Supply Chain Management: Outperform the Competitor When Sharing the Same Supplier

Dissertation Proposal

The purpose of this dissertation proposal is to present coordination of supplier chain management which offers a vision of using the same supplier by two competitors. The existing supply chain management literature have not yet been addressed the dilemma of harmonization in supply chains connecting the use of the same supplier by two compotators where the tremendous risk of unenthusiastic issues has been involved.

This dissertation proposal has taken up this issue and aimed to coordinate a pact that results in most advantageous solution acceptable to the involved supplier chain executives. It also aimed to generalize the standard of coordination of one supplier with two competitors in a risk mitigation manner. Then it would develop a harmonized coordination and competition in supply chain management in four specific areas as-

• The supplier is along in the market and dominates over the competitors, thus there exists the risk of price discrimination, postponement, and behave in monopolistic nature to maximize his profit.
• The supplier and both the competitors would drive to maximize their own mean-variance trade-off.
• The supplier and both the competitors would drive to maximize their own expected competitive advantages.
• Both the competitors would possibly pact to face the threats from the supplier and look for to managing multiple supply chains.

Moreover, the paper would demonstrate the Nash Bargaining solution and Pareto-optimal solutions for each relevant and then design a supply chain to get the ultimate solutions.

Why this is Important

This is the time of IT integration in logistic science and most Supply Chain Management studies are under enormous pressure to improve the quality of logistic management by better performance than competitors with the dilemma of sharing the same supplier when the most existing research mostly emphasis on competitive advantage, logistic interface, cost, and performance, benchmarking, organizing global logistic and lead-time management. Thus there exists a major research gap for coordination and competition in supply chain management.

Such gaps could be attained by process improvements and very few supply chain management studies would be able to quantify the short and long-run costs and benefits of contemplated supply chain management process improvements. Thus, for this dissertation proposal, it is important to look for literature search on coordination of supplier who at the same time serves the competition in supply chain management.

Current impediments

• Confusing nature of competition within the supply chain management
• Existing approaches of supply chain management are not readily accessible for coordination and competition to the decision-maker
• Existing approaches of competitor and supplier within the supply chain management require extensive data that are not commonly obtainable
• The available data may not be relevant to a specified situation
• Existing approaches of supply chain management necessitate complex simulations that required larger effort to construct coordination among the competitor and supplier.

Goals & Aspiration

• To produce good grace available support to the supply chain managers
• To support the verdict for any improvement of the environment within industry’s competitors
• To minimize efforts and reduce complexities that are essential to support the competitive advantage
• To make use of such information those are readily available among the supply chain
• To carry out the best that could be done rapidly
• To maintain an open-end framework of risk mitigation to using the same supplier by the competitors of the industry
• Escalating of sales.

What is Not New

• The basic concepts of supply chain management
• The cost-benefit analysis of supply chain management
• Technological process improvements for supply chain management
• The available public and private research data of the most present
• The progression simulation framework of supplier

What is New

• The framework that has been presented for this proposal,
• The evaluation of the supply chain to support the competitors
• A structured set of choices supplier’s contribution
• A well-thought-out set of coordination
• The structured effects to improvements the method of using single supplier by two competitors

The modern supply executives exemplified the challenge of sharing the same supplier by competitors would raise the question of how can a company develop their category strategy so that they would best be competent to get hold of cutting edge innovation, highest capabilities, and performance for the current time and tomorrow while postponement strategy applied by the supplier with the influence of competitors to attaining the same results. (Monczka and Markham, 7)

In future faced vision the aptitude to respond to the changes of using same supplier by the competitors would be just a consequence of right of entry when competitive advantage would necessitate quickness and excellence supply chain management. In broader it would be defined by the capability to

• Predict changes of customer’s needs, product contributions, supply state of affairs, existing regulations and proper analysis of competitor actions.
• Argue for changes by dexterously restructuring the existing supply chains to resourcefully assembling new orders
• Step up accomplishment of change to acquire the new opportunities at the forefront of competition.

