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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

IMPACT OF INTEGRATED SUPPLY CHAIN MANAGEMENT ON FIRM PERFORMANCE N RAWALPINDI

By
UMER REHMAN ROLL NUMBER WAQAS SALEEM ROLL NUMBER MBA 15 (Session 2011) 1500025 1500043

ARMY PUBLIC COLLEGE OF MANAGEMENT SCIENCES (APCOMS) RAWALPINDI

NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD 2011

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

FINAL APPROVAL It is certified that we have read the project by Mr./Ms.___________________. It is our judgment that this report is of sufficient standard to warrant its acceptance by Army Public College of Management Sciences, Rawalpindi for the Master degree of Business Administration.

COMMITTEE

1. External Examiner

2. Internal Examiner

3. Project Supervisor

4. HOD

(R&D)

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

A DISSERTATION SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES, ARMY PUBLIC COLLEGE OF MANAGEMENT SCIENCES AS A PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

DECLARATION We hereby declare that this project, neither as a whole nor as a part thereof has been copied from any source. It is further declared that we have developed this report entirely on the basis of our personal efforts under the sincere guidance of our teacher Mr. Numair Ahmed Sulari

____________________ Umer Rehman

_____________________ Waqas Saleem

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Abstract The rationale of this study is to elaborate the impact of relationship that exists between the integrated supply chain management on relative variation in the performance of firm. The performance of a firm varies as a result of Companys integration with suppliers, Cross functional integration within a company and Companys integration with customers. The study has been conducted in Pakistans scenario where the current economic slump has forced the firms to implement and alter their supply chain effectively as well as efficiently. The organizations/sector selected for the subject study includes organizations delivering/manufacturing TETRA packaged products within Rawalpindi zone. The data was collected vide self administered questionnaires from 80 distribution professionals Results concluded that there is a strong positive relationship amongst the independent and dependent variables. This study would be beneficial for the organizations of the concerned sector to take effective and efficient steps to improve supply chain.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

ACKNOWLEDGEMENT First of all we would like to thank Allah Almighty for giving us the courage, empowering us with knowledge and confidence to fill this task. We would like to express our deep gratitude to our supervisor Mr. Numair Ahmed Sulari; his full support and commitment played a vital role in fulfilling this project. We pay our humble thanks to all the people and sources, which helped us making this project comprehensive and informative for the reader. Finally we are also thankful to our parents for being constant source of inspiration, creative ideas and emotional support.

DEDICATION

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi We dedicate this project to our beloved families and to our teachers who with their knowledge and hard work form our personalities and made us knowledgeable persons

Table of Contents
TABLE OF CONTENTS........................................................VIII CHAPTER NO.1................................................................1 INTRODUCTION................................................................1 1.1.Introduction..........................................................2 1.2.Problem Statement.....................................................3 1.3.Significance of the Study.............................................3 1.4.Objectives of the Study...............................................4 1.5.Research Questions....................................................4 CHAPTER NO.2...............................................................17 LITERATURE REVIEW..........................................................17 CHAPTER NO.3...............................................................58 RESEARCH METHODOLOGY.......................................................58 3.1.POPULATION SAMPLE......................................................59 3.2.Method of Sampling...................................................59 3.4.Size of Sample ......................................................59 3.5.Data Analysis........................................................60 3.6.Data Interpretation..................................................60 3.7.Hypothesis...........................................................60 CHAPTER NO.4...............................................................61 RESULTS AND DISCUSSIONS....................................................61 INTEGRATED SUPPLY CHAIN MANAGEMENT.........................................62 CHAPTER NO.5...............................................................67 CONCLUSION AND RECOMMENDATIONS.............................................67 5.1.Conclusion...........................................................68 5.2.Recommendations......................................................68 5.3.References...........................................................68 HALEEB MILK SUPPLY CHAIN...................................................75 HTTP://WWW.SCRIBD.COM/DOC/36084635/HALEEB-INCOMPLETE-INFO..................76

VIII

Determinants of Profitability in banking Sector of Pakistan

CHAPTER NO.1 INTRODUCTION

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

1.1.Introduction Battezzati and Magnani(2001) the purposes of the study was to analyze the supply chain in the fast moving consumer goods sector in Italy and to show a specific way of management which is postponement , The growth of the postponement practice in Italy is indomitable by the exact characteristics of the industrial and distribution network and of the suppliers of services. Kim() The reason of this study is to find out the normal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is very useful in creating a framework for connecting a firms SC integration strategy to its competitive strategy, and to find out how such a relation can be associated to the improvement of firm performance. Such effort also should help us to derive a lay down of suggested strategies of SCM practices for SC integration. These factors play a more critical role for sustainable performance enhancement also that competition capability may have more important effect on performance improvement. It is concluded that, in the early hours, the stress on total SC integration may be more vital. Once SC integration has been applied, it may be wise to work more on SCM practice and competition capability. Baker (2007) conducted a research on The design and operation of distribution centers within agile supply chains This paper examines this particular area by means of nine case studies into how individual business units design and operate distribution centers to provide a rapid response to their markets. The solutions used by these companies are categorized to form a framework for addressing this subject and as a basis for further research into the practical application of agility at the distribution centre level. Shamim,Riaz and Sheik(2008) conducted a research on An Analysis Of Rise And Fall Of SCM - ICT Integration By The FMCG Sector In Pakistan .his work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. In his article he examines data from the FMCG sector in Pakistan and work on model for Key Realization Concepts for Supply Chain Success (KRC-SCS). During his research FMCG companies which 2

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where ever the top management displayed greater appreciation and assurance towards technology as a key facilitator, was more successful than the companies who did not have believe in the same way At the end the results was that successful integration of ICT and SCM requires tactical commitment by the stakeholders and the top level management,. Gimenez and Ventura (2003) this paper explores the logistics-production and logisticsmarketing interfaces and their relation with the external integration. The research also investigates the effect internal and external relations on the companys logistical presentations an empirical study is held in the fmgc sector for the sake of this research. The organizations selected for the research study are as follow: Nestle milk pack Nurpur Olpers Haleeb Since the subject study is based upon the single product out of the numerous other dairy features product, our object of the study is to evaluate the impact of Companys integration with suppliers, Cross functional integration within a company, Companys integration with customers on customer satisfaction on the basis of supply chain management as an operational function with specifically distribution network design as a concentric area

1.2.Problem Statement How can these factors influence on the performance of the firm? 1.3.Significance of the Study The reason of this research is to find out the and examine the linkage between the different Factors of a firms supply chain factors such as Companys integration with suppliers, Cross 3

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi functional integration within a company and Companys integration with customers and their impact on firms performance, with the help of this research we will find out how do these factors effete on the performance of a company and how can we improve the performance of the company using these factors.

1.4.Objectives of the Study The main focus of this study is to identify the main area where the supply chain integration lack and where improvements are necessary. To study the companies integration with suppliers and how it effects on customer satisfaction. To study integration within companies and how it effects on customer satisfaction. To study companies integration with customers and how it effects on customer satisfaction. To imrove the supply chain process and help it achieve customer satisfaction.

1.5.Research Questions

The vary need of the Fast moving consumer goods sector is its agility and quick response time as all the goods involve are perishable. Will the involvement of integrated supply chain in this sector improve its agility and response time and can we achieve customer satisfaction ? 1.6.Scope of Research There are a lot of companies related to tetra pack milk working in different cities of Pakistan but our main focus is on those companies working only in Rawalpindi 1.7.Research Variables 1.7.1.Dependent variable 4

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

We have 1 dependent variable that is Customer Satisfaction

1.7.2.Independent variables We have used 3 impendent variables that are following Companys integration with suppliers Cross functional integration within a company Companys integration Now we will talk about these 3 variables one by one. 1.8.Theoretical Framework Companys integration with suppliers Cross functional integration within a company

Customer Satisfaction

Companys integration

(Independent variables)

(Dependent variable)

1.9.Background/Overview of Companies

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi 1.10.Nestle Milk Pack

1.10.1.About Nestl Pakistan's Nestl story begins in 1867, when Henry Nestle developed a baby formula that saved childs life and marked the beginning of Nestle. It is originally consisted of two companies and two products, Henry Nestle and His baby food in Vevey, and the Anglo Swiss Condensed Milk company and its condensed Milk in Cham, both in Switzerland. His first factory was located in Vevey. In 1875, He sold His company and retired. In 1880 second factory was built in bercher. In 1883 , first time Nestle built a factory abroad, in Edlitz Grimmenstein. In 1890, Vevey factory produced 28 billion cans of Milk food and 2.2 million cans of condensed Milk. In 1912, Nestle begins it long relationship with South Asia when Nestle condensed Milk company start. In 1979, Milkpak Ltd. Is founded by Syed Baber Ali. It manufactures UHT Milk, Cream and Butter as well as fruit Juices.

1.10.2.Supply Chain of Nestl Pakistan's Supply chain makes sure that Nestl products are available, no matter where you are in Pakistan. Nestl integrate processes from the farm to markets, and ensure products are delivered to you at the right time, the right cost and in the right quantities. In the first quarter of 2006 alone, Nestl delivered an astonishing 136 million kg of Nestl products in Pakistan. Supply chain was established as a separate department in 2001. Since then, Nestl have achieved a number of milestones, including a cold-chain in 2002, centralized demand and supply planning in 2003, and implementation of GLOBE in 2005. We were selected for a Best in Class repository study, and three of our best practices were subsequently incorporated into the Best Practices Library.

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

1.10.3.SC Mission: Optimize and consolidate resources and processes for a low-cost but efficient Develop and manage simplified and effective supply network to achieve a high level of service Create a continuous improvement culture driven by performance measures and reward.

1.10.4.Operational Structure Nestl products are manufactured in five facilities scattered around the country, from Islamabad in the north, to Karachi in the south. Two state-of-the-art multipurpose factories are located in the agricultural heartland of the Punjab, and the remaining three are dedicated to producing our trusted brands of bottled water. As citizens of Pakistan, Nestl consider it their duty to make sure that their manufacturing processes are clean, hygienic and safe. They are constantly working to reduce emissions at their factories, reducing and treating wastewater, and making our packaging environmentally friendly. Regular audits have confirmed that their factories' environmental management meets the Nestl international standard. As is the Nestl policy around the world, we care for our people. Nestl uphold the principles of the UN Global Compact and encourage women to participate. Sheikhupura Factory At the very heart of the Punjab's major milk district stands our Sheikhupura factory, a vast state-of-the-art operation that produces many of our most popular products, such as MILKPAK UHT milk, low-fat high-calcium NESVITA products, NESTL PURE LIFE water, CERELAC and yogurt.

