CARIBBEAN MARITIME INSTITUTE

DISL FINAL PROJECT (Literature Review)

SUBMITTED BY

SHELDON ROSE

SUPERVISOR

MRS. JOHNSON

The effects of Supply Chain Management, Migration Patterns & Industrialisation and how they

impact each other and the world.

2014

Contents

ABSTRACT ............................................................................................................................................ 4

INTRODUCTION ................................................................................................................................... 5

Supply Chain Management .................................................................................................................. 5

Industry & Industrialization.................................................................................................................. 8

Migration .......................................................................................................................................... 13

Statement of the problem ................................................................................................................... 14

Research questions and hypothesis..................................................................................................... 15

Conclusion ........................................................................................................................................ 16

LITERATURE REVIEW ...................................................................................................................... 17

Introduction ....................................................................................................................................... 17

Dynamics of the Supply Chain ........................................................................................................... 19

Historical developments .................................................................................................................... 21

Migration Theory .............................................................................................................................. 29

Historical theories ............................................................................................................................. 32

Industrialization ................................................................................................................................. 35

Congruence ....................................................................................................................................... 36

METHODOLOGY ................................................................................................................................ 37

Introduction ....................................................................................................................................... 37

Sampling Techniques......................................................................................................................... 37

Data Collection .................................................................................................................................. 38

INSTRUMENTATION ........................................................................................................................... 39

RESULTS ............................................................................................................................................. 41

Introduction ....................................................................................................................................... 41

Presentation of Data........................................................................................................................... 41

Conclusion ........................................................................................................................................ 42

References ......................................................................................................................................... 43

ABSTRACT

Supply Chain Management (hereafter referred to as SCM) has had a profound effect on

the world as we know it, but its effects are nothing new. It would seem in fact that much of the

world as we know it today is as a direct result of not exploration but SCM. When Christopher

Columbus left Spain in search of new trade routes to India he was in fact seeking to secure a

more effective transportation route with his suppliers. When the Romans embarked upon

spreading their Empire it was simply mergers and acquisitions, all required elements of any well

managed Supply Chain Network. These changes however were not unaffected by other changes

taking place at the same time, because in fact the wealth of these nations were increasing as their

industries changed from agrarian to industrial to an early form of service industry. They sought

to find a cheaper more agreeable labour force (slavery) and a plentiful supply of natural

resources (colonization).

These activities caused a shift in the distribution networks for raw materials and finished

goods, colonies produced raw materials and supplied the colonizers who manufactured finished

goods. The paradigm shifted several times throughout history as SCM took a foot hold. From the

migration of finished goods manufacturing in the United States from Chinese raw materials to

the shift in finished goods manufacturing in China exporting finished goods to the United States.

These activities are not random and are all correlated, large container movers, new ports, canal

expansion, skilled labour migration are all as a result of Supply Chain Management.

INTRODUCTION

Supply Chain Management

(David Simchi-Levi, 2003) defines Supply Chain Management (SCM) as “a set of approaches

utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that

merchandise is produced and distributed at the right quantities, to the right locations, and at

the right time, in order to minimize system wide costs while satisfying service level

requirements”.

Supply Chain Management (SCM) as a discipline has its roots in Operations Management,

Logistics & Inventory Management, the words did not have meaning until (Oliver, 1982) gave

life to the term and defined it as “the process of planning, implementing, and controlling the

operations of the supply chain with the purpose to satisfy customer requirements as efficiently as

possible. Supply chain management spans all movement and storage of raw materials, work-in-

process inventory, and finished goods from point-of-origin to point-of-consumption”. Since this

time many others have coined similar definitions but all follow certain fundamental

characteristics, the sourcing and procurement of goods, their transportation, storage and delivery

to the customer in the most cost effective, timely manner.

For the purpose of this paper I will limit the scope of SCM to four of its fundamental constituents

namely:

Procurement

Logistics

Inventory & Warehousing

Distribution & Customer Service

Procurement

Also known as purchasing is a primary function in many organisations, procurement may be

defined as ‘the process or related processes involved in securing goods or services, at agreeable

terms, prices and conditions for the benefit of the organisation’. Procurement may involve the

following activities more or less:

Supplier Analysis

Cost Volume – Profit Analysis

Price Negotiation

Legal & Regulatory

Supplier Analysis

In today’s business environment it’s not good enough to simply buy goods or services from

anyone, organisations have been known to crumble because of association firms of ill repute.

The practice of Green Business/ Sustainable Business1 is paramount and suppliers of goods and

services as well as procurers of them must adhere to these requirements and global standards.

Suppliers must be able to supply goods or services in the correct quantities & consistent quality

in the shortest possible timeframe with the best terms of payment. The supplier must meet or

exceed basic financial requirements such as good standing with banks and working relationships

with government regulators.

