ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING
Peer Reviewed and Refereed Journal IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL)
Vol. 04, Issue 05, MAY 2019 Available Online: www.ajeee.co.in/index.php/AJEEE
1
INDUSTRIAL ORGANIZATIONS PERFORMANCE VALUATION THROUGH SUPPLY CHAIN MANAGEMENT TAKING INTERNAL FACTORS OF INDUSTRIAL UNITS
1Preeti Patel, M.Tech scholar
2Gourav Kushwah
3Nitin Vishwakarma
Assistant Professor, Infinity Management & Engg. Collage Sagar
Abstract:- Pharmaceuticals, Automobile, Auto-Ancillaries and Steel manufacturing organizations have the largest cluster in industrial areas including National and International level organizations. Auto-ancillary organizations report sales growth over the years. It proofs that there is a need to identify the ways to cut the cost and increase the profit. Hence this area is studied. The Organization in India has been recording growth over the years and has emerged as a major contributor to India’s GDP. This organization currently accounts for almost 7% of our GDP and employing about 19 million people directly and indirectly. Steel manufacturing organization took in to the account efficacy level of Productivity, Quality, Warehouse and Inventory, Transportation, Flexibility, Supplier Relationship, Customer Relationship, Information System, and Strategy dimensions of supply chain efficacy between Automobile and Steel Manufacturing organizations.
1. INTRODUCTION
To build the morality among customers, organizations have started satisfying the customers by rendering them value added services. Organizations are also trying to increase profits long term and short term way by searching and applying new ways to cut the cost. Globalization has a serious and decisive impact on manufacturing organizations. Our expansion of the marketplace and increasing competition, globalization leads customers to place demands on manufacturing organizations to enhance quality, serviceability and flexibility without rising the product costs.
Organizations are now looking at securing cost, quality, technology and other competitive advantages as strategies to pursue in competitive environment.
The scenario in today’s business field is characterized by changing customer requirements and increased competition among all market participants. This increases great competitive pressure on organization, irrespective of their size, is the result of downfall of customer loyalty on the one hand and growing demand from customers for products and services on the other hand.
It requires a planned approach to gain customer loyalty and to fulfill the demand. In addition, various sectors have different type of distribution channel in which various members are associated and profit is shared by different members in the chain. To be cost effective, organizations have started practicing a
limited number of channel partners so that the cost benefits reaches to the customers. The idea of a collective supply chain is to gain a competitive advantage by improving net performance through measuring perspective of the supply chain. Organizations globally have started realizing that Supply Chain Management (SCM) is an important and sometimes serious to their business
1.1 Supply Chain Management
A supply chain is an inter-related network of businesses which sources raw materials, converts them into intermediate goods, semi finished goods and finished goods and then delivers these goods to the last customers. In the Supply Chain it is very important to regulate the flow of information, goods and payments so that effectiveness is ensured in the business. The practice of Supply Chain in India has begun from 1990 onwards
1.2 Type of the Study
This is an empirical as well as exploratory study based upon primary data and secondary data both. Primary data was collected from selected manufacturing organizations to measure the Efficacy of Supply Chain Management in Manufacturing Sectors of India whereas secondary data was used to identify the parameters to measure of supply chain efficacy.
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING
Peer Reviewed and Refereed Journal IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL)
Vol. 04, Issue 05, MAY 2019 Available Online: www.ajeee.co.in/index.php/AJEEE
2 1.3 Universe and Sample Size
The study was conducted in the Manufacturing Sectors of India. The sample was collected from the industrial hub of Madhya Pradesh: Indore and around Indore city. It was found that majority consist four types of manufacturing organizations such as:
Auto-Ancillaries, Automobile, Steel Manufacturing and Pharmaceuticals.
Total 24 organizations were selected from Auto-Ancillaries, Automobile, Steel Manufacturing and Pharmaceuticals Sector (6 organizations of each sector). From each organization ten respondents from senior management or middle management such as GM production/ GM Marketing/ VP/
Director/ COO/ Senior Manager were asked to respond the questionnaire.
Finally, 205 responses were received.
Thus, the study was conducted on a sample size of 205.
2. TOOL FOR DATA COLLECTION Primary data was collected through self developed questionnaire. The questionnaire has various sections as follows:
Basic data (Basic information)
Productivity (Reliability coefficient alpha= 0.974)
Quality (Reliability coefficient alpha= 0.926)
Warehouse and Inventory (Reliability coefficient alpha=
0.977)
Transportation (Reliability coefficient alpha= 0.946)
Flexibility (Reliability coefficient alpha= 0.922)
g.Supplier Relationship (Reliability coefficient alpha= 0.945)
h.Customer Relationship (Reliability coefficient alpha=
0.909)
i.Information Technology (Reliability coefficient alpha=
0.882)
j. Strategy (Reliability coefficient alpha= 0.930)
The basic data section covers general information with 7 questions concerning the respondent, like name, age, gender, designation, type of manufacturing organization, salary per month and experience. Whereas other sections were designed using a 5- point Likert-scale,
rated from (1) “Very Low” to (5) “Very High”. The questionnaire was designed on the basis of literatures available in the area of supply chain.