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi The factory commenced operations as part of Milkpak Ltd in 1981. At the time it produced only UHT milk, but by 1988 had expanded to produce butter, cream and ghee, as well as fruit drinks. In 1988, it became part of the joint Milkpak venture, and, soon after, NIDO milk powder started being produced here. As the needs of Pakistani consumers grew, we added the capacity to manufacture new products. In 1998 we started supplying dairy mixes to McDonald's. A plant to produce the popular Nestl NESTL PURE LIFE bottled water was also commissioned. In recent years, the plant's capacity has been enhanced to produce fruit yoghurt, tea whitener, cream and raita, as well as low-fat, high-calcium dairy products, sold under the NESVITA brand Kabirwala Factory In 1990, Milkpak acquired the Kabirwala factory, located in Khanewal district of the Punjab, as a subsidiary. By 1997 it was a fully owned unit of Nestl Pakistan Ltd. Soon after it was acquired, we began upgrading its capacity. In 2005, the factory continued to make notable achievements. 2006 has seen the commencement of Kabirwala Extension Project that would be completed in April 2007 at a cost of about Rs. 4.0 billion. The project has seen expansion of milk processing capacity to triple its current size, both for powder and liquid. The factory Is also currently producing Nido (started in 1998) and Milkpak UHT (started in 2006) 1.11.Nurpur Milk: Milk one of natures most completed foods almost a meal in itself. An excellent source of energy, Protein, Minerals, Vitamins, it is also the best source of Calcium. Milk is a fundamental element of good diet, particularly for bone development and protection. Milk is a precious but fragile raw material that requires technical expertise and know-how to process. Nurpur has over 30 years of experience and has developed state-of-the-art dairy processing. 8

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi 1.11.1.Nurpurs List of Top Priority When it Comes to Milk: Protect great taste from dedication to monitoring quality, Provide special care Pay attention to detail in the processing and packaging steps of production. Through their careful processing and packaging, they have been able to retain great taste, while preserving fat, protein, important vitamins and minerals. Other dairy products are made with the same regard to high quality as our milk and other products. By using the highest quality processes, ingredients, and equipment, they deliver the highest quality dairy products in the industry. Private Label/Co-Packing Nurpur packages for many different companies. Their dedication to monitoring quality, special care, and attention to detail in processing and packaging, and our unparallel product and service quality is wanted by other companies. 1.11.2.UHT Milk: Packed in 250ml, 500ml, and 1000ml volumes in Tetra Brik Aseptic Packing Ultra High Temperature treated milk products will easily keep for more than three months outside the refrigerator. Standardized at 3.5% fat and 9% SNF, Nurpur has captured market because of its high quality standards, mainly used for drinking, milk shakes and tea making. 1.11.3.Whole Pasteurized Milk: Packed in 1000ml, 500ml volumes in handy and hygienic packaging. Nurpur Whole Pasteurized Milk has 3.5% Butter Fat and 9% SNF, free from additives. Whole pasteurized Milk has a very creamy and rich flavor and many essential vitamins and minerals. Nurpur fresh pasteurized milk has been our guarantee quality label for many years 1.11.4.Flavoured Milk: Packing in 1000ml volumes in Tetra Aseptic Packing 9

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Flavored Milk is made from the highest quality standardized milk (3.5% fat) and is carefully formulated and processed to produce an unparallel high quality, great tasting flavored milk. While using different flavored milk, you will enter in world of flavors. Flavored milk is a cool way to get in your daily intake of important nutrients such as calcium, vitamins A and D and minerals like phosphorus, magnesium and zinc; it helps build a strong body, healthy teeth and bones. 1.11.5.Currently Nurpur is Producing Three Types of Flavored Milk: 1.11.6.Strawberry Flavoured Milk: Packed in 250 ml volumes in Tetra Aseptic Packing.

1.12.Haleeb Milk

1.12.1.Introduction: Building an excellent reputation over the years, Haleeb Foods continues to be at the forefront of product and packaging innovation. By the grace of God, it has achieved market leadership in several food categories with a very strong portfolio, consisting of leading national and international brands Haleeb, Candia, Dairy Queen, Tea Max, Skimz, Tropico and Good Day. Apart from its extensive nationwide distribution networks, Haleeb Foods is also serving several export markets including South Korea, Bangladesh, Afghanistan and the Central Asian states. Haleeb Foods has the distinction of being the first company in Pakistan to use Tetra Paks novel packaging formats, Tetra Brick Aspetic (TBA) and Tetra Fino Aseptic (TFA). 10

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Haleeb Foods has also introduced a number of unique products previously unknown to the Pakistani market, like Haleeb Labban, delicious traditional lassi (buttermilk) prepared with pure thick milk and yogurt, Candia Tea Max, cardamom flavored tea whitener, Candia milk, packed in distinctive food grade plastic bottle, and Haleeb Good Day, 100% pure and natural fruit juice, free of added sugar, artificial flavors and preservatives. All this and more makes Haleeb Foods Pakistans number 1 and fastest growing packaged Food Company. As of fiscal 2006, its annual turnover is Rs. 9 Billion

1.12.2.Haleeb Milk Consumers everywhere know that Haleeb milk makes the best tea ever because of its thickness. Haleeb is pasteurized, homogenized, and standardized pure UHT milk of the highest standard with 3.5% fats and 8.9% solid non fats. It is Haleeb Foods premier brand, and the choice of quality-conscious consumers who only go for the best. Packed in easy to open, 6-layered Tetra Pak Brick Aseptic packaging, it comes with a 3 months shelf life. Shippement Units 1000 ml: 12 packs/carton 500 ml: 12 packs/shrink-wrapped tray 250 ml: 27 packs/shrink-wrapped tray

1.12.3.Haleeb Xtra Energy Milk Haleeb extra energy milk contains high cream contents andessential vitamins A, D, E and K that provide extra nutrition to your children. It is pasteurized, homogenized, and standardized pure UHT milk of the highest standard with 5% fat specially formulated to meet the energy needs of growing kids. Unlike adults, children are busy in non-stop physical and mental activity throughout the day - and they need Xtra energy for maximum performance and physical growth. Packed in 11

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi easy to open, 6-layered Tetra Pak Brick acceptable packing and it comes with 3 months shelf life

Shippement Units 1000 ml: 12 packs/carton 500 ml: 12 packs/shrink-wrapped tray 250 ml: 27 packs/shrink-wrapped tray

1.12.4.Production Department: Production department is the main area responsible for tuning inputs into outputs through a series of production processes, and the production manager is responsible for making sure that raw material are provided and made into finished goods effectively. 1.12.5.Distributors: The individual doesnt pose much of threat to the food industry. Large clients have a lot more bargaining power with food companies. Large corporate clients like airlines and retailers pay millions of rupees a year. There are large number of distributors , who are buying and distributing the product, so company implement its terms and conditions to distributors easily

1.12.6.Supply Chain The Milk Procurement & Development Department of Haleeb Foods Limited has the responsibility to collect milk from the area and maintains the supply of milk in adequate quantity according to the quality standards and budget requirements of the company. There are two main seasons of milk collection during the year namely: Flush Season and Lean Season. Flush season is the season in which average milk collection is about 10-14 12

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi lac liters / day and this period starts from September and ends in March. The other season is the Lean season, in which the daily milk procurement is reduced to about 5-8 lac liters / day. This season starts in April and ends in August. The existing supply chain is depicted in Annexures. 1.12.7.Milk Collection There are two types of milk collection systems adopted by HFL namely self-collection and contract collection.

1.12.8.Milk Procurement Manager Milk Procurement (MMP) Plant is responsible for all the milk procurement in the milk area. Milk collection area, which consists of mainly the provinces of Punjab and Sindh is divided into four regions headed by an MMP (Region). These regional offices are at Arifwala, Chishtian, Jhang and R. Y. Khan. Each region consists of 3-4 zones, which is headed by a Zonal Manager. There are 14 zones under these 4 regions. Each zone is headed by Executive Zonal Manager or an Area Executive depending upon the size of daily collection. Each zone consists of 2-3 sub-zones. At sub-zonal level, there are PHE Palate Heat Exchanger). Under these sub-zones come VMCCs, mini contractors and sub contractors, which are further responsible for the milk collection.

1.12.9.Milk Collection Area There are 14 zones for self-collection of milk having 28 Main centers (PHE). 1.12.10.Innovation Exclusion of big milk contractors from the supply chain in the late 1990s. The big contractors were used to blackmail the company on one hand the small-scale milk producers on the other. It was reported in the field survey that the company had to face crises due to this blackmailing behavior of the big contractors.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Therefore, the company decided to exclude the big contractors and started a policy of selfmilk collection. This strategy saved the company from crises by ensuring sustainable involvement of small milk producers in the market chain. Another characteristic of the market innovation of HFL is the selection of VMCC agents from among small-scale milk producers. The agent provides loan to the small producers free of interests whenever they are in need of money. This loan is provided against the personal guarantee that the producer will keep milk supply to the agent in sustainable manner.

The company (HFL) provides training to the agents regarding ensuring quality of milk in handling various milk quality tests. The farmers (milk producers) are provided causal informal information and guidance services regarding keeping the animal healthy and maintaining milk quality.Another characteristic of the marketing innovation of HFL is the multidimensional procurement of milk. It collects milk from VMCC agents, mini contractors and farmers. One of the important characteristics of innovation includes maintenance of quality. There was a saying quoted in the field survey, Better quality of the product leads to better marketing. HFL conducts about 15 tests to ensure the quality of the milk.

1.13.Olpers Milk Engro Foods (Pvt.) Limited (EFL) was been established in 2005 as part of a diversification process at the Engro Group. ENGRO wanted to setup a new fertilization plant but due to certain constraints from the government wasnt able to do so. Therefore, the organization decided to move into a new market. They came up with several options including telecommunications and power plant but they found out that the food industry held the greatest promise. Engro Foods has already set up two processing plants at Sukkur and Sahiwal. Engro Foods entered the Food business through milk processing and sale with the companys vision to pursue growth opportunities based on country fundamentals and own strength. It also positions the company to leverage its corporate social responsibility 14

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi initiatives and work closely with rural communities to promote integrated farming and livestock development. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas. Olpers Milk, Companys first brand was launched in March 2006 in 20 cities of the country simultaneously 1.13.1.Vision "Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, to eventually become global 1.13.2.Third largest producer of milk Pakistan is the Third largest producer of milk in the world with a total production of 32 billion liter of milk a year, whose value is more than that of the combined value of wheat and cotton, from a total herd size of 50 million milch animals (buffaloes and cows). Livestock accounts for 46.8 percent of agricultural value added and about10.8 percent of the GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. Due to the steps taken by the government and private sector, countrys annual milk production is expected to grow at an additional 3 billion liters in the next few years. This is quite an opportunity for ENGRO foods as there is lot of growth in this part of the sector. 1.13.3.Competition Competition may pose a threat because the company will have to maintain its leadership in an expanding market so that it doesnt lose its market share to its competitors. For Olpers it might be difficult to penetrate in a market where the loyalties exist for such brands as Nestle and Haleeb. These brands have been in the milk industry far too long and have left a mark in the minds of consumers in terms of quality. Competition seems to be getting tougher as a result of new players entering the dairy market.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi 1.13.4.Perceptions and Price Differentials Consumers perceptions and price differentials can cause a threat for the company. It is important that Olpers comes up to the expectations of the customers and fulfills its conformance quality that is the company meets its promised specifications. Consumers preferences change with time and prices might create certain barriers in terms of the profit margins for Olpers. For example, lose milk is still cheaper than packaged milk and that is also one factor that people still prefer to buy lose milk. 1.13.5.Placement and Distribution According to Mr. Ali Akbar, Director Marketing EFL, In order to succeed, you should ALWAYS capitalize on your STRENGHTS and NEVER on your COMPETITORS WEAKNESS. Engro Foods did exactly that. They used their decades of PR with farmers and used it to provide world-class supply-chain management for delivering the ultimate quality milk in Pakistan. Having kicked off simultaneously in 20 cities across Pakistan, the launch has been ambitious and currently Olpers is available in 80 cities across Pakistan. It reflects the companys intention to become a big player in the industry, both on a national and international level Engro Foods Limited has its own distribution network. EFL has divided Pakistan into five regions for milk distribution namely: Karachi, Lahore, Islamabad, Peshawar and Multan. Due to an appealing color scheme, which stands out in the clutter and thanks to the EFLs strong relationship building and special discounts to retail outlets, Olpers has gained a proper shelf placement in the presence of competitors like Nestle and Haleeb .