1 An enterprise to be that has minimal negative impact on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies.

Cost Volume – Profit Analysis

Cost Volume – Profit Analysis (CVP) ‘shows the relationship between cost and volume, and how

changes in either affect the operating and net income of a company. Commonly called break-

even analysis, cost-volume-profit analysis is used to calculate the production level needed for

revenue to equal fixed costs. The internal managers of a firm are the only ones able to use

information produced from cost-volume-profit analysis.’ (Johnson, 2013)

Price Negotiation

After the CVP analysis is complete the buyer may want to negotiate the price and establish the

terms of payment. During this process the buyer seeks get the lowest price possible and establish

favourable payment terms which will free up capital. The buyer seeks to sell for the highest price

possible and wants to sell the most goods he can to ensure a long production run and take

advantage of economies of scale.

Legal & Regulatory

Many goods require both export and import permits, phytosanitary certificates and other legal

requirements for payment of fees for the import or export of goods. The legal requirements of

payment are also looked at whether they be for letter of credit from banks both receiving and

sending

Industry & Industrialization

Industry is the production of an economic good or service within an economy. Manufacturing

industry became a key sector of production and labour in European and North

American countries during the Industrial Revolution, upsetting

previous mercantile and feudal economies. This occurred through many successive rapid

advances in technology, such as the production of steel and coal. Following the Industrial

Revolution, perhaps a third of the world's economic output is derived from manufacturing

industries. Many developed countries and many developing/semi-developed countries (People's

Republic of China, India etc.) depend significantly on industry. Industries, the countries they

reside in, and the economies of those countries are interlinked in a complex web of

interdependence.

Industries can be classified in a variety of ways. At the top level, industry is often classified into

sectors: Primary or extractive, secondary or manufacturing, and tertiary or services. Some

authors add quaternary (knowledge) or even quinary (culture and research) sectors. Over time,

the fraction of a society's industry within each sector changes.

Figure 1 Clarke's Sector Model

In the 18th and 19th centuries, the UK experienced a massive increase in agricultural

productivity known as the British Agricultural Revolution, which enabled an unprecedented

population growth, freeing a significant percentage of the workforce from farming, and helping

to drive the Industrial Revolution.

Sector Definition

Primary This involves the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not

process the products at all. They send it off to factories to make a profit.

Secondary This group is involved in the processing products from primary industries. This includes all factories—those that refine metals,

produce furniture, or pack farm products such as meat.

Tertiary This group is involved in the provision of services. They include teachers, managers and other service providers.

Quaternary This group is involved in the research of science and technology. They include scientists.

Quinary

Sector

Some consider there to be a branch of the quaternary sector called the Quinary sector, which includes the highest levels of

decision making in a society or economy. This sector would include the top executives or officials in such fields as government,

science, universities, nonprofit, healthcare, culture, and the media.

Due to the limited amount of arable land and the overwhelming efficiency

of mechanized farming, the increased population could not be dedicated to agriculture. New

agricultural techniques allowed a single peasant to feed more workers than previously; however,

these techniques also increased the demand for machines and other hardware, which had

traditionally been provided by the urban artisans. Artisans, collectively called bourgeoisie,

employed rural exodus workers to increase their output and meet the country's needs.

British industrialisation involved significant changes in the way that work was performed. The

process of creating a good was divided into simple tasks, each one of them being gradually

mechanized in order to boost productivity and thus increase income. The new machines helped

to improve the productivity of each worker. However, industrialisation also involved the

exploitation of new forms of energy. In the pre-industrial economy, most machinery was

powered by human muscle, by animals, by wood-burning or by water-power. With

industrialisation these sources of fuel were replaced with coal, which could deliver significantly

more energy than the alternatives. Indeed, much of the new technology that accompanied the

industrial revolution was for machines which could be powered by coal. One outcome of this

was an increase in the overall amount of energy consumed within the economy - a trend which

has continued in all industrialised nations to the present day

The accumulation of capital allowed investments in the conception and application of new

technologies, enabling the industrialisation process to continue to evolve. The industrialisation

process formed a class of industrial workers who had more money to spend than their

agricultural cousins. They spent this on items such as tobacco and sugar, creating new mass

markets that stimulated more investment as merchants sought to exploit them.

The mechanization of production spread to the countries surrounding England geographically in

Europe such as France and to British settler colonies, helping to make those areas the wealthiest,

and shaping what is now known as the Western world. Some economic historians argue that the

possession of so-called 'exploitation colonies' eased the accumulation of capital to the countries

that possessed them, speeding up their development. The consequence was that the subject

country integrated a bigger economic system in a subaltern position, emulating the countryside,

which demands manufactured goods and offers raw materials, while the colonial power stressed

its urban posture, providing goods and importing food. A classic example of this mechanism is

said to be the triangular trade, which involved England, southern United States and western

Africa. Some have stressed the importance of natural or financial resources that Britain received

from its many overseas colonies or that profits from the British slave trade between Africa and

the Caribbean helped fuel industrial investment.

Whilst these arguments still find some favour with historians of the colonies, most historians of

the British Industrial Revolution do not consider that colonial possessions formed a significant

role in the country's industrialisation. Whilst not denying that Britain could profit from these

arrangement, they believe that industrialisation would have proceeded with or without the

colonies.

