Supply Chain Management

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

1.1 Background of the Study1

1.2 Problem Statement2

1.3 Aim of the Study3

1.4 Research Questions4

1.5 Rationale of the Study4

CHAPTER 2: LITERATURE REVIEW6

2.1 Introduction6

2.2 Integrated Procurement and Logistics Activities8

2.3 Information Sharing and Competency Improvement16

2.4 Risk Mitigation through Functional Integration18

2.5 Theoretical Model20

CHAPTER 3: METHODOLOGY23

3.1 Overview of the Research Methodology23

3.2 Research Design and Model24

3.3 Qualitative Analysis25

3.4 Quantitative Analysis26

3.5 Research Purpose27

3.6 Rationale for the Specific Research28

3.7 Theoretical Model28

3.8 Sample Size for the study29

3.9 Research Instrument29

3.10 Limitations of the Study30

3.11 Validity and Reliability30

3.12 Informed Consent32

3.13 Validation of Data Analysis32

3.14 Ethical Concerns of the Research33

CHAPTER 4: FINDINGS34

4.1 Survey Findings34

4.2 Discussion and Analysis45

CHAPTER 5: CONCLUSION53

5.1 Recommendations57

REFERENCES61

APPENDIX72

Chapter 1: Introduction

1.1 Background of the Study

Many organisations in industry, such as the extraction of mineral resource including oil and gas, mining, refinery etc., depend heavily on supply chain functions to support their activities. In anticipation to improve output from supply chain, such organisations tend to invest significantly in providing resources such as training of the workforce, competitive remuneration packages, recruitment of professional staffs, implement modern enterprise resources planning systems (ERPs) etc. However, there is a limited indication that these organisations have tried to look for possibilities of optimising the existing resources within supply chain through integration of cross-functions mainly sourcing and logistics activities. Kumar and Peterson (2006) suggest realignment of resources, improving of organisation processes and elimination of waste as important steps towards addressing the performance improvement of supply chain organisation. The research published in relation with possibilities of identifying opportunities for improvement suggest there is still “little guidance in existing literature on how to achieve” restructuring of “operations strategies” and revolutionise the traditional procurement (Datta and Roy, 2011). Pfohl and Gareis (2005) suggest “Tight relationships are the basis for common improvements and for influencing the processes.” This research will be conducted at Ma'aden Aluminum Company, a Saudi Arabian semi-government joint venture with American Aluminium Company (Alcoa) operating in similar mineral extraction industry.

1.2 Problem Statement

One of key pillars of operations strategy in an organisation is its operations capability that includes supply chain network starting from inbound logistics, processing to outbound logistics and ultimate customer. Perhaps what is in more demand is not traditional fatty structures that exist within traditional supply chain but a flexible supply chain. Flexibility of supply chain could be a variety of interpretations that could be focusing on external firms or intra-functional relationship that support execution of organisation activities. Stevenson and Spring (2007) suggest flexible supply chain is being able to meet dynamic markets that demand more customised product or services with shortest lead-time. The creation of value from each part of supply chain network, popularly known value chain is strongly driven by merging and integrating activities, process and practices also known as “an integrative supply chain strategy” (Vickery et al., 2003). In their research, Gonzale-Benito, Reis da Rocha and Queiruga (2010) suggested the importance of integrating logistics practices into organisation purchasing as differentiating strategy that steers away organisations from traditional approach. For organisations that are keen to see such step is achieved, necessary ...