Presentation

1. ICT Practices, Supplier Relationship, Logistics Integration and
organisational Performance in public food supply chain: an
empirical study
Dr. Anil Kumar
Faculty of Management
VNS Group of Institutions Bhopal MP

2. Problem Identification
• There is huge wastage of public food
• There is burden of huge subsidy
• There is heavy cost incurred in delivery of
public food.
• Lack of storage capacity & its utilization

3. Data supporting the above points
• In a recent annual report (2016-17), published by Department of
Food & Public Distribution (Ministry of Consumer Affairs, Food
& Public Distribution), the damaged food grain was 8572 Metric
Ton.
• Out of total food produced in India, nearly 40% is being wasted by
farmer or consumer or its spoiled in between before reaching to
consumers (UNFAO, 2013).
• The expenditure on hiring of storage has increased from Rs.
321.51 crore in 2006-07 to Rs. 1,119.03 crore in 2011-12 (CAG
report, 2013).
• According to the Global Hunger Index published by International
Food Policy Research Institute (IFPRI, 2016), India continues to
have serious levels of widespread hunger and placed at 97th among
118 developing countries for which the Global Hunger Index
(GHI) was calculated this year.

4. Expenditure incurred by FCI on movement of food
grains (Rs. in crore)
Year Rail Road Total
2006-07 2627.09 442.54 3069.63
2007-08 2697.34 509.77 3207.11
2008-09 2658.07 562.46 3220.53
2009-10 3285.03 650.83 3935.87
2010-11 3505.37 732.97 4238.34
2011-12 3751.56 975.81 4727.37
Source: CAG report (2013).

5. Under Utilization of Storage Capacity
Year Total Storage capacity
(In Lakh Metric Ton)
Stock of food grain in
central pool
Percentage of
Utilization
2013 391.79 329.10 84%
2014 387.4 317.66 82%
2015 373 305.86 82%
2016 361.91 275.34 77%
2017 361.70 296.94* 82%
Source: Annual report (2016-17), Department of Food & Public Distribution,
Government of India **As on May 2017 stock position

6. Gap in Storage capacity
Year Total Storage
Capacity (in Lakh
Metric Ton)
Required
Capacity((in Lakh
Metric Ton)
Gap(in Lakh
Metric Ton)
2011 332.52 640.06 307.54
2012 364.38 805.16 440.78
2013 391.79 739.05 347.26
2014 387.4 610.37 222.97
2015 373 545.75 172.75
2016 361.91 495.95 134.04
Annual report (2016-17), Department of Food & Public Distribution, Government of India.
The required capacity is the amount of storage required for the procured grain. The total
storage capacity is FCI own storage capacity as well as hired capacity.

7. Burden of Subsidy
Year Subsidy to
FCI(in
crore)
States Total
Subsidy (In
crore)
2011-12 59525.90 12845.00 72370.90
2012-13 71980.00 12574.00 84554.00
2013-14 75500.02 14240.00 89740.02
2014-15 91995.35 21175.81 113171.16
2015-16 112000.00 22919.00 134919.00
2016-17 112000.00 21000.00 124334.61
As on 05.01.2017, Source: annual report (2016-17), Department of Food & Public
Distribution, Government of India

8. Conventional framework of Public Food Supply chain
Suggested MSP Value
MSP
PROCURMENT
Wheat
Wheat
STORAGE
Wheat
MOVEMENT
(By FCI to deficit/consuming areas)
Wheat
Wheat
Lifting from FCI depot by State Agencies
Wheat
Delivery to FPS by State Agencies
(source. http://www.fciweb.nic.in)
Commission of Agricultural Costs & Prices
(CACP)
Transportation via Rail,
Road and Inland Waterways
Quality Control
Using scientific
preservation techniques
& regular inspection
Quality Control
Joint sampling by
FCI & State
Agencies before
lifting
Fair Price Shops (FPS) Quality Control
Sampling by State
Agencies
FCI Depot for Distribution
(FCI owned FSD/SWC/CWC/Pvt)
Godowns
Purchase Centres
Of FCI & State Agencies
(At Mandies & key points)
Local Depot
(FCI Covered/FCI
CAP/SWC/CWC/SG/Pvt)
Godowns
Farmers
Quality Control
(Quality check on
procurement
State Agencies Godown

9. Research Scope
• Increase the government revenue
• Improve economic growth rate
• Supply chain cost reduction
• Reduce malnutrition rate

