According
to Rajah, Musa, Nipis, & Krishnan (2018), there are many challenges that
could be related with the supply chain management as there is much hurdles due
to culture differentiation in the Saudi Arabia. In the development of
relationships with the other countries to improve the supply chain management
must be critically examined in the development of the relationships. The land
of Saudi Arabia in production network the board is that the administration is
framing strategies to pick up the maintainability in the development of oil
business. Saudi government needs to defeat the confidence of salary from oil
creation and broadened their arrangement as indicated by vision plan to 2020,
which are proposed to change the fountain of pay in nation.
According
to Yen, Wu, Yue, & Jin (2016) in
their research that SCM implications are not easy in any country but have to
face more difficulties in the implementation of the SCM in the country that has
different beliefs and culture. It is a basic factor to show signs of
improvement the production network the board in the nation to pick up the upper
hand in business industry. Continued with globalization has encouraged a few
countries to move towards extended usage of new advances. The drive to moving
to cutting edge advancements is communicated to the point that nonattendance of
affirmation would no doubt guarantee the loss of advantage. The growing
enthusiasm for acknowledgment has furthermore been seen at all degrees of
government given that different nations offer sorts of help to inhabitants by
methods for electronic strategy.
Culture
impacts on store network as strict convictions, constituent of nation and rules
and guidelines are unique so there are distinction in the food and design
industry which is affected by the way of life separation. Culture and heritance
are most likely to effect in the communication process at workplace. To work
with the culture that is not according to the Saudi culture they have to
implementation of change management in the functions of the businesses. It
could be not possible to develop the system of Supply chain management without
adopting or understanding the culture of the other countries for dealing. In
some cultures there are most likely to use the translators to understand the
culture difference (P.Bulsara, Qureshi, & Patel, 2016).
Like
China, Developed nations in the Middle East, for instance, Saudi Arabia, have
been continuing to trade with the worldwide business, for which they need to
improve their inventory network, focus in a very regular sense with only a
progressing acknowledgment of the activity of current creation arrange the
commissioner and function as affirm by the Saudi National Change Plan and the
Vision of 2030. With an acknowledgment of the conceivable over reliance of oil
creation and a hankering to misuse topographical territory, present day stock
system the administrators is simply beginning to create in Saudi Arabia. Rather
than the point that country has different focal points, for instance, zone,
geography, a strong country and firm widespread trade relations that are not
particularly utilized in educational creation arrange practice to introduce day
all inclusive estimation (Khan, Ahmad, & Abdollahian, 2013).
Western
and Middle East culture differs in great meaning but most transactions are
developed with the Europe countries as they are developed nations in the
region. However, still due to many changes, these regions are exchanging the
products and services in huge amount that could affect the economy of Saudi
Arabia. They are dealing in oil and gas that are considered as great resources
of earning in economy of Saudi Arabia. From the current situation to towards
forward to 2020, there is estimation of experts to increase the consumption in
the coming years (GEIGER, 2019) . Saudi Arabia has
to take different steps in decentralize the economy of the building of the
economy in the western culture in the economies throughout the production
system that could be sold in the world market (Alhashim, 2018)
In
past, Saudi Arabia was managing generally in oil item all inventory network the
board on globalization yet as of late the administration of Saudi Arabia
differentiated the production network with various sort of business, for
example, improving in design industry and other current angles with different
nations. As the differentiated store network is not quite the same as the way
of life of Saudi Arabia, there might be issue in centering of the new inventory
network such there might be various difficulties when contrasted with western
nations to build up these systems. This investigation will be recommended to
investigate the impacts of culture on inventory network with the cutting practice
which could prompt a created store network the board (Khan, Haleem, Khan, Abidi, & Al-Ahmari., 2018).
According
to the research of Nike, the various franchises are presenting the in the
success of supply chain management by improving the relations with supplier,
manufacturers, distributors, retailers and the customers. Furthermore,
sustainability in the strategic management could be possible with the
identification of the products and services that are dealing with the different
countries. In Saudi Arabia there are vast resources of oil and gas that is
sheltered in the economy as main theme in the industrial revolution to improve
the relations with the Europe. Although, Saudi Arabia is working with the 183
countries and show the prosperity towards the countries, still they need to
develop strong supply chain management strategy in the relationship development
on international level.
