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Supply Chain Effectiveness and Efficiency – Case of Chinese Onyx Industry

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 International Journal of Research e-ISSN: 2348-6848
p-ISSN: 2348-795X
Available at [Link]
Volume 04 Issue 09
August 2017

Supply Chain Effectiveness and Efficiency – Case of Chinese Onyx

Industry
Khurram Aziz1, Ramaisa Aqdas Rana2, Muhammad Rashid3, Qadeer Rahat4
Ph.D. Scholar (Department of Commerce, University of Punjab, Gujranwala Campus,
1

Gujranwala, Pakistan), 2University of Punjab, Gujranwala Campus, Gujranwala, Pakistan,

3
University of West of Scotland, 4The University of Northampton, United Kingdom
khurramaziz786@[Link]
Abstract

Supply chain management of an organization is a

major determinant of the success of Pakistan. In the absence of this, onyx resources
organizational success. If the supply chain can be sold to India. Likewise, Karakoram
becomes lean, then members of the supply chain highway, which was developed by China, is also
will get benefits. Organizations should strive to supporting transportation of onyx raw materials
improve the competitiveness of its supply chain to China. Government can take different steps in
management practices so that all members of the helping businesses in increasing their supply
supply chain can obtain benefits from such chain competitiveness.
competitiveness. Onyx industry of China is an
important sector of China as lots of people are Keywords: Supply Chain Management, China,
engaged in this area. The sector has international Government
roots as raw materials are obtained from Pakistan
whereas finished products are sold in different 1.0: Introduction
Asian and European countries. There are some
factors, which may enhance the competitiveness of This section of research paper will present
supply chain of Onyx industry. These factors background of research, research problem as well as
include transportation-in and transportation-out research question. Moreover, this section will also
that has to be incurred by the members of supply introduce the purpose of this research paper, which will
chain. In the case of Onyx industry, transportation be followed by limitations.
charges (in and out) are leading to loss of
competitiveness of supply chain. Further to this,
the technical capability of all the members of the
1.1: Background
supply chain is also important as because of the
This section of the research paper will present the
high level of technical capability, manufacturers
background of the investigation.
can produce goods in efficient ways, which adds
to the effectiveness of supply chain. In the case of 1.1.1: Supply Chain Management
onyx extraction, technical capabilities of onyx
extractors of Pakistan were not high which lead to Thun and Hoenig (2011) highlighted that in order to
loss of competitiveness. However, Chinese improve its competitive position, reduce its cost and
manufacturers obtained the better quality of onyx develop differentiation, business may not rely on its
raw material from Pakistan. Likewise, extraction own resources and competencies only, rather it may
companies of Pakistan are not earning cost- involve other individuals and organizations that may
efficiency which lead to loss of competitiveness. provide related products and services which are needed
Further to this, political and militant activities in by the business. Such an involvement of firms that
Pakistan had also resulted in delays in delivery as provide goods and services, which are required by the
lead time had increased. The political and legal organization leads to the development of the supply
factors of Pakistan have caused problems for chain of the organization. Waters and Rinsler (2014)
supply chain competitiveness of onyx industry of suggested that supply chain management (SCM)
China. There are different ways through which involves arranging private as well as external activities
inter-government relations are harnessing supply of the business in such a way that business engages
chain competitiveness, and there are other areas external vendors which provide supporting goods and
in which such ties between the two parties can services to the firm and help business in the provision
benefit them. Because of good relations between of value to the end customers. Li et al. (2014) suggested
China and Pakistan, Onyx manufacturers of that SCM involves movements of tangible goods and/or
China have favored access to onyx resources of services from one member of the supply chain

