Effectively Managing Supply Chain Management Using EBusiness Strategies: A Case Study of

Table of Contents 1. Introduction______________________________________________2

1.1. Background_____________________________________________________2 1.2 Scope of supply chain______________________________________________3 1.3 Why to use e-business Strategies to manage supply chain__________________3 1.4Dells supply chain management _____________________________________4 1.5 Rationale of the study______________________________________________5 1.6 Research Questions_______________________________________________5 1.7 Research Objectives_______________________________________________5

2. Literature Review__________________________________________7
2.1 Supply Chain Management__________________________________________7 2.2 Why to manage supply chain________________________________________8 2.3 E-business Strategies and Supply Chain Management____________________8

3. Methodology_____________________________________________11
3.1. Methods of Research_____________________________________________11 3.2. Research Philosophy_____________________________________________11 3.3. Research Approach:_____________________________________________11 3.4. Methods of Data Collection________________________________________12 3.5. Instruments of study______________________________________________12
3.2.1. Interview .............................................................................................................................12

3.6. Sample of the Study______________________________________________13 3.7 Interpretation Technique__________________________________________13 3.6. Validity, Reliability and Generalisabilty______________________________13 3.7 Ethical Considerations:___________________________________________13 3.8 Conclusion_____________________________________________________14 3.9 Project Plan____________________________________________________14

4. References______________________________________________16

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1. Introduction
1.1. Background
Earlier supply chain process was handled manually; this tentative supply chain was an isolated process which only used to manage the services of supplying the raw material to the firm. Distributors, suppliers, customers, global sources, and information system were not integrated in a single supply chain system and outcome was production inefficiencies, cost inefficiencies e-g higher transaction costs, resource costs and information cost etc, unavailability of accurate information, delayed order fulfillment and difficulties in managing the complicated interfaces between the company and the suppliers. Several efforts were made to cope with the challenges created by the outworn supply chain system (Johnson and Whang, 2002). Digitization of the supply chain became necessary for the efficient performance of the business. It became impracticable for the business to run without optimizing the supply chain and combining the other business processes e-g customer relationship management, logistics management and inventory management into the supply chain process. In order to cope with the challenges, Electronic Data Interchange system was introduced in early 1960s. The idea of electronic data interchange got the popularity in 1990s when Enterprise Resource Planning Systems (ERPS) emerged. In Later 1990s and by the start of the new century the supply chain systems were evolved into internet based supply chain management which integrated the internet technologies into the supply chain systems. Recently the global expansion of the businesses is creating enormous challenges for the businesses to manage the supply chain. As the businesses are expanding the need to integrate the supply chain with global technologies is getting intense and this is why many companies have devised the ebusiness strategies to integrate the internet and global technologies with the supply chain system (Lavassani et al., 2008). The following study will investigate that how successful businesses have managed the supply chain using e-business strategies, why managing supply chain has become important for the businesses and why businesses need e business strategies to manage the supply chaine effectively, for the purpose case of Dell will be discussed.

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1.2 Scope of supply chain

Harland (1996) defined supply chain management in terms of handling a network of those interconnected business activities whose sole and collaborative purpose is the provision of the valuable products/services to the business to assist them in aim of fulfilling the final customers need. Supply chain collaborative activities include procurement, sourcing, warehousing and inventory management, logistics management and distribution, world-wide relationship management and information sharing with global suppliers, channel partners and companies by interconnecting the customer relationship management into SCM to convey the end customers need consistently to the suppliers through the companies and synchronizing the supply of goods and services with the demand. Information system and global sources of information today have become important components of supply chain management system (Hendricks and Singhal, 2003). Latterly supply chain has become a competitive advantage; value-additive (speedy delivery, quality output, consistent information sharing) and cost reductive and dexterous business process for many of the successful businesses, which laterally has not only facilitated the businesses to keep a focus on other areas of the business by freeing the time the businesses used to plan and work on supply chain but also has ensured the various aspects of total quality management at various levels by practically providing the quality and speedy services (Ireland and Webb, 2007; Hendricks and Singhal, 2003; Mentzer et al., 2001). This is why it is important to manage the supply chain with rational business strategies, the alignment of the supply chain with the business strategy is very important this is why the global firms (e-g Toyota , Dell, Nokia, P&G) have supply chains which use e-business strategies to manage all the functions of the firm related to supply chain, globally.

