RESEARCH PROPOSAL

Subject: Purchasing and Supply Chain Management

Research topic: The Impact of Supply Chain Operations Agility on

Purchasing (A research on B2B business in Azerbaijan)

Lecturer: Prof.卞文良 Bian

SUBMITTED BY

BAHRUZ SHARBATOV

ID: 19129107
Abstract: Nowadays, supply chain operations are carried out quickly and
completely, enabling businesses to gain advantage in many areas, and this issue is
becoming increasingly important. Conducting an agile supply chain operation will
greatly contribute to the achievement of the goals of both supplier businesses and
industrial enterprises that make purchases. This affects the supplier selection of the
purchasing department, one of the most important functions of industrial
enterprises.

In this study, by explaining the current concepts about agility of supply chain
operations, it is tried to determine the importance of the agility of supply chain
operation and its effect on purchasing. For this purpose, two focus group
interviews will be conducted in order to analyze the concepts.

 Keywords: Supply Chain, Agility, Purchasing, B2B Enterprises

Introduction: Businesses are looking for competitive powers and factors that can
respond to this situation in market conditions that are increasingly complex and
increasing competition. Executing an agile supply chain operation also stands out
as a competitive power factor for both supplier businesses and industrial
enterprises that make purchases. In today's business world, where enterprises that
can respond quickly and effectively to changing market conditions and choose
their partners with the same characteristics while doing this, the operational agility
in supply chain structures provides advantages to businesses. Due to this
advantage, industrial enterprises benefit from agility in purchasing activities.

Motivation: Traditional supply chains cannot produce comprehensive solutions to

create the desired competitive advantage in the current market and competitive
conditions. In other words, supply chains and supply chain managements need
transformations that will adapt them to today's competitive conditions. The agile
supply chain management approach continues to evolve as an area that is
becoming increasingly involved in both literature and practice. For this reason,
agile supply chain management is discussed with the current study.

Of course, lean supply chains can produce more functional solutions than
traditional supply chains. However, lean cannot offer the advantages that agility
can offer, especially in the fight against uncertainty. Because lean means being
able to do a lot with little, however, agility is much more strategic.

 Examine whether firms are aware of agile supply chain elements.

 Determining the points to be considered in creating a more agile supply

chain operation structure.

 To see the determinations about the points that have problems in supply
chain operations.

 Evaluation and advice of companies operating in the B2B sector on the

impact of supply chain operational agility on purchasing.

 Agile supply chain operations will add competitiveness and competitive

features to businesses.

Methodology: In this section, the method of the research, the sampling process
and collection of data and information are analyzed and explained. In the research
part of the study, qualitative research method will be used as data collection
method. The aim is to enrich the research with two focus group interviews. A total
of 20 people will participate in the two focus group discussions within the study.
10 middle and high level purchasing managers from B2B companies operating in
supply chain sectors in the first focus group meeting, while 10 middle and high
level purchasing managers from different sectors will take place in the second
focus group meeting.

What is focus group interview?

The focus group interview is an open conversation where each participant has the
opportunity to speak, ask questions to other participants, and respond to other
people's comments (including a moderator). Focus group interviews are a direct
qualitative research method, where the researcher faces the participants. The
conversation takes place under the guidance of a moderator, which interacts with
the participants through the discussion of various topics related to the research. The
group usually consists of 8-12 participants and interviews are conducted in 1.5 - 2
hour sessions.

Literature review: In this part of the study, what is the concept of agility in
supply chain management is explained, the development of agility and its main
elements are discussed. On the basis of competition and performance, it is
analyzed specifically for supply chain operations and specifically within the scope
of the purchasing process. Agility is a new paradigm for competitiveness
researched since the early 1990s. The concept is considered a win strategy for
growth as well as being a basic option for survival in certain business
environments. In other words, the agile approach makes it possible to make the
supply chain's ability to respond to customer needs more flexible to develop the
ability to successfully market high-quality products of varying volumes with short
lead times and more value to customers. Agility in supply chain management has
different definitions:

 “Supply chain agility can be defined as the ability of the supply chain as a
whole and its members and its activities to respond quickly to the dynamic
 and turbulent needs of the demand network. In addition to proactively
anticipating changes and researching emerging opportunities, the main
point is to respond to the changes with the way of doing business in a
network-based structure with sufficient agility level (İsmail & Sharifi, 2006:
431). "
 “An agile supply chain is an integration that enables business partners to
participate in competencies to respond to rapidly changing and increasingly
segmented markets (Baramichai et al., 2007: 335).”
 Supply chain agility is a strategic capability that anticipates internal and
external uncertainties through effective integration of relationships in the
supply chain and helps organizations to respond to them quickly (Fayezi et
al., 2017: 380).”