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

CHAPTER NO.2 LITERATURE REVIEW

Companys integration with suppliers :


Kim(2000) The reason of this study is to find out the normal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is very useful in creating a framework for connecting a firms SC integration strategy to its competitive strategy, and to find out how such a relation can be associated to the improvement of firm performance. Such effort also should help us to derive a lay down of suggested strategies of SCM practices for SC integration. These factors play a more critical role for sustainable performance enhancement also that competition capability may have more important effect on performance improvement. It is concluded that, in the early hours, the stress on total SC integration may be more vital. Once SC integration has been applied, it may be wise to work more on SCM practice and competition capability

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Ru-Jen Lin They investigates the relationship between several supplier integration practices and time-based capabilities. We posit that both supplier integration and time-based capability are multi-dimensional constructs and not all collaborative activities are equally important to all aspects of time-based competition. Their final findings indicate while supplier integration contributes to the performance of a firms time-based competition, some integration practices are more effective than others. Adil and vahit (2008): There are many studies in the literature that explain modern costing approaches including activity-based costing (ABC) , the number of studies that present real life applications is very few. Their work is especially true for logistics and transportation applications. One of the main difficulties In land transportation companies is to determine and evaluate true cost of their operations and services .I fused and implemented properly, ABC can be very helpful for transportation companies to determine cost of their operations with higher correctness. In this paper, an application of ABC to a land transportation company that is located in Turkey is presented in detail. In order to improve the effectiveness of the ABC an integrated approach that combines ABC with business process modeling and analytical hierarchy approach is proposed. It is figured out that the proposed approach is quite effective in costing services of the land transportation company compared to the existing traditional costing system which is in use. Baker (2007) conducted a research on The design and operation of distribution centers within agile supply chains This paper examines this particular area by means of nine case studies into how individual business units design and operate distribution centers to provide a rapid response to their markets. The solutions used by these companies are categorized to form a framework for addressing this subject and as a basis for further research into the practical application of agility at the distribution centre level Premaratne et al(2010):From their research they concludes that the integrated supply network eliminates the need for interfacing of individual networks and enables simultaneous planning of many components as well as forward planning of supply components in global supply chain operations. They show that the integrated approach is 18

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi capable of providing visibility, flexibility, and maintainability for further improvement in the supply network environment Banerjee et al. (2001) they worked on partial shipments in supply chain and their researched showed the benefits of controlled partial shipments within a two-echelon supply chain consisting of a single vendor and multiple buyers CHEN et al (2007): works to extend the knowledge of manufacturing flexibility regarding its integration with supply chain activities. Specifically, they investigate the relationship between supplier collaboration and manufacturing flexibility in the motherboard industry. Their findings indicate that supplier collaboration plays a major role in the development of a firms manufacturing flexibility. And not all supplier collaborative activities contribute equally to the development of different types of manufacturing flexibility, and supplier collaboration could affect the interrelationships among new product, product mix, and volume flexibility. ROBERT and CHANDRA did research on transport integration tool for supply chain management and their findings are: by codifying the element of the research a contribution will have been made to the effective dissemination of the research to industry and thought leaders, which in turn will lead to practical exploitation, resulting in more integrated transport and supply chain management practice Cristina and Eva (2005): They examine the logistics-production and logistics-marketing interfaces and their relation with the external integration. They also investigate the causal impact of these internal and external relationships on the companys logistical performance. The generic results derived from their study are: Internal and external integration influence each other. Integration in the logistics-marketing interface does not lead to reductions in costs, stock-outs and lead-times, while the integration achieved in the logistics-production interface does improve these performance measures, if there is no external integration. The external collaboration among supply chain members does always contribute to improving firms logistical performance. But their research has some limitations: other important members of the grocery supply chain (such as retailers, TPL, 19

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi etc.) have not been considered and the effect of inter-firm co-ordination has only been analyzed from the perspective of the provider (as most studies do). Further research on the logistics-marketing impact on performance should be carried out and other important supply chain members should be considered. Their study contributes to the existing literature by showing that the impact on performance of internal integration depends on the functional areas that are being integrated and the level of external integration. Eleonora et al (2007): Their work provides a quantitative assessment of the potential reduction in the bullwhip effect, and thus in safety stocks, in the supply chain, thanks to real-time visibility of product flows provided by the Radio Frequency Identification (RFID) technology and the EPC Network. The assessment is grounded on a representative Italian Fast Moving Consumer Goods (FMCG) supply chain; specifically, the representative supply chain is composed of three echelons, namely manufacturers, distributors and retailers of FMCG, whose main features, in terms of both quantitative and qualitative data, were derived through an appropriate survey phase. Reduction of safety stocks is determined based on quantitative methodologies available in the scientific literature. Their results shows that real-time visibility of the supply chain, brought in by RFID and the EPC Network, can dramatically reduce the bullwhip effect, substantially affecting the economical profitability of the whole FMCG supply chain. DONG-WOOK and PHOTIS M. PANAYIDESz (2008): worked on this paper with a target to provide more work and input in the field of supply chain by working on reviewing the related literature, conceptual measure, empirical testing and its influence on integrated supply chain and port integrated and the value of port study for port operators. Huang et al. (2003) worked and research on the information sharing in a supply chain And found out its importance and the impact of information sharing in supply chain dynamics.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Agnes Wong (2008) works on Tetra Pak and corrugated cardboard suppliers in china .and analysis the current state of whole industry, and recommendations for improvement. As innovation can bring competitive advantage to companies, his work focused upon making extended value of material flow from Tetra Pak and suppliers. The aim of his project is to investigate the strategic intelligence can create value and strengthen Tetra Pak business relationship with its customers in big emerging markets like China. Theoretical framework creates a foundation for how to structure the efficiently utilize intelligence in the decisionmaking process for a MNC. Another aspect of his work is to examine supply network management process and the supplier relationship development in China, as well as the strategic, social, macro economy aspects that influence change management in medium and large organizations. Corrugated cardboard industry in China is still in a transitioning to a mature market. One conclusion drawn from his work in China is that the dairy producer should start emphasizing visual control on quality, and less concern on price. They should see their suppliers as long term partners but not just treat them as providers. Because it is fundamentally undercutting the ability of the organization to improve what it provides to customers through better quality and productivity. It hinders efforts from reducing cost

James et al (2009-2010): To fill up the void in this line of research, we propose coordination theory that can explain contributory links between supply chain reformation and key strategic variables necessary for the supply chain success from focal company perspectives. These strategic variables may include the extent of co-ordination with suppliers, the degree of information sharing with suppliers, and the level of organizational integration. Our empirical analysis, based on the International Manufacturing Strategy Survey IV, confirms the validity of co-ordination theory in that business initiatives intended for greater co-ordination and information sharing with suppliers turned out to be a major driving force behind supply chain restructuring, which facilitates organizational integration.

21

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Karaesmen et al. (2002) studied optimal control policies of a make-to-stock single production system with advance order information. And his findings were that if the optimal control policies are kept in mind while handling this system it could be more efficient so low in cost Sheikh et al (2008): conducted a research on An Analysis of Rise and Fall of SCM - ICT Integration by the FMCG Sector in Pakistan .his work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. In his article he examines data from the FMCG sector in Pakistan and work on model for Key Realization Concepts for Supply Chain Success (KRC-SCS). During his research FMCG companies which integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where ever the top management displayed greater appreciation and assurance towards technology as a key facilitator, was more successful than the companies who did not have believe in the same way At the end the results was that successful integration of ICT and SCM requires tactical commitment by the stakeholders and the top level management

Fleisch and Powell(2001) This paper is about the value of sharing information in a business network, the problem statement of this research was simple how the final supplier can meet promised delivery dates , in a typical supply chain the final supplier has little information so it is possible that the promised delivery date is not met and that lead to customer dissatisfaction but on the other hand in a information integrated supply chain in which the final supplier can interact with all the parties involved and hence can calculate how ahead or behind he is from the schedule. Two type of model were used in this research analytic and progressive, these models suggested that intermediately info sharing can improve the average on time delivery and increase customer satisfaction and can help us identify the business network type so we can implement the right type of integration to produce high value.

22

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Cross functional integration with in a company:


Ganeshan et al. (2001): studied the impact of inventory and flow planning parameters On supply chain performance using simulation and with the help of this simulation the results were that reaming in these parameters for a company is helpful in increasing the performance of our supply chain. JERRY and LEE (2000): worked on two factors ,one of them was ,that what is the cost incurred on various levels if supply chain integration and do effective forecasting decrease the defects of supply chain integration, they used a stochastic cost model to find out the entire structure cost under various environmental factors. The findings of their research were that the companies could reduce a substantial level of cost if they use middle level of integration. Li et al. (2001) investigated the effects of information sharing strategies for four information sources: order, demand, inventory, and shipment. And by applying these strategies on these four sources a company could really improve the efficiency of its supply chain. VALLESPIR and KLEINHANS (2001): worked on helping a business make a very tough an important decision that where to position itself in a supply chain. Making this decision is also known a vertical integration and is also termed a make or buy decision, this decision also helps a company to locate itself within a network of its suppliers and customers. This research has come up with a planned set of items that must be considered and valued to make a decision about make or buy PIETRO & ALFONSO (1999) their findings indicate that most of the alliances exanlined are concentrated in the maritime transport phase rather than in inland transport and logistics services activities. They chiefly achieve objectives of internal efficiency and meet user logistical needs specifically in supplying higher service frequency and broader geographical coverage. Several implications for shipping line alliance strategies and supply chain management are suggested. 23

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi SUSANNE (2001) works on Dynamics of Alliances in Highly Integrated Supply Chain and his findings are that Partnerships and alliances are both tools to increase integration in supply chains and effects of increased integration. As a result of alliance, integration in supply chain networks effectiveness and efficiency increase. To develop highly integrated supply chain networks involves investing time, resources and much effort. MASON and LALWANI(march 2006) worked for the betterment of integrated supply chain in the freight transport, this paper carries out the research of why it is important to improve supply chain in this field, what tools can be used to improve it and where these tools should be applied under what circumstances. The research showed or we can say proposed a decision making structure to aid managers in shaping a substitute plane to run their operations more efficiently and effectively. Kim and Narasimhan (2002) examined the effects of information system utilization with respect to supply chain integration efforts. And came to a result that with the use of efficient information system we can increase the value and effectiveness off our supply chain and can help us to make our supply chain more efficient without making it costly.

Linnea and Patrik (2010) There study was basically performed in a three-step-process, which can be illustrated by a funnel, where the first step includes a general analysis of the Arctic oil and gas industry, which gradually will be narrowed down to a case study on a single company, on which the general aspects are applied. There work employs mainly a qualitative method with a mix of both analytical and systems approaches. Conclusions: The stakeholder analysis indicates a complexity within the Arctic oil and gas industry and different stakeholders are of different opinions. However, there are business potentials for Arctic OSV services, due to market demand and the current low state of competition. The case company, Maersk Supply Service, has good potential to benefit from these business potentials. There are however many risks and challenges associated with a market entrance and commencing operations in the region

24

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Cristina and Eva (2005): They examine the logistics-production and logistics-marketing interfaces and their relation with the external integration. They also investigate the causal impact of these internal and external relationships on the companys logistical performance. The generic results derived from their study are: Internal and external integration influence each other. Integration in the logistics-marketing interface does not lead to reductions in costs, stock-outs and lead-times, while the integration achieved in the logistics-production interface does improve these performance measures, if there is no external integration. The external collaboration among supply chain members does always contribute to improving firms logistical performance. But their research has some limitations: other important members of the grocery supply chain (such as retailers, TPL, etc.) have not been considered and the effect of inter-firm co-ordination has only been analyzed from the perspective of the provider (as most studies do). Further research on the logistics-marketing impact on performance should be carried out and other important supply chain members should be considered. Their study contributes to the existing literature by showing that the impact on performance of internal integration depends on the functional areas that are being integrated and the level of external integration. Gilbert and Ballou (1999): studied on odder commitments and pre defined odder and his research showed how advance order commitments give downstream members the pricing incentives. ROBERT and CHANDRA did research on transport integration tool for supply chain management and their findings are: by codifying the element of the research a contribution will have been made to the effective dissemination of the research to industry and thought leaders, which in turn will lead to practical exploitation, resulting in more integrated transport and supply chain management practice Gimenez and Ventura (2003) this paper explores the logistics-production and logisticsmarketing interfaces and their relation with the external integration. The research also investigates the effect internal and external relations on the companys logistical presentations an empirical study is held in the fmgc sector for the sake of this research.