Supply
chain management is most important element in the globalization of the business
to continue transactions with the other countries. It is necessary to improve
supply chain management in the economy to compete the American economy. It
means that the pressure on the SCM involved with the improvements in the
technology that is used in the advanced and developed countries. It could be
chances to lose the traditional work while implementing the innovative methods
to increase the efficiencies. It could be sued in the adjustments of the
culture difference in the human development and the culture difference (Storer, Hyland, Ferrer, Santa, & Griffiths,
2014).
Study
has wide scope of consequences of practical production network the board all
the components of task which are dealing with the premise of involvement with
the business (Falah & Mohamed Zairi, 2003).
All the parts of venture have significant impact in crafted by inventory
network the board and they are associated with the presentation of Saudi
Arabia. It is sufficient as the way of life sway on SCM for venture procedure
which gives impression of the nation culture on the association of experts with
production network the board. Information of assets were additionally directed
from the individuals who were expertly master in the ground of production
network the executives. Asset the executives and assets usage is a major issue
to bargain however in project plan there is just need to find out about the asset
the board that how it will be used in future to pick up the development pace of
economy. (Borade & Bansod, 2007)
These
assets are related to the way of life distinction underway system the board, in
Saudi Arabia. Business the executives is significant in the serious market.
Project plan is fundamentally used to pick up the reconciliation to pick up the
upper hand in the market. SCM is field of the management which is utilized to
actualize on the way of life distinction of applicable nation. On the off
chance that there is absence of approach in the SCM there might be most basic
circumstance which might be looked by the nation. There is Identification of
the various techniques which are characterized to find out about the way of
life contrast. Saudi Arabia is managing in oil item in past yet now they are
changing their SCM to create in the business.
Data
from the review and the composing project were arranged and used for making
factors for the gathering survey. The enterprise was scattered to various
enterprises which give potential outcomes and achieved diverse usable
responses. This is for the most part considered as expanded through the
completing the venture of various enterprises. A significant part, which has effect
of culture on crafted by the respondents affiliations drew in with this
assessment have internal and outside stock chains that connect past their
affiliation or industry. Different companies are related with the other
countries to make the supply chain management effective and improve relations
beyond the differences of the cultures.
There
are many researches that gave different perspectives on the supply chain
management in the development of the relations to the end customers. These
views are the based on the different raw materials in the production and
distribution level. It based on the running of the material in the distribution
of the products to control the mechanism (Tan, Lyman, & Wisner, 2002).explained in the
study which based on the supply, production, facilities and the distribution of
the material to get the information to gain the feedbacks.
Christopher
explains in his studies that the supply chain network that are involved with
the streaming of the different linkage with the distributors to produce the
different level of the activities with the other countries. Lee Billington
(1993) explains in his research that the facilities of the functions to
transform the material handling in the production of finished goods to send it
the customers. Axelsson and Easton (1992) defines in the model which based on
the numbers of figures that are connected with the organizations to endure the
relationships with the other countries. They made possible to give the
stability and improvements in the structure in the proper network of the supply
chain management in proper way.
The
supply chain is used to produce maximum output on the low cost. It could be
possible that the flow of material is based on the logistics of the manufacturing
capacity in the distribution of the marketing channel to utilize the proper
resources in the production. It could be done to achieve the objectives related
to the supply chain management. The outcomes of these efforts are in the form
of superior profitability and to enhance the market share according to the
demands of the customers. SCM is an operational program to interconnect the
businesses in the perspective of the entire economy through different
perspectives.
Production
network is most likely to be observed as a source of upper hand (Karen, 2010;
Douglas what's more, Judge, 2001), development change (Singh and Smith, 2004),
and new authoritative culture. Any decrease in consumer loyalty because of poor
assistance quality would be a genuine motivation of hierarchical disappointment
(Christopher, 2005).
Production network measurements are those measurements which are compulsory to
the accomplishment of any association, as in, if destinations related with the
measurements are definitely not accomplished, the association will divided.
