the help of digital models, manufacturers can quickly analyse the effect of traffic disruptions on their production schedules and keep track of supplier deliveries in real time. The whole supply chain benefits from better scheduling, reduced downtime, overtime, and buffered inventory as a result of providing suppliers with better insight into changes in client demand. As a result of this problem, manufacturers are still need to devote a large amount of time to assessing the preparedness of suppliers for new model releases. As per the opinion of Junaid et al. (2019), remote monitoring of new model launch preparedness may be achieved by exchanging data on production test runs. This increases manufacturing’s confidence, which in turn reduces costs and development time.

The auto manufacturer will adjust its manufacturing schedule based on variations in client demand. One factor to evaluate is the supplier’s ability to adapt to and fulfil growing demand. To make this choice easier, automakers are creating supply chain models that include capacity information. Based on the opinion of Ambe and Badenhorst-Weiss (2010), the value contributed by UK suppliers to the automobile sector remained constant in 2018 at about 4.9 billion British pounds. As a result, “the amount of added value declined by eight percent in 2019, totalling roughly 4.5 billion British pounds, compared to 2018. In 2020, the added value is expected to fall even more to 4.2 billion British pounds”.

2.1.5 Literature Gap

Through considering the entire above discussed literature review study, it becomes evident that the researcher has collected the most relevant information regarding the study topic by accessing different scholarly articles. However, some specific information regarding any organisational perspective has not been evaluated and demonstrated within this literature study. Therefore, the authenticity has been reduced of this study for providing only general relevant information. Thereby, a gap has been occurred within this study. In this aspect, the researcher will conduct a further research study in the market for successfully accomplishing all the gaps of the literature study.

2.2 Methodology

2.2.1 Research Strategy

The exploratory research design approach will be used by the researcher to organise and create the complete research study for the learners. As a result, the researcher will be in a better position to gather and analyse the most relevant data and information on the subject at hand. On the other hand, the researcher will make effective use of the easy research sampling approach to get the most relevant and genuine data on the study subject quickly and effectively. For a research project, there are a wide variety of sampling techniques to choose from in order to get the most accurate and dependable results (Rong et al., 2020). In this case, however, the researcher realised that the most efficient and reliable strategy to gathering data and information for this study would be to use a handy sampling method. On the other hand, the study will solely gather data from original sources.

2.2.2 Data Collection Process

Methods for efficiently obtaining the most relevant and evident information and data may be found in a number of ways on the market today. Methods for doing primary quantitative research and primary qualitative research are all accessible. In order to gather primary quantitative data, the researcher will interview 50 employees from five different automotive organisations in the United Kingdom. 5 supply chain managers from various automotive companies in the United Kingdom will also be interviewed for primary qualitative data and information by the researcher (Xu et al., 2020). An effective method for developing and establishing the most trustworthy knowledge about the study subject may be achieved by this method.

2.2.3 Data Analysis Process

The researcher will utilise statistical analysis for the quantitative data and thematic analysis for the main qualitative data acquired as part of this study to achieve this aim after acquiring the most genuine and suitable data and information about the research subject matter. The researcher will also ensure that all relevant ethical actions are carried out throughout the survey and interview and that the participants’ identities are kept secret in order to comply with the study ethics guideline (Ismail, Truong and Kastner, 2019). In order to complete the research study effectively and successfully, the researcher will benefit from these information and resources.

2.2.4 Ethical Consideration

WIL researchers may learn more about the many approaches and methods accessible to them by reading this Special Issue. Although choosing a suitable research approach and procedures is critical, so too are the ethical issues around doing the study. An “insider researcher” faces a variety of ethical challenges, including power imbalance and continuous interactions with participants, in this Special Issue (Kiani et al., 2018). However, the basics of ethical research involving human subjects must be further considered. As a result of rising societal pressure for more transparency, ethical behaviour has become an increasingly important topic of conversation.

Many educational institutions require researchers to conform to the “Human Research Ethics regulation” if they want to gather data from human participants for research purposes without the consent of the institution’s “Staff Code of Conduct”. To guarantee that researchers do their work ethically, several journals, including IJWIL subscribe to the “Committee of Publishing Ethics” (CoPE) principles (Zheng et al., 2020). Since journals increasingly demand proof of ethical permission, editors are urged to reject articles where ethics approval was requested but not received. In addition to many method-specific ethics publications, there is thankfully a wealth of material available to assist researchers in developing an ethically acceptable research methodology.

