Supply chain management processes of a large group of companies in Malta : a case study

Abstract

Nowadays, companies are operating within a fierce and fast-changing market environment, characterised by more demanding consumers and more intensive competitive threats. Supply Chain Management has become an essential component for the survival of an organisation. Consumers are continuously being exposed to loads of different information relating to various products and services that are marketed all over the globe. Faced with more competitive offers, customers can more than ever single out products between competing brands based on their perception, experience, feelings and beliefs to which brand/service provides the superior value. The primary aim of this dissertation was to investigate the current Supply Chain processes of four firms operating in the retail industry within a Group of Companies. The explicit objective was to put forward the appropriate actions to improve the Supply Chain performance in order to establish a competitive advantage. The theoretical structure was supported by the Supply Chain process, the importance of the Supply Chain Management and Supply Chain Operations (SCOR). Furthermore, the structure also included the Supply Chain Objectives and the Effectiveness of a Supply Chain Management. This was the groundwork for the empirical research. A series of in depth interviews were conducted through a case study research methodology. The study revealed that the selected firms all have an acceptable Supply Chain process in place. Since the group’s philosophy is that all firms must represent trusted brands, Quality is a must and it was even evident that all firms strive to improve to establish a competitive advantage. It was noticeable that each firm closely monitors their supplier’s performance since it was found to be an important factor for the supply chain performance. It was evident that similarity exist between the firm’s supply chain processes, however, adopting different strategies in order to be the leader in their particular markets. During the analysis, it became evident that a particular firm has most processes automated. However, another firm needs to invest in more computer systems to reduce as much as possible any additional activities to become more flexible to entertain customer needs. It was evident, that all firms are affected by a number of factors. The main factor identified was On-Line business. When it comes to price, local firms are at a disadvantage, since on-line sellers benefit from the economies of scale. Another issue was that local firms must offer aftersales support also on these products which will increase additional operational costs.