10. Constructs of the study
Sr.
No.
Parameter Definition Author/Authors
1 Information &
Communication
Technologies(ICT)
All forms of technology
utilized to create, capture,
manipulate, communicate,
exchange, present, and use
information in its various
forms.
Paulraj, A. et al.(2006); Flynn, B.
B., et al.(2010); Ravichandran, T. et
al.(2005); Vickery, S. K. et
al.(2003); Chen & Paulraj(2004);
Gil-Saura, I. et al.(2010); Paulraj, A.
et al.(2008); Volpentesta P. Antonio
and Ammirato Salvatore(2013), S.
Ganesan et al.(2009), H.K. Chan et
al(2009), Noorfa Haszlinna
Mustaffa and Andrew Potter(2009),
Reham E. Eltantawy, Gavin L. Fox
and Larry Giunipero(2009),
Alexander Ellinger et al (2012),
Go¨ran Svensson(2010), Walker,H.
and Jones,N. (2012), Tokar, T.
(2010).

11. Constructs of the study
Sr.No Parameter Definition Author/Authors
2 Logistics Integration
(LI)
The integrated process of the
planning, implementing, and
controlling the flow and storage of
raw materials, in-process inventory,
finished goods, transportation in a
efficient and cost-effective manner
from point of origin to point of
consumption.
Paulraj, A. et al.(2006); Chen &
Paulraj(2004); Gimenez &
Ventura (2005); Patterson, K. A.
et al.(2005); Gil-Saura, I. et
al.(2010)
3 Supplier Relationship
(SR)
It refers how well an organisation
maintain its all interactions with third
party organizations that supply goods
and/or services to an organization in
order to maximize the value of those
interactions.
Tan, K.C. et al.(2002); Stuart, F.
I. (1997); Gunasekaran, A. et
al.(2001); Monczka, R. M. et
al.(1998); Li,S. et al.(2006);
Chen, I. J. et al.(2004); Li, S. et
al.(2005); Carr &
Pearson(1999); Narasimhan &
Das(2001); Paulraj, A. et
al.(2006); Chen &
Paulraj(2004); Krause, D. R. et
al.(2007); Paulraj, A. et

12. Constructs of the study
Sr.
No
Parameter Definition Author/Authors
4 Organisational
Performance
(OP)
It refers how well an
organisation achieves its
financial and non-
financial objectives.
Chen, I. J. et al.(2004); Li, S. et
al.(2006); Carr & Pearson(1999);
Narasimhan & Das(2001); Paulraj, A. et
al.(2006); Flynn, B. B., et al.(2010);
Ravichandran, T. et al.(2005); Vickery,
S. K. et al.(2003); Chen &
Paulraj(2004); Zhou & Benton (2007);
Krause, D. R. et al.(2007); Paulraj, A. et
al.(2008); Green Jr, K. W. et al.(2008);
Kannan, V. R., & Tan, K. C. (2005);
Narasimhan, R., & Kim, S. W. (2002).

13. Literature review
Author/Authors Key Findings
Banerjee & Mishra(2017) They surveyed executives of a major food
retailer in India and explored their
perspectives on supply chain management
practices, competitive advantage and firm
performance. They found that SCM
practices are strongly related with firm
performance.
Mundler & Laughrea (2016) They examine the impact of short food
supply chain and its impact on territorial
development. They found Short food supply
chains have positive impact on all
dimensions of development

14. Literature review
Author/Authors Key Findings
Spina, et al. (2015) They conducted an empirical study to
examine the impact of supply chain
management practices on operational
performance . They found Supply chain
management practices have positive impact
on timely delivery and forecasting capability
of the firms.
Chen, et al. (2014) They examine the impact of supply chain
management practices and organisational
performance on Indonesian firms and found
Supply chain management practices and
organisational performance are correlated
significantly.

15. Literature review
Author/Authors Key Findings
Sujono, et al. (2013) They examine the causal relationship among supply
chain drivers and operational performance of the firm
found Supply chain management practices have
positive impact on responsiveness of the firms.
Responsiveness of the firms has positive impact on
operational performance of the firms.
Deshpande, A. R. (2012) He Determine linkages between supply chain
dimensions and organisational performance and
found significant and positive relationship between
supply chain dimensions, supply chain performance
and performance of the organisation.