1.3 Why to use e-business Strategies to manage supply chain

The business world was revolutionized during last decade with the emergence of internet and information technologies. Internet has affected many business dimensions including the supply chain. Ways to handle the business process are changed; they are no longer linear, manual, or sequential. The businesses are turning into globalized enterprises; thus need to connect the supply chain partners from different locations to

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E- Supply Chain at ensure the timely services; is getting intense. To manage the localized supply chain in different countries as a global firm; the connection between the firm and its suppliers and partners has become crucial and this is why internet technologies are getting more and more important every passing day. Internet is the cheaper and most efficient way to manage the business globally. Many businesses which run their many operations online, have integrated the supply chain into their networks and internet e-g Dell, Toyota etc. (Kocakulah et al., 2002; Informationweek.com, 2000). Businesses which are getting globalized are focusing the e-business strategies for various business processes; one of those strategies is e-business strategy for supply chain. The businesses which are using e-business strategies to manage the supply chain are enjoying the reimbursements such as real-time communication with the supply partners and customers, speedy production, flexible choices, high customization, higher profits, cost savings, consistent and streamlined information sharing and collaborative efforts within the company and externally which in turn is taking the profits to the upward trends (Kocakulah et al., 2002).

1.4Dells supply chain management

Dell is an American mutinational IT cororation headquatered at Round Rock in Texas. It deals in technology related products e-g computers, laptops, cameras, printers, and related products. It customers include individuals, communities and countries. Dell is the 5th largest company of 2010, listed at Fortune in IT industry. So far Dell has earned a great name due to effectively managing the relationhips with its various stakeholders and partners. Dells core performance is the result of its sucessful e-business strategies. Supply chain at Dell is an compettive advantage for the company over its rivals, Dell uses a pull demand strategy, and it has interconnected its customers, suppliers and other channel partners into its internet based SCM. SCM at Dell integrated the onfiguration , procurement management, warehousing and inventory management, logistics and relationship management and customer services with SCM to make it easy for the suppliers to understand the needs of the customers globally.

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E- Supply Chain at Dells unique e-business SCM strategies include Direct Build-to-Order, which it has been using from more than 20 years. The strategy is such that the Dell has allowed the customers to directly put the order on its web site or via phone and chose the parts from different companies which the customers want in their final product, it has connected the system with its suppliers with directly sell manufactured products to Dell and these products are assembles using Just In Time (JIT) technique and are made readily available to the customers (Chopra and Mieghem, 2000).

1.5 Rationale of the study

Researchers personal interest in the topic motivated him to carry the research, besides that; the scope of supply chain management is getting wider day by day, and it is creating a lot of opportunities for the people to pursue their careers in it, the research will help the researcher in pursuing his career in supply chain management. This research can be helpful for those businesses which are either intended to use ebusiness strategies for managing the supply chain in near future, or which are currently transforming the local businesses into globalized company, to know the benefits of using e-business strategies and its impact at supply chain.

1.6 Research Questions

The following study will investigate that how e-business supply chain management strategies affects the business performance, the case of Dell will be discussed, other research questions are as follows: 1. Why e-business supply chain strategy is important for a global business? 2. How e-business strategy impacts the supply chain and business performance 3. How Dell is effectively managing the supply chain using e-business strategies? 4. Can the e-business strategy be adopted by other local or global companies for different industries?

1.7 Research Objectives

Research has devised the following objectives: 1. To investigate with the help of literature that how e-business strategies affect the supply chain

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E- Supply Chain at 2. To probe that how integration of e-business strategies into supply chain management system impacts the business performance 3. To explore that how Dell has achieved competitive advantage with its ebusiness supply chain strategies 4. To examine the contribution of e-business strategies in influencing the Dells profitability, competency and customer satisfaction

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2. Literature Review
The following section will provide in-depth understanding that why e-business strategies are important to manage the supply chain effectively and why businesses need to manage the supply chain.

