Initially in this project, a firm was located that had experienced a problem with its operations that became apparent because the firmÆs gross profit margin was lower than the norm for the major indurtry in which the firm competed. The firm of interest was PACCAR, Inc., a manufacturer of heavy transportation equipment - highway and rail vehicles. The companyÆs gross profit margin of 20.58 percent was lower than the industry norm of 22.68 percent (HooverÆs, Inc., 2005).
The initial problem assessment focused narrowly on the CompanyÆs cost-of-goods-sold statistic. The research approach adopted was the conduct of a survey of competitors to determine how their cost-of-goods-sold experience differed from the CompanyÆs experience. Such information, it was reasoned, would allow the Company to improve the efficiency of its procurement operations.
As it turned out, the CompanyÆs competitors were less than forthcoming when requested to divulge sensitive proprietary information. Additionally, further analysis of the situation revealed that the true nature of the problem at the company was the productivity of the companyÆs entire supply chain operations, as opposed to simply a problem of procurement productivity.
Thus, it was determined somewhat belatedly that the most effective research would involve the collection of data that would (a) reveal areas for improvement in the CompanyÆs supply chain management and (b) potential solutions to the problem. Further research found that other companies and researchers investigated similar problems effectively through the conduct of survey-based research to develop the information required to effectively analyze the supply chain integration problem. Effective supply-chain management is necessary for optimal efficiency and competitiveness in the current global business environment. Supply-chain management is an integral component of an organizationÆs value-chain. In the following s...