Since the mid-late 20th century, a few countries in Latin America, Asia, and Africa, such

as Indonesia, Turkey, South Africa, Malaysia, Philippines, Mexico, Costa Rica, and El

Salvador have experienced substantial industrial growth, fuelled by exporting to countries that

have bigger economies: the United States, China, India and the EU. They are sometimes

called newly industrialised countries

Despite this trend being artificially influenced by the oil price increases since 2003, the

phenomenon is not entirely new nor totally speculative.

Japan and Russia both were successful in the fact that they imitated many other societies giving

them flexibility. Yet they both had very little in common before the 19th century. Japan was

isolated from the world with its ongoing traditions and forms of centralized government. Russia

featured a more strong centralized government under the emperor.

Both would soon discover that westernization and industrialism were expanding and their own

ways would not hold up against the new changing world of industrialisation. In the late 19th

century the requirement for them to begin industrializing would become even more prevalent for

the success of their nation in this new, growing society.

Figure 2 Newly Industrialised Nations

Migration

World migration has been going on for centuries, and free mass migration—of those not coerced,

like slaves and indentured servants—has been going on for the past two. The reasons people

move are no big mystery: they do it today, as they did two centuries ago, to improve their lives.

What has changed is who is migrating and where they come from. Both the demand for long-

distance moves from poor to rich countries and the ability of the potential migrants to finance

those moves have soared over the past two centuries. As the gap in living standards between the

third world and the first world widened in the 20th century, the incentive to move increased. At

the same time, improved educational levels and living standards in poor parts of the world—and

falling transport costs globally, thanks to new technologies—have made it increasingly possible

for potential emigrants to finance the move.

Thus, over time, poorer and poorer potential migrants, those who live the farthest from high-

wage labor markets, have escaped the poverty trap. This emigration fact implies an immigration

corollary that has important political backlash implications: relative to native-born host country

populations, world immigrants have declined in "quality" over time—at least as judged by the

way host country markets value their labor. Adding to the rising demand for emigration, the

population pool of the most mobile young adults increased as poor countries started the long

process of economic modernization.

Every country passes through a demographic transition as modern development unfolds:

improved nutrition and health conditions cause child mortality rates to fall, thereby raising the

share of surviving children in the population.

After a couple of decades, this glut of children becomes a glut of young adults, exactly those

who are most responsive to emigration incentives. These demographic events were important in

pushing poor Europeans overseas in swelling numbers in the late 19th century and even more

important in pushing poor third-world workers to the first world in the late 20th century. At the

other end of this demographic transition are the rich industrial countries, where population aging

contributes to a scarcity of working adults and thus to a first-world immigration pull that

reinforces the third-world emigration push. Thus, the dramatic rise in world mass migration after

the 1960s should have come as no surprise to any observer who has paid attention to history. But

to truly understand world mass migration—and what might lie ahead—it is not enough to look at

only the past few decades. We must assess the present relative to a past that stretches back over

two centuries.

Statement of the problem

The world is advancing at an alarming rate, processes that used to take generations to manifest

themselves now occur in years. Migration, the rate of change of Industrialisation and Supply

Chain Management are clear indicators of that change. If we are able to see these trends then we

will be able to predict the next frontiers in manufacturing, infrastructure development, &

ultimately gain competitive advantage over competitors by being ‘first’. This information is

available to everyone but only those who can draw the parallels and see the connections will be

in a position to capitalise.

Research questions and hypothesis

This paper will attempt to show a direct correlation between the factors of Supply Chain Management,

Migration and Industrialisation. It will show that a study of these subject areas and analysis of their data

will result in predictive analytics.

The paper will prove that:

Decisions in the Supply Chain Management of Large Multi-National Corporations impact

directly the migration patterns of peoples.

The rate of change of industrialisation, supply chain decisions and migration patterns are all

correlated.

The migration of peoples is directly correlated to the movement of resources and the development

of infrastructure.

It is possible to use big data to predict ‘next frontiers’ is business

A null hypothesis for these questions will prove the viability of the research and show how the use of

predictive analytics can create opportunities for ‘first frontiers’ in business.

Conclusion

Being on the first frontier in business is a definite competitive advantage, an organisation that is

able to see the future and react before their competitors will have the cutting edge. In this world

of reduced lead times, cycle times and product life cycles a few months advantage or even a year

can be the difference between profit and bankruptcy. A comprehensive study of the big data

generated by these factors gives critical mass to the postulation purported in this paper that in

fact accurate predictive analysis can be made to govern business decisions and increase the

competitive advantage of those who know how to apply them.

LITERATURE REVIEW

Introduction

The subject of Supply Chain Management has its early roots in the military when Logistics were used to

coordinate the simultaneous operations on various fronts separated by distance and time. The concept of

Supply Chain Management is based on two core ideas. The first is that practically every product that

reaches an end user represents the cumulative effort of multiple organizations. These organizations are

referred to collectively as the supply chain.