25

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Grabot et al (2006) this paper propose a wider S&OP representation built with three levels (sales, operations and supply). It provides a better hold up for integration inside the company, but also for integration of the company in the Supply Chain. Some imitation results are presented, describing the S&OP propagation along a SC, and the related association requirements to be content between the networked companies

Huang et al. (2003) worked and research on the information sharing in a supply chain And found out its importance and the impact of information sharing in supply chain dynamics. JEAN-PAUL and THEO Shows those logistics service providers are using terminals in

their supply chains. They argues that an increasing terminalization of supply chains is unfolding, whereby seaport and inland terminals are taking up a more active role in supply chains by increasingly confronting market players with operational considerations such as imposing berthing windows, dwell time charges, truck slots, all this to increase throughput, optimize terminal capacity and make the best use of available land. With the development of inland terminals, a new dimension is being added: logistics players are now making best use of the free.Time available in seaports terminals and inland terminals, thereby optimizing the terminal buffer function. At the end they find a result that transport terminals are achieving an additional level of integration within supply chains that goes beyond their conventional transshipment role. Given increasing levels of vertical integration in the market and an increasing pressure on port capacity, a further terminalization of supply chains is likely to occur, which will strengthen the active role of terminals in logistics. Lee et al. (1997) showed how the distorted information from downstream members can influence upstream members of a supply chain and investigated four causes of the bullwhip effect demand signal processing, rationing game, order batching, and price variations.

26

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Companys integration with customers:


Beamon and Chen (2001): conducted a performance analysis of conjoined supply chains that are a combination of convergent and divergent structure. In the convergent structure, multiple suppliers are connected with one manufacturer and in the divergent structure; the manufacturer is linked with multiple retailers. Wei and Impact analysis of customized demand information sharing . DONG and PHOTIS (2008): works on the importance of port and terminal integration in the supply chain. They stressed the importance of agility to the port environment, which involves being proactive along supply chains, facilitation of intermodal integration, as well as organizational integration and partnership between ports and users. Despite the well articulated importance of the issues, little has been offered in terms of conceptualizations and empirical evidence of what really is meant by port/terminal integration in the supply chain, how such integration can be measured and quantified as well as the extent to which different ports/terminals in the world are integrated in the supply chain and competitive performance implications arising thereof Elgar and Stephen (2001): They work together on value of information integration in meeting delivery dates, and their findings are: the value of information integration is dependent on both the structure of the network itself (whether serial or arborescent) and on the typical customer order date in the production cycle. These insights allow us to begin to identify the types of business networks in which information integration will have the highest value.

27

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi S. VACHON and R. D. KLASSEN (2006) works and their results indicate that resources were increasingly allocated toward pollution prevention when plants developed extensive strategic-level integration with suppliers, including such aspects as product development and knowledge sharing. However, these effects were not mirrored with customers. Instead, greater supply chain integration with customers was significantly related to pollution control. Collectively, they suggested that downstream supply chain members tend to favor prevention while simultaneously shifting the burden for control to upstream members S.-T. YEE (2004): worked on the dynamic market environment and the changes it brings in customers preferences and the increase in customized products and diversed demand mix. He discusses how demand mix effect the supply chain and how companies can react to make it work properly and fulfill customer demand. The differences in the demand and production competence also effect on performance

Kim(2000) The reason of this study is to find out the normal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is very useful in creating a framework for connecting a firms SC integration strategy to its competitive strategy, and to find out how such a relation can be associated to the improvement of firm performance. Such effort also should help us to derive a lay down of suggested strategies of SCM practices for SC integration. These factors play a more critical role for sustainable performance enhancement also that competition capability may have more important effect on performance improvement. It is concluded that, in the early hours, the stress on total SC integration may be more vital. Once SC integration has been applied, it may be wise to work more on SCM practice and competition capability Li et al. (2001) investigated the effects of information sharing strategies for four information sources: order, demand, inventory, and shipment. And by applying these strategies on these four sources a company could really improve the efficiency of its supply chain.

28

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Fleisch and Powell(2001) This paper is about the value of sharing information in a business network, the problem statement of this research was simple how the final supplier can meet promised delivery dates , in a typical supply chain the final supplier has little information so it is possible that the promised delivery date is not met and that lead to customer dissatisfaction but on the other hand in a information integrated supply chain in which the final supplier can interact with all the parties involved and hence can calculate how ahead or behind he is from the schedule. Two type of model were used in this research analytic and progressive, these models suggested that intermediately info sharing can improve the average on time delivery and increase customer satisfaction and can help us identify the business network type so we can implement the right type of integration to produce high value.

Customer satisfaction :
JERRY and LEE work together on model for comparing supply chain schedule integration and they find result that increased forecast effectiveness helps mitigate the shortcomings of lower levels of integration. However, it cannot replace the value of a higher level of supply chain integration Johanna and Andreas (2010): works on production philosophy at Tetra Pak Japan and their finding was inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a change in the supply chain structure. The purpose of their research was to explore the possibilities of combining cost efficiency with responsiveness towards customer demands. This balance will be investigated through co-printing on real demand Method. They concludes that co-printing on real demand in combination with multicolor printing will lead to 34 % reduction in the minimum order size for customers and 61 % reduction of the finished goods inventories. The Total Value Metrics is used as a framework to identify the value that this solution will bring to the customer. The customers will benefit in terms of smaller order sizes, more colorful designs and a supply chain that responds quicker to changes on the marketplace. The proposal of changing the supply chain

29

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi structure opens up for the desired balance between cost efficiency and responsiveness towards customer demands. Battezzati and Magnani(2001) the purposes of the study was to analyze the supply chain in the fast moving consumer goods sector in Italy and to show a specific way of management which is postponement , The growth of the postponement practice in Italy is indomitable by the exact characteristics of the industrial and distribution network and of the suppliers of services. Sheikh et al (2008): conducted a research on An Analysis of Rise and Fall of SCM - ICT Integration by the FMCG Sector in Pakistan .his work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. In his article he examines data from the FMCG sector in Pakistan and work on model for Key Realization Concepts for Supply Chain Success (KRC-SCS). During his research FMCG companies which integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where ever the top management displayed greater appreciation and assurance towards technology as a key facilitator, was more successful than the companies who did not have believe in the same way At the end the results was that successful integration of ICT and SCM requires tactical commitment by the stakeholders and the top level management Elgar and Stephen (2001): They work together on value of information integration in meeting delivery dates, and their findings are: the value of information integration is dependent on both the structure of the network itself (whether serial or arborescent) and on the typical customer order date in the production cycle. These insights allow us to begin to identify the types of business networks in which information integration will have the highest value. Gilbert and Ballou (1999): studied on odder commitments and pre defined odder and his research showed how advance order commitments give downstream members the pricing incentives.

30

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi DONG-WOOK and PHOTIS M. PANAYIDESz (2008): worked on this paper with a target to provide more work and input in the field of supply chain by working on reviewing the related literature, conceptual measure, empirical testing and its influence on integrated supply chain and port integrated and the value of port study for port operators. Karaesmen et al. (2002) studied optimal control policies of a make-to-stock single production system with advance order information. And his findings were that if the optimal control policies are kept in mind while handling this system it could be more efficient so low in cost Kim and Narasimhan (2002) examined the effects of information system utilization with respect to supply chain integration efforts. And came to a result that with the use of efficient information system we can increase the value and effectiveness off our supply chain and can help us to make our supply chain more efficient without making it costly. MUKHOPADHYAY and AMAR (2003): There work deals with the study conducted for a fast moving consumer goods company having 14 production locations and 22 branches/clearing and forwarding agents. The company had 36 packing lines, with each line packing different varieties of stock-keeping units. In this company, supply chain cell activities were concentrated on the middle of the classical supply chain .The total cost concept includes non-quantifiable parameters An optimization technique has been proposed simultaneously to support the planning logic developed. The supply chain cell helps to optimize the total supply chain cost as well as enabling it to supplement other benefits such as an improvement in inventory turnover and a reduction in the inventory carrying cost.

31

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi . . .

. .

. . . .

. .

32

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi .

. .

Eckerwall Johnsson; [2010]The thesis concludes that co-printing on real order in mixture with multicolor printing will lead to 34 % decrease in the least order size for customers and 61 % decrease of the complete goods inventories. The whole Value Metrics is used as a structure to recognize the value that this answer will bring to the customer. The customers will have assistance in expressions of lesser order sizes, more colorful designs and a supply chain that react more rapidly to changes on the market. The suggestion of changing the supply chain arrangement opens up for the preferred balance between cost efficiency and awareness towards customer demands. Van der Vorst et al. (2000) found that introducing an electronic data interchange (EDI) and real-time inventory system improved the performance of multi-echelon Food supply chains Zhao. (2001) examined the effects of forecasting models and early order commitment on a supply chain with one capacitated manufacturer and four retailers .the findings were that if the forecasting is correct and appropriate the cost of supply chain can be reduced and customer satisfaction can be increased Zhao and Xie (2002) analyzed the impact of forecasting errors and information sharing on the performance of a supply chain consisting of one supplier and four retailers. and his findings were that the organization could be very or more successful if these errors are kept to a minimum

33

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Zimmer (2002) developed a coordination mechanism that produces expected total cost of the entire supply chain as low as the best case in which a central planner make all decisions, while providing each member with the authority of decision making. VALLESPIR and KLEINHANS (2001): worked on helping a business make a very tough an important decision that where to position itself in a supply chain. Making this decision is also known a vertical integration and is also termed a make or buy decision, this decision also helps a company to locate itself within a network of its suppliers and customers. This research has come up with a planned set of items that must be considered and valued to make a decision about make or buy. Linnea and Patrik (2010) There study was basically performed in a three-step-process, which can be illustrated by a funnel, where the first step includes a general analysis of the Arctic oil and gas industry, which gradually will be narrowed down to a case study on a single company, on which the general aspects are applied. There work employs mainly a qualitative method with a mix of both analytical and systems approaches. Conclusions: The stakeholder analysis indicates a complexity within the Arctic oil and gas industry and different stakeholders are of different opinions. However, there are business potentials for Arctic OSV services, due to market demand and the current low state of competition. The case company, Maersk Supply Service, has good potential to benefit from these business potentials. There are however many risks and challenges associated with a market entrance and commencing operations in the region. JERRY and LEE work together on model for comparing supply chain schedule integration and they find result that increased forecast effectiveness helps mitigate the shortcomings of lower levels of integration. However, it cannot replace the value of a higher level of supply chain integration. Adil and vahit (2008): There are many studies in the literature that explain modern costing approaches including activity-based costing (ABC) , the number of studies that present real life applications is very few. Their work is especially true for logistics and transportation applications. One of the main difficulties in land transportation companies is to determine and evaluate true cost of their operations and services .I fused and implemented properly, ABC can be very helpful for transportation companies to determine cost of their operations with higher correctness. In this paper, an application of ABC to a land transportation 34

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi company that is located in Turkey is presented in detail. In order to improve the effectiveness of the ABC an integrated approach that combines ABC with business process modeling and analytical hierarchy approach is proposed. It is figured out that the proposed approach is quite effective in costing services of the land transportation company compared to the existing traditional costing system which is in use. Johanna and Andreas (2010): works on production philosophy at Tetra Pak Japan and their finding was inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a change in the supply chain structure. The purpose of their research was to explore the possibilities of combining cost efficiency with responsiveness towards customer demands. This balance will be investigated through co-printing on real demand Method. They concludes that co-printing on real demand in combination with multicolor printing will lead to 34 % reduction in the minimum order size for customers and 61 % reduction of the finished goods inventories. The Total Value Metrics is used as a framework to identify the value that this solution will bring to the customer. The customers will benefit in terms of smaller order sizes, more colorful designs and a supply chain that responds quicker to changes on the marketplace. The proposal of changing the supply chain structure opens up for the desired balance between cost efficiency and responsiveness towards customer demands. JERRY and LEE (2000): worked on two factors ,one of them was ,that what is the cost incurred on various levels if supply chain integration and do effective forecasting decrease the defects of supply chain integration, they used a stochastic cost model to find out the entire structure cost under various environmental factors. The findings of their research were that the companies could reduce a substantial level of cost if they use middle level of integration. Baker (2007) conducted a research on The design and operation of distribution centers within agile supply chains This paper examines this particular area by means of nine case studies into how individual business units design and operate distribution centers to provide a rapid response to their markets. The solutions used by these companies are categorized to 35