Task 3 – Presentation of Research Findings

3.1 Findings

3.1.1 Primary Quantitative and Primary Qualitative Data

3.1.1.1 Survey

Through conducting the survey among the 50 employees of five different automobile organisations in the UK, it becomes identified that around 20% of employees belong to the age group of 18 to 28 years old. Moreover, around 20% of employees belong to the age group of 28 to 38 years old. On the other hand, approximately 16% of employees belong to the age group of 38 to 48 years old. Furthermore, around 18% of employees belong to the age group of 48 to 58 years old. In addition to this, approximately 26% of employees belong to the age group of above 58 years old.

Through conducting the survey among the 50 employees of five different automobile organisations in the UK, it becomes identified that around 32% of employees have 2 to 5 years of experience within their workplace environment. Moreover, around 18% of employees have 5 to 8 years of experience within their workplace environment. On the other hand, approximately 20% of employees have 8 to 11 years of experience within their workplace environment. Furthermore, around 14% of employees have 11 to 14 years of experience within their workplace environment. In addition to this, approximately 16% of employees have 14-17 years of experience within their workplace environment.

Through conducting the survey among the 50 employees of five different automobile organisations in the UK, it becomes identified that around 26% of employees said that their organisations are facing challenges within their supply chain management system regarding wrong delivery of products. Moreover, around 28% of employees said that their organisations are facing challenges within their supply chain management system regarding late delivery of products. On the other hand, approximately 14% of employees said that their organisations are facing challenges within their supply chain management system regarding low quality of materials. Furthermore, around 32% of employees said that their organisations are facing challenges within their supply chain management system regarding high cost of supply.

Through conducting the survey among the 50 employees of five different automobile organisations in the UK, it becomes identified that around 22% of employees strongly agreed that their organisation has implemented advance technologies within their supply chain management system. Moreover, around 28% of employees agreed that their organisation has implemented advance technologies within their supply chain management system. On the other hand, approximately 14% of employees did not share any concern with this question. Furthermore, around 20% of employees disagreed that their organisation has implemented advance technologies within their supply chain management system. In addition to this, approximately 16% of employees strongly disagreed that their organisation has implemented advance technologies within their supply chain management system.

3.1.1.2 Interview

Q1. What kinds of strategies and technologies you are using in your supply chain management system?

Interviewee 1: During managing our supply chain management system, we generally use Artificial and Augmented Intelligence. Moreover, the Real-Time Supply Chain Visibility is also helpful for our business.

Interviewee 2: Generally, our suppliers utilise Digital Twins and Blockchain system. Also, the Artificial Intelligence also helpful for us.

Interviewee 3: Fundamentally, we prefer the Real-Time Supply Chain Visibility system for effectively tracking our products and the entire logistics system.

Interviewee 4: Actually, there are different kinds of technologies that proficiently helps to develop our supply chain management system. Among these we utilise the Digital Twin method.

Interviewee 5: We also prefer to use the Artificial and Augmented Intelligence and the Blockchain method.

Q2. What kinds of challenges generally you are facing while managing supply chain?

Interviewee 1: Sometimes due to the lacking of supply chain management system we did not get our products within our expected time.

Interviewee 2: Our supply chain management system sometimes failed to provide appropriate and high-quality materials for our end products.

Interviewee 3: Generally, the outbreak of the COVID-19 pandemic prominently hampered our supply chain management system across the country.

Interviewee 4: Sometimes by getting late delivery of products, I become unable to manufacture the product within time.

Interviewee 5: Actually, the increasing cost of supply chain management system continuously hampering to hold a large supply chain system.

Q3. What initiatives you have taken to reduce the threats in your supply chain management system?

Interviewee 1: Generally, my organisation has implemented the lean supply chain management approach.

Interviewee 2: Generally, by adopting different technological features, I have been able to reduce the long time for delivery.

Interviewee 3: Fundamentally, the supply chain management strategies and theories have helped to reduce the threat.

Interviewee 4: By preparing the supply chain management team for uncertain challenges, I have been able to reduce the threats.