With regards to world class technique, inventory network the executives
measurements speak to the basic part without which a technique has little
possibility of accomplishment. SCM measurement is proposed to be a
multi-dimensional idea, and subsequently saw as a more complete idea than the
smaller view (the provider side, the inward side or the client side) taken in
earlier research based on the supply chain management (Monczka, Handfield, Giunipero, & Patterson, 2015).
The
current issues are relating to the condition of the market at a global level
and condition of the organization according to their supply chain policy and
management. As we know that Supply chain management is the process of
delivering the goods or products from raw material to the final product and
then deliver to the end-user. So its supply chain management explains the
complete path of delivery the product from its start to end and also enhance
the quality of the product according to the requirement or demands of the
customers. The supply chain management helps to make the operations of the
organization more active and smooth and also helps to manage all transactions
in a proper format. (Tutorialspoint.com, 2019)
The
supply chain management is not a simple term, it includes many different
aspects of the organization that make all the function effective and easy to
understand and also elaborate all the transactions in clear terms. Now the
competitive environment is going to increase within the market where everyone
willing to come at first and beat the other. This though makes the purchases
very essential for the organization and they want to adopt such policies or
procedures that make their purchase more effective. In purchasing the
introduction of innovation make the purchasing more convenient and visible. (Min, Zacharia, & Smith, 2019)
Purchasing
and supply chain management has a strong relationship and it also helps to
motivate the reputation of the organization and show a great impact on the
economy. The company is going to be more successful when it going to achieve
all the benefits related to purchasing and supply chain management. With them.
It is very important to discuss the process of purchasing because it explains the
objective of purchasing and also focuses on business goals and objectives. (Westland, 2019)
Then
the organization determines the strategic supply management role and
responsibilities. Policies are a major part of the organization and its
development because policies make the setup of the organization in legal term
and everyone has to follow these policies. So the purchasing policy helps to
explain all the aspects of the organization and also their impact on the
performance of the organization. For obtaining the competitive advantages, it
is very important to integrate the supply chain management with the functions
of the organization to explain all the functions and operations more
effectively and help the structure of the organization to establish properly.
Different
types of supply chain management strategies also implement in the organization
according to their requirements and operations. Purchases occur between seller
and buyer so both have to understand that complete process and also explain the
terms and conditions that they have to settle with the organization according
to their responsibilities. Effective suppliers are also very important because
it helps to make the production of high quality and develop a greater standard
of products among many competitors. (Ganeshan, 2016)
Quality of supplier is
essential according to quality management perspective because the supplier has
to deliver the product of high quality that reaches the product at a high level
and also helps to explain all the terms and conditions related to the product.
The organization is going to use the six sigma approaches to ensure the high
quality of the product and also establish the standard of quality at a high
level.
Different approaches are utilizing for better development
and maintenance of the operations of the organization and provide better
results for the future. Supply chain management is going to be an effective
tool in every type of organization because it helps to run the operation and
also maintain the purchase and sale of the organization's process more
effective and smooth and generate effective results for the future. The role of
supply chain management makes the strategies of the organization more effective
and efficient. (UNB.Ca.org, 2018)
Supply
chain management is the main part of every organization and also becomes the
cause of the success and satisfaction of customers. The supply chain management
has a major impact on the management of the organization because it provides
them many types of benefits and also gives then long term benefits to enhance
the production level of the organization and also improve the performance in
the right direction (Pounder, 2013). It helps to improve the financial
position of the organization as it enhances the profit leverage of the
organization by reducing the cost of the supply chain and enhance the quality
of the product to attract more customers.
It
helps in decrease the fixed assets as it decreases the usage of major assets in
the process of the supply chain by effective strategy and uses the additional
fixed asset at a minimum level to save the cost of the organization. It
increases the cash flow because it makes more smooth the path through which the
product reached to the user and due to quick delivery of the product the cash
quickly comes in the organization. It also helps the management to minimize the
operation of costs of the organization as it reduces the purchasing cost by
less holding the product and delivers the product in less time. Production cost
is also minimizing as the shortage of material occur less and the production
spends less cost in the development and manufacturing of the products. (Alison.com, 2018)
Supply
chain management help to provide maximum satisfaction to customers in many
ways. Because it makes the delivery of the product more smooth and effective
and also utilizes less time (Alison.com, 2018)e so the customer is very much satisfied
due to effective supply chain management of the organization. Due to effective
supply chain, the customers expect that accurate product and accurate quantity
deliver to them from the organization. At the right location, the product must
be available. In other words, delivery must occur at the right time so that
they can obtain their product at their accurate place. Customer also wants to
avail after-sale services that make the relationship stronger and reliable with
the organization.