The second idea is that while supply chains have existed for a long time, most organizations have only

paid attention to what was happening within their “four walls.” Few businesses understood, much less

managed, the entire chain of activities that ultimately delivered products to the final customer. The result

was disjointed and often ineffective supply chains.

Supply chain management, then, is the active management of supply chain activities to maximize

customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the

supply chain firms to develop and run supply chains in the most effective & efficient ways possible.

Supply chain activities cover everything from product development, sourcing, production, and logistics,

as well as the information systems needed to coordinate these activities.

The organizations that make up the supply chain are “linked” together through physical flows and

information flows. Physical flows involve the transformation, movement, and storage of goods and

materials. They are the most visible piece of the supply chain. But just as important are information flows.

Information flows allow the various supply chain partners to coordinate their long-term plans, and to

control the day-to-day flow of goods and material up and down the supply chain.

Supply chain management addresses the following problems:

Distribution network configuration: the number, location, and network missions of suppliers,

production facilities, distribution centers, warehouses, cross-docks, and customers.

Distribution strategy: questions of operating control (e.g., centralized, decentralized, or shared);

delivery scheme (e.g., direct shipment, pool point shipping, cross docking, direct store delivery,

or closed loop shipping); mode of transportation (e.g., motor carrier, including truckload, less

than truckload (LTL), parcel, railroad, intermodal transport, including trailer on flatcar (TOFC)

and container on flatcar (COFC), ocean freight, airfreight); replenishment strategy (e.g., pull,

push, or hybrid); and transportation control (e.g., owner operated, private carrier, common carrier,

contract carrier, or third-party logistics (3PL)).

Trade-offs in logistical activities: The above activities must be coordinated in order to achieve

the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is

optimized. For example, full truckload (FTL) rates are more economical on a cost-per-pallet basis

than are LTL shipments. If, however, a full truckload of a product is ordered to reduce

transportation costs, there will be an increase in inventory holding costs, which may increase total

logistics costs. The planning of logistical activities therefore takes a systems approach. These

trade-offs are key to developing the most efficient and effective logistics and SCM strategy.

Information: The integration of processes through the supply chain in order to share valuable

information, including demand signals, forecasts, inventory, transportation, and potential

collaboration.

Inventory management: Management of the quantity and location of inventory, including raw

materials, work in process (WIP), and finished goods.

Cash flow: Arranging the payment terms and methodologies for exchanging funds across entities

within the supply chain.

Dynamics of the Supply Chain

Supply chain management is a cross-functional approach that includes managing the movement of raw

materials into an organization, certain aspects of the internal processing of materials into finished goods,

and the movement of finished goods out of the organization and toward the end consumer. As

organizations strive to focus on core competencies and becoming more flexible, they reduce their

ownership of raw materials sources and distribution channels. These functions are increasingly being

outsourced to other firms that can perform the activities better or more cost effectively. The effect is to

increase the number of organizations involved in satisfying customer demand, while reducing managerial

control of daily logistics operations. Less control and more supply chain partners led to the creation of the

concept of supply chain management. The purpose of supply chain management is to improve trust and

collaboration among supply chain partners, thus improving inventory visibility and the velocity of

inventory movement.

Importance

Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in

the global market and networked economy. In Peter Drucker's (1998) new management paradigms, this

concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize

entire business processes throughout a value chain of multiple companies.

In recent decades, globalization, outsourcing, and information technology have enabled many

organizations, such as Dell and Hewlett Packard, to successfully operate collaborative supply networks in

which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This

inter-organisational supply network can be acknowledged as a new form of organisation. However, with

the complicated interactions among the players, the network structure fits neither "market" nor

"hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply

network structures could have on firms, and little is known about the coordination conditions and trade-

offs that may exist among the players. From a systems perspective, a complex network structure can be

decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a

supply network concentrate on the inputs and outputs of the processes, with little concern for the internal

management working of other individual players. Therefore, the choice of an internal management

control structure is known to impact local firm performance (Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to the development of supply

chain networks. First, as an outcome of globalization and the proliferation of multinational companies,

joint ventures, strategic alliances, and business partnerships, significant success factors were identified,

complementing the earlier "just-in-time", lean manufacturing, and agile

manufacturing practices.[12] Second, technological changes, particularly the dramatic fall in

communication costs (a significant component of transaction costs), have led to changes in coordination

among the members of the supply chain network (Coase, 1998).

Many researchers have recognized supply network structures as a new organisational form, using terms

such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and

"Next Generation Manufacturing System".[13] In general, such a structure can be defined as "a group of

semi-independent organisations, each with their capabilities, which collaborate in ever-changing

constellations to serve one or more markets in order to achieve some business goal specific to that

collaboration" (Akkermans, 2001).

The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001

and related standards published jointly by the ISO and the IEC.Supply Chain Management draws heavily

from the areas of operations management, logistics, procurement, and information technology, and strives

for an integrated approach.

Historical developments

Six major movements can be observed in the evolution of supply chain management studies: creation,

integration, and globalization (Movahedi et al., 2009), specialization phases one and two, and SCM 2.0.