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(supplier) to another member and from that member to 1.1.3: Public Policy and SCM
the end consumer/customer. Organizations should
identify, select, develop and maintain its relations with Alawneh et al. (2013) highlighted the role of
its suppliers with an aim to increase value for all related Government in the economic development of the
parties including members of supply chain, country and suggested that there are number of ways in
shareholders and end-consumer. Krajewski et al. which Government can support businesses. For
(2012) added that there are number of factors which instance, Government of a country creates market
may have influence on the competitiveness of SCM. mechanism as well as market infrastructure through
These factors should be identified, considered and which businesses can be supported. Likewise,
evaluated. If these factors are supporting, then their Government can also develop and implement policies
positive impact should be capitalized by the which may harness the growth of an economy. Verbeke
organization. On the contrary, if such factor is not (2013) suggested that Government of a country may
beneficial then the firm should develop methods deregulate economy and as a result of this, businesses
through which such negative influence of factors can be can import required raw materials and components
mitigated. This would increase effectiveness and from abroad. This may enhance effectiveness and
efficiency of supply chain. If the supply chain of a efficiency of operations as it has developed its supply
business is effective and efficient as compared to chain in such a way that overall competitiveness of
another business then it would become source of business has improved. Sasagawa et al. (2014) added
competitive advantage for the firm (Liao et al., 2011). that there are various methods through which
Government of a country may influence SCM
1.1.2: Competitiveness of Supply Chain competitiveness of an industry. The Government of a
country can devise such policies through which
Fawcett et al. (2014) suggested that with the businesses can quickly enter into contracts with foreign
increase in awareness of SCM related practices, parties. Government may reduce tax rates on imports as
business are trying to optimize their relations with well as may provide credit on easier terms to the
suppliers so that competitiveness of supply chain can be organizations which are inclined towards international
improved. Trkman (2010) suggested that over the trade.
period of time, due to development of transport and
communication infrastructure, deregulation of 1.1.4: Overview of Chinese’s Onyx Sector
economies and market convergence,
internationalization of businesses has increased. Porter Tse (2012) suggested that marble and tile industry
and Tanner (2012) regarded international trade as a of China is one of the leading marble and tile industry
basis for gaining competitive advantage. From last of the world. The industry is not only catering to the
many decades, companies are selling their products and needs of the local market but also at the same time,
services in the global markets and many of them, at the every year, lots of foreign exchange is earned by China
same time, acquire resources needed to produce such through exporting value added marble and tile items.
goods and services. The purpose of such Firms which produce onyx related items is an important
internationalization of business activity is to maximize sub-sector of marble industry of China. Onyx is
value for all members of supply chain. For instance, available in different colours including purple, blue,
customers in the international market may obtain better black, red and white. There are various onyx items
quality of finished goods as compared to the products, which are exported to other countries including tiles,
which are available to the customers from their local columns, showers, vases, counter-tops, sinks, balls,
market. So, customer will be well off. In the case of fireplaces, etc. Kynicky et al. (2012) highlighted that
organization and its shareholders, if domestic demand owing to the availability of cheap labor and China's
is stagnant or has become saturated, then exporting to proximity to factors of production especially raw
other countries will bring additional revenues. materials, the onyx industry of China became
Likewise, suppliers can also produce its products on competitive over the years. The onyx manufacturers
large scale and export those to international markets. It obtain natural marble both from China as well as from
would support vendors in earning economies of scale as Pakistan. China exports finished products to Saudi
well as make more profits. Fawcett et al. (2014) Arabia, UAE, Dubai, Bahrain and many countries
suggested that if any of these members of supply chain across the European Union. Cheung and Gill (2013)
would have an advantage then there are chances that highlighted that Kingdom of Saudi Arabia alone has an
rest of the members of supply chain could also get export potential of US$ 66 billion. Very recently, the
benefit out of it. The cooperation between the members onyx industry of China suffered a lot as the competition
of supply chain as well as support from other related from Russian, Middle Eastern, American and
parties, including Government, can enhance the Malaysian companies has increased. The firms from
competitiveness of SCM these countries have started importing raw materials
and attempt to capture markets where China had been

