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Amer Saeed

Impact of TEAM (Trust, Ethics, Alignment, Motivation) on performance of retail store chain sector’s supply chain in Pakistan Amer Saeed MS-SCM School of Business and Economics University of Management and Technology, Lahore, Pakistan. Amer Saeed. INTRODUCTION.

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Amer Saeed

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  1. Impact of TEAM (Trust, Ethics, Alignment, Motivation) on performance of retail store chain sector’s supply chain in Pakistan AmerSaeed MS-SCM School of Business and Economics University of Management and Technology, Lahore, Pakistan AmerSaeed

  2. INTRODUCTION • Supply chain management is based upon the linking of different stake holders of the whole supply chain. • Supply chain management is not only a growing field but it also covers so many different areas of the business, each having its own needs to excel. • Companies across the globe are investing huge amount of money on their supply chains but most of them are not getting perceived benefits out of those investments. • This study have tried to find out core building blocks of a successful supply chain implementation. AmerSaeed

  3. INTRODUCTION • Companies in Pakistan are also establishing supply chain departments and finding ways to improve their supply chain performance. • Retail store chains are flourishing in Pakistan. • In today’s economical and political scenario, only those store chain’s will survive, which have more committed and trusted supply chain partners. • But due to limited resources these emerging store chains cannot waste resources on experimentation and requires a solid framework. AmerSaeed

  4. OBJECTIVE • The objective of this study is to find out the major human elements required to establish a successful supply chain and then develop a framework showing their intra relationship with each other. AmerSaeed

  5. RESEARCH QUESTIONS • What is the role of alignment in the success of supply chain management? • What is the role of trust in establishing alignment? • What is the role of ethics in gaining trust? • What is the importance of top management’s motivation to implement supply chain management? AmerSaeed

  6. METHOD • Major source of data is secondary gathered through literature review from books, research articles and case studies. • Primary data is collected through open ended interviews from the supply chain partners of some leading retail store chain’s managers and workers. • Only qualitative data has been used. AmerSaeed

  7. SUPPLY CHAIN MANAGEMENT • A supply chain is a network of entities that procures raw materials, transforms them into intermediate subassemblies and final products, and then delivers the products to customers through a distribution system (Billington 1994). AmerSaeed

  8. TRUST • Exists when one party has confidence in an exchange partner’s reliability and integrity. (Morgan and Hunt 1994) • Effective information sharing is heavily dependent on trust beginning within the firm and ultimately extending to supply chain partners” (Bowersox et al. 2000). • Belief that even in the absence of any formal agreements both trading parties will take care of each other’s benefits and avoid opportunistic behavior. (Martin 2002). • It is reported that the biggest stumbling block to success of strategic alliance formation is the lack of trust (Sherman 1992) • Trust is perceived as a cornerstone of the strategic partnership (Spekman 1988). AmerSaeed

  9. ETHICS • The concepts such as good and bad, noble and ignoble, right and wrong, justice and virtue etc. • A firm's trust in its supply chain partner is highly associated with both sides' specific asset investments (positively) and behavioral uncertainty (negatively). (Ik-Whan G. Kwon, TaewonSuh, 2004 ). • A company practicing higher standards of moral and ethical actions and performing its duties regarding corporate social responsibility will have more goodwill in the eyes of all the stake holders. • Single most important prerequisite is a change in the corporate cultures of all members in the value chain to make it conducive to supply chain management. (Farley, 1997) AmerSaeed

  10. ALIGNMENT • In business terms it means adjustment of one organization in relation with other organizations. • Higher level of integration with suppliers and customers in the supply chain is expected to result in more effective competitive advantage (Johnson, 1999; Hines et al., 1998; Lummus et al., 1998). • Supply chain alignment is defined as two or more chain members working together to create a competitive advantage through sharing information, making joint decisions, and sharing benefits which results from greater profitability of satisfying end customer needs than acting alone (Simatupang and Sridharan, 2002). AmerSaeed

  11. ALIGNMENT • Contd. • The challenges related to improved product quality, customer service and operating efficiency cannot be effectively met by isolated change to specific organizational units, but instead depend critically on the relationships and interdependencies among different organizations (or organizational units). (Swamminathan et al. 1998). AmerSaeed

  12. MOTIVATION • It is the activation or energization of goal oriented behavior. • Top management motivation to implement SCM is the top most managerial support factor among the four to achieve the highest levels of supply chain success (Fawcett, Ogden et al. 2006). • When both commitment and trust — not just one or the other — are present, they produce outcomes that promote efficiency, productivity and effectiveness (Morgan and Hunt, 1994). • To get desired level of alignment among the supply chain partners the key factor is to establish very strong top management commitment (Akkermans, Bogerd et al. 1999). AmerSaeed

  13. FINDINGS • Much has been written on • The need to integrate and align supply chains (Hoyt and Huq 2000; Larkins and Luce 2000; Lee 2000; Frohlich and Westbrook 2001; Power 2005), • Developing and establishing trust level among the supply chain partners (Morgan and Hunt 1994; Sako and Helper 1998; Bowersox, Closs et al. 2000; La Londe 2002; Kwon and Suh 2004; Lado, Dant et al. 2008), • Improving company’s image as more socially responsible and working on ethical grounds (Rao and Holt 2005; Svensson and Bååth 2008; Andersen and Skjoett-Larsen 2009) AmerSaeed

  14. FINDINGS • And the need of top management’s motivation and commitment to supply chain management (Akkermans, Bogerd et al. 1999; Marien 2000; Fawcett, Ogden et al. 2006). • However there is hardly any study combining these soft issues or showing interrelationship of more than two of above mentioned areas for any role in the development and implementation of supply chain strategy. AmerSaeed

  15. FINDINGS • A company strategically aligning with its suppliers and distributors can get the competitive advantage. • Trust is perceived as a cornerstone of the strategic partnership. • To create high levels of trust a company should have high levels of ethical considerations in their dealings at any level. • Ethical considerations in all working areas some time requires cultural change and to bring that change in the longer run it requires a high level of top management’s motivation. AmerSaeed

  16. TEAM Model Top Management Motivation Successful Supply Chain Implementation Ethics Based Working Alignment Trust Building AmerSaeed

  17. LIMITATIONS AND FUTURE RESEARCH • One of the major limitation is that there is no empirical prove attached with this model, so future research can be done to empirically test this model. AmerSaeed

  18. CONCLUSION • Companies especially SME’s should not follow the buzz words blindly and plan strategically to implement supply chain management in its true essence. • To foster the level of trust among supply chain partners, it is important to develop a new breed of decision makers whose visions are more toward enterprise optimization than functional outcomes. • Curricula in business schools need to be changed from traditional functional disciplines toward an integrated and strategic-oriented curriculum to satisfy the needs of a new breed of decision makers. AmerSaeed

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