Creation era

The term "supply chain management" was first coined by Keith Oliver in 1982. However, the concept of

a supply chain in management was of great importance long before, in the early 20th century, especially

with the creation of the assembly line. The characteristics of this era of supply chain management include

the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and

widespread attention to Japanese management practices.

Integration era

This era of supply chain management studies was highlighted with the development of electronic data

interchange (EDI) systems in the 1960s, and developed through the 1990s by the introduction of

enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with

the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized

by both increasing value added and cost reductions through integration.

A supply chain can be classified as a stage 1, 2 or 3 network. In a stage 1–type supply chain, systems such

as production, storage, distribution, and material control are not linked and are independent of each other.

In a stage 2 supply chain, these are integrated under one plan and is ERP enabled. A stage 3 supply chain

is one that achieves vertical integration with upstream suppliers and downstream customers. An example

of this kind of supply chain is Tesco.

Globalization era

The third movement of supply chain management development, the globalization era, can be

characterized by the attention given to global systems of supplier relationships and the expansion of

supply chains over national boundaries and into other continents. Although the use of global sources in

organizations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until

the late 1980s that a considerable number of organizations started to integrate global sources into their

core business. This era is characterized by the globalization of supply chain management in organizations

with the goal of increasing their competitive advantage, adding value, and reducing costs through global

sourcing.

Specialization era (phase I): outsourced manufacturing and distribution

In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned

vertical integration, sold off non-core operations, and outsourced those functions to other companies. This

changed management requirements, by extending the supply chain beyond the company walls and

distributing management across specialized supply chain partnerships.

This transition also refocused the fundamental perspectives of each organization. Original equipment

manufacturers (OEMs) became brand owners that required visibility deep into their supply base. They

had to control the entire supply chain from above, instead of from within. Contract manufacturers had to

manage bills of material with different part-numbering schemes from multiple OEMs and support

customer requests for work-in-process visibility and vendor-managed inventory (VMI).

The specialization model creates manufacturing and distribution networks composed of several individual

supply chains specific to producers, suppliers, and customers that work together to design, manufacture,

distribute, market, sell, and service a product. This set of partners may change according to a given

market, region, or channel, resulting in a proliferation of trading partner environments, each with its own

unique characteristics and demands.

Specialization era (phase II): supply chain management as a service

Specialization within the supply chain began in the 1980s with the inception of transportation brokerages,

warehouse management, and non-asset-based carriers, and has matured beyond transportation and

logistics into aspects of supply planning, collaboration, execution, and performance management.

Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or

customers in their role as components of supply chain networks. This variability has significant effects on

supply chain infrastructure, from the foundation layers of establishing and managing electronic

communication between trading partners, to more complex requirements such as the configuration of

processes and work flows that are essential to the management of the network itself.

Supply chain specialization enables companies to improve their overall competencies in the same way

that outsourced manufacturing and distribution has done; it allows them to focus on their core

competencies and assemble networks of specific, best-in-class partners to contribute to the overall value

chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and

deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique

and complex competency in house is a leading reason why supply chain specialization is gaining

popularity.

Successful SCM requires a change from managing individual functions to integrating activities into key

supply chain processes. In an example scenario, a purchasing department places orders as its requirements

become known. The marketing department, responding to customer demand, communicates with several

distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared

between supply chain partners can only be fully leveraged through process integration.

Supply chain business process integration involves collaborative work between buyers and suppliers, joint

product development, common systems, and shared information. According to Lambert and Cooper

(2000), operating an integrated supply chain requires a continuous information flow. However, in many

companies, management has concluded that optimizing product flows cannot be accomplished without

implementing a process approach. The key supply chain processes stated by Lambert (2004) are:

Customer relationship management

Customer service management

Demand management style

Order fulfillment

Manufacturing flow management

Supplier relationship management

Product development and commercialization

Returns management

Much has been written about demand management. Best-in-class companies have similar characteristics,

which include the following:

Internal and external collaboration

Initiatives to reduce lead time

Tighter feedback from customer and market demand

Customer-level forecasting

One could suggest other critical supply business processes that combine these processes stated by

Lambert, such as:

a. Customer service management

b. Procurement

c. Product development and commercialization

d. Manufacturing flow management/support

e. Physical distribution

f. Outsourcing/partnerships

g. Performance measurement

h. Warehousing management

a) Customer service management process

Customer relationship management concerns the relationship between an organization and its customers.

Customer service is the source of customer information. It also provides the customer with real-time

information on scheduling and product availability through interfaces with the company's production and

distribution operations. Successful organizations use the following steps to build customer relationships:

determine mutually satisfying goals for organization and customers

establish and maintain customer rapport

induce positive feelings in the organization and the customers

b) Procurement process

Strategic plans are drawn up with suppliers to support the manufacturing flow management process and

the development of new products. In firms whose operations extend globally, sourcing may be managed

on a global basis. The desired outcome is a relationship where both parties benefit and a reduction in the

time required for the product's design and development. The purchasing function may also develop rapid

communication systems, such aselectronic data interchange (EDI) and Internet linkage, to convey

possible requirements more rapidly. Activities related to obtaining products and materials from outside

suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound

transportation, storage, handling, and quality assurance, many of which include the responsibility to

coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new

sources or programs.

c) Product development and commercialization

Here, customers and suppliers must be integrated into the product development process in order to reduce

the time to market. As product life cycles shorten, the appropriate products must be developed and

successfully launched with ever-shorter time schedules in order for firms to remain competitive.