2.1 Supply Chain Management

According to Cooper et al. (1997), Global Supply Chain Forum explained that an integration and management of key business activities which are used to provide the products/services and information to the end user through the original suppliers to add value towards the end user and as well as to other stakeholders is known to as supply chain management. Each and every firm contributes in its supply chains from the purchase of the raw materials to the deliverance of end product to the end consumer. Need of these supply chains depends on a number of aspects, such as the intricacy of the manufactured goods, convenience of availability of raw materials, and the number of easily accessible suppliers. Businesses have to figure out the span of the supply chain, customers and suppliers at every stage. Thus it is exceptional case if a business only contributes in only One supplier. Network of the supply chain varies according to the firms position in the market. Companies for which the supply chain lays in heart of all the business processes include 3M, Colgate-Palmolive, Dell and Hewlett-Packard. Supply chain is like a chain or a pipeline which connects the suppliers and customers with the company to share important information and to add value to each other. According to Keely et al. (2001) thriving supply chain management necessitate an alteration from supervising individual functions to the assimilating actions into key supply chain management methods. The most important supply chain practices recognized by affiliates of The Global Supply Chain Forum are all those necessary actions which are used primarily to bring the designed products to the final purchasers, by acquiring resources, manufacturing products, commercialization, taking the orders, receiving payments, and delivering product and creating relationships with suppliers and customers and finally managing the return. Thus it is very important to manage the supply chain functions effectively and successfully to satisfy the final customer.

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2.2 Why to manage supply chain

According to the Christopher (1998) management of supply chain is all about efficiently incorporating the material and information flows within the demand and supply process. It is an era of changed business environment none of the organization can control or manage its business operations without effectively managing the supply chain. Supply chain management is the management of associations crossways the supply chain business process. Supply chain is a set of connections among the company, information providers, customers and suppliers and as well as a value chain which provides an opportunity to company to incarcerate intra-company and intercompany synergic efforts to increase the reimbursements. SCM deals with business procedures, quality and correspond to a new technique of supervision of the business and interactions with former affiliates of the supply chain. According to a reviewed report business with excellent supply chain management demonstrates better financial performance. The report showed that those companies which have competitive supply chain management hold 15% lower inventory, over 17% higher order ratings, 5% higher profit margins, 35% shorter cash to cash cycles time, over 1% improvement in order rates and higher EPS than the other rivals (Krivda, 2004).

2.3 E-business Strategies and Supply Chain Management

According to Kocakulah et al. (2002) e-business and its components can be of great advantage in efficiently managing the supply chain especially when the company deals in different countries or at different locations, e-business makes alliances between the company and its all supply chain partners. E-business harmonizes and unites all of the business practices e.g., transactions, sales, promotion, investment, marketing, finance, and book-keeping to get rid of inner expenses. With the use of the e-business elements, companies can interact openly with traders and producers; letting them to eradicate the expenditures of distribution. In recent dynamic business environment, companies are required to be on the principal border of technology in order to have a competitive advantage over the other players in the same industry. Accurately executed and administered, internet technologies escort the substantial profit through all the functions of business organizations. One most important

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E- Supply Chain at advantage of e-business is its capability to handle the supply chain more efficiently. The figure shows that how e-business strategies have made it possible for the firms to manage the supply chain globally:

Source: Kalakota et al. (1997, p.293)

Although e-business strategies have brought many benefits to the supply chain but it also needs enormous resources for the successful implementation of its technologies. It has posed some challenges related to the management as greater skills are required to manage it effectively. However the costs related to its implementation are very few as compared to the benefits it brings to the business, as it can be a sustainable competitive advantage for the business firms. Businesses e-g Dell today work directly with the manufacturers, suppliers and customers, e-business has made it possible to remove the various intermediary levels and costs (Mougayar and Walid, 1998). The following study will investigate the e-business strategies of supply chain management at Dell. Communication Networks such as Internet can make it possible for the firm to integrate and manage all the supply chain functions and various entities efficiently. The internet and intranet allow the easy information sharing and communication by concatenating the entities involved in the supply chain process. Thus the communication is an important ingredient of the global businesss supply chain network, which is impossible without internet. According to Bartoo et al. (2000) the Internet is a compilation of communal and confidential interactions set of Page 9

E- Supply Chain at connections that connect businesses to businesses and business to consumers. The speediness and easiness of use of the internet can assist the stream of information from the vendors to the clients, with end result in cost diminution allied with order dispensation and customer facility. A further more a company intranet is a precious network in e-business, which is founded on the know-how of internet technologies, but is used first and foremost within a solo organization. The intranet activities permit in-house users to share information with every one and may cross numerous sites all through the world. This is why internet has become the most widely used resource to manage the supply chain and other business processes effectively at different locations. According to Basu et al. (2004) the modernization and the implementation of latest technologies have made it possible to improve the outputs that further breed financial escalation and advanced standards of living. In business, scientific advancements over the earlier period, has decided to bring the changes in out dated designs and out worn manufacturing principles and ways within the firm. Developed telecommunications, networks transportation, and incorporated information structures have drastically facilitated the supply chain managers to advance their capacity to sketch, instruct, observe, and assess their procedures. customization. According to Lee et al. (2001) in order to investigate the impact of e-business technology on the functions of supply chain, the supply chain can be divided into three separate elements e.g., the business channel, the transport and delivery channel, and the disbursement channel. These three modes have been changed and have turned into more firmly interrelated through e-business technologies which carry more precise information to the decision-makers. Using e business enormous Information can be useful to make healthier verdicts concerning manufacturing, allocation, advertising, and sales about the products/services. New information tools and e-business resolution have changed supply chain functions from heap manufacturing to mass

