Applied Research Problem Statement: Cost Control in Supply Chain Management

PURPOSE STATEMENT AND THE SIGNIFICANCE OF THE STUDY ASSIGNMENT INSTRUCTIONS
The purpose statement should flow directly from the problem statement. It should be a concise paragraph that explains the intent of the study. Specific reasons should be provided for conducting the research and should directly relate to the research questions. The researcher should begin the purpose statement with, “The purpose of this (qualitative or quantitative) study is to…”. The purpose statement should further describe the methodological design identifying the approach or process by which the study will be conducted. This section typically ranges between 200 and 300 words.
The significance of the study should demonstrate why the study is essential and how the contribution(s) from the finalized research will add to the field of study. Keep in mind that this section is different from the problem statement. The problem statement identifies the problem, shows a scarcity or lack of data or information in a particular area. The purpose statement explains why the study is being conducted (to address the problem). The significance of the study section looks at the benefits or positive outcomes of answering the research questions and achieving the goals (purpose) of the study. How will the findings from the research add to or impact the greater the body of knowledge? This section is typically one page in length.
Please follow the below steps:

1. Submit problem statement which is included from previous work.
2. Craft a purpose statement starting with the sentence, “The purpose of this (qualitative or quantitative) study is to…”. The purpose statement should range be 275 words. (2 peer reviewed journal articles 2017-2021 must be different from problem statement)
3. Develop a significance of the study section not to exceed 1 page. (2 peer reviewed journal articles 2017-2021 different from problem statement and purpose statement)

Problem Statement Paper below:
Problem Statement in Supply Chain Management
Rising cost of goods
The general problem to be addressed is the rising cost of goods. The rising cost of goods reduces the market of the product or service being rendered. Having a small market means that the demand for the good significantly reduces, thereby affecting the product’s production and distribution channels. Rising costs of the goods are usually affected by the raw materials, thereby increasing production and distribution costs (Lambert & Enz, 2017). The specific problem is rising costs of goods ultimately lead to a reduction in the availability of the market, thereby affecting all the factors of supply chain management.
Global consumption
The general problem in supply chain management is global consumption. An increase in global consumption leads to the development of sophisticated supply channels. Favorable supply channels that reach every global consumer means that money used in production and supply are retrieved back through profits (Arunachalam et al., 2018). A reduction in global consumption leads to losses experienced by the company. The specific problem is an increase in global consumption leads to more profits accrued, while a decrease leads to losses from money spent in transportation and production.
New Regulations
The general problem is new regulations may affect the supply chain management either positively or negatively. For instance, a regulation on increased tax levied on certain goods may lead to a company increasing production and distribution costs. With an increase in production and distribution, the price of the final product is also affected, thereby reducing the overall market of the product. The specific problem to be addressed is companies need to be prepared for new regulations and be regarded as potential risks (Wu et al., 2016).
New Technology
The general problem is new technology may affect people involved in production and distribution in the supply chain management (Di Vaio & Varriale, 2020). New machinery can be effective in production by saving time. However, this may lead to many people losing their jobs. But on the positive side, the company will significantly reduce the costs involved in the production, thereby increasing profits. The specific problem is that new technology affects human resources by replacing them with machinery.

References
Arunachalam, D., Kumar, N., & Kawalek, J. P. (2018). Understanding big data analytics capabilities in supply chain management: Unravelling the issues, challenges and implications for practice. Transportation Research Part E: Logistics and Transportation Review, 114, 416-436.
Di Vaio, A., & Varriale, L. (2020). Blockchain technology in supply chain management for sustainable performance: Evidence from the airport industry. International Journal of Information Management, 52, 102014.
Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16.
Wu, L., Yue, X., Jin, A., & Yen, D. C. (2016). Smart supply chain management: a review and implications for future research. The International Journal of Logistics Management.

ANSWER

Applied Research Problem Statement: Cost Control in Supply Chain Management

Purpose of the Study

The purpose of this qualitative study is to examine the rising cost of goods as one of the major problems in supply chain management. The qualitative study is concerned with establishing answers on how and why the phenomenon is in question (Korstjens and Moser, 2017). The research is subjective rather than objective. The study will rely on in-depth interviews, a qualitative research design that entails conducting individual interviews with several respondents to explore their perspectives on the idea of the rising cost of goods.

The research will rely on an in-depth interview with supply chain managers to offer a good understanding of how the rising cost of goods occurs and how it impacts the supply chain. The in-depth interview will allow the participants to talk freely about the rising cost of goods.  In-depth or unstructured interviews aim at discussing limited topics with subsequent questioning depending on the previous participants’ responses (Barrett and Twycross, 2018). Considerably, the quality of data varies depending on the interview design. For instance, a poorly structured interview may have leading questions that the participants poorly understand. Therefore, relying on in-depth interviews allows comprehensive collection of data from participants, enabling the researcher to probe aspects of what a participant is saying in ways that a structured interview will not completely understand the issue.

One of the benefits of using qualitative study, especially unstructured interviews, is that the study will explore experiences from various participants who may be chosen from a range of experiences. This will allow people to speak for themselves, thus increasing the validity of the data. The interviews will be conducted with individuals to gain valuable information about the meaning of the rising cost of goods in supply chain management.

Significance of the Study

The rising cost of goods affects the availability of goods in the marketing and impacts all the factors of the supply chain. Therefore, the significance of this study is to explore the causes and impacts of rising costs of goods and its relevance to ineffective supply chain management. The study will demonstrate the drivers of the rising cost of goods and the impact on the supply chain. Considerably, understanding the factors that create the cost of a product and the root cause of the rising cost of goods allows companies to focus on cost-cutting initiatives to meet consumer needs. For instance, a high cost of goods typically lowers the demand since the consumers tend to react to price changes (Lambert and Enz, 2017). This is because the cost of a product tends to affect its demand.

The study will offer information that companies need to an understanding before planning the production of goods. Pricing a product has to be in line with the cost of production, which includes the raw material and operations involved in production (Alicke, Rexhausen, and Seyfert, 2017). The success of a company or a product in marketing highly depends on the management of the supply chain. Understanding the causes of the rising cost of goods can enable companies to lower their prices and increase demand through cost-cutting initiatives in their supply chain.

Examining the impact of the rising cost of goods on the supply chain will enable processors and manufacturers to understand the market prices and how the high cost of goods has led to inflationary pressures. Strong supply chain management requires understanding the causes of the rising cost of goods and the impacts of the rising cost of goods. The study adds knowledge on supply chain management which demands effective handling of production and flow of goods and services from the raw materials up to delivery of the end product. Effective management of the supply chain reduces the cost of goods. Therefore, understanding the concept of the rising cost of goods helps reduce and control the supply chain costs through a cross-functional approach.

References

Alicke, K., Rexhausen, D., & Seyfert, A. (2017). Supply Chain 4.0 in consumer goods. Mckinsey & Company, 1-11.

Barrett, D., & Twycross, A. (2018). Data collection in qualitative research.

Korstjens, I., & Moser, A. (2017). Series: Practical guidance to qualitative research. Part 2: Context, research questions, and designs. European Journal of General Practice, 23(1), 274-279.

Lambert, D. M., & Enz, M. G. (2017). Issues in supply chain management: Progress and potential. Industrial Marketing Management, 62, 1-16.