According to Lambert and Cooper (2000), managers of the product development and commercialization

process must:

1. coordinate with customer relationship management to identify customer-articulated needs;

2. select materials and suppliers in conjunction with procurement; and

3. develop production technology in manufacturing flow to manufacture and integrate into the best

supply chain flow for the given combination of product and markets.

d) Manufacturing flow management process

The manufacturing process produces and supplies products to the distribution channels based on past

forecasts. Manufacturing processes must be flexible in order to respond to market changes and must

accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in

minimum lot sizes. Changes in the manufacturing flow process lead to shorter cycle times, meaning

improved responsiveness and efficiency in meeting customer demand. This process manages activities

related to planning, scheduling, and supporting manufacturing operations, such as work-in-process

storage, handling, transportation, and time phasing of components, inventory at manufacturing sites, and

maximum flexibility in the coordination of geographical and final assemblies postponement of physical

distribution operations.

e) Physical distribution

This concerns the movement of a finished product or service to customers. In physical distribution, the

customer is the final destination of a marketing channel, and the availability of the product or service is a

vital part of each channel participant's marketing effort. It is also through the physical distribution process

that the time and space of customer service become an integral part of marketing. Thus it links a

marketing channel with its customers (i.e., it links manufacturers, wholesalers, and retailers).

f) Outsourcing/partnerships

This includes not just the outsourcing of the procurement of materials and components, but also the

outsourcing of services that traditionally have been provided in house. The logic of this trend is that the

company will increasingly focus on those activities in the value chain in which it has a distinctive

advantage and outsource everything else. This movement has been particularly evident in logistics, where

the provision of transport, warehousing, and inventory control is increasingly subcontracted to specialists

or logistics partners. Also, managing and controlling this network of partners and suppliers requires a

blend of central and local involvement: strategic decisions are taken centrally, while the monitoring and

control of supplier performance and day-to-day liaison with logistics partners are best managed locally.

g) Performance measurement

Experts found a strong relationship from the largest arcs of supplier and customer integration to market

share and profitability. Taking advantage of supplier capabilities and emphasizing a long-term supply

chain perspective in customer relationships can both be correlated with a firm's performance. As logistics

competency becomes a critical factor in creating and maintaining competitive advantage, measuring

logistics performance becomes increasingly important, because the difference between profitable and

unprofitable operations becomes narrower. A.T. Kearney Consultants (1985) noted that firms engaging in

comprehensive performance measurement realized improvements in overall productivity. According to

experts, internal measures are generally collected and analyzed by the firm, including cost, customer

service, productivity, asset measurement, and quality. External performance is measured through

customer perception measures and "best practice" benchmarking.

h) Warehousing management

To reduce a company's cost and expenses, warehousing management is carrying the valuable role against

operations. In the case of perfect storage and office with all convenient facilities in company level,

reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with

proper area, area for service station, stock management system etc.

Migration Theory

Theories for migration for work in the 21st century

Overview

Migration for work in the 21st century has become a popular way for individuals from

impoverished developing countries to obtain sufficient income for survival. This income is sent

home to family members in the form of remittances and has become an economic staple in a

number of developing countries. There are a number of theories to explain the international flow

of capital and people from one country to another.

Neoclassical economic theory

This theory of migration states that the main reason for labor migration is wage difference

between two geographic locations. These wage differences are usually linked to geographic labor

demand and supply. It can be said that areas with a shortage of labor but an excess of capital

have a high relative wage while areas with a high labor supply and a dearth of capital have a low

relative wage. Labor tends to flow from low-wage areas to high-wage areas. Often, with this

flow of labor comes changes in the sending as well as the receiving country. Neoclassical

economic theory is best used to describe transnational migration, because it is not confined by

international immigration laws and similar governmental regulations.

Dual labor market theory

Dual labor market theory states that migration is mainly caused by pull factors in more

developed countries. This theory assumes that the labor markets in these developed countries

consist of two segments: primary, which requires high-skilled labor, and secondary, which is

very labor-intensive but requires low-skilled workers. This theory assumes that migration from

less developed countries into more developed countries is a result of a pull created by a need for

labor in the developed countries in their secondary market. Migrant workers are needed to fill the

lowest rung of the labor market because the native laborers do not want to do these jobs as they

present a lack of mobility. This creates a need for migrant workers. Furthermore, the initial

dearth in available labor pushes wages up, making migration even more enticing.