16. Literature review
Author/Authors Key Findings
Sukati, et al. (2011) They investigate the relationship between supply
chain management practices and competitiveness and
responsiveness of the firms and found that Supply
chain management practices have positive impact on
responsiveness and competitiveness of the firms.
Fantazy, et al.(2010) They examine the impact of strategic purchasing on
supply chain practices and found that Strategic
purchasing has positive impact on supply chain
management practices and service quality of the firm

17. Literature review
Author/Authors Key Findings
Bayraktar et al.(2009) They identify the relationship among supply chain
management (SCM) and information systems (IS)
practices and its impact on operational performance
of the organization. They found that SCM and IS
practices have positive and significant impact on the
operational performance of SMEs.
Sambasivan & Jacob (2008) They examine the impact of supply chain
management practices on competitive advantage of
the firms and found Supply chain management
practices have positive impact on the competitive
advantage of the firms

18. Research approach towards the problem
• Objectives of the research
• Conceptual model development
• Research questions
• Hypotheses Development
• Data Required

19. Objectives of the research
Following objectives has been set:-
– To Identify and analyse the problem areas in supply
chain of public food in India
– To develop an effective and efficient model for Public
food supply chain
– To empirically test the theoretical model and give
suggestions to minimize the problem areas

20. Proposed Framework
H2 H5
H3
H1 H4
Organisational
Performance
ICT- Information & communication technology, LI- Logistics Integration, SR-
Supplier Relationship
Supplier
Relationship
ICT
Logistics
Integration

21. Research Questions
 Is there any impact of ICT(information & communication
technology) practices on the Logistics Integration of the firm?
 Is there any impact of ICT(information & communication
technology) practices on supplier relationship of the firm?
 Is there any impact of ICT(information & communication
technology) practices on the performance of the organisation?
 Is there any impact of Logistics Integration(LI) enabled supply
chain practices on organisation performance?
 Is there any impact of supplier relationship (SR) enabled supply
chain practices on organisation performance?

22. Hypotheses
 H1: There is significant relationship between ICT enabled supply
chain practices and Logistics Integration.
 H2: There is significant relationship between ICT enabled supply
chain practices and Supplier Relationship.
 H3:There is significant relationship between ICT enabled supply
chain practices and organisation performance..
 H4: There is significant relationship between Logistics Integration
and organisation performance.
 H5:There is significant relationship between supplier relationship
and organisation performance.

23. Research design
The research design is exploratory, descriptive cum
analytical type.
Data sources & collection pattern
Primary data( Structured Questionnaires)
Secondary data (Literature)
Sample Design Procedure
It involves defining the population of the study,
population element, population frame and the sample

24. Research design
• Population- In this study the population is all the employees
working in MP region of FCI.
• Sample- A sample is a subset of the population selected through
the appropriate sampling technique
• Sampling frame- all the potential respondents from this population
will make the sampling frame from which the sample has to be
drawn.
• Sampling Technique - Snowball Sampling Technique has been used
for data collection
• Population element – Each employee is population element.
• Sample size – We have used the table provided by Barlett, J. E. et
al.,(2001) and is based on the Cochran’s formula to determine the
sample size and our sample size is above the prescribed value.
• Data Collection Approach – Structured Questionnaire

25. Research design
Questionnaire Development – The questionnaire was developed with
the help of past studies. The items were taken from the past studies
to increase the reliability of the data collection instrument. The
Questionnaire was developed on five point likert scale ranging
from 1= strongly disagree to 5 = strongly agree
The questions were taken from well established previous studies,
though we check the reliability and validity of the questionnaire
through pilot study

26. Data collection
• The data were collected using snowball sampling techniques.
• Total 300 questionnaires were given to the executives and officers of FCI
in all over the MP region on the basis of referral . MP region is having 7
district offices and one head office to run its operations efficiently and
cover all the 51 districts of the MP region.
• 130 filled up questionnaires were returned after several follow up. Thus
get 43.3 percent response rate which is quite high and encouraging
(Saxena and Sahay, 2000, Sahay, et al., 2006)
• 9 questionnaires were discarded because of incomplete information and
the total 121 sample size used for this research work

27. Population & the FCI offices
Category No of
Employees
I 24
II 87
III 535
IV 67
Total 713
District
Offices
No of
Districts
Bhopal 08
Gwalior 08
Sagar 04
Indore 08
Ujjain 07
Jabalpur 08
Satna 08
Total 51
Source: www.fci.gov.in