Because
they know that the organization always ready to provide their services
according to their requirement. Supply chain management also improves the
living standards as infrastructure help to exchange the goods between business
and customers at low provides and in a quick way. So supply chain management
help to improve the life of customers by providing them with the product that
is according to their demand and also provide that product in the right place,
at right time according to their manageable prices. So it helps to develop a
strong and healthy relationship between customers and the organization. (Courses.lumenlearning.com, 2019)
Organization
need a better response of all customers when they want to obtain competitive
advantages. Only those organizations can obtain the competitive advantages who
give a response to the needs and requirements of the customers and develop a
strong relationship with all customers. The supply chain is responsively
related to customers as it becomes the source of competitive advantages for the
organization. The performance of the firm must be different from others and it
can manage all the issues of customers and make the delivery of the products
more effective and smooth.
Ragu-Nathan,
Li, Ragu-Nathan, & Rao 2006 explains that the supply chain management and
its effective benefit reach the organization level at a high point because it
provides the infrastructure of the organization a new and trendy way to
establish their operations and also manage all the transactions according to
customers need and requirement. Some trend belongs to future and supply chains
are given as in mainstream supply chain activities, the artificial intelligence
will be embedding. In a closed-loop feedback process, the leaders will leverage
social media. (Li, 2006)
Joseph
Sharkis explains that technology move at a top position that supports the usage
of supply chain management. For successful results, the micro-segmentation must
be implemented in the organization. It determines the nature and number of the
supply chain with the product clock speeds. With similar to CPAs (Certified
Public Accountant), the supply chain management will have a standard
certification process. To serve the base of the pyramid, the supply chain must
be designed to fully report corporate externalities the companies must be
prepared. As compared to the product chain, the service chain is going to be
more important for the organizations. (Sarkis, 2008)
Vikram
S. Bhadauria 2019 highlights that the Supply chain management make the
supply of product within and outside the organization more effective, smooth,
and handle all the related issues and problems that create hurdles in the
delivery of the product to customers. Supply chain management strategies
implement in all level of production and also help to manage the manufacturing
process more active and efficient because organization now depends on the
demand and requirements of the customers and try to produce the products
according to their need and requirement so they are willing to purchase the
product from that organization. (Bhadauria, 2019) (Sisto, Walker, & Mcbain, 2008)
According
to Sisto, Walker, & Mcbain (2008), the supply chain managers want to provide the
accurate product according to customer's need so the customer shows its
complete trust and a long term and good relationship is going to develop with
the organization and the customer obtains its required product according to
supply chain management. Supply chain management helps the organization to
maintain and run its all operations in an effective manner and establish a
strong relationship with the economy that provide benefit and become beneficial
for the organization in long terms. (Walker, 2008)
S.
Subba Rao 2005 told us that the purchasing process and its supplier role and
responsibilities are very much important for provide better results in the
production department and deliver the product according to customers demand and
its need. Because supply chain management and its effective strategies help the
organization to establish a cooperative environment that works for the benefits
of all the people who are attached with them and also maintain a supportive
atmosphere that supports the customers and competitors according to its
functions and making better its performance. (Rao, 2005)
Tan,
Keah Choon 2006 realizes that in the field of business, the role of supply
chain and its management is very much essential and no any organization can
move its operations without the implementation of the supply chain within the
organization. Supply chain management and its effects are long-lasting for the
operations of the organization and it also helps to maintain functions and
transaction in a proper way and on track. In the supply chain management, the
purchasing process is the very important and basic purpose of the business
explain with its purchasing pattern. (Tan, 2006)
Walker
Helen, 2008 Every organization has a different way of purchasing by utilizing
its strategic techniques and adopts an effective purchasing policy that explains
the objective of the business. Different organizations have different policies
related to their transactions and supply chain management because the functions
of every organization are different from each other and its supply chain
management procedure different according to the requirement of product and its
customers. So in every business or organization supply chain showing a major
role in its development. (Walker H., 2008)
The
supply chain also provides many competitive advantages to its users because it
makes the product more prominent and convenience for the users to easily
access. The supply chain management has shown major impact or organization,
customers and competitors in different ways and it also affects the economic
condition of the country so its depend on the organization that how
effectively.
