LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report of Capstone Project

The Study of Supply Chain Management : An Evidence from

Sports Industry across Punjab

Submitted to Lovely Professional University

In partial fulfillment of the
Requirements for the award of Degree of
Master of Business Administration

Under Guidance of

Submitted by:

Ms. Vandana Chaudhary

Nishant Kumar Garg(11006867)

Assistant Professor

Rahul Ranjan(11010047)
Ganesh Prasad Singh(11005505)

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR NEW DELHI GT ROAD
PHAGWARA,PUNJAB

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project report entitled The study of Supply chain management : An
Evidence from Sports Industry across Punjab carried out by Mr. Nishant Kumar Garg , Mr.
Rahul Ranjan and Mr. Ganesh Prasad Singh have been accomplished under my guidance and
supervision as duly registered MBA students of Lovely Professional University. This project is
being submitted by them in partial fulfillment of the requirement for the award of the Master of
Business Administration from Lovely Professional University.
Our dissertation represents their original work and is worthy of consideration for the award of
the degree of Master of Business Administration.

Ms. VandanaChoudhary
Assistant Professor
(School of Business)

Declaration
We hereby declare that the project report entitled The study of Supply chain management :
An Evidence from Sports Industry across Punjab is an authentic record of our work carried
out on this project. The data is collected from authentic resources and literature review of the
syudies already done. As requirement of Capstone project for the award of MBA degree from
Lovely Professional University, Phagwara under the guidance of Ms. Vandana Choudhary, our
project mentor. We are thankful for her continuous guidance and support .
Nishant Kumar Garg (11006867)
Rahul Ranjan (11010047)
Ganesh Prasad Singh (11005505)

ACKNOWLEDGMENTS

We would like to first and foremost acknowledge Miss VandanaChoudhary not only her
invaluable guidance, but also her support and encouragement during the many moments of doubt
we had along the journey till now. I would also like to thank Mr. Chanderjeetsingh who took
time out his personal schedule to provide insight during the entire project.
Also, thanks to my friends who knew when to just leave me alone and when come forward with
support.
I would also like to thank to the company LORDZ KINGS , where we visit multiple times. I
learned a tremendous amount in terms of technical skills, inter-personal skills, and intricacies of
how large successful companies operate. They opened their doors and embraced me as one of
their own.

ii

ABSTRACT
Supply chain management (SCM) is the 21st century is consider as the important strategy tool in
global operations for achieving competitiveness within the industry. Companies are attempting to
formulate ways to improve their flexibility and responsiveness and in turn competitiveness by
changing their operations strategy, methods and technologies that include the implementation of
SCM paradigm, continuous performance evaluation and information technology (IT).

Manufacturers and retailers are faced with the challenge of making sure that the correct
quantities of goods are placed in a location readily accessible to the final customers and at the
correct price. The linkages between the different companies that participate in this process are
called the supply chain. This paper will study the coordination of information amongst the
different nodes in a supply chain for a sporting goods manufacturing company.

This study analyzes the biggest challenges facing a major sporting goods manufacturing
company as they try to coordinate factory orders to their third party suppliers with the orders
demands of their retail channels and also try to determine performance measurement factors to
evaluate the performance of their firm by the SMEs of sports near Punjab. The data will be
collected from structured interview and responses are collected from sports manufactures. So far,
study result is helpful to visualize that there is need od an effective supply chain management in
sports industry.
Key Words : Supply Chain, Factor Analysis

iii

Table of Contents
Declaration..i
Acknowledgement.ii
Abstract.iii
Chapter 1: Introduction to Supply Chain Management
1.1.Introduction1
1.2.Supply chain Management .1
1.3.Raw material in Sports Manufacturing ..2
Chapter 2: Literature Review4
2.1. Factors for Performance Measurements.7
Chapter 3: Objective and Research Methodology....8
3.1.Objectives ..8
3.2.Research Methodology...8
Chapter 4: Need and Scope of the study.9
Chapter 5: References.11
Annexure:
Questionnaire..12

iv

Chapter 1
Introduction to Supply Chain management
1.1.Introduction
In todays dynamic market, customers are looking for different products and are more
discriminating in their purchasing strategies, Now, the products are of small life cycle and trend
is changing very frequently and the manufactures have to keep an eye on the market demands to
avoid wastage of products. Manufactures and retailers are facing the challenge of sure about the
correct quantities they need to place at accessible places so that they remain competitive in the
market. As it will cost in both way , stock out and overstock. It is a complicated process to
forecast about the demand of the products. So, here comes the role of a efficient linkages
between the suppliers, manufactures and the market by maintain the supply chain.
1.2. Supply chain management
SCM is defined as "the systemic, strategic coordination of the all business functions and the
tactics across these business functions within the supply chain, for the purposes of improving the
long term performance of the individual companies and the supply chain as a whole." It has also
been defined as the "designing and planning the execution of the activities and then controlling
within the limits, and monitor the supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally. For the small SMEs also their supply
to the manufacturing unit as well as market is very important as it may reduce their chance of
growth and sustainability in early phase of business. This report will study the coordination of
information amongst different nodes in supply chain in case of sporting goods manufacturing
company.
With the widespread of globalization as an operational strategy (Braithwaite ,2003,pp.3-5),
greater global competition, increasing product variation, rapid rate of product innovation and the
1

