Factors affecting Supply Chain operations - a case study of Food Company in Pakistan

Abstract

With globalization, companies rely increasingly on global sourcing to remain competitive in the environment and enjoy operational benefits. However with operational benefits does come certain risks and vulnerabilities. Food supply chain differs from other product supply chains and are more vulnerable. These risks/vulnerabilities arise from either internal environment (inaccurate forecasting due to longer times, bull-whip effect, information distortion, rate of product obsolescence, capacity flexibility etc) of the supply chain or from external environment (political instability, natural disasters, war, terrorism). The impact of internal risks is not greater and can be resolved with methods used in the past however the risks from external environment are and have greater impact. This project explores the factors from environmental volatility, political instability and transportation infrastructure affects the supply chain operations in food industry Pakistan. For this project, a food company has been selected and case study methodology has been used to answer the research question. By conducting unstructured interviews and analyzing secondary data, the factors from environmental volatility, political instability and transportation infrastructure were determined. Further it was analyzed how these factors affected the supply chain. This project contributes to the literature of risks in supply chain, food supply chain and supply chain disruptions. It will provide insight about the nature of risks and dealing these risks with better approach.