They are going to utilize the supply chain
management and how they get more and more beneficial for enhancing their sale
and purchase in the market and also consider that how they provide the
competitive advantages to the organization because many competitors are using
the same management techniques so it depends on the management of the
organization that how to utilize the strategies to obtain maximum benefit and
make the supply chain management more effective.
Weingarten
2013 explains that supply chain management helps in decline the fixed resources
as it declines the use of significant resources during the time spent store
network by powerful procedure and utilize the extra fixed resource at least
level to spare the expense of the association. It increments the income since
it makes increasingly smooth the way through which the item came to the client
and because of speedy conveyance of the item the money comes in the association
in a fast way. It likewise helps the administration to limit the activity of
expenses of the association as it lessens the obtaining cost by less holding
the item and conveys the item in less time. (Wiengarten, 2013).
The
role of supply chain management is essential for every type of organization and
no organization can make it all operations smooth and active without the
effective strategies of the supply chain management.
References of the impact of culture on supply
chain management
Alhashim, M. (2018). An Analysis of Barriers to
Supply Chain Management Performance in Saudi Arabia. PhD Thesis, Dublin
City University.
Alison.com. (2018). Introduction To
Supply Chain Management - Revised 2018. Retrieved from
https://alison.com/course/introduction-to-supply-chain-management-revised-2018
Axelsson, B., & Easton, G. (1992). Industrial
Networks (Routledge Revivals): A New View of Reality. Routledge.
Bhadauria, V. S. (2019). Green supply
chain management practices: impact on performance. 7(13), 290-305.
Borade, A., & Bansod, S. V. (2007).
“Domain Of Supply Chain Management - A State Of Art”. Journal of Technology
Management and Innovation, 2(4).
Christopher, M. (2005). Logistics and
supply chain management: creating value-adding networks. Pearson education.
Courses.lumenlearning.com. (2019). Reading:
Supply Chain Management. Retrieved from https://courses.lumenlearning.com/baycollege-introbusiness/chapter/941/
Falah, K. A., & Mohamed Zairi, A. M.
(2003). supply‐chain management in world‐class manufacturing. International
Journal of Physical Distribution & Logistics Management.
Ferrer, M., & Medhekar, A. (2012). The
factors impacting on the management of global medical tourism service supply
chain. GSTF Journal on Business Review (GBR), 2(2).
Ganeshan, R. (2016). An Introduction to
Supply Chain Management. Retrieved from http://lcm.csa.iisc.ernet.in/scm/supply_chain_intro.html
GEIGER, J. (2019). How Much Crude Oil
Has The World Really Consumed? Retrieved May 8, 2020, from
https://oilprice.com/Energy/Crude-Oil/How-Much-Crude-Oil-Has-The-World-Really-Consumed.html
Khan, H. U., Ahmad, S., & Abdollahian,
M. (2013). Supply chain technology acceptance, adoption, and possible
challenges: A case study of service organizations of Saudi Arabia. In 2013
10th International Conference on Information Technology: New Generations (pp.
590-595). IEEE.
Khan, H. U., Ahmad, S., & Abdollahian,
M. (2013). Supply chain technology acceptance, adoption, and possible
challenges: A case study of service organizations of Saudi Arabia. In 2013
10th International Conference on Information Technology: New Generations (pp.
590-595). IEEE.
Khan,
S., Haleem, A., Khan, M. I., Abidi, M. H., & Al-Ahmari., A. (2018). Implementing traceability systems in specific supply
chain management (SCM) through critical success factors (CSFs). Sustainability,
10(1), 204.