Interviewee 5: Thus, by generating different advance approaches, I have been able to enhance the credibility of our supply chain management system.

3.2 Discussion and Analysis

3.2.1 Analysis

3.2.1.1 Statistical Analysis

Q1. What is your age group?

a) 18-28

10

b) 28-38

10

c) 38-48

8

d) 48-58

9

e) Above 58

13

Total

50

Mean

10

Median

10

Mode

10

Standard Deviation

1.673320053

Through considering the entire survey result it becomes evident that the standard deviation of the result is 1.673320053. It demonstrates that there is no significant amount of difference between the age group of five different automobile organisation’s employees.

Q2. How long have you experienced in your organisational supply chain management system?

a) 2-5 Years

16

b) 5-8 Years

9

c) 8-11 Years

10

d) 11-14 Years

7

e) 14-17 Years

8

Total

50

Mean

10

Median

9

Mode

#N/A

Standard Deviation

3.16227766

Through considering the entire survey result it becomes evident that the standard deviation of the result is 3.16227766. It demonstrates that there is a significant amount of difference between the experiences of different employees in five different automobile organisation’s employees.

Q3. What kinds of challenges are facing by your organisations?

Wrong Delivery of Products

13

Late Delivery of Products

14

Low Quality of Materials

7

High Cost of Supply

16

Total

50

Mean

12.5

Median

13.5

Mode

#N/A

Standard Deviation

3.354101966

Through considering the entire survey result it becomes evident that the standard deviation of the result is 3.16227766. It demonstrates that there is a significant amount of difference between the responses regarding the challenges facing by the organisations during their business operation. Generally, most of the employees stated that high cost of supply chain management system hampers the organisational logistics system.

Q4. Do you agree that your organisation has implemented advance technologies within the supply chain management system?

Strongly Agree

11

Agree

14

Neutral

7

Disagree

10

Strongly Disagree

8

Total

50

Mean

10

Median

10

Mode

#N/A

Standard Deviation

2.449489743

Through considering the entire survey result it becomes evident that the standard deviation of the result is 2.449489743. It demonstrates that there is a little significant amount of difference between the responses regarding the organisations have implemented advance technologies within their organisational supply chain management system.

3.2.1.2 Thematic Analysis

Theme 1: Different Supply Chain Management Challenges Faced by the Organisations

Through considering the data and information in the survey and interview, it becomes evident and analysed that during the organisational business operations of different automobile organisations, the firms have faced different kinds of uncertain threats. Generally, these operational issues increase the likelihood of miscommunication and misunderstandings, which might end in the termination of commercial agreements altogether. As lockdown emissions have decreased by as much as 7 percent and electric vehicle registrations have surged by 185 percent, the automotive industry today finds itself in a position where it must prioritise environmental concerns. This is true in both the short and long term, whether it’s with existing partners or new ones that are working to make electric vehicles a reality and adopt emissions requirements. It is difficult to put these changes into effect because of regional discrepancies and cumbersome onboarding procedures. If current third-party logistics partners are not made aware of regional environmental goals by education, outreach, and software, they will be unable to meet their responsibilities.

Theme 2: Utilisation of Advance Technologies within the Organisational Supply Chain Management System

Generally, the information and data that has been gathered from survey and interview indicate that most of the automobile organisations utilise the most advance technological features within the workplace environment in order to efficiently manage the organisational supply chain and logistics system. Moreover, the next wave of digitization will see the integration of car manufacturers and their supply chain partners. MMOG-LE4 is a data exchange protocol that is used in the car industry to allow data transmission between manufacturers and suppliers. Manufacturers can immediately assess the impact of traffic interruptions on their production plans, and they can keep track of supplier deliveries in real time, thanks to digital models that are readily available. As a consequence of giving suppliers with greater visibility into changes in client demand, the whole supply chain benefits from improved scheduling, decreased downtime, overtime, and buffering inventory. A consequence of this issue is that manufacturers must still spend a significant amount of time evaluating the preparation of suppliers for new model launches.

3.3 Conclusion and Recommendation

3.3.1 Conclusion

Through evaluating and considering the entire above study, it is concluded that during the organisational business operation in the automotive industry, the organisations are prominently confronting different kinds of hazards within their supply chain management system. Therefore, some of the organisations have been able to reduce these challenges and uncertain threats by utilising and implementing different kinds of strategic approaches and theoretical models and some of the organisations have adopted the advance technological features within their organisational supply chain management system. Moreover, the researcher was able to gather enough information from a quick study and market analysis to make an informed decision.