shortened time to market, companies is trying to be more flexible and faster to adopt in order to
survive in such dynamic environment(Fisher, 1994.pp.83-85).
Earlier ,supply chain defined as the flow of material and information between the different
functional groups within the organization. However, more component like infrastructure and
finance ,merits extra attention. The reverse flow of material become an important part of SCM
,occurs during returns, servicing, maintenance ,recycling , and disposal.
1.3 Raw Material Used in Sports Manufacturing
If we talk about the small scale sports goods manufacturing companies (both organized and
unorganized), the influence of change of trend around the world is much higher. The importance
of trends places emphasis on the ability of the manufactures to bring the product to market in the
intended season. Off season product are heavily discounted leading to large losses on potential
revenues. As a fashion focus firms, sporting goods manufactures must contend with the spikes in
fashions , changes in color preferences and the need for stock of various items to serve the
forecasted demand. This is not limited to sport playing equipment only. This includes all element
related to sports like kits , jersey, t-shirts , their safety equipment and other essential requirement
as per the game and sports person. A full assortment of different sizes ranging from between
cheerleaders to beefy linebackers is needed to flourish businesses. The different raw material
used as cotton, latex , PVC and leather for boxing gloves, willow, gum, wire, metallic frames,
threads, different type of leathers and material for security and safety are imported from multiple
locations from different vendors. The ADIDAS world leader in sports manufactures are using
sustainable materials that are recycled polyester, organic cotton, rubber, leather, Tencel (a fibre
made from wood pulp), Polylactic Acid and mulesed wool for leather and apparel. Other
materials are Inlay soles, textiles, metals, plastics and packaging material.
In addition, theres pressure to fill orders from large retailers on time with the right products and
keep safety stock an allow safety time in case of unusual weather. Today the companies have
multiple advance planning software(APS) to increase forecast accuracy , optimize inventory
management and enhance scheduling within your consumer products supply chain. When is
come to small SMEs mostly they work as third parties for these big sports companies and make
2

their products for local markets too but they Small enterprise also face challenges of SCM so
they also need to keep track on performance evaluation of their activities.
The paper analysis the challenges small sports manufactures are facing as they are trying to
coordinate factory orders to their third party suppliers with the order demands of their retail
channels. The project is done of SME of Jalandhar so there must be a lot of challenges the
companies face during their supply chain related to raw material , equipment used. Bullwhip
effect is also a great challenge if the forecast is not properly consider by the manufactures. So , it
is necessary for the organizations to measure their supply chain performance so that they can
improve upon the loose factor to make it perfect. The continuous improvement is very necessary
key for improvement in efficiency of the complete channel from raw material supplies to reverse
SC.

Chapter 2
Literature Review
Demanding completion in todays global markets, introduction of products with small life cycles
and the discriminating expectations of customers have forced the businesses to invest in fast
technological development and the bring them in market to create a competitive edge thus
enterprise need to invest and focus more attention on their supply chain. Supply chain become
more inevitable challenge in every field to be continuously survived and to have an edge in this
prospered global supply based competitive environment. As contented by Mangal.D that to
improve profitability and efficiency, companies are using ways to achieve operational
excellence, reduce operating cost and enhance customer service through efficient supply chain
management. Supply chain management is not a new concept in todays world, it is continuously
enhancing its dimension in every aspects to increase the efficiency of exiting adopted SCM by
the companies. According to Adrian Done,To determine several knowledge based management
concept and framework are relevant and useful to supply chain academics and practitioners.
Collaboration and integration

are important for continuum improvement in SCM. Many

organizations still unable to implement the knowledge based concepts in real world. The
effective integration of suppliers into product value/ supply chains will be a key factor for some
manufactures in achieving the improvement necessary to remain competitive In a literature
P.W.Hyland

said

that

incorporating

new(product

and

process)

technology

enable

them(manufactures) to develop and exploit better practices in supply chains. The flexibility and
agility calls for companies to increase their effectiveness, exploits synergies and learn throughout
all areas of their operations. This is exactly possible in case of big organization or big
manufacturing houses. Small manufactures faces resources gaps in term of skills, knowledge,
technology and the finances (Hashim,2007), therefore, they tend to depend on suppliers
capabilities and co-operative relationships (Park and Krishnan ,2001) to access the latest
technologies, materials, process and other method of innovations. This is broadly in line with
Lipparini and Sobreros (1994) findings, who reported that SMEs often depend on their vendor to
whom they delivers as outsource or their own suppliers relationship as a key ingredients to
connect internal and external capabilities and expertise, as well as improve their innovation.
4