Agile Supply Chain Management

market
sensitivity and
responsiveness

Agile process and

Information-
integration of
driven virtual supply performance
integration chain management

central and
collaborative
planning

Basic Features of Agile Organization

Activity Level Characteristics of Agile Organization
1. Marketing Individualized combinations of products and services
that add value to the customer.
2. Production Ability to produce goods and services for multi-
dimensional, unplanned customer orders
3. Design A holistic methodology that ensures the use and
disposal of materials, business processes, customers
and products.
4. Organization The ability to synthesize new productive talents from
business employees and physical possibilities,
regardless of indoor and outdoor spaces.
5. Management The importance of leadership, support, motivation and
trust.
6. Business Knowledgeable, talented and innovative workforce
Employees

Findings and Conclusion: The supply chain operations are carried out on time,
smoothly and completely, enabling enterprises to outperform their competitors in
many areas. Understanding the importance of this, businesses are carrying out
improvement and development efforts in their supply chain structures. On the other
hand, businesses are looking for competitive forces and factors that can respond to
this situation in market conditions that are increasingly complex and increasing
competition. The application of the agility concept in supply chain operations
creates a great advantage in terms of enabling businesses to respond quickly to
market changes. This reveals that agility has an indispensable effect in the active
and problem-free execution of supply chain operations.

Findings obtained in this study, which measures the impact of supply chain
operations agility on purchasing, show that conducting an agile supply chain
operation will provide significant contributions to purchasing. Enterprises must
have an equipped technological infrastructure. However, it has been observed that
the software used by businesses also contributes to agility.

In order to make the supply chain management operations agile, the qualifications
an enterprise should have are as follows:

Entrepreneurship Orientation: This concept refers to a business's strategic stance,

which includes proactivity, innovation and risk-taking dimensions.
Entrepreneurship orientation not only contributes to the survival of businesses but
also affects the success of countries. This approach is one of the main approaches
to link entrepreneurship processes and business strategies.

Supplier Relations: The concept of supplier relationships highlights the

relationship between the business and its suppliers for an efficient agile supply
chain management success. In the procurement and supply management summary,
supplier selection plays an important role. Because suppliers affect critical topics
such as quantity, quality lead time, product, service, and price.

Resource Management: Management of resources such as labor, materials and

capital is important to create a strong agile supply chain management. Managers
need to know the necessary resources to coordinate and have them available at the
right quantity and quality, at the right time and in the right place.
Just in Time (JIT) Methodology: JIT offers companies the best conditions to
develop their own operations. JIT Methodology helps companies to reduce costs,
reduce stocks and minimize variability.

Limitation: The content of the research-supply chain management is an

assessment of the agility of supply chain operations and its impact on purchasing
intent. The main component of the research is B2B companies operating in various
sectors in Azerbaijan. However, since time and cost constraints make it impossible
to reach this mainstream; The study was carried out on a non-random sample
selected from this mainstream.
Within the scope of the research, the research has been exploratory and the “Focus
Group Method” has been used on the supply chain agility in our country and its
impact on purchasing, since the literature offers limited publications. The impact of
B2B enterprises, SCM operations with procurement processes in Azerbaijan is a
subject worth researching.

To put it in a nutshell, research findings do not have the opportunity to generalize

both due to the use of non-random sampling and the exploratory research model.
However, the findings obtained have the opportunity to offer important clues to
both practitioners and theorists.

Comments: It has been realized that one-sided effort will not be sufficient in
carrying out an agile supply chain operation, and that when both businesses and
suppliers work in a coordinated manner, it can be demonstrated, otherwise it will
not be possible to carry out an agile operation. Enterprises must have an equipped
technological infrastructure. However, it has been observed that the software used
by businesses also contributes to agility.