28. Respondents Profile
Position
Experience in no of years Gender
0-10 11-15 16-20 above 20 Male Female
DGM 1 2 2 5
AGM 3 6 2 1 12
Manager 45 24 7 3 77 2
Others 19 3 3 25
Total = 121 68 35 12 6 119 2

29. Respondents Profile
0
10
20
30
40
50
60
70
80
0-10 11-15 16-20 above 20 Male Female
Experience in no of years Gender
No
of
respondents
Experience & Gender wise distribution of respondents
Respondents Profile
DGM AGM
Manager Others

30. Data Analysis
• PLS structured equation modeling has been applied because it is an
effective tool for survey-based research; it required small sample
size and no need of normally distributed data.
• Two types of models are generated in PLS-Structured equation
modeling as measurement model and structural model.
• Measurement model examined on the basis of reliability and validity
of the constructs.
• Validity is tested as convergent validity and divergent validity

31. Data Analysis
• Convergent validity measured the internal consistency.
The Convergent validity is measured through Cronbach's
alpha, Composite reliability (CR) and Average Variance
Extracted (AVE)
• Discriminant validity is examined by the use of AVE.
• Structural model shows the relationship between
exogenous and endogenous latent variables in respect of
variance accounted

32. Convergent Validity
Constructs AVE Composite
Reliability
Cronbach Alpha
ICT 0.506 0.836 0.759
LI 0.509 0.861 0.810
SR 0.505 0.835 0.754
OP 0.503 0.834 0.751
ICT- Information & communication Technology, LI- Logistics Integration, SR-
Supplier Relationship , OP- Organisational Performance

33. Divergent Validity
Constructs ICT LI OP SR
ICT 0.712
LI 0.218 0.714
OP 0.398 0.370 0.709
SR 0.326 0.281 0.413 0.711
ICT- Information & communication Technology, LI- Logistics Integration, SR-
Supplier Relationship , OP- Organisational Performance

34. Data Analysis
• The explanatory power of the model depend on
squared multiple correlations (R2) and path co-
efficient (β) values. Where R2 shows the
percentage of variance an endogenous depicts in
the model, whilst the path coefficients show the
strengths of relationships between constructs. R2of
endogenous is considered as substantial = 0.26,
moderate =0.13 and weak=0.02 .

35. Data Analysis
• Hypotheses Testing- Hypothesis testing is done to see the significance of
the relationships among the latent variables using the associated t-
statistics obtained from PLS bootstrapping. The results are shown in the
next slides.
• The proposed research model explained 30.0% of the variance in the
performance of the organisation providing good explanatory power. The
model also explained 10.6% of the variance in supplier relationship and
only 4.7% of the variance in logistics integration. There were significant
direct effects of ICT practices, logistics integration and supplier
relationship on organisational performance, supporting H3, H4 and H5.
There were also significant direct effects of ICT practices on logistics
integration and supplier relationship at P<=.05 respectively.

36. Hypotheses Results
Hypothe
ses
Path
Coefficient
(β)
t-value P value Results
H1 0.218 1.963 0.05 Accepted
H2 0.326 3.139 0.00 Accepted
H3 0.261 2.295 0.02 Accepted
H4 0.240 2.693 0.01 Accepted
H5 0.260 2.302 0.02 Accepted

37. Final Model of the study
β=.326, t=3.13 β=.260, t=2.30
β=.261, t=2.295
β=.218, t=1.96 β=.240, t=2.69
Organisational
Performance
R2 =.30
ICT- Information & communication technology, LI- Logistics Integration, SR-
Supplier Relationship
Supplier Relationship
R2=.106
ICT
Logistics Integration
R2 =.047

38. Data Analysis
• This study proposed the theoretical framework to
examine the relationship between ICT Practices,
Logistics Integration, Supplier Relationship and
organisational performance.
• All the Hypotheses satisfied which implied that ICT
Practices, Logistics Integration, Supplier Relationship
have positive and significant relationship with the
performance of the organisation

39. Major Findings
The effective use of Information and Communication
Technology (ICT) can make the flow of information
smooth about various aspects of supply chain such
• Availability of food grains,
• Time of availability
• Place of availability
• Transparency through the online portal.