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3. Methodology
The research is aimed to learn that how e- business strategy can impact the management of the supply process. It is very important to prepare the research schemes which contribute to the affluent accomplishment of the various objectives of the research. Research will follow these tools and procedures to construe the data and findings.

3.1. Methods of Research

Two most widely used research methods are Quantitative and qualitative methods. The first method employs statistical and mathematical models to interpret the data and draw the conclusion. Qualitative research method employs the verbal argumentation analysis and studies the various theories in depth (Hunter et al., 2008).Qualitative methods will be use to carry the research in order to have ample understanding of the reasons and grounds of using e-business strategy in managing the supply chain.

3.2. Research Philosophy

Smith (1998) outlined three popular research philosophies named as Realist, Interpretivist and Positivist. The following research belongs to the social sciences and involves the human participation in interpretation of the various concepts and theories; this is why the Interpretivist philosophy will be adapted for the following research.

3.3. Research Approach:

A research in which conclusion drawn from some hypothetical assumptions can be true or false, then the research applies inductive research approach which usually justifies the conclusion however does not guarantee its validity. Deductive approach is usually applied in those researches which use positivist or realist approach , in this approach if the premises are true then conclusion extracted from it is always true, given the condition that there should be at least two premises, first containing a factual assumption and second a proposed assumption (Holyoak and Morrison, 2005). This research is based on theories and concepts elaborated and formed by human

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E- Supply Chain at beings and thus there is greater probability of errors, this is why an inductive approach will be used for this study.

3.4. Methods of Data Collection

Primary and Secondary data methods can be used to gather the data for the research, As the research is based on the case evaluation of the Dell company, the primary data will be gathered to get the information about effectively managing the supply chain management by using e-business strategies through interview method. Secondary sources will facilitate the investigator to delineate the fictional conceptions regarding e business strategies and supply chain management theories, secondary resources will be supportive in order to achieve the objectives of the study, these are the secondary sources that will be used to extract the information: Published Journal articles Web portals Online periodicals and editorials Case Studies Books and News letters

3.5. Instruments of study

3.2.1. Interview
This investigation will make use of the interview as an instrument to accrue the mandatory information; Following are the important rudiments of the interview: The interview will contain the questions which will cover the following imperative concepts: Supply chains capability to produce profits and beneficial outcomes at Dell Speediness of service of supply chain Cost efficiency gained at Dells supply chain Inventory , warehousing and logistics management Supply chain management using e business and customers satisfaction of Dell company, related feedbacks and complaints Order placement and handling

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E- Supply Chain at Efficient Manufacturing at Dell Supplier relationships

3.6. Sample of the Study

Basically a case of Dell is the subject of the study. This is why Dell is the sample of the study; however for interview the research will use a proportionate sampling technique as follows:
Sampling

Division of subjects (20%) (60%) (20%)

Positions Top Management Level Middle Management Level Operational Level

3.7 Interpretation Technique

The study will use the Face validity technique to interpret and analyse the qualitative data, the face validity technique involves content analysis and it uses an expert opinion to ensure the validity of the findings, the opinion of supervisor of the research will be use to ensure the validity of the concepts.

3.6. Validity, Reliability and Generalisabilty

It is very difficult to ensure the validity of the qualitative data analysis, because there is high possibility that personal opinion of the researcher may get involved into the interpretation of data. However the content analysis of the research questions can ensure that valid contents have been involved into the questionnaire, and expert opinion will ensure that all the analysis has been made correctly and without biasness. The research will use the literature material from the latest researches and important data will be gathered from the organization by conducting the interview hence the sources of data are reliable. The findings of the study are generalisable to all the global organization in the same or different industries as where is a business; there is supply chain.

3.7 Ethical Considerations:

The primary objective of the following research is the academic learning, hence the research is not intended to harm any company, individual or a third party by Page 13

E- Supply Chain at any means. The research does not contain any sensitive data to create risks at part of the company. However data will be gathered through interviews but the personal information of the interviewee will be kept anonymous and confidential. However any aspect breaching the ethical principles defined in BES, will be handled complying the solutions available in the charter.