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selling previously. Kynicky et al. (2012) highlighted that because of failure on the part of suppliers,
that largest supplier of onyx related raw materials to American firms had to suffer lots of losses and had lost
China is Pakistan. Pakistan has over 350 million tonnes their market competitiveness. These problems become
of marble and granite which it can export to other a trouble for these companies. Prajogo and Olhager
countries as well as use for in-house needs. Recently, (2012) emphasized the importance of overcoming
Italian, European and Korean firms have shown interest challenges related to supply chain and attempt to
in entering in to joint ventures with Pakistani overcome those as competition has mounted to
counterparts and indulge in extraction, refinement and international level and there are chances that if
export of marble especially onyx. Cheung and Gill competitiveness is lost then it would be difficult to be
(2013) highlighted that a major blow to onyx industry gained back.
of China came in the form of emergence of India as one
of its main competitors in the international market. 1.2.2: Role of Government As An Economic
Contrary to Chinese practices where China has to Manager
import raw materials from Pakistan and other countries,
Indian supply chain is based on India’s own natural Thompson and Martin (2010) highlighted the role of
reserve. This and other factors has made supply chain Government of a country in the management of an
of Chinese firms less competitive as compared to India. economy and suggested that there are various ways in
Likewise, export of raw material by Russian, Middle which Government can support or hinder economic
Eastern, American and Malaysian companies may also activities in a country. For instance, Government may
make situation worse for China as these importers can restrict import of certain items in a country so that local
process raw material locally and sell it to local industry can be saved. On the contrary, Government
customers thus reducing export of China to these may remove import barriers so that local end-
countries. customers, as well as businesses, can obtain those.
Helfat and Peteraf (2003) highlighted that international
1.2: Problem Discussion relations of Government with Governments of another
country may also influence the economic development
This section will present problem discussion of a country in general and the growth and prosperity of
related to this research project. a sector in specific. Likewise, Hill and Jones (2007)
highlighted the influence of businesses and suggested
1.2.1: SCM Related Challenges And Influence of that Government of a country formulates the fiscal and
Firms’ Competitiveness monetary policy which has an impact on the macro-
economical environment as well as industries operating
Porter (2008) highlighted that competitiveness of a in the country. Further to this, Government of a country
business is associated with maintaining and expanding may enter into a preferential treatment agreement with
its market position in such a way that over the period, another country through which country can obtain
sales and profits also grow. It is a dynamic concept and benefits for itself as well as for its people. All of these
with the change in business conditions (Internal and factors have a direct influence on the competitiveness
external), extent of competitiveness also changes. of supply chain of firms. So, if SCM of a firm no longer
Among various factors which influence the remains competitive and that too because of factors
competitiveness of an organization, SCM is a major one which are under the control of the Government then one
(Liao et al., 2011). Carter and Easton (2011) argued that should analyze the role of Government so that SCM's
management of international supply chains is usually competitiveness can be restored.
not an easier task. The related parties have to counter
not only local political, social, legal, technological and 1.3: Research Question
economic factors but also at the same time, such factors
also has to be considered of the country who are The above sections asserted the importance of SCM
member of the supply chain. An analysis and related activities for the businesses and suggested that
management of factors influencing supply chain needs effectiveness and efficiency of SCM may enhance
careful attention. Brewer et al. (2013) suggested that the competitiveness of firms in the supply chain. The
very nature of interconnectedness of firms in the supply government of a country has control over the economic
chain has created a situation in which success or failure activities of the country. Because of this control,
of one of the firms may jeopardize the whole supply decisions of Government may either harness or hinder
chain. Depending on the situation, businesses should growth of business. One such area is supply chain
work hard to overcome the existing barriers or management. In the case of Chinese onyx industry,
challenges and should come with a strategy that such because of competition from the foreign firms in
factors should not influence firms’ performance in different areas, the sector is losing its competitiveness
future. Marucheck et al. (2011) highlighted the case of so the analysis is to be carried out in this field so that
the pharmaceutical industry of America and suggested sector can get benefit out of this.

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Following is the research question for this paper. supply chain (supplier) to another member and from
How does Chinese Government can help Onyx industry that member to the end consumer/customer. Krajewski
in increasing supply chain effectiveness and efficiency et al. (2012) added that there are some factors which
for enhancing overall business competitiveness? may have an influence on the competitiveness of SCM.
These factors should be identified, considered and
1.4: Purpose of Research evaluated. If these factors are supporting, then their
positive impact should be capitalized by the
The essence of this research is to identify and organization. If the supply chain of a business is
evaluate different ways by which Government of a effective and efficient as compared to another business,
country can assist local business in the form of support then it would become a source of competitive advantage
for the enhancement of supply chain competitiveness. for the firm (Liao et al., 2011).
In this regard, the researcher will evaluate the case of
Onyx industry of China. Chinese onyx is losing its 2.2: Factors Influencing Competitiveness of
supply competitiveness effectiveness due to SCM
competition with firms from other parts of the world.
This section will highlight various factors, which
1.5: Limitations have an impact on the competitiveness of SCM. These
factors are given below.
There are some limitations of this research.
Thun and Hoenig (2011) highlighted the influence
1- The findings of this study are mainly based on of transportation cost on the competitiveness of supply
secondary data. Bryman and Bell (2007) proposed that chain and suggested that more the distance between the
secondary should be used with caution as this is supplier and the organization, higher would be the
collected and processed for some other research and shipping cost (Transportation In). Likewise, more the
may not be current. distance between the organization and the end-
customers, higher would be the transportation cost
2- There may be other ways through which (Transportation Out). Krajewski et al. (2012) suggested
competitiveness of supply chain management practices that from a lean operations perspective, both
can be increased. However, the focus of this paper transportation-in and transportation-out are a waste and
would remain on the role of government in enhancing has an adverse influence on the lean supply chain
the competitiveness of the firm. management practices. Further to this, Sana (2011)
suggested that while selecting a supplier, the
3- There are numerous ways through which government organization should consider the technical competence
can influence supply chain management practices. The of the provider. If the vendor has the skills and
area where the role of Government is discussed in this improved technology, then his operations would be
paper is not exhaustive. effective as well as efficient. It would ensure that
overall operational cost of supplier decreases.
2.0: Theoretical Perspective Consequently, the supplier would be in a position to
offer cost saving related benefits to the organization and
hence cost related competitiveness of the segment
This section will present theory related to the
would be enhanced.
research problem, which was given in the previous
section. The major topics covered in this section include
the basis of effectiveness and efficiency of the supply Zu and Kaynak (2012) highlighted that an important
chain as well as ways through which Governmental determinant in the selection of the supplier for the
actions can improve supply chain competitiveness of an attainment of competitiveness of supply chain is the
industry. quality of products offered by the supplier to the
organization. There are different ways by which such
quality of goods may enhance the level of
2.1: Supply Chain Management competitiveness. For instance, better quality of products
would create a situation in which organization does not
Waters and Rinsler (2014) proposed that SCM deals have to rework as there would not be any faulty
with arranging internal and external activities of an products in the system. Likewise, since products would
organization so that it can obtain goods and services be of right quality, the organization does not have to
from its vendors in such a way that overall effectiveness return it to the seller. Further to this, because of better
and efficiency of operations may increase. Li et al. quality, the organization would be in a position to
(2014) highlighted nature of SCM practices and charge the high price of its finished products.
reported that SCM is concerned with movements of
tangible goods and services from one member of the