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi form a framework for addressing this subject and as a basis for further research into the practical application of agility at the distribution centre level. Banerjee et al. (2001) they worked on partial shipments in supply chain and their researched showed the benefits of controlled partial shipments within a two-echelon supply chain consisting of a single vendor and multiple buyers. Battezzati and Magnani(2001) the purposes of the study was to analyze the supply chain in the fast moving consumer goods sector in Italy and to show a specific way of management which is postponement , The growth of the postponement practice in Italy is indomitable by the exact characteristics of the industrial and distribution network and of the suppliers of services. Beamon and Chen (2001) : conducted a performance analysis of conjoined supply chains that are a combination of convergent and divergent structure. In the convergent structure, multiple suppliers are connected with one manufacturer and in the divergent structure; the manufacturer is linked with multiple retailers. Wei and Impact analysis of customized demand information sharing 3355. CHEN et al (2007): works to extend the knowledge of manufacturing flexibility regarding its integration with supply chain activities. Specifically, they investigate the relationship between supplier collaboration and manufacturing flexibility in the motherboard industry. Their findings indicate that supplier collaboration plays a major role in the development of a firms manufacturing flexibility. And not all supplier collaborative activities contribute equally to the development of different types of manufacturing flexibility, and supplier collaboration could affect the interrelationships among new product, product mix, and volume flexibility. Cristina and Eva (2005): They examine the logistics-production and logistics-marketing interfaces and their relation with the external integration. They also investigate the causal impact of these internal and external relationships on the companys logistical performance. The generic results derived from their study are: Internal and external integration influence each other. Integration in the logistics-marketing interface does not lead to reductions in costs, stock-outs and lead-times, while the integration achieved in the 36

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi logistics-production interface does improve these performance measures, if there is no external integration. The external collaboration among supply chain members does always contribute to improving firms logistical performance. But their research has some limitations: other important members of the grocery supply chain (such as retailers, TPL, etc.) have not been considered and the effect of inter-firm co-ordination has only been analyzed from the perspective of the provider (as most studies do). Further research on the logistics-marketing impact on performance should be carried out and other important supply chain members should be considered. Their study contributes to the existing literature by showing that the impact on performance of internal integration depends on the functional areas that are being integrated and the level of external integration. DONG and PHOTIS (2008): works on the importance of port and terminal integration in the supply chain. They stressed the importance of agility to the port environment, which involves being proactive along supply chains, facilitation of intermodal integration, as well as organizational integration and partnership between ports and users. Despite the well articulated importance of the issues, little has been offered in terms of conceptualizations and empirical evidence of what really is meant by port/terminal integration in the supply chain, how such integration can be measured and quantified as well as the extent to which different ports/terminals in the world are integrated in the supply chain and competitive performance implications arising thereof. Eleonora et al (2007): Their work provides a quantitative assessment of the potential reduction in the bullwhip effect, and thus in safety stocks, in the supply chain, thanks to real-time visibility of product flows provided by the Radio Frequency Identification (RFID) technology and the EPC Network. The assessment is grounded on a representative Italian Fast Moving Consumer Goods (FMCG) supply chain; specifically, the representative supply chain is composed of three echelons, namely manufacturers, distributors and retailers of FMCG, whose main features, in terms of both quantitative and qualitative data, were derived through an appropriate survey phase. Reduction of safety stocks is determined based on quantitative methodologies available in the scientific literature. Their results shows that real-time visibility of the supply chain, brought in by 37

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi RFID and the EPC Network, can dramatically reduce the bullwhip effect, substantially affecting the economical profitability of the whole FMCG supply chain. Elgar and Stephen (2001): They work together on value of information integration in meeting delivery dates,and their findings are : the value of information integration is dependent on both the structure of the network itself (whether serial or arborescent) and on the typical customer order date in the production cycle. These insights allow us to begin to identify the types of business networks in which information integration will have the highest value. Ganeshan et al. (2001): studied the impact of inventory and flow planning parameters On supply chain performance using simulation and with the help of this simulation the results were that reaming in these parameters for a company is helpful in increasing the performance of our supply chain. Gilbert and Ballou (1999): studied on odder commitments and pre defined odder and his research showed how advance order commitments give downstream members the pricing incentives. Gimenez and Ventura (2003) this paper explores the logistics-production and logisticsmarketing interfaces and their relation with the external integration. The research also investigates the effect internal and external relations on the companys logistical presentations an empirical study is held in the FMCG sector for the sake of this research. DONG-WOOK and PHOTIS M. PANAYIDESz (2008): worked on this paper with a target to provide more work and input in the field of supply chain by working on reviewing the related literature, conceptual measure, empirical testing and its influence on integrated supply chain and port integrated and the value of port study for port operators. Grabot et al (2006) this paper propose a wider S&OP representation built with three levels (sales, operations and supply). It provides a better hold up for integration inside the company, but also for integration of the company in the Supply Chain. Some imitation 38

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi results are presented, describing the S&OP propagation along a SC, and the related association requirements to be content between the networked companies. Huang et al. (2003) worked and research on the information sharing in a supply chain And found out its importance and the impact of information sharing in supply chain dynamics. Agnes Wong (2008) works on Tetra Pak and corrugated cardboard suppliers in china .and analysis the current state of whole industry, and recommendations for improvement. As innovation can bring competitive advantage to companies, his work focused upon making extended value of material flow from Tetra Pak and suppliers. The aim of his project is to investigate the strategic intelligence can create value and strengthen Tetra Pak business relationship with its customers in big emerging markets like China. Theoretical framework creates a foundation for how to structure the efficiently utilize intelligence in the decisionmaking process for a MNC. Another aspect of his work is to examine supply network management process and the supplier relationship development in China, as well as the strategic, social, macro economy aspects that influence change management in medium and large organizations. Corrugated cardboard industry in China is still in a transitioning to a mature market. One conclusion drawn from his work in China is that the dairy producer should start emphasizing visual control on quality, and less concern on price. They should see their suppliers as long term partners but not just treat them as providers. Because it is fundamentally undercutting the ability of the organization to improve what it provides to customers through better quality and productivity. It hinders efforts from reducing cost. S.-T. YEE (2004): worked on the dynamic market environment and the changes it brings in customers preferences and the increase in customized products and diversed demand mix. He discusses how demand mix effect the supply chain and how companies can react to make it work properly and fulfill customer demand. The differences in the demand and production compitance also effect on performance. CAMPBELL and SANKARAN (2004): reported inductive development of a framework for enhancing the integration of supply chains. The framework has been motivated by the need to enhance the participation of small and medium enterprise (SME) suppliers and 39

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi resellers in the supply chain. Extant diagnostics are geared towards enabling enterprises to evaluate or benchmark themselves on a self-administered rating scale in relation to their peers. In contrast, the present framework aims to enable small sized suppliers and resellers to systematically imbibe supply chain integration practices, to the extent applicable, from their more advanced trading partners, after possibly adapting them to their own business circumstances. The broad approach has been to first conduct in-depth case study research into enterprises that excel in one or more facets of integration (customer integration, supplier integration etc.) and then induce items pertaining to various themes and subthemes of supply chain integration. The resulting framework is thus an empirically wellgrounded and fine-grained, actionable complement to extant, broader-brushed mechanisms and diagnostics for supply chain integration. James et al (2009-2010): To fill up the void in this line of research, we propose coordination theory that can explain contributory links between supply chain reformation and key strategic variables necessary for the supply chain success from focal company perspectives. These strategic variables may include the extent of co-ordination with suppliers, the degree of information sharing with suppliers, and the level of organizational integration. Our empirical analysis, based on the International Manufacturing Strategy Survey IV, confirms the validity of co-ordination theory in that business initiatives intended for greater co-ordination and information sharing with suppliers turned out to be a major driving force behind supply chain restructuring, which facilitates organizational integration. JEAN-PAUL and THEO Shows those logistics service providers are using terminals in

their supply chains. They argues that an increasing terminalization of supply chains is unfolding, whereby seaport and inland terminals are taking up a more active role in supply chains by increasingly confronting market players with operational considerations such as imposing berthing windows, dwell time charges, truck slots, all this to increase throughput, optimize terminal capacity and make the best use of available land. With the development of inland terminals, a new dimension is being added: logistics players are now making best use of the free 40

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Time available in seaports terminals and inland terminals, thereby optimizing the terminal buffer function. At the end they find a result that transport terminals are achieving an additional level of integration within supply chains that goes beyond their conventional transshipment role. Given increasing levels of vertical integration in the market and an increasing pressure on port capacity, a further terminalization of supply chains is likely to occur, which will strengthen the active role of terminals in logistics. Karaesmen et al. (2002) studied optimal control policies of a make-to-stock single production system with advance order information. And his findings were that if the optimal control policies are kept in mind while handling this system it could be more efficient so low in cost. Kim(2000) The reason of this study is to find out the normal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is very useful in creating a framework for connecting a firms SC integration strategy to its competitive strategy, and to find out how such a relation can be associated to the improvement of firm performance. Such effort also should help us to derive a lay down of suggested strategies of SCM practices for SC integration. These factors play a more critical role for sustainable performance enhancement also that competition capability may have more important effect on performance improvement. It is concluded that, in the early hours, the stress on total SC integration may be more vital. Once SC integration has been applied, it may be wise to work more on SCM practice and competition capability. Kim and Narasimhan (2002) examined the effects of information system utilization with respect to supply chain integration efforts. And came to a result that with the use of efficient information system we can increase the value and effectiveness off our supply chain and can help us to make our supply chain more efficient without making it costly. Krajewski (2000) developed a stochastic cost model to analyze the impact of supply Chain schedule integration with three levels of integration under various environmental 41

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi factors.

Lee et al. (1997) showed how the distorted information from downstream members can influence upstream members of a supply chain and investigated four causes of the bullwhip effect demand signal processing, rationing game, order batching, and price variations. Li et al. (2001) investigated the effects of information sharing strategies for four information sources: order, demand, inventory, and shipment. And by applying these strategies on these four sources a company could really improve the efficiency of its supply chain. MUKHOPADHYAY and AMAR (2003): There work deals with the study conducted for a fast moving consumer goods company having 14 production locations and 22 branches/clearing and forwarding agents. The company had 36 packing lines, with each line packing different varieties of stock-keeping units. In this company, supply chain cell activities were concentrated on the middle of the classical supply chain .The total cost concept includes non-quantifiable parameters An optimization technique has been proposed simultaneously to support the planning logic developed. The supply chain cell helps to optimize the total supply chain cost as well as enabling it to supplement other benefits such as an improvement in inventory turnover and a reduction in the inventory carrying cost. PIETRO & ALFONSO (1999) their findings indicate that most of the alliances exanlined are concentrated in the maritime transport phase rather than in inland transport and logistics seruices activities. They chiefly achieve objectives of internal efficiency and meet user logistical needs specifically in supplying higher service frequency and broader geographical coverage. Several implications for shipping line alliance strategies and supply chain management are suggested.