Small companies faces the problem of stock limitation sometimes due to their inability to
purchase in bulk or unable to get the credit facilities. Small companies try to build deep suppliers
relationship with hopes to increase the stability of supply and reduce supply risk. [Ellegaard,
2006]
Hence , looking into the literature we the devise here our one of the objective .
Objective 1: To determine the challenges the SME of sports good are facing across
Punjab.
In recent years, requirement of organizational performance measures and develop the evaluation
metrics to determine the efficiency or performance receives the attention of researchers and
practitioners. The role of the measures and metrics in determining the success of organization
cannot be overstated because they affect strategic, tactical and operational planning and control.
Many firms look to continuous improvement as tool to enhance their core competitiveness using
SCM. Many companies have failed to succeeded in maximizing their supply chains potential
because these companies failed to develop the performance measures control variables and
metrics needed to fully evaluation in regard to integrate their supply chain to maximize
effectiveness and efficiency (Larry lepide) .Paper by John Storey identified the key barriers and
identified using 4 PL SCM, involving outsourcing ,cross boundary working, new organizational
forms characterized by flattened hierarchies ,teams and empowerment. These trends present an
opportunities for development of SCM
In literature of Aarti Deveshwar it was said that assessing supply chain performance leads to
identification of problems and opportunities. Having a strategy and measuring key parts are
necessary to smooth running of supply chain. the continuous changes in turn provide agility to
handle exceptions and to adapt to changes. All three working together provides coordinated,
unified efforts to use SCM as a driving force in customer satisfaction and advantages. A supply
chain design problem comprises the decisions regarding the number and location of production
facilities, the assignment of each market regionto one or more locations, and suppliers selection
of assemblies, components and materials( Chopra and Meindi ,2004). What to measure and how
to measure , to find the performance level of SCM and offer suggestion for setting up
5

performance targets is critical. To develop a set of performance metrics and key performance
indicators are (KPIs) to ensure that it know the performance of SCM and organization too
require a stringent look over the business , stated Larry Lapide, AMR research.

So, here are considerable literature to devise our another objective for this project:
Objective 2 : To determine the factors for measuring the supply chain performance in
small scale sport industry.

The identification of factors are carried out forward from work by Li (2002) and Quesada and
Meneses (2010). In their finding, multiple factors like environmental uncertainty, company
environment, government support, information technology, planning tools and supplier
relationship are among top factors. Stevens(1990) states that the use of systems, facilities,
inventory level, service level, throughput efficiency and cost are among critical factors. LearOlimpi (1999) also stated that logistics play an important role in pursuing supply chain
excellence. Customers like to give more value to low cast, on time delivery, delivery date
certainty and receiving a customized products(Simchi- levi et al., 2003). In a literature
Ganescu.M.C determine some more important factor for responsible SCM : D1 corporate
ethics, D2- Employee Training, D3- Quality of local suppliers, D4- Control On distribution, D5Degree of customer orientatation, D6- Nature of competitive advantage.The rest connect factors
will be mentioned in detail within the project.

2.1.Factors for Performance Measurements :

In measurement , the greatest challenge lie in choosing the right measures. Here are some factors
that are determined as important factor that are important to link the whole of SCM.
Table 1: Measures and metric factor for evaluating SCM
PLAN

PERFORMANCE

Product development cycle time

Order entry method
Total cycle time
Net profit vs productivity ratio
Rate of return on investment
Order lead time

SOURCE PERFORMANCE

Supplier interest in developing

partnership
Supplier delivery performance
Supplier lead time against industry
norm
Purchase order cycle time
Mutual ability to respond to quality
problem

PRODUCTION PERFORMANCE

DELIVER PERFORMANCE

Delivery lead time

Number of faultless delivery
Response to number of urgent
deliveries
Toatal distribution cost

CUSTOMER SERVICE AND

SATISFACTION

Flexibility to meet particular customer

need
Customer query time
Level of customer perceived value of
product
7

Manufacturing cost
Economic order quantity
Capacity utilization
WIP
Finished good

Chapter 3
Objective and Research Methodology
3.1.Objectives:
1. To Determine the challenges the SME of sports good are facing across Punjab.
2. To determine the factors for measuring the supply chain performance in small scale sport
industry.