The new economics of labor migration

This theory states that migration flows and patterns cannot be explained solely at the level of

individual workers and their economic incentives, but that wider social entities must be

considered as well. One such social entity is the household. Migration can be viewed as a result

of risk aversion on the part of a household that has insufficient income. The household, in this

case, is in need of extra capital that can be achieved through remittances sent back by family

members who participate in migrant labor abroad. These remittances can also have a broader

effect on the economy of the sending country as a whole as they bring in capital. Recent research

has examined a decline in U.S. interstate migration from 1991 to 2011, theorizing that the

reduced interstate migration is due to a decline in the geographic specificity of occupations and

an increase in workers’ ability to learn about other locations before moving there, through both

information technology and inexpensive travel. Other researchers find that the location-specific

nature of housing is more important than moving costs in determining labor reallocation.

Relative deprivation theory

Relative deprivation theory states that awareness of the income difference between neighbors or

other households in the migrant-sending community is an important factor in migration. The

incentive to migrate is a lot higher in areas that have a high level of economic inequality. In the

short run, remittances may increase inequality, but in the long run, they may actually decrease it.

There are two stages of migration for a worker: first, they invest in human capital formation, and

then they try to capitalize on their investments. In this way, successful migrants may use their

new capital to provide for better schooling for their children and better homes for their families.

Successful high-skilled emigrants may serve as an example for neighbors and potential migrants

who hope to achieve that level of success.

World systems theory

World systems theory looks at migration from a global perspective. It explains that interaction

between different societies can be an important factor in social change within societies. Trade

with one country, which causes economic decline in another, may create incentive to migrate to a

country with a more vibrant economy. It can be argued that even after decolonization, the

economic dependence of former colonies still remains on mother countries. This view

of international trade is controversial, however, and some argue that free trade can actually

reduce migration between developing and developed countries. It can be argued that the

developed countries import labor-intensive goods, which causes an increase in employment of

unskilled workers in the less developed countries, decreasing the outflow of migrant workers.

The export of capital-intensive goods from rich countries to poor countries also equalizes income

and employment conditions, thus also slowing migration. In either direction, this theory can be

used to explain migration between countries that are geographically far apart.

Historical theories

Ravenstein

Certain laws of social science have been proposed to describe human migration. The following

was a standard list after Ravenstein's (1834-1913) proposal in the 1880s. The laws are as

follows:

every migration flow generates a return or counter migration.

the majority of migrants move a short distance.

migrants who move longer distances tend to choose big-city destinations.

urban residents are often less migratory than inhabitants of rural areas.

families are less likely to make international moves than young adults.

most migrants are adults.

large towns grow by migration rather than natural increase.

1. Migration stage by stage

Urban Rural difference

Migration and Technology

Economic condition

Lee's laws divides factors causing migrations into two groups of factors: push and pull factors.

Push factors are things that are unfavorable about the area that one lives in, and pull factors are

things that attract one to another area.

Push Factors

Not enough jobs

Few opportunities

Primitive conditions

Desertification

Famine or drought

Political fear or persecution

Slavery or forced labour

Poor medical care

Loss of wealth

Natural disasters

Death threats

Lack of political or religious freedom

Pollution

Poor housing

Landlord/tenant issues

Discrimination

Poor chances of marrying

War

Pull Factors

Job opportunities

Better living conditions

Political and/or religious freedom

Enjoyment

Education

Better medical care

Attractive climates

Security

Family links

Industry

Better chances of marrying

Industrialization

Industrialisation is the period of social and economic change that transforms a human group from an

agrarian society into an industrial one. It is a part of a wider modernization process, where social

change and economic development are closely related with technological innovation, particularly with the

development of large-scale energy and metallurgy production. It is the extensive organisation of

an economy for the purpose of manufacturing. Industrialisation also introduces a form

of philosophical change where people obtain a different attitude towards their perception of nature, and a

sociological process of ubiquitous rationalization.

There is considerable literature on the factors facilitating industrial modernization and enterprise

development. Key positive factors identified by researchers have ranged from favourable politico-legal

environments for industry and commerce, through abundant natural resources of various kinds, to

plentiful supplies of relatively low-cost, skilled and adaptable labour

Congruence

The factors of Supply Chain Management, Migration & Industrialisation are directly correlated.

When large Corporate Entities move their means of production from one region to another region

in the world, it requires a large labour force (skilled or unskilled) to sustain it. This creates a pull

force which compels a labour force to move towards the point of production. Be it national,

regional or international migration the forces at work are the same and so is the result. The

movement of people causes the rapid growth and development of towns and small cities where

large corporations set up operations. These town and small cities are ‘fast tracked’ on the

industrialisation process and rapidly develop consuming large quantities of resources and

developing at a rapid rate. It will be shown through the research and analysis of data that each of

these individual factors correlate and that a study of them can result in predicting the next

frontier of industry and commerce.

METHODOLOGY

Introduction

We will use a mixture of quantitative and qualitative data to arrive at our desired hypothesis. We

will present the various procedures and strategies that will be used to quantify our postulation.