42

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Premaratne et al(2010):From their research they concludes that the integrated supply network eliminates the need for interfacing of individual networks and enables simultaneous planning of many components as well as forward planning of supply components in global supply chain operations. They show that the integrated approach is capable of providing visibility, flexibility, and maintainability for further improvement in the supply network environment. ROBERT and CHANDRA did research on transport integration tool for supply chain management and their findings are: by codifying the element of the research a contribution will have been made to the effective dissemination of the research to industry and thought leaders, which in turn will lead to practical exploitation, resulting in more integrated transport and supply chain management practice. Ru-Jen Lin They investigates the relationship between several supplier integration practices and time-based capabilities. We posit that both supplier integration and time-based capability are multi-dimensional constructs and not all collaborative activities are equally important to all aspects of time-based competition. Their final findings indicate while supplier integration contributes to the performance of a firms time-based competition, some integration practices are more effective than others. S. VACHON and R. D. KLASSEN (2006) works and their results indicate that resources were increasingly allocated toward pollution prevention when plants developed extensive strategic-level integration with suppliers, including such aspects as product development and knowledge sharing. However, these effects were not mirrored with customers. Instead, greater supply chain integration with customers was significantly related to pollution control. Collectively, they suggested that downstream supply chain members tend to favor prevention while simultaneously shifting the burden for control to upstream members. Safaeia et al (2009), from their findings they demonstrated that the number of iterations to converge hybrid procedure would lessen when we consider the production distribution problem in an integrated manner. Also, supply chain overall costs will be reduced through the integration of production and distribution problems. Finally, the solution is a 43

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi realistically optimal solution for the proposed integrated production-distribution planning problem. Sheikh et al (2008): conducted a research on An Analysis of Rise and Fall of SCM - ICT Integration by the FMCG Sector in Pakistan .his work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. In his article he examines data from the FMCG sector in Pakistan and work on model for Key Realization Concepts for Supply Chain Success (KRC-SCS). During his research FMCG companies which integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where ever the top management displayed greater appreciation and assurance towards technology as a key facilitator, was more successful than the companies who did not have believe in the same way At the end the results was that successful integration of ICT and SCM requires tactical commitment by the stakeholders and the top level management,. SUSANNE (2001) works on Dynamics of Alliances in Highly Integrated Supply Chain and his findings are that Partnerships and alliances are both tools to increase integration in supply chains and effects of increased integration. As a result of alliance, integration in supply chain networks effectiveness and efficiency increase. To develop highly integrated supply chain networks involves investing time, resources and much effort. Fleisch and Powell(2001) This paper is about the value of sharing information in a business network, the problem statement of this research was simple how the final supplier can meet promised delivery dates , in a typical supply chain the final supplier has little information so it is possible that the promised delivery date is not met and that lead to customer dissatisfaction but on the other hand in a information integrated supply chain in which the final supplier can interact with all the parties involved and hence can calculate how ahead or behind he is from the schedule. Two type of model were used in this research analytic and progressive, these models suggested that intermediately info sharing can improve the average on time delivery and increase customer satisfaction and can help us identify the

44

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi business network type so we can implement the right type of integration to produce high value. MASON and LALWANI(march 2006) worked for the betterment of integrated supply chain in the freight transport, this paper carries out the research of why it is important to improve supply chain in this field, what tools can be used to improve it and where these tools should be applied under what circumstances. The research showed or we can say proposed a decision making structure to aid managers in shaping a substitute plane to run their operations more efficiently and effectively. Eckerwall Johnsson; [2010]The thesis concludes that co-printing on real order in mixture with multicolor printing will lead to 34 % decrease in the least order size for customers and 61 % decrease of the complete goods inventories. The whole Value Metrics is used as a structure to recognize the value that this answer will bring to the customer. The customers will have assistance in expressions of lesser order sizes, more colorful designs and a supply chain that react more rapidly to changes on the market. The suggestion of changing the supply chain arrangement opens up for the preferred balance between cost efficiency and awareness towards customer demands. Van der Vorst et al. (2000) found that introducing an electronic data interchange (EDI) and real-time inventory system improved the performance of multi-echelon Food supply chains Zhao. (2001) examined the effects of forecasting models and early order commitment on a supply chain with one capacitated manufacturer and four retailers .the findings were that if the forecasting is correct and appropriate the cost of supply chain can be reduced and customer satisfaction can be increased Zhao and Xie (2002) analyzed the impact of forecasting errors and information sharing on the performance of a supply chain consisting of one supplier and four retailers. and his findings were that the organization could be very or more successful if these errors are kept to a minimum

45

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Zimmer (2002) developed a coordination mechanism that produces expected total cost of the entire supply chain as low as the best case in which a central planner make all decisions, while providing each member with the authority of decision making. VALLESPIR and KLEINHANS (2001): worked on helping a business make a very tough an important decision that where to position itself in a supply chain. Making this decision is also known a vertical integration and is also termed a make or buy decision, this decision also helps a company to locate itself within a network of its suppliers and customers. This research has come up with a planned set of items that must be considered and valued to make a decision about make or buy. Linnea and Patrik (2010) There study was basically performed in a three-step-process, which can be illustrated by a funnel, where the first step includes a general analysis of the Arctic oil and gas industry, which gradually will be narrowed down to a case study on a single company, on which the general aspects are applied. There work employs mainly a qualitative method with a mix of both analytical and systems approaches. Conclusions: The stakeholder analysis indicates a complexity within the Arctic oil and gas industry and different stakeholders are of different opinions. However, there are business potentials for Arctic OSV services, due to market demand and the current low state of competition. The case company, Maersk Supply Service, has good potential to benefit from these business potentials. There are however many risks and challenges associated with a market entrance and commencing operations in the region. JERRY and LEE work together on model for comparing supply chain schedule integration and they find result that increased forecast effectiveness helps mitigate the shortcomings of lower levels of integration. However, it cannot replace the value of a higher level of supply chain integration. Adil and vahit (2008): There are many studies in the literature that explain modern costing approaches including activity-based costing (ABC) , the number of studies that present real life applications is very few. Their work is especially true for logistics and transportation applications. One of the main difficulties In land transportation companies is to determine and evaluate true cost of their operations and services .I fused and implemented properly, ABC can be very helpful for transportation companies to determine cost of their operations with higher correctness. In this paper, an application of ABC to a land transportation 46

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi company that is located in Turkey is presented in detail. In order to improve the effectiveness of the ABC an integrated approach that combines ABC with business process modeling and analytical hierarchy approach is proposed. It is figured out that the proposed approach is quite effective in costing services of the land transportation company compared to the existing traditional costing system which is in use. Johanna and Andreas (2010): works on production philosophy at Tetra Pak Japan and their finding was inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a change in the supply chain structure. The purpose of their research was to explore the possibilities of combining cost efficiency with responsiveness towards customer demands. This balance will be investigated through co-printing on real demand Method. They concludes that co-printing on real demand in combination with multicolor printing will lead to 34 % reduction in the minimum order size for customers and 61 % reduction of the finished goods inventories. The Total Value Metrics is used as a framework to identify the value that this solution will bring to the customer. The customers will benefit in terms of smaller order sizes, more colorful designs and a supply chain that responds quicker to changes on the marketplace. The proposal of changing the supply chain structure opens up for the desired balance between cost efficiency and responsiveness towards customer demands. JERRY and LEE (2000): worked on two factors ,one of them was ,that what is the cost incurred on various levels if supply chain integration and do effective forecasting decrease the defects of supply chain integration, they used a stochastic cost model to find out the entire structure cost under various environmental factors. The findings of their research were that the companies could reduce a substantial level of cost if they use middle level of integration. Baker (2007) conducted a research on The design and operation of distribution centers within agile supply chains This paper examines this particular area by means of nine case studies into how individual business units design and operate distribution centers to provide a rapid response to their markets. The solutions used by these companies are categorized to 47

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi form a framework for addressing this subject and as a basis for further research into the practical application of agility at the distribution centre level. Banerjee et al. (2001) they worked on partial shipments in supply chain and their researched showed the benefits of controlled partial shipments within a two-echelon supply chain consisting of a single vendor and multiple buyers. Battezzati and Magnani(2001) the purposes of the study was to analyze the supply chain in the fast moving consumer goods sector in Italy and to show a specific way of management which is postponement , The growth of the postponement practice in Italy is indomitable by the exact characteristics of the industrial and distribution network and of the suppliers of services. Beamon and Chen (2001): conducted a performance analysis of conjoined supply chains that are a combination of convergent and divergent structure. In the convergent structure, multiple suppliers are connected with one manufacturer and in the divergent structure; the manufacturer is linked with multiple retailers. Wei and Impact analysis of customized demand information sharing 3355. CHEN et al (2007): works to extend the knowledge of manufacturing flexibility regarding its integration with supply chain activities. Specifically, they investigate the relationship between supplier collaboration and manufacturing flexibility in the motherboard industry. Their findings indicate that supplier collaboration plays a major role in the development of a firms manufacturing flexibility. And not all supplier collaborative activities contribute equally to the development of different types of manufacturing flexibility, and supplier collaboration could affect the interrelationships among new product, product mix, and volume flexibility. Cristina and Eva (2005): They examine the logistics-production and logistics-marketing interfaces and their relation with the external integration. They also investigate the causal impact of these internal and external relationships on the companys logistical performance. The generic results derived from their study are: Internal and external integration influence each other. Integration in the logistics-marketing interface does not lead to reductions in costs, stock-outs and lead-times, while the integration achieved in the 48

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi logistics-production interface does improve these performance measures, if there is no external integration. The external collaboration among supply chain members does always contribute to improving firms logistical performance. But their research has some limitations: other important members of the grocery supply chain (such as retailers, TPL, etc.) have not been considered and the effect of inter-firm co-ordination has only been analyzed from the perspective of the provider (as most studies do). Further research on the logistics-marketing impact on performance should be carried out and other important supply chain members should be considered. Their study contributes to the existing literature by showing that the impact on performance of internal integration depends on the functional areas that are being integrated and the level of external integration. DONG and PHOTIS (2008): works on the importance of port and terminal integration in the supply chain. They stressed the importance of agility to the port environment, which involves being proactive along supply chains, facilitation of intermodal integration, as well as organizational integration and partnership between ports and users. Despite the well articulated importance of the issues, little has been offered in terms of conceptualizations and empirical evidence of what really is meant by port/terminal integration in the supply chain, how such integration can be measured and quantified as well as the extent to which different ports/terminals in the world are integrated in the supply chain and competitive performance implications arising thereof. Eleonora et al (2007): Their work provides a quantitative assessment of the potential reduction in the bullwhip effect, and thus in safety stocks, in the supply chain, thanks to real-time visibility of product flows provided by the Radio Frequency Identification (RFID) technology and the EPC Network. The assessment is grounded on a representative Italian Fast Moving Consumer Goods (FMCG) supply chain; specifically, the representative supply chain is composed of three echelons, namely manufacturers, distributors and retailers of FMCG, whose main features, in terms of both quantitative and qualitative data, were derived through an appropriate survey phase. Reduction of safety stocks is determined based on quantitative methodologies available in the scientific literature. Their results shows that real-time visibility of the supply chain, brought in by 49

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi RFID and the EPC Network, can dramatically reduce the bullwhip effect, substantially affecting the economical profitability of the whole FMCG supply chain. Elgar and Stephen (2001): They work together on value of information integration in meeting delivery dates,and their findings are : the value of information integration is dependent on both the structure of the network itself (whether serial or arborescent) and on the typical customer order date in the production cycle. These insights allow us to begin to identify the types of business networks in which information integration will have the highest value. Ganeshan et al. (2001): studied the impact of inventory and flow planning parameters on supply chain performance using simulation and with the help of these simulation the results were that reaming in these parameters for a company is helpful in increasing the performance of our supply chain. Gilbert and Ballou (1999): studied on odder commitments and pre defined odder and his research showed how advance order commitments give downstream members the pricing incentives. Gimenez and Ventura (2003) this paper explores the logistics-production and logisticsmarketing interfaces and their relation with the external integration. The research also investigates the effect internal and external relations on the companys logistical presentations an empirical study is held in the FMCG sector for the sake of this research. DONG-WOOK and PHOTIS M. PANAYIDESz (2008): worked on this paper with a target to provide more work and input in the field of supply chain by working on reviewing the related literature, conceptual measure, empirical testing and its influence on integrated supply chain and port integrated and the value of port study for port operators. Grabot et al (2006) this paper propose a wider S&OP representation built with three levels (sales, operations and supply). It provides a better hold up for integration inside the company, but also for integration of the company in the Supply Chain. Some imitation 50

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi results are presented, describing the S&OP propagation along a SC, and the related association requirements to be content between the networked companies. Huang et al. (2003) worked and research on the information sharing in a supply chain And found out its importance and the impact of information sharing in supply chain dynamics. Agnes Wong (2008) works on Tetra Pak and corrugated cardboard suppliers in china .and analysis the current state of whole industry, and recommendations for improvement. As innovation can bring competitive advantage to companies, his work focused upon making extended value of material flow from Tetra Pak and suppliers. The aim of his project is to investigate the strategic intelligence can create value and strengthen Tetra Pak business relationship with its customers in big emerging markets like China. Theoretical framework creates a foundation for how to structure the efficiently utilize intelligence in the decisionmaking process for a MNC. Another aspect of his work is to examine supply network management process and the supplier relationship development in China, as well as the strategic, social, macro economy aspects that influence change management in medium and large organizations. Corrugated cardboard industry in China is still in a transitioning to a mature market. One conclusion drawn from his work in China is that the dairy producer should start emphasizing visual control on quality, and less concern on price. They should see their suppliers as long term partners but not just treat them as providers. Because it is fundamentally undercutting the ability of the organization to improve what it provides to customers through better quality and productivity. It hinders efforts from reducing cost. S.-T. YEE (2004): worked on the dynamic market environment and the changes it brings in customers preferences and the increase in customized products and diversed demand mix. He discusses how demand mix effect the supply chain and how companies can react to make it work properly and fulfill customer demand. The differences in the demand and production compitance also effect on performance. CAMPBELL and SANKARAN (2004): reported inductive development of a framework for enhancing the integration of supply chains. The framework has been motivated by the need to enhance the participation of small and medium enterprise (SME) suppliers and 51

