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
• 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.
Amer Saeed
• 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.
Amer Saeed
• 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.
Amer Saeed
•
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?
Amer Saeed
• 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.
Amer Saeed
• 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).
Amer Saeed
• 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).
Amer Saeed
• 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, Taewon Suh, 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)
Amer Saeed
• 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).
Amer Saeed
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).
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• 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).
Amer Saeed
• 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)
Amer Saeed
• 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.
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• 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.
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Top
Successful
Management
Supply Chain
Motivation
Implementation
Ethics Based
Working
Trust Building
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Alignment
• 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.
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• 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.
Amer Saeed