The questionnaire (Reliability coefficient alpha= 0.944) was divided into 10 sections including 9 core dimensions of supply chain and Last section for Personal Information. The core dimensions of supply chain management include Productivity, Quality, Warehouse
& Inventory, Transportation, Supply Chain Flexibility, Supplier Relationship Management, Customer Relationship Management, Information Technology and Supply Chain Strategy.
2.1 Respondents’ Profile
The study was aimed to study the efficacy of supply chain management in Indian manufacturing organizations. Data was collected from the manufacturing organizations located in Indore city and around. In particular, four manufacturing sectors were targeted to collect the primary data such as: Auto Ancillaries, Automobile, Steel manufacturing and Pharmaceutical manufacturing organizations. profile includes various types of Manufacturing organization, Age, Gender, Salary and Experience.
Table 1. Manufacturing Organizations
Manufacturing Organization
No. of Responses (Frequency )
Percentage
Auto Ancillaries 56 27.3
Automobile 57 27.8
Steel
Manufacturing 54 26.3
Pharmaceuticals 38 18.5
Total 205 100
Chart 1. Manufacturing Organizations in percentage
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING
Peer Reviewed and Refereed Journal IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL)
Vol. 04, Issue 05, MAY 2019 Available Online: www.ajeee.co.in/index.php/AJEEE
3 Table 1 and Chart 1 exhibit that out of 205 responses 56 responses were received from Auto-Ancillaries organizations, 57 from Automobile organizations, 54 from Steel Manufacturing organizations and 38 from Pharmaceuticals organizations. It was found that respondents from Pharmaceutical manufacturing organizations were more hesitate to respond to the questionnaire.
This may be because of the loyalty of the employees towards the organization or the organizational policy of not disclosing internal information. In addition, difficulties were also found in collecting the data from employees of Steel manufacturing organizations. This is due to short chain of organizational hierarchy. Steel manufacturing organizations employ a few managerial personnel in comparison with the other of three types of manufacturing organizations.
Table 2. Age wise Classification of Respondents
Age↓ No. of
Responses
(Frequency) Percent 20 - 30
Years 64 31.2
31-40 Years 98 47.8
41-50 Years 43 21
Total 205 100
Chart 2. Age wise Representation of Respondents
Table 2 and Chart.2 exhibit that respondents’ profile includes 64 respondents from the age group of 20-30 years, 98 respondents from the age group of 31-40 years and 43 respondents from the age group of 41-50 years. The data was collected from middle level managers and top level managers those are directly or indirectly involved in supply chain management as per the relevance of the
study. Most of the respondents were from the age groups of 20- 30years and 31-40 years. As we intended to collect data from the middle level managers who were found to be from age group 20-30 and 30- 40 years whereas 43 respondents from top level management.
Table 3. Gender wise Classification of Respondents
Gender
↓
No. of
Responses
(Frequency) Percentage
Male 192 93.7
Female 13 6.3
Total 205 100
Chart 3. Gender wise Representation of Respondents
Table 3 and Chart 3 exhibit that respondents’ profile includes 192 males and 13 females out of 205 respondents.
Hence, it can be concluded that in manufacturing organizations only few females are opting and are working in supply chain area. Also, the respondents’
profile clearly shows that manufacturing organizations located in Indore city or around has a few female employees at middle level management and top level management level.
Table 4. Income wise Classification of Respondents
Salary Per Month↓
No. of Responses
(Frequency) Percent Less than Rs.
20000 PM 80 39
Rs. 20001-40000
PM 107 52.2
Rs. 40001-60000 PM
and Above 18 8.8
Total 205 100
ACCENT JOURNAL OF ECONOMICS ECOLOGY & ENGINEERING
Peer Reviewed and Refereed Journal IMPACT FACTOR: 7.98 (INTERNATIONAL JOURNAL)
Vol. 04, Issue 05, MAY 2019 Available Online: www.ajeee.co.in/index.php/AJEEE
4 Chart 4. Income wise Representation of
Respondents
Table 4 and Chart 4 exhibits that 80 respondents earn less than 20000 rupees per month, 107 respondents earn rupees 20001-40000 per month and only 18 respondents earn more than 40001 per month. The income category clearly shows that most of the respondents earn Rs.
20001-40000 per month. The percentage of respondents earning less than Rs.
20000 per month comes next whereas there is a less number of respondents those are earning more than 40001 per month.
3. CONCLUSION
Supply Chain Management is being practiced in many organizations as a tool to leverage their overall performance. It is also helpful to increase the profit by minimizing the cost and to satisfy the end-customer. Supply chains virtually exist in every organization but are especially apparent in manufacturing industries that have an obvious flow of goods from suppliers to manufacturing facility to the end customers. The study was aimed to study the efficacy of supply chain management in Indian manufacturing organizations. In the present study efficacy of supply chain management in Indian manufacturing organizations was measured
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