Lee, H. L., & Billington, C. (1993).
Material Management in Decentralized Supply Chains. Operations Research, 41(5),
835-847.
Li, S. (2006). The impact of supply chain
management practices on competitive advantage and organizational performance. 36(6),
107-124.
Min, S., Zacharia, Z. G., & Smith, C.
D. (2019). Defining Supply Chain Management: In the Past, Present, and Future. Journal
of Business Logistics, 40(1), 44-55.
Mitra, S., & Tan, A. W. (2012).
Lessons learned from large construction project in Saudi Arabia. Benchmarking:
An International Journal.
Monczka, R. M., Handfield, R. B.,
Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain
management. . Cengage Learning.
P.Bulsara, H., Qureshi, M. N., &
Patel, H. (2016). Green supply chain performance measurement: an exploratory
study. International Journal of Logistics Systems and Management, 23(4),
476-498.
Pati, N., Sundram, V. P., Chandran, V. G.,
& Bhatti., M. A. (2016). Supply chain practices and performance: the
indirect effects of supply chain integration. Benchmarking: An International
Journal.
Pounder, P. (2013). A Review of Supply
Chain Management and Its Main External Influential Factors. Supply Chain
Forum, 14(3), 42-50.
Pratap, A. (2019). NIKE SUPPLY CHAIN
MANAGEMENT. Retrieved May 8, 2020, from
https://notesmatic.com/2018/02/nike-supply-chain-management/
Ragu-Nathan, B., Li, S., Ragu-Nathan, T.
S., & Rao, S. (2006). The Impact of Supply Chain Management Practices on
Competitive Advantage and Organizational Performance. Omega, 34(2), 107-124.
Rajah,
N., Musa, H., Nipis, V., & Krishnan, P. K. (2018). Global Supply Chain Management: Challenges and
Solution. International Journal of Engineering and Technology, 4(34),
447-454.
Rao, S. S. (2005). Development and
validation of a measurement instrument for studying supply chain management
practices. 23(6), 618-641.
Sarkis, J. (2008). Confirmation of a
measurement model for green supply chain management practices implementation. 11(2),
261-273.
Sisto, L. D., Walker, H., & Mcbain, D.
(2008). Drivers and barriers to environmental supply chain management
practices: Lessons from the public and private sectors. Journal of
Purchasing and Supply Management, 14(1), 69-85.
Storer, M., Hyland, P., Ferrer, M., Santa,
R., & Griffiths, A. (2014). Strategic supply chain management factors
influencing agribusiness innovation utilization. The International Journal
of Logistics Management.
Tan, K. C. (2006). Supply Chain
Management: Practices, Concerns, and Performance Issues. 142-159.
Tan, K.-C., Lyman, S. B., & Wisner, J.
D. (2002). Supply Chain Management: A Strategic Perspective. International
Journal of Operations & Production Management, 22(6), 614-631.
Tutorialspoint.com. (2019). Supply
Chain Management - Introduction. Retrieved from
https://www.tutorialspoint.com/supply_chain_management/supply_chain_management_introduction.htm
UNB.Ca.org. (2018). Supply Chain
Management: Introduction. Retrieved from
http://www2.unb.ca/~ddu/4690/Lecture_notes/Lec1.pdf
Walker, H. (2008). Drivers and barriers to
environmental supply chain management practices: Lessons from the public and
private sectors. 14(1), 69-85.
Walker, l. (2008). Relationships between
operational practices and performance among early adopters of green supply
chain management practices in Chinese manufacturing enterprises. 14(1),
69-85.
Westland, J. (2019, July 18). An
Introduction to Supply Chain Management (SCM). Retrieved from
https://www.projectmanager.com/blog/supply-chain-management
Wiengarten, F. (2013). ISO 14000
certification and investments in environmental supply chain management
practices: identifying differences in motivation and adoption levels between
Western European and North American companies. 56(1), 18-28.
Yen, D. C., Wu, L., Yue, X., & Jin, A.
(2016). Smart supply chain management: A review and implications for future
research. The International Journal of Logistics Management, 27(2),
395-417.