For the researcher to be effective in achieving the study objectives, he or she must take into account some specific subject. A business’s supply chain management system has therefore been chosen for investigation by the researcher. This is due to the fact that the researcher has discovered that many organisations have had to deal with various types of supply chain management challenges over the course of their commercial operations. It follows that “Development of Strategic Supply Chain Management System in the UK Based Automobile Organisations” is the focus of this study.

3.3.2 Recommendations

However, this research study also demonstrates that there are still some organisations those have not been able to afford the advance technological features for the supply chain management system and also have been able to implement and utilise the appropriate and resilient strategic approaches (Yang and Lin, 2020). Therefore, the researcher has recommended some most effective and resilient strategic approaches theoretical models in order for potentially develop the organisational supply chain management system and reduce the occurrence of the uncertain challenges and threats within the supply chain management system and in the workplace environment.

Task 4 – Reflective Log

Thus, I have realised that the utilisation of the advance technological features within the organisational supply chain management system is the most significant and prominent thing for enhancing the efficiency of the supply chain management system. In this aspect, I think the organisations who have already adopted different technologies for developing their organisational supply chain management system have been able to efficiently prepare themselves for reducing the possibility of uncertain challenges and threats in the workplace environment. However, there are still some issues that some organisations are facing till now during their organisational business operation in the automobile market of the UK.

In this aspect, I think while conducting commercial operations in the automotive sector, organisations are often confronted with a variety of various types of dangers that arise within their supply chain management system. So, some organisations have been able to mitigate these obstacles and unpredictable risks by using and applying various types of strategic methods and theoretical models, while others have included cutting-edge technical elements into their organization’s supply chain management system. Furthermore, the researcher was able to obtain sufficient information from a brief study and market analysis to enable me to make an educated judgement. Taking into consideration certain particular topic matter will help me be more productive in accomplishing the study goals. As a result, the supply chain management system of a corporation has been selected for analysis by me. That’s because, according to what the study has uncovered, many organisations have had to cope with a variety of supply chain management issues during the course of their commercial operations.

Following this logic, the emphasis of this research is on the “Development of Strategic Supply Chain Management Systems in the United Kingdom-Based Automobile Organizations.” Moreover, I have also realised that the utilisation of the most appropriate method for collecting the data and information and the most effective method for analysing the collected and gathered data and information from the primary sources. Thus, by completing the full research project, the findings usually provide new knowledge and information to the field’s future scholars and students. Since no previous studies have analysed the specifics of this study, it’s simple to conclude that none exist. Because of this, I will be able to undertake and complete the whole market research effectively. Thereby increasing its relevance and usefulness to students and other academics in the future.

References

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Bag, S., Gupta, S. and Kumar, S., 2021. Industry 4.0 adoption and 10R advance manufacturing capabilities for sustainable development. International journal of production economics231, p.107844.

Belhadi, A., Kamble, S., Jabbour, C.J.C., Gunasekaran, A., Ndubisi, N.O. and Venkatesh, M., 2021. Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change163, p.120447.

Belhadi, A., Kamble, S., Jabbour, C.J.C., Gunasekaran, A., Ndubisi, N.O. and Venkatesh, M., 2021. Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries. Technological Forecasting and Social Change163, p.120447.

Cole, R., Stevenson, M. and Aitken, J., 2019. Blockchain technology: implications for operations and supply chain management. Supply Chain Management: An International Journal.

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Appendices

Appendix 1: Survey Questionnaire

Q1. What is your age group?

a) 18-28

b) 28-38

c) 38-48

d) 48-58

e) Above 58

Q2. How long have you experienced in your organisational supply chain management system?

a) 2-5 Years

b) 5-8 Years

c) 8-11 Years

d) 11-14 Years

e) 14-17 Years

Q3. What kinds of challenges are facing by your organisations?

a) Wrong Delivery of Products

b) Late Delivery of Products

c) Low Quality of Materials

d) High Cost of Supply

Q4. Do you agree that your organisation has implemented advance technologies within the supply chain management system?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

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