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi resellers in the supply chain. Extant diagnostics are geared towards enabling enterprises to evaluate or benchmark themselves on a self-administered rating scale in relation to their peers. In contrast, the present framework aims to enable small sized suppliers and resellers to systematically imbibe supply chain integration practices, to the extent applicable, from their more advanced trading partners, after possibly adapting them to their own business circumstances. The broad approach has been to first conduct in-depth case study research into enterprises that excel in one or more facets of integration (customer integration, supplier integration etc.) and then induce items pertaining to various themes and subthemes of supply chain integration. The resulting framework is thus an empirically wellgrounded and fine-grained, actionable complement to extant, broader-brushed mechanisms and diagnostics for supply chain integration. James et al (2009-2010): To fill up the void in this line of research, we propose coordination theory that can explain contributory links between supply chain reformation and key strategic variables necessary for the supply chain success from focal company perspectives. These strategic variables may include the extent of co-ordination with suppliers, the degree of information sharing with suppliers, and the level of organizational integration. Our empirical analysis, based on the International Manufacturing Strategy Survey IV, confirms the validity of co-ordination theory in that business initiatives intended for greater co-ordination and information sharing with suppliers turned out to be a major driving force behind supply chain restructuring, which facilitates organizational integration. JEAN-PAUL and THEO Shows those logistics service providers are using terminals in

their supply chains. They argues that an increasing terminalization of supply chains is unfolding, whereby seaport and inland terminals are taking up a more active role in supply chains by increasingly confronting market players with operational considerations such as imposing berthing windows, dwell time charges, truck slots, all this to increase throughput, optimize terminal capacity and make the best use of available land. With the development of inland terminals, a new dimension is being added: logistics players are now making best use of the free 52

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Time available in seaports terminals and inland terminals, thereby optimizing the terminal buffer function. At the end they find a result that transport terminals are achieving an additional level of integration within supply chains that goes beyond their conventional transshipment role. Given increasing levels of vertical integration in the market and an increasing pressure on port capacity, a further terminalization of supply chains is likely to occur, which will strengthen the active role of terminals in logistics. Karaesmen et al. (2002) studied optimal control policies of a make-to-stock single production system with advance order information. And his findings were that if the optimal control policies are kept in mind while handling this system it could be more efficient so low in cost. Kim(2000) The reason of this study is to find out the normal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is very useful in creating a framework for connecting a firms SC integration strategy to its competitive strategy, and to find out how such a relation can be associated to the improvement of firm performance. Such effort also should help us to derive a lay down of suggested strategies of SCM practices for SC integration. These factors play a more critical role for sustainable performance enhancement also that competition capability may have more important effect on performance improvement. It is concluded that, in the early hours, the stress on total SC integration may be more vital. Once SC integration has been applied, it may be wise to work more on SCM practice and competition capability. Kim and Narasimhan (2002) examined the effects of information system utilization with respect to supply chain integration efforts. And came to a result that with the use of efficient information system we can increase the value and effectiveness off our supply chain and can help us to make our supply chain more efficient without making it costly. Krajewski (2000) developed a stochastic cost model to analyze the impact of supply Chain schedule integration with three levels of integration under various environmental 53

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi factors. Lee et al. (1997) showed how the distorted information from downstream members can influence upstream members of a supply chain and investigated four causes of the bullwhip effect demand signal processing, rationing game, order batching, and price variations. Li et al. (2001) investigated the effects of information sharing strategies for four information sources: order, demand, inventory, and shipment. And by applying these strategies on these four sources a company could really improve the efficiency of its supply chain. MUKHOPADHYAY and AMAR (2003): There work deals with the study conducted for a fast moving consumer goods company having 14 production locations and 22 branches/clearing and forwarding agents. The company had 36 packing lines, with each line packing different varieties of stock-keeping units. In this company, supply chain cell activities were concentrated on the middle of the classical supply chain .The total cost concept includes non-quantifiable parameters An optimization technique has been proposed simultaneously to support the planning logic developed. The supply chain cell helps to optimize the total supply chain cost as well as enabling it to supplement other benefits such as an improvement in inventory turnover and a reduction in the inventory carrying cost. PIETRO & ALFONSO (1999) their findings indicate that most of the alliances exanlined are concentrated in the maritime transport phase rather than in inland transport and logistics seruices activities. They chiefly achieve objectives of internal efficiency and meet user logistical needs specifically in supplying higher service frequency and broader geographical coverage. Several implications for shipping line alliance strategies and supply chain management are suggested. Premaratne et al(2010):From their research they concludes that the integrated supply network eliminates the need for interfacing of individual networks and enables 54

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi simultaneous planning of many components as well as forward planning of supply components in global supply chain operations. They show that the integrated approach is capable of providing visibility, flexibility, and maintainability for further improvement in the supply network environment. ROBERT and CHANDRA did research on transport integration tool for supply chain management and their findings are: by codifying the element of the research a contribution will have been made to the effective dissemination of the research to industry and thought leaders, which in turn will lead to practical exploitation, resulting in more integrated transport and supply chain management practice. Ru-Jen Lin They investigates the relationship between several supplier integration practices and time-based capabilities. We posit that both supplier integration and time-based capability are multi-dimensional constructs and not all collaborative activities are equally important to all aspects of time-based competition. Their final findings indicate while supplier integration contributes to the performance of a firms time-based competition, some integration practices are more effective than others. S. VACHON and R. D. KLASSEN (2006) works and their results indicate that resources were increasingly allocated toward pollution prevention when plants developed extensive strategic-level integration with suppliers, including such aspects as product development and knowledge sharing. However, these effects were not mirrored with customers. Instead, greater supply chain integration with customers was significantly related to pollution control. Collectively, they suggested that downstream supply chain members tend to favor prevention while simultaneously shifting the burden for control to upstream members. Safaeia et al (2009), from their findings they demonstrated that the number of iterations to converge hybrid procedure would lessen when we consider the production distribution problem in an integrated manner. Also, supply chain overall costs will be reduced through the integration of production and distribution problems. Finally, the solution is a realistically optimal solution for the proposed integrated production-distribution planning problem. 55

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Sheikh et al (2008) : conducted a research on An Analysis Of Rise And Fall Of SCM ICT Integration By The FMCG Sector In Pakistan .his work targets Fast Moving Consumer Good (FMCG) companies located in Pakistan. In his article he examines data from the FMCG sector in Pakistan and work on model for Key Realization Concepts for Supply Chain Success (KRC-SCS). During his research FMCG companies which integrated ICT with SCM in a sequentially structured approach, took shorter learning curves, had realistic Return on Investment (ROI) expectations, and where ever the top management displayed greater appreciation and assurance towards technology as a key facilitator, was more successful than the companies who did not have believe in the same way At the end the results was that successful integration of ICT and SCM requires tactical commitment by the stakeholders and the top level management,. SUSANNE (2001) works on Dynamics of Alliances in Highly Integrated Supply Chain and his findings are that Partnerships and alliances are both tools to increase integration in supply Chains and effects of increased integration. As a result of alliance, integration in supply chain networks effectiveness and efficiency increase. To develop highly integrated supply chain networks involves investing time, resources and much effort. Fleisch and Powell(2001) This paper is about the value of sharing information in a business network, the problem statement of this research was simple how the final supplier can meet promised delivery dates , in a typical supply chain the final supplier has little information so it is possible that the promised delivery date is not met and that lead to customer dissatisfaction but on the other hand in a information integrated supply chain in which the final supplier can interact with all the parties involved and hence can calculate how ahead or behind he is from the schedule. Two type of model were used in this research analytic and progressive, these models suggested that intermediately info sharing can improve the average on time delivery and increase customer satisfaction and can help us identify the business network type so we can implement the right type of integration to produce high value. 56

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

MASON and LALWANI(march 2006) worked for the betterment of integrated supply chain in the freight transport, this paper carries out the research of why it is important to improve supply chain in this field, what tools can be used to improve it and where these tools should be applied under what circumstances. The research showed or we can say proposed a decision making structure to aid managers in shaping an substitute plane to run their operations more efficiently and effectively. Eckerwall Johnsson; [2010]The thesis concludes that co-printing on real order in mixture with multicolor printing will lead to 34 % decrease in the least order size for customers and 61 % decrease of the complete goods inventories. The whole Value Metrics is used as a structure to recognize the value that this answer will bring to the customer. The customers will have assistance in expressions of lesser order sizes, more colorful designs and a supply chain that react more rapidly to changes on the market. The suggestion of changing the supply chain arrangement opens up for the preferred balance between cost efficiency and awareness towards customer demands. Van der Vorst et al. (2000) found that introducing an electronic data interchange (EDI) and real-time inventory system improved the performance of multi-echelon Food supply chains Zhao. (2001) examined the effects of forecasting models and early order commitment on a supply chain with one capacitated manufacturer and four retailers .the findings were that if the forecasting is correct and appropriate the cost of supply chain can be reduced and customer satisfaction can be increased Zhao and Xie (2002) analyzed the impact of forecasting errors and information sharing on the performance of a supply chain consisting of one supplier and four retailers. and his findings were that the organization could be very or more successful if these errors are kept to a minimum. Zimmer (2002) developed a coordination mechanism that produces expected total cost of the entire supply chain as low as the best case in which a central planner make all decisions, while providing each member with the authority of decision making. 57

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

CHAPTER NO.3 RESEARCH METHODOLOGY

58

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

3.1.Population sample

For our thesis the population has been taken from the FMCG companies in Rawalpindi and from those we have selected four listed FMCG companies of Pakistan and we have compiled their data. 3.2.Method of Sampling

In this research we used area sampling as our scope of study was limited to the fast moving consumer goods sector of the city of Rawalpindi. 3.3.Data Collection We used questionnaire which was self administered as it was distributed to suppliers if tetra pack milk in Rawalpindi, as this was the basic target market for our research, and this was the area from where we were able collect data which was accurate and useful. 3.4.Size of Sample

The total number of questionnaire distributed was 210, which were distributed all over Rawalpindi. This was the total sample size of our research most of them was male as most of the working people in this sector are male but few samples were also collected from some of the females.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

3.5.Data Analysis As the analysis of this research was very important and was to be conducted very carefully and efficiently so for the sake of this reason the software used for the data analysis in this research was SPSS 13.0, the test applied were Correlation and Regression.

3.6.Data Interpretation

The data for this research can be analyzed using the instrument stated above and then the analysis tool through which we can get the output will be by Correlation and Regression. 3.7.Hypothesis

H-1: Companies integration with suppliers shows positive relationship on customer satisfaction. H-2: Company integration within the company shows positive relationship on customer satisfaction. H-3: Company integration with customers shows positive relationship with customer satisfaction.