3.2.Research Methodology:
The date will be collected as primary data from the sport manufactures across Punjab state.
Other key factor for measuring the performance are collected from secondary data available in
different review of literature and internet sources related to SCM and its measurement.
Once the responses are collected , both explanatory factor analysis(EFA) and confirmatory factor
analysis(CFA) will be applied to understand shared variance of measured variables
EFA is statistical method within multivariate factor analysis to uncover the relationship between
the measured variables.EFA is based on common factor model. In EFA , the assumption that the
variable may be associated with any factor. When developing a scale, researcher has to use EFA
prior of using CFA. The objective of confirmatory factor analysis is to test whether the data fit a
hypothesized measurement model.

Chapter 4
Need and scope of the study

The challenges faced by the startup and MSMEs to manage their resources and supply chain is
more crucial for their development

to become a big manufacturer. The study related to

performance measurement in SCM is mostly conducted on large manufacturing houses in the

field of textiles and automobiles. No study done in at small sport manufacturers .
This study will enable to find out the challenges face by the sport manufacture to find the vendor
and the market to supply their product and also the cop up with the changing market trend.
Moreover by means of performance measurement how they can increase their efficiency and turn
it into competitive advantage .

Chapter 5
References

Done, A. (2011). Supply- chain Evolution : Kn.owledge Based Prospectives. IESE

Business School , WP-899

Hashim, M. (August ,2007). SMEs in malaysia: A brief handbook. SDN. Bhd.

Park, D., & Krishnan, H. A. (2001). Supplier selection practices among small firms in the
United States: Testing three models. Journal of Small Business Management, 39(3), 259 271.

Deveshwar, A., & Rathee, R. (2010). Challenges for SCM in Today's Global Competitive
Environment. International Review of Business Research Papers, 6 , 194-203.

Li S. An Integrated Model for SCM Practice, Performance and Competitive Advantage.

In: Management of Manufacturing (2002) Ohio: The University of Toledo. 1-266.

Quesada, H. and Gazo, R. 2007. Methodology to Determine Key Internal Business

Processes Based on Critical Success Factors: A Study in Furniture Industry. Business
Processes Management Journal. 13(1):5-20

Lear-Olimpi M. Get in step for the future. Warehousing Management (1999) 6:15.

Simchi-Levi D, Kaminsky P, Simchi-Levi E. Managing the Supply Chain. (2003) New

York: McGraw Hill.

Ganasekaran, A., Patel, C., & Ttittiroglu, E. (2001). Performance measures and metrics
on a supply chain environment. International journal of Operations and production
Management. , 21 (1/2), 71-87.

G.p.Kurien, & Qureshi, M. (2011). Study of performance measurement practices in

supply chain management. Interantional Journal of Business, Management and Socila
Sciences , 2, 19-34

10

Quesada, H., Gazo, R., & Sanchez, S. Critical Factors Affecting SCM: A Study in the US
pallet industry. Purdue University, Virginia, USA.

Ganescu, M. C., Asandei, M., & Chirila, C. Performance Determinants For Responsible
Supply chain Mangement in the European Emenrging Country. Univeresity of Pitesti.
Romania: Constantin Brancoveanu.

11

QUESTIONNAIRE
1) Name of the Firm

2) Designation
________________________________________________________________________

3) Gender
Male

Female

4) Which Sports related item the company generally made.

________________________________________________________________________
________________________________________________________________________
_______________________________________________________________________

5) What categories of items the company is manufacturing?

Sports equipment
Sports utilities.
Security and safety equipments.
Apparels
Footware
Others

6) The capacity level of manufacturing houses is upto what extent

Small, limited to single item
SMEs
Large Level
Global level
12

7) From where the company take raw material?

________________________________________________________________________
________________________________________________________________________

8) Tell about the cities, the company is supplying the products.

________________________________________________________________________
________________________________________________________________________

9) To what extent do you consider that the following functions affect your efficiency of supply
chain management
Low Extent
1

Inventory

Transportation

Lead time

Purchasing

Production Planning

High extent
2

13

10) The table includes some relevant variable related to the performance measurement of
supply chain management and rating should need to be given as per the management
level ( the level your company is attaining) for particulars on Likert Scale

1. Least appropriate

5 )Most appropriate

FACTORS

LEAST

Does the time taken by the

MOST

supplier for supply of raw

material is appropriate

At what scale do you rate the

relationship with the supplier

How appropriate you consider

the quality of raw material you
receive
How waste you manage the
inventory level of raw material

How much advance machineries

you are using for manufacturing

How efficient the production

cycle of your product
How appropriately you are
managing wastage of your
14

manufacturing house
How appropriate the lead time of

the product you deliver to the

market
How efficient do you think your
collection of payment procedure
is:
How important the measure of
employee performance is:
How appropriately you use IT
enable infrastructure
How efficiently you are
managing your logistics
How appropriately you are using
you reverse SCM
To what level you consider over
all SCM

15