Impact of supply chain management on
performance of private University-Karachi

 

Background
of the study

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Supply chain activities
have reshaped the entire outlook for many organizations over the years. As of
recent there has been a surge of supply chain activities being applied and
implemented within the education industry. The aim of this study is to explore the
benefits that supply chain activities have brought forward and their role in achievements,
overall performance and competitiveness in the education sector. This study was
conducted primarily on private Pakistani universities mainly located in
Karachi. A total 10 universities were shortlisted with 110 responses. The
research design was conducted of cross sectional study of selected private
universities based on their HEC rankings for different categories. Factor
analysis was conducted to decipher the variance in the variables. Whereas
multiple regression techniques were used to test the hypothesis.

 

 

Gross
Domestic Product is contributed significantly by Pakistan’s service industry
and these industries are considered at forefront to create jobs especially in
the developing world. The service sector is expected to gain more importance
than other sectors in the Pakistan economy. Unlike many foreign nations who
rely on foreign exchange for revenues, Pakistani universities still lag behind
considerably when it comes earn foreign exchange.

The
rise in higher education is more prevalent than ever before ad is considered as
a prerequisite for the functioning of a modern society. The education sector
can contribute greatly towards Pakistan economy therefore it is important to
analyse what will determine the success of our education sector’s performance.
Supply chain strategies can be highly effective when  it comes I proving education standards of  Pakistan. Bearing in mind with better supply
chain responsiveness, universities can increase their competitive advantage
which will ultimately result in better performance.

Almost
all indsutries globally have been effected by the rise in responsiveness of the
supply chain activities, not only supply chain activities provides a
competitive advantage, but in some cases it is key component for an
organzaitions survival strategy. Prior researches on various fields have shown
that there is a strong coreelation between supply chain mangemen and the
improvement in organizations performance. The core reason for implementing
supply chain activities is for organizations to improve their operations,
combat rising costs, increase outsourcing, reduce competitive pressure and
decrease globalization risks.

Supply
chain management is responsible for integrating and coordinating the company’s
internal functions within a company and linking them with external operators,
suppliers and customers. Organizations these days work closely with their
customers, suppliers and to some extent even their competition in the
collaborative dynamism of supply chain.

 

 

 

Higher
education institutes have acknowledged the importance of supply chain and the
need to effectively orchestrate flow of supplies (students), information, money
and services have become their paramount priority. In some cases educational
institutes have adopted the manufacturing industry models to their education
system to reference the idea of educational supply chain, in which the
students, employees, university staff, colleges and school work as a team to
ensure the needs are satisfied. Moreover the ultimate goal of the educational
supply chain remains to improve the wellbeing of the society.

In
order to make the educational supply chain successful these educational institutes
such as the private universities must understand the constraints in their
supply chain. Over the years many research documents have been published that
mention supply chain related activities in the manufacturing sector but few
have highlighted it’s application in the education sector. Hence the focus of
the study is primarily done in the Pakistani environment. This study may be
relevant to the current Pakistan’s education system, especially the private
universities.

One
of the biggest problems that the Pakistan faces is the sustainability
performance which is growing at an alarming pace in our private universities.
The research has also delved into the financial performance of some universities.
According to this study some private universities are facing tremendous
financial pressures in terms of their long term sustainability and quality. In
order to ensure that they remain relevant and competitive they, Pakistani universities
must need to manage their supply chain systematically, note that proper supply
chain management has been the success story for many businesses worldwide.
Therefore this research is being attempted to show how supply chain related
activities can improve the performance of Pakistani universities.

 

Theoretical
background and Hypothesis:

“The impact of supply chain
activities on Universities performance”

Universitieis
act as the provider for manpower for future hence their importance to the
society cannot be discarded. Being the centre of focus in the educational
supply chain, universiites ensure that there is a seamless connection between
the upstream and downstream society. The universities can harvest quality
outcomes for its society. In order to gain competitive edge over its rivals,
universiites must make their internal processed more responsive and adaptable
to market changes.

Internal
operations play a crucial role in orchestrating a superior supply chain
performance. And this step is considered more important before attempting
external coordination. Due to advancements in technology, broader range of stakeholders
gain access to more information about the supply chain operations.

Performance
of a particular university indicates how well the institution is performing.
However it is the quality of graduates who are the main determinants of their
performance and their research outcomes and their application of supply chain
practices and concepts. The education providers performance in terms how well
it performs overall it determined by its profits, growth in sales numbers and
return it gets on its investments. Short term objectives aside the longer term
objectives such as increasing market share and robust integration of supply
chain operations are indicator of organizational performance.

 

 

Prerequisites
of a successful supply chain functionality includes a shared vision, goal,
risks and rewards plus information sharing, cooperation and integration of the
processes.

This
synopsis basically outlines the shortcomings for previous studies are relevant
to applicable across different types of organizations. The research also depicts  different angles of supply chain activities with
its main objective of  improving private
university’s performance in Pakistani dynamics. However the limitations of this
paper warrants further study into the service sector. This study concludes the
supply chain activiites which are now crucial to the performance of higher
education, the partnership with consumer and suppliers, information technology
and innovation.

 

 

 

 

 

 

 

 

 

 

 

 

 

Developing
Strategic Supplier Partnership

The
long-term relationship between the organization and its suppliers is known as
strategic supplier partnership. The main ingredient of this relationship is building
trust and strenghtning collaboration among supply chain partners inclusive of
customers. Transitioning the supply chain concept in the field of education,
the strategic supplier partnership can be reffered to as collaboration between
higher education institutions as organizations must work in close proximity
with their source suppliers, such as parents, schools, colleges, societies and
even the government. In order to maintain competitive edge healthy strategic
alliances along with good relations with buyers and suppliers is necessary.

Schools
and colleges could participate in joint program development and sharing of
program demand forecasts with universities. Suppliers at upstream level may
share information regarding program  requirements
and the cost related information with the universities directly.

 

 

Strategic
Customer Partnership

It
is imperative that universities maintain strong CRM customer relations management
practices in order to maintain strong relations with the customer. Customers can
help universities design curriculum, innovation and may work with university’s
curriculum com9itttee to initiate right programs which matc the current needs
and wants of the industry.

 

 

 

 

Information
Sharing

Information
sharing is another key component of succesfull supply chain partnership which
can be defined as an extent of sharing proprietary and vital and information to
its supply chain partners. It must be noted that organizational success is
dependant on the accuracy, speed and timely information provided to each supply
chain partner.

In
education the information is crucial amongst all the stakeholders, government,
society, employer and university itself.

 

Information Technology

 

Without the contribution
of effective information technology, supply chain practices that we see
nowadays will be impossible to achieve. With advancements in technology
especially in the IT sector over the last decade has seen a growing trend for
educational institutions create external linkages, such as sharing of
information, which enables increased visibility to their customers, suppliers
and other stae holders.

 

Innovations

Innovation can be
described as an ” adoption of internally generated or purchased device, system,
policy, process, product, program or service that is new to an organization.’  Innovation is a key competent in the evolution
of making supply chain activates better than before.  Innovation is especially important in regards
to technological upgrades and delivering better customer exeriences.

 

Methodology

Research design

This part of the report
discusses the research design and test our hypothesis among different
variables. The flow chart below depicts the dependant and independent variables.