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CHAPTER NO.4 RESULTS AND DISCUSSIONS


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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

INTEGRATED SUPPLY CHAIN MANAGEMENT


FIRM PERFORMANCE

We have taken four listed FMCG companies of Pakistan, which includes NESTLE MILK PACK, NURPUR, Haleeb Foods, and Engro Foods (Pvt.) Limited. The collection of data of those FMCG companies is analyzed in SPSS software and the results which we get from that data can be interpreted under:

4.1.Correlation:
Correlations

CIWS CIWS Pearson Correlation Sig. (2-tailed) N CFIC Pearson Correlation Sig. (2-tailed) N CIWC Pearson Correlation Sig. (2-tailed) N CS Pearson Correlation Sig. (2-tailed) N 1 210 .522(**) .000 210 .604(**) .000 210 .504(**) .000 210

CFIC .522(**) .000 210 1 210 .706(**) .000 210 .658(**) .000 210

CIWC .604(**) .000 210 .706(**) .000 210 1 210 .786(**) .000 210

CS .504(**) .000 210 .658(**) .000 210 .786(**) .000 210 1 210

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

** Correlation is significant at the 0.01 level (2-tailed). Correlation analysis indicates that the results of Companies integration with suppliers shows highly positive significant relation with Customer satisfaction(.522**,p<0.01) and Cross functional integration with suppliers shows highly positive significant relation with Customer satisfaction(.658**,p<0.01) and Companies integration with customers also shows highly positive significant relation with Customer satisfaction(.786**,p<0.01)

Statistics

N Mean Std. Deviation

Valid Missing

gender 210 0 1.08 .266

age 210 0 2.52 1.059

qualification 210 0 2.72 1.390

WE 209 1 2.41 1.186

N=210

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Gender


Cumulative Valid male female Total Frequency 194 16 210 Percent 92.4 7.6 100.0 Valid Percent 92.4 7.6 100.0 Percent 92.4 100.0

Qualification
Cumulative Valid masters M.S PhD others Total Frequency 74 17 12 107 210 Percent 35.2 8.1 5.7 51.0 100.0 Valid Percent 35.2 8.1 5.7 51.0 100.0 Percent 35.2 43.3 49.0 100.0

Age
Cumulative Valid 20-30yrs 31-40yrs 41-50yrs 51-60yrs 60 above Total Frequency 40 63 72 27 8 210 Percent 19.0 30.0 34.3 12.9 3.8 100.0 Valid Percent 19.0 30.0 34.3 12.9 3.8 100.0 Percent 19.0 49.0 83.3 96.2 100.0

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Work Experience
Cumulative Valid 1-5yrs 6-10yrs 11-15yrs 16-20yrs 21-25yrs Total Missing Total System Frequency 47 87 35 23 17 209 1 210 Percent 22.4 41.4 16.7 11.0 8.1 99.5 .5 100.0 Valid Percent 22.5 41.6 16.7 11.0 8.1 100.0 Percent 22.5 64.1 80.9 91.9 100.0

4.2.Regression:

Model Summary
Adjusted R Model 1 R .800(a) R Square .639 Square .634 Std. Error of the Estimate 2.39998

a Predictors: (Constant), companies integration with suppliers , cross functional integration within companies , companies integration with customers 65

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi N=210 Dependent Variable: Customer satisfaction The value of R-square (.639) indicates that 63.9% variation is in customer satisfaction caused companies integration with suppliers , cross functional integration within companies , companies integration with customers . And 23.1% remained unexplained.

Coefficients (a)
Unstandardized Model 1 (Constant) CIWS CFIC CIWC Coefficients B 2.133 .024 .190 .760 Standardized Coefficients Beta .016 .203 .634 t 1.704 .292 3.385 9.883 Sig. .090 .771 .001 .000

Std. Error 1.252 .081 .056 .077

A Dependent Variable: CS

The independent variables shows significant impact on the dependent variable because t>2 Companies integration with customers shows highly positive significant relationship with the existing h1 hypothesis because both are supporting each other.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

CHAPTER NO.5 CONCLUSION AND RECOMMENDATIONS

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5.1.Conclusion Our research hypnotized that the integrated supply chain had a great influence on this sector as the research showed that companies integration with supplier showed highly insignificant positive relation with customers satisfaction so did cross functional`` integration within the company and companies integration with customers all showed highly positive relation with customer satisfaction. This research show that the companies in this sector if the apply the integrated supply chain the can achieve customer satisfaction and can increase there profits without increasing the price. 5.2.Recommendations o The supply chain in the tetra pack sector of Rawalpindi is very week and should be improved. o There should be more efforts put in by the government. o There should be more effort by put in by the business sector as well. o The improvement in the supply chain in this sector will help retain low cost , so it will help in maintaining prices.

5.3.References TRAPPEY, A. J. C. TRAPPEY and F. T. L. LIN International Journal of Computer Integrated Manufacturing, Vol. 20, pg 423-425 ,No. 5, July August 2007. YAN YE,DONG YANG, ZHIBIN JIANG and LIXIN TONG, International Journal of Computer Integrated Manufacturing, Vol. 21, No. 1, pg 1-8,January February 2008. KUDRET DEMIRLI* and ALEBACHEW D. YIMER International Journal of Production Research, Vol. 46, No. 14,pg 3931-3958, 15 July 2008.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi HYERIM BAE and YONGWON SEO Pusan National University, International Journal of Production Research, Vol. 45, No. 11, 1 June 2007, 25452566. M. STEVENSON* and L. C. HENDRY Production Planning & Control, Vol. 18, No. 2,pg 142-155, March 2007. omain Guillaumeab, Caroline Thierrya and Bernard Grabot , Production Planning & Control 2010, 117, I First PETRONI ALBERTO* International Journal of Logistics: Research and Applications, Vol. 3, No. 3, 2000 JEAN-PAUL RODRIGUE and THEO NOTTEBOOM MARIT. POL. MGMT., VOL. 36, NO. 2, 165183,April 2009. S. SEN, H. BASLIGIL, C. G. SEN and H. BARAC Liz International Journal of Production Research, Vol. 46, No. 7, 1 April 2008, 18251845. SOO WOOK KIM and RAM NARASIMHAN int. j. prod. res., vol. 40, no. 18, 45854609 2002. Premaratne Samaranayakea, Tritos Laosirihongthongb and Felix T.S. Chan International Journal of Production ResearchVol. 49, No. 11, 31273149,1 June 2011. Ru-Jen Lin* Journal of the Chinese Institute of Industrial Engineers, Vol. 26, No. 3, pp. 215-227 (2009) CHEN-LUNG YANG, C. H. LIN & CHWEN SHEU , Total Quality Management Vol. 18, No. 9, 957972, November 2007 . ROBERT MASON and CHANDRA LALWANI , International Journal of Logistics: Research and Applications Vol. 9, No. 1, pg 5774 March 2006.

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi B. VALLESPIR and S. KLEINHANS PRODUCTION PLANNING & CONTROL, VOL. 12, NO. 5, 478 487, 2001. PIETRO EVANGELISTA & ALFONSO MORVILLO Research lnstitute on Service Activities , National Research Council , Naples, Italy, International Iournal of Logistics: Research and Applications, Vol. 2, No. 1,1999. JERRY WEI and LEE KRAJEWSKI INT. J. PROD. RES, VOL. 38, NO. 9, 2099 2123,2000. Sagren Moodley : Development Southern Africa Vol. 19, No. 5, December 2002.

MARTIN CHRISTOPHER & UTA JU TTNER International Journal of Logistics: Research and Applications, Vol. 3, No. 1, 2000. James Jungbae Roh,, Hokey Min and Paul Hong International Journal of Production Research , 125, iFirst 2010. SAMRAT MONDAL and M. K. TIWARI int. j. prod. res, vol. 41, no. 1, 97119, 2003. SUSANNE HERTZ International Journal of Logistics: Research and Applications, Vol. 4, No. 2, 2001. Stuart So and Hongyi Sun Department of Manufacturing Engineering and Engineering Management, City University of Hong Kong ,International Journal of Production Research Vol. 49, No. 2, 15 , 447466,January 2011. A.S. Safaeia, S.M. Moattar Husseinia, R. Z.-Farahania, F. Jolaib and S.H. Ghodsypoura International Journal of Production Research Vol. 48, No. 14, 40434069,15 July 2010. P. SAMARANAYAKE and D. TONCICH International Journal of Production Research, Vol. 45, No. 22, 54175447, 15 November 2007. J. CAMPBELL and J. SANKARAN International Journal of Production Research, 70

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Vol. 43, No. 16, 33213351, 15 August 2005, P. Sasikumar and A. Noor ul Haq Department of Production Engineering, National Institute of Technology, Tiruchirappalli 620 015, India Research Vol. 49, No. 11, 33633385, 1 June 2011. Elgar Fleisch and Stephen G. Powell Journal of organizational; computing and electronic commerce 11(1), 1530 (2001). A Louw, D Jordaan, L Ndanga and JF Kirsten. Alternative marketing options for smallscale farmers in the wake of changing agri-food supply chains in South Africa Agrekon, Vol 47, No 3 (September 2008). Y. C. W. WANG, M. S. H. HENG and C. T. B. HO Business-to-business integrationthe mediating effects of network structure and network atmosphere Production Planning & Control, Vol. 16, No. 6, 575585. September 2005. S. K. MUKHOPADHYAY and AMAR KANTI BARUA Supply chain cell activities for a consumer goods company int. j. prod. res, vol. 41, no. 2, 297314 ,2003. DAVIDE NICOLINI1, RICHARD HOLTI AND MARK SMALLEY Integrating project activities: the theory and practice of managing the supply chain through clusters. Construction Management and Economics 19, 3747 (2001). S. VACHON technologies: the role of integration International Journal of Production Research, Vol. 45, No. 2, 401423, 15 January 2007. U.M. Al-Turki, S. Duffuaa, T. Ayar and O. Demirel Stakeholders integration in higher education: supply chain approach European Journal of Engineering Education Vol. 33, No. 2, 211219 ,May 2008. E. T. KIRCHE, S. N. KADIPASAOGLU and B. M. KHUMAWALA Maximizing supply chain profits with effective order management: integration of Activity-Based Costing and Theory of Constraints with mixed-integer modeling International Journal of Production Research, Vol. 43, No. 7, 12971311,1 April 2005. 71 and R. D. KLASSEN Supply chain management and environmental International Journal of Production

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi S.-T. YEE, Impact analysis of customized demand information sharing on supply chain performance International Journal of Production Research, Vol. 43, No. 16, 33533373, 15 August 2005. Photis M. Panayidesa and Dong-Wook Song Port integration in global supply chains: measures and implications for maritime logistics International Journal of Logistics: Research and Applications Vol. 12, No. 2, 133145, April 2009. DONG-WOOK SONG and PHOTIS M. PANAYIDES Global supply chain and port/terminal: integration and competitiveness MARIT. POL. MGMT. VOL. 35, NO. 1, 7387 , FEBRUARY 2008. HYERIM BAE and YONGWON SEO BPM-based integration of supply chain process modeling, executing and monitoring International Journal of Production Research, Vol. 45, No. 11, 25452566 1 June 2007. Lie-Chien Lin ,Tzu-Su Li An integrated framework for supply chain performance measurement using six-sigma metrics Software Qual J (2010) 18:387406. M. STEVENSON and L. C. HENDRY Improving supply chain integration using a workload control concept and web-functionality Production Planning & Control, Vol. 18, No. 2, 142155, March 2007. H. C. MAKATSORIS, Y. S. CHANG and H. D. RICHARDS Design of a distributed order promising system and environment for a globally dispersed supply chain int. j. computer integrated manufacturing , VOL. 17, NO. 8, 679691 December 2004. http://www.scribd.com/doc/41120260/Distribution-Channel-of-Olpers

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5.4.Annexures

Annexure -1 List of Selected Companies

Sr. No. 1 2 3 4

Bank Name

Nestl (NESTLE MILK PACK) Nurpur (NURPUR MILK) Haleeb Foods (HALEEB MILK) Engro Foods (Pvt.) Limited (OLPERS MILK)

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Annexure -2 HFL Milk collection area Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Milk Collection Zones Arifwala Bahawalnagar Bahawalpur Bhowana Mian Channu Haveli Jhang Pakpattan 8 Okara Rahim Yar Khan Shah Jewna Narowal Upper Sind Lower Sind

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http://www.scribd.com/doc/36084635/Haleeb-Incomplete-Info

Annexure -3 Haleeb Milk Supply Chain


Dairy Farmer

Gawala (Milkman)

VMCC

PHE 75

Company Vehicle

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

Sweet/Milk Shop Company Milk Plant

Retailer

Consumer

http://www.scribd.com/doc/36084635/Haleeb-Incomplete-Info

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Annexure -4 77

Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Supply Chain Structure

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi Annexure -5 Olpers Supply Chain

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Impact of Integrated Supply Chain Management on Firm Performance in Rawalpindi

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