Single supplier among two competitors would deliver diverse dilemma that fill separate and maybe numerous market niches possibly will necessitate the management of more than a few supply chains simultaneously on a global standard. In real life practice only by multiple supply chains any firm could enjoy sufficiently flexibility. Speed and agility all over the supply chain would be vital operational strategies with the process of constructing coordination of competition by flexible of supply chains. (Carter, et al, 12)

Empirical Evidence

Pohang Iron and Steel Company (POSCO) is the Korea based multinational steel manufacturer recognized as worlds second largest. Nippon Steel is the pioneer of Asian steelmakers which is a Japan based multinational company. Nippon Steel and POSCO is the competitor in the global market when both of them use a single supplier BHP Billiton Rio for their procurement of iron ores. To investigate outperform the competitor when sharing the same supplier, coordination and competition in supply chain management, this dissertation proposal would goes for evidence and data of POSCO & Nippon Steel as competitor analysis and BHP Billiton as same supplier.

This dissertation proposal would critically illustrates the perceptions and attitudes of outperform the competitor when sharing the same supplier factors touching their motivation and exploration within the supply chain management. This paper would be alienated into following five chapters and relevant subchapters. Moreover there should be some other sections such as Acknowledgments, Abstract and Appendix.

Problem Statement

This episode introduces the dissertation’s organization with a study in wide-ranging, endow with the underlying principle and hypothetical agendas for the research; asks the research questions and affirms the limitations and scope of the study; delineates and specifies the terms used within this present dissertation proposal.

This study has designed to respond the subsequent research questions. What factors most influence to establish supply chain management with two competitors using the same supplier and its effectiveness, effective solution, acceptable to the stakeholders and to understand the potential barriers of implementing supply chain. The answer to this question would enable supply chain managers to organize the workplace environment toward greater motivation and increased productivity of the organization. Four research objectives are listed as below-

• To determine what factors most influence compotators to coordinate competition with same supplier effectively.
• To determine whether those factors are consistent over time cost effective solution for supplier chain management
• To identify what actions considered most appropriate to increase productivity and acceptability of competitors under single supplier’s monopoly
• To ascertain whether coordination and competition would creates value to explore a speedy drive for the competitors

This chapter would be discussed with following subheads-

1. Introduction
2. Background of Problem
3. Rationale for the Research
4. Research Question and Objectives
5. Scope and Limitations of the Study
6. Definition of Terms

Relevant Literature Review

This literature review explores the optimal organization of a supply chain management which has been aimed to function under a single supplier with two compotators. According to the concepts of neo-classical economics it would considered as a monopolistic market condition. Thus the present literature search would draw attention with concepts from growing returns in order to demonstrate that the supplier chain which is particularly natural monopolies and illustrate that once the manufacturers of concentrated products would comprehend that the monopolistic standards of supplier would be more expensive in relation to a competitive standard.

Thus the competitors would organize to take the edge off the monopolistic supply setback. This literature would exclusively propose that the competitors are eager to engage in such a strategy of cooptation where the supplier would be liable to compete with cooperate standard stipulation of inputs. As a result the competitors could gain the competitive advantages with a single supplier even as mitigating the elevated costs of monopolistic supply by mutually forming the standards. (Aggarwal and Walden, 3)

In this literature there are is a lot of measures of risk of utilizing same suppler by competitors. It spite of the measure applied when one supplier shared by two or more competitors in the supply chain management would argue as to have risk and it is no longer apparent due to the objectives purpose of the supply chain management entity should be raised by the studied supply chain management literature under thus section. (Gan, et al, 10)

This chapter launches with a chronological indication of supply chain management its motivation theory and at the same time recites too more up to date literature integrating modern theories and expression on accomplishment of success factors including productivity of supply chain under a monopolistic supplier. This literature review would be organized with following sub –chapter.