3.8 Conclusion
Supply chain is important for every business organization big or small, global or local hence the scope of the study includes every industry and every business. However the study expects to the organizational members to provide the valid and consistent data so that the study may prove to be helpful for the other businesses and as well as for the other researchers who are seeking some thing valuable from the research.

3.9 Project Plan

Following is the schedule for conducting the research for the dissertation:
F ebruary

1w k
D ta Collection a

2w k

3w k

4w k

5w k

Literature Rev iew

M arch

6w k
M ethodo y log

7w k

8w k

9w k

10 w k

Ana lysi

Ap ril

11 w k
C onclusion

12 w k

13 w k

14 w k

15 w k

D iscussion Lim itatio R ns ecom mendations Introdu ction

P roof Read ing

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4. References
Basu, A. and Siems, F. T. (2004), "The impact of e-business technologies on supply chain operations: a macroeconomic perspective," Working Papers 0404, Federal Reserve Bank of Dallas. Available at: http://www.dallasfed.org/research/papers/2004/wp0404.pdf Bartoo, Jim, Elliot, Timo, lyer, N. and Varsha (2000), Increased Competitive Advantage the Combination of E-business and Business Intelligence Tools, San Jose, CA: Business Objects Chopra, S. and Mieghem, J. A. V. (2000), Which E-Business Is Right for Your Supply Chain? Supply Chain Management Review, pp.1-8 Christopher, G. M. (1998) "Relationships and Alliances: Embracing the Era of Network Competition," Strategic Supply Chain Management, Hampshire, England: Gower Press, pp. 272-284 Cooper, Martha, C., Lisa, M., Ellram, M. L., Gardner, T. J. and Hanks, M. A. (1997), Meshing Multiple Alliances, Journal of Business Logistics, Vol. 18, No. 1, pp. 67-89 Harland, C. M. (1996), Supply Chain Management, Purchasing and Supply Management, Logistics, Vertical Integration, Materials Management and Supply Chain Dynamics, Slack, N (ed.), Blackwell Encyclopedic Dictionary of Operations Management, UK: Blackwell Hendricks, K. B. and Singhal, V. R. (2003), The effect of supply chain glitches on shareholder wealth, Journal of Operations Management, Vol. 21, No. 5, pp. 501-22 Informationweek.com. (2000), Lou Gerstners E-business Expo Keynote Address. Available at: http://www.informationweek.com/816/gerstner.htm

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Ireland, R. D. and Webb, J. W. (2007), A multi-theoretic perspective on trust and power in strategic supply chains, Journal of Operations Management, Vol. 25, No. 2, pp. 482-97

Johnson, M. E. and Whang, S. (2002), e-Business and Supply Chain Management: An Overview and Framework, Paper No.03-06, Tuck School of business Dartmouth, Available at: http://ssm.com/abstarct=385540

Kalakota, Ravi, and Whinston, A. B. (1997), Electronic Commerce: A Managers Guide, Reading, MA: Addison-Wesley

Keely, L., Croxton, Sebastian, J., Dastugue, G., Lambert, M. D. and Rogers, S. D. (2001), The Supply Chain Management Processes, The International Journal of Logistics Management, Vol. 12, No. 2, pp. 13-36

Kocakulah, M. C., Foroughi, A. and Lannert, M. (2002), Streamlining Supply Chain Management with E-Business, The Review of Business Information Systems, Vol. 6, No.1, Pp. 1-7

Krivda, C. (2004), Supply Chain Excellence, Business Week: Special Advertising Section, ARM Research, Available at: http://www.businessweek.com/adsections

Lavassani, M. K., Movahedi, B. and Kumar, V. (2008), Transition to B2B eMarketplace enabled Supply Chain: Readiness Assessment and Success Factors, Information Resources Management (Conf-IRM), Canada

Lee, Hau, L. and Whang, S. (2001), E-Business and Supply Chain Integration, Stanford Global Supply Chain Management Forum: Emerald Group Limited, ISSN SGSCMF-W2-2001

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E- Supply Chain at Mentzer, J. T., Dewitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D. and acharia, Z. G. (2001), Defining Supply Chain Management, Journal of Business Logistics, Vol. 22, No. 2, pp. 125 Maugayar and Walid (1998), Opening Digital Markets, Ed. 2, New York: McGraw-Hill

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