Applied Research Problem Statement: Cost Control in Supply Chain Management

The problems that affect this area include: rising cost of goods, global consumption, higher wages, new regulations, and new technology.

Applied Research Problem Statements
Applied research problem statements should begin with a general problem. The general problem to be addressed is… Likewise in Applied Research, the specific problem is narrower in scope and labeled similarly for example: The specific problem to be addressed is… Applied Research Problems include 3 components: A general problem sentence, 3 – 4 supporting sentences showing that the problem exists within the literature, and a specific problem sentence.

Supporting Sentences
All problem statements should include supporting information to assist in explaining the problem and must contain at least three scholarly resources to substantiate the problem. Scholarly resources should be published within the last three to five years. Proper APA formatting should be used, including a title and reference page.

ANSWER

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.