Questionnaires will be used to collect quantitative data and the interviews will be used to provide

qualitative insights into the data collected. Also secondary data are based from the recent

literatures related to migrant & migrant behavior as well as port throughput and TEU data. As

stated above, this research will partially base its findings through both quantitative research

methods because this permits a flexible and iterative approach. During data gathering the choice

and design of methods are constantly modified, based on ongoing analysis. This study will also

employ qualitative research method because it will try to find and build theories that will explain

the relationship of one variable with another variable through qualitative elements in research.

Sampling Techniques

The general population for this study is composed of people employed to national or international

companies based locally. The respondents will be asked how far they travel to work and also if

they have migrated from another part of the country to work at their present location. The

representative of companies will be asked if the organisation strategically moves production means

to areas with limited barriers to the means of production. We will also collect historical data on

the migration patterns in countries where the means of production are most prevalent such as

Singapore, Malaysia, Hong Kong & China. We will compare the migration pattern with the

establishment of factories and outsourced jobs to see if the correlation is valid. We will associate

this data with ship traffic data and port throughput data from leading ports. The types and volumes

of cargo entering and leaving the points of production and their destination will be examined to

see how these have changed with time.

Data Collection

First, the respondents shall fill out a self-administered questionnaire. Ideally, the

respondents will grade each statement in the survey-questionnaire using a Likert scale (Barnett, V.

1991), with a five-response scale wherein respondents will be given five response choices.

The equivalent weights for the answers will be:

Range Interpretation

4.50 – 5.00 Strongly Agree

3.50 – 4.49 Agree

2.50 – 3.49 Uncertain

1.50 – 2.49 Disagree

0.00 – 1.49 Strongly Disagree

We have opted to use the questionnaire as a tool since it is easy to construct having the

rules and principles of construction are easy to follow. Moreover, copies of the questionnaire could

reach a considerable number of respondents either by mail or by personal distribution. Generally,

responses to a questionnaire are objectified and standardized and these make tabulation easy. But

more importantly, the respondents' replies are of their own free will because there is no interviewer

to influence them. This is one way to avoid biases, particularly the interviewers' bias. The

researcher will also use graph and charts for data presentation.

INSTRUMENTATION

For validation purposes, we will initially submit a sample of the set of survey questionnaires

and after approval; the survey will be conducted with a closed set of five respondents. After the

questions are answered, we will ask the respondents for any suggestions or any necessary

corrections to ensure further improvement and validity of the instrument. We will again examine

the content of the interview questions to find out the reliability of the instrument. Irrelevant

questions will be excluded and we will change words that would be deemed difficult by the

respondents to much simpler terms.

Data Collect ion Plan

The five respondents who will be initially used for the validation of the instrument will be

excluded from the data set. We will also tally, score and tabulate all the responses in the provided

interview questions. Moreover, the interview shall be using a structured interview format. It must

be noted that we will not take part in the interview but opt to use a third party to avoid conflict of

interest. It shall consist of a list of specific questions and the interviewer does not deviate from the

list or inject any extra remarks into the interview process. The interviewer may encourage the

interviewee to clarify vague statements or to further elaborate on brief comments. Otherwise, the

interviewer attempts to be objective and tries not to influence the interviewer's statements. The

interviewer does not share his/her own beliefs and opinions. The structured interview is mostly a

"question and answer" session. This study assumes that the survey used is an effective

measurement tool to identify the behaviour of migrant workers. This study also assumes that each

participant will honestly and thoroughly answer each question.

Statist ical Treatment of the Data

When the entire survey questionnaire have been collected, we will use statistics to analyze

all the data. We will use the Statistical Institute of Jamaica (STATIN) as a resource to help in the

analysis of the data gathered. Because of this research design, the results of the data gathered were

limited to the determination of factors that affect the migrant workers (expatriate or otherwise).

Thus, other possible findings in the field of migrant behaviour & industrialisation are also to be

analyzed.

Comparisons were drawn between the overall responses to the questions and the differing

responses (Creswell, 1994) the following statistical formulae will be also used:

1. Percentage – to determine the magnitude of the responses to the questionnaire.

n

% = -------- x 100 ; n – number of responses

N N – total number of respondents

2. Weighted Mean

f1x1 + f2x2 + f3x3 + f4x4 + f5x5

x = ---------------------------------------------;

xt

where: f – weight given to each response

x – number of responses

xt – total number of responses

The research will be assisted by the Statistical Institute of Jamaica (STATIN) in coming

up with the statistical analysis for this study. STATIN is one of the most widely respected entities

in Jamaica for the analysis of data. They will help to: (compute means and standard deviations,

determine whether there are significant differences between groups (e.g., t-tests, ANOVA),

examine relationships among variables (e.g., correlation, multiple regression), and graph results

(e.g., bar charts, line graphs) (Kirkpatrick and Feeney, 2003).

RESULTS

Introduction

In this section we will present the data in an easily comprehendible format and show how we

arrive at the null hypothesis.

Presentation of Data

Conclusion

The conclusion will state how the result of the findings are to be used for the benefit of others in

determining future frontiers.

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