Effective Supply Chain Management Practices

INTRODUCTION

Due to globalization, consumers have more opportunities than before, that’s why every firm needs to deliver valuable product or service for the market. In a competitive environment, attaining a position of competitive edge and enhancing the firms’ performance are two of the main objectives that every organization should struggle to achieve (Ismail, Rose, Abdullah, &Uli, 2010). In the new era, supply chain management is considering one of the main sources of achieving competitive advantage, which leads higher organizational performance because of its ability to generate value in each activity of supply chain. Tan, (2001) argued that SCM may be described as the value adding activities which are begins from the raw material extractor

And this industry still being more popular and diversifies. This evolution could not be possible without an effective supply chain management practices (Kourouthanassis, Giaglis, Doukidis, & Pergioudakis, 2002). Supply chain consists of different groups or individuals interlinked with each other in order to deliver product or services to the market. That’s why strong collaboration among all trading partners is required. An effective supply chain management practices can play an important role in this regard. In order to survive in a highly competitive environment, managers have to adopt the strategies of Supply Chain Management.

However, it is challenging to design and operate a supply chain so that total system wide costs are minimized, and system wide service levels are maintained. Uncertainty and risk are inherent in every supply chain. So because of these reasons interest in logistics and supply chain management has grown explosively in the last few years. This interest has led many companies to analyze their supply chains practices in order to maximize profits (Bozarth, Handfield, 3rd

To understand whether there exist a relationship between supply chain practices and the organizational performance.

c. To identify the weak areas and links between the Supply Chain practices being adopted in the grocery stores.

d. To identify the areas where further research might be done.

e. To identifying the inefficiencies between grocery supply chain.

1.6 Significance of the Study

As the competition is everywhere, organizations are finding the ways of achieving competitive advantage over competitors. Mostly organizations have recognized that competitive advantage can not only be gained just through improving efficiencies within organization but there is a need to improve the whole supply chain. Li, Ragu-Nathan, Ragu-Nathan, & Subba Rao, (2006) found that organizations having high level of SCM practices can lead enhanced competitive advantage and improved organizations’ marketing and financial performance in the long run. This study would also provide ample information regarding the following

• This study would provide empirical evidence to support conceptual and prescriptive statements in the literature regarding the impact of SCM practices on the performance of Retail stores in