1. Overview of the Topic
2. Scope and Limitations of this Review
3. Organization of the Literature Review

Methodology

This chapter will be considered by few sub chapters to provide explanation on how the research has conducted and data gathered for supporting outperform the competitor when sharing the same supplier.

Perry (1998) stated that the research methodology would be carried out to make it clear the appropriate research problem which has been identified as well as justified cautiously. He also added that thought research methodology is a tertiary episode of the study but would sketch by researcher earlier then problem identification. The cardinal intention of this chapter is to find out how the preferred research methodology would go with the main objective of the dissertation inquiry and how it would be accomplished. The original dissertation will also be mentioned qualitative and quantitative research to serve all these purposes.

Fisher, R. A. (1990) emphasised on regression as well as t-tests to analyse and remove the data inconsistency and randomisation to gaining the altitude of trustworthiness within the research.

Perry, C., (1998) mentioned that the evocative research method utilises observation and surveys to make the study easier and time worthy suggesting unforeseen assumption regarding the research approach. Saunders, et al. (2003) addressed that the research approach with the purpose of developing the methodology has explicated underneath predestined upon evocative research theory as well as inductive interpretation. It is necessary to broaden the underpinning next to which the research would be deliberated, conducted and accordingly scrutinized.

For dissertation, the engaged research methodology would be descriptive interview with one or more manager at real industries, manufacturers and suppliers. Saunders, et al. (2003) also supported that besides primary research, secondary research is to appraisal of published articles, previously researches and journals, which would be analysed to achieving a wider point of views on the issue.

Saunders, et al (2003) acknowledged that the most important cause of an interview with frontline managers has been preferred amongst the other probable methods are that the author’s believe is that a dialogue would take place with one of the representatives of the organization.

Fisher, R. A. (1990) and Saunders, et al (2003) recognized the interview as ‘a purposeful discussion’ among two or more people, and gathering of data, which are both trustworthy and valid. Saunders et al (2003) illustrates a prearranged interview by applying questionnaires based on predestined and customary or indistinguishable sets of questions and for this dissertation the questionnaire would be prepared based on supply chain management issues to support the topic.

Cohen, L. Manion, L. Morrison, K. (2007) expressed that in an interview the questions should be unambiguous and non-threatening; therefore, the interviewee be supposed to speak more than the interviewer does. The interview should avoid complicated, double barreled, and dichotomous as well as most important questions. Zikmund, W. M. (2006) argued that a number of ethical implications could take place while gathering data for the duration of interviews.

Within the itinerary of interviews, all the data would be collected and preserved with evidence and all data will be reviewed to find out important data. Reynolds, T. J., and Gutman, J. (1988) argued that the historical document research and the interview as well as the data analysis turns to ways in which qualitative information could be analysed. After reviewing the data, all the inappropriate information and data would be expelled for not to encounter any bias. In dissertation, all the exceptional data would be verified, weighed against and distinguished with previous research in order to investigate how to coordinate the relationship between supplier and buyers in the specific supply chain situation of one supplier and two manufacturers.

According to the view of Sekaran, U. (2006) the selection of secondary sources are the published materials for example magazines, books, journals as well as previously execute researches would be utilised.

The questionnaire would be assembled and sent out to the customers of suppliers and manufacturers. This would generate a broader approaching as to a feedback from the general public; the illustration would take account of the younger layer of society, age bracket stuck between the ages of 22-30.

The prime objective of the current dissertation is to find out various problems and solution in some industries where supply chain management may collapse for monopoly supplier. The scope of the study is not entirely limited as there are too many industries which have to face such problem in competitive market.

However, to analysis the Methodology of this dissertation the following sub chapters will be considered.