40. Major Findings
• The results of the study show that ICT as supply chain management
practice works as a bridge between FCI, state agencies, FPS
network and consumers for all information about food grains.
• The ICT practices as provider of connectivity and availability of
information among public can minimize the incidence of leakages
and diversions within the system and in turn this can ensure
effective supplies of food grains to TPDS.
• The findings show that effective ICT practices, Supplier
Relationship and Logistics Integration are critical in achieving
good organisational performance.

41. Major Findings
• Logistics integration serves as interface among
different parties and help in better collaboration.
Better collaboration brings better performance
to the firms.
• Better supplier relationship helps firm to decide
about the products and services as per mutual
benefits. It helps timely delivery of products and
services to the customers which makes satisfied
customers.

42. Implications
• FCI is working as nodal agency for procurement, storage and
transportation of public food in India.
• This study shows that to ensure better performance of the
organisation in terms of responsiveness, quick delivery,
profitability etc, FCI focused on addressing the storage issues,
mismatch in procurement, storage capacity utilization and
reducing the wastage through better implementation of SCM
practices.
• The smooth functioning of FCI will bring efficiency in public
distribution system.

43. Implications & Suggestions
• As today’s competition is moving from “among organizations” to
“between supply chains, more and more organizations are
increasingly adopting SCM practice in the hope of reducing supply
chain costs.
• From this study officers and executives can understand the
importance of ICT practices, Logistics Integration and Supplier
Relationship in the supply chain of the firm and the kind of benefit
one can obtain by it.

44. Limitations & Future research Scope
• SCM practices may be influenced by contextual factors, such as the
type of industry, firm size, a firm’s position in the supply chain,
supply chain length, and the type of a supply chain.
• This study is conducted in a single region of the company.
Research needs to be conducted to study whether ICT practices,
supplier relationship and logistics integration are unvaryingly
applicable to other regions of the company.

45. Conclusion
• This Study provides empirical justification for a theoretical
framework that identifies three key dimensions of SCM
practices and describes the relationship among SCM
practices and organizational performance.
• For the purpose of investigating the research questions and
testing the hypothesis a comprehensive, valid, and reliable
instrument for assessing SCM practices was used. The
instrument was tested using rigorous statistical tests
including convergent validity, discriminant validity,

46. References
• Bayraktar, E., Demirbag, M., Koh, S. L., Tatoglu, E., & Zaim, H. (2009). A causal analysis of the
impact of information systems and supply chain management practices on operational
performance: evidence from manufacturing SMEs in Turkey. International Journal of Production
Economics, 122(1), 133-149.
• Chen, J. C., Imam, B., & Nadia, A. A. (2014, January). The determinant of supply chain
management practices in Indonesian small-medium enterprises-An empirical study.
In International Conference on Industrial Engineering and Operations Management, Bali,
Indonesia.
• Deshpande, A. R. (2012). Supply chain management dimensions, supply chain performance and
organizational performance: An integrated framework. International Journal of Business and
Management, 7(8), 2.
• Fantazy, K. A., Kumar, V., & Kumar, U. (2010). Supply management practices and performance
in the Canadian hospitality industry. International Journal of Hospitality Management, 29(4),
685-693.
• Mundler, P. & Laughrea, S. (2016). The contributions of short food supply chains to territorial
development: A study of three Quebec territories. Journal of Rural Studies, 45, 218-229.
• Spina, D., Di Serio, L. C., Brito, L. A., & Duarte, A. L. D. C. M. (2015). The Influence of Supply
Chain Management Practices in the Enterprise Performance. American Journal of Management,
15(2), 54.
• Sambasivan, M., & Jacob, G. (2008). An empirical study on the impact of supply chain practices
on competitive position of MNEs in Malaysia. International Journal of Economics and
Management, 2(2), 369-394.

47. References
• Sujono, S., & Utami, S. K. R. H. N. (2013). The Influence of Internal Drivers and
Environmental Drivers towards Supply Chain Management (SCM) Strategy, SCM
Practices, Responsiveness and Implication on the Operational Performance of Organic
Fertilizer Manufacturers in East Java, Indonesia. detail, 3(12).
• Sukati, I., Hamid, A. B. A., Baharun, R., Tat, H. H., & Said, F. (2011). A study of supply
chain management practices: An empirical investigation on consumer goods industry in
Malaysia. International Journal of Business and Social Science, 2(17), 166-176.

48. THANK
YOU
?
?