• Research Methodology:
  • Overview:
  • Research Approach:
  • Primary research – Research Strategy
  • Reliability, Validity of Interviews
  • The Interviews
  • Data Analysis
  • Contingency Plans
  • Secondary Research
• Primary Research
• Limitation of Data Collection

Results & Findings

This dissertation proposal has evidenced with Pohang Iron and Steel Company (POSCO) and Nippon Steel as two competitors under a single supplier BHP Billiton Rio. POSCO being a Korea based multinational steel manufacturer and Nippon Steel as the Asian steelmakers which is a Japan based multinational company has been struggling to organize their monopolistic supply chain. The British supplier of this two competitor BHP Billiton has gained monopolistic dilemma in the market by merging with Rio of Australia.

Though Nippon Steel and POSCO is the competitor in the global steel market and both of them use a single supplier BHP Billiton Rio for their procurement of iron ores they have to struggle with same supplier. To examine outperform the competitor when sharing the same supplier to coordination and competition in supply chain management, this dissertation proposal would the result, evidence and data of POSCO & Nippon Steel as competitor analysis and BHP Billiton as same supplier would be discussed in this chapter with following sub chapters.

1. Historical background
2. Present scenario
3. Effectiveness

Discussion

This segment of the dissertation would specifies the collected data and enlightens the results in reflecting to the research questions; denotes unexpected results by concreting on the findings as well as hypothetical uses for the information delivered from this proposes idea generation for the research.

• Overview
• Section 1
• Section -2

Conclusion

This dissertation proposal has analysis the topic with a brief proposal description and considered the five relevant chapters to prove and justified the topic with relevant evidence. It also discussed carefully the risk to sharing supplier in competitive business environment. However, this dissertation proposal has been placed for the approval of the supervisor of the academic committee and further research and investigation regarding this topic will be made after the approval of this dissertation proposal with relevant data and empirical evidence in order to support some relationship of manufacturers and sharing supplier. The original dissertation will also find the risk for sharing supplier in real life context and provides the research results.

Bibliography

Aggarwal, Nitin and Walden, Eric A., Monopoly Power In Standards Is A Myth, Rawls College of Business Administration. Web.

Bowersox Donald, Closs David, & Cooper Bixby, Supply Chain Logistics Management, 1st ed., McGraw-Hill/Irwin: London, ISBN-10: 0072351004, 2002.

Carter, Joseph R., Slaight, Thomas H., and Blascovich, John D., The Future of Supply Management – Part 2: Technology, Collaboration, and Supply Chain Design, Supply Chain Management Review. Web.

Chopra Sunil, & Meindl Peter, Supply Chain Management, 3^rd Edition, Pearson Prentice Hall, India, ISBN: 81-317-0401-7, 2008.

Christopher Martin, Logistics and Supply Chain Management, 3^rd Edition, Pearson Education: London, ISBN: 0273681761, 2005.

Cohen Shoshanah, & Roussel Joseph, Strategic Supply Chain Management, 2^nd ed., McGraw-Hill: London, ISBN-10: 0071432175, 2005.

Fisher, Ronald Aylmer, Statistical Methods, Experimental Design, and Scientific Inference, 1^st ed. J. H. Bennett Editor, NY: Oxford University Press, ISBN-10: 0198522290, 1990.

Gan, Xianghua; Sethi, Suresh P. and Yan, Houmin, Coordination of a Supply Chain with Risk-Averse Agents, The University of Texas at Dallas, 2004. Web.

Monczka, Robert M. & Markham, William J., The Future of Supply Management, Supply Chain Management Review, 2007. Web.

Perry Chad, A Structured Approach to Presenting Theses. Web.

Reuters, China says BHP-Rio Deal Monopolistic, 2009. Web.

Saunders, Mark, Adrian Thornhill & Philip Lewis., Research Methods for Business Students, 4^th edition, London: FT Prentice Hall. ISBN: 0273701487, 2003.

Sekaran, U., 2006, Research Methods for Business: A Skill Building Approach, 4th edition, John Wiley & Sons Inc, Singapore, ISBN: 9814126748.

Zikmund, William M., Business Research Methods, 7^th Edition, Orlando: Harcourt Publishers, ISBN: 0030184320, 2006.