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Hugos (2011) highlighted that competitiveness of the international auto industry should integrate with
supply chain could be increased by selecting a supplier each other and develop a global supply chain. Having a
who earns cost efficiency. It is a significant motivation higher level of collaboration and cooperation can do
for moving out from own value chain and involving an this. Moreover, members of the internal supply chain
external party in the provision of goods and services. should involve each other in enterprise resource
There are different ways through organization can get planning. The extent of the relationship between the
such cost efficiency. These include trained labor, lower members should be to a level that the members should
salaries, favored access to natural resources, economies be geographically apart from each other yet on the
of scale, Governmental support, use of technology, etc. business level they should be a partner in profits and
(Mansouri et al., 2012). losses. Having cross-company ownership can ensure
this. Share exchange between the members of the
Williamson (2008) highlighted another way of supply chain can lead to cross-company ownership. The
developing lean supply chain and suggested that if an thrust of trust and cooperation between the members of
organization gets success in identification of a reliable the supply chain should be such that they should not run
supplier who can deliver goods/ services in promised distant facilities separately rather they should cooperate
time, then the organization can work with the minimum with each other and jointly analyze business trends and
level of stock. It would save stock holding cost as well complicated business situation. This cooperation and
as financing cost as the organization does not have to collaboration among the members will help businesses
keep buffer stock. Such cost saving would enable the in flourishing together and share risks of losses and
organization that it can develop a lean supply chain. other business risks.
Williamson (2008) further highlighted that lean supply
chains could also be drawn up by selecting a supplier, 2.3: Role of Government In Increasing Supply
which has less lead time. Since businesses are trying to Chain Effectiveness
develop international supply chains, so the issue of
lead-time has become a major problem in developing Charan (2012) highlighted the issue of lean supply
lean supply chains. Consequently, organizations also chain at Government level and suggested that
have to maintain massive stock levels which increase sometimes harmonious relations between two
stock holding cost, pilferage, stock obsolescence, etc. neighboring countries can also help organizations in
All of these are wastes and would be significant developing lean supply chains. These are situations
obstacles to the development of lean supply chains. where such neighboring countries give each other
favorite nation status and start trading with each other
Casson (2013) highlighted an important concern in on preferential basis. It may include eradication of
the development of international supply chain and tariffs, quotas, taxes, etc. All of these factors support the
suggested that organizations that are indulged in the development of lean supply chain.
development of international supply chains have to
tackle both local as well as global macro environmental
factors. These factors increase challenges for the 3.0: Analysis and Discussion
business and may have an adverse influence on the
competitiveness of the supply chain. A specific
In this section, analysis and discussion on related
example could be a strike in international markets,
aspects of the research paper will be presented.
which may increase lead time causing trouble for lean
supply chain related practices. On the contrary, Casson
In the case of the onyx industry of China, Pakistan
(2013) also put forth contrasting view and suggested
exports lots of material to China. China purchases
that there are chances that there are chances that in the
almost all the onyx that Pakistan exports to any foreign
foreign country, suppliers have exclusive access to raw
country. Consequently, firms have to incur
materials which are needed by the organization. If such
transportation cost for importing it to China. Likewise,
products are made in-house or within the country, then
the main buyers of onyx products are located in foreign
it would be more expensive. In such circumstances,
countries. Once, final products are ready; they have to
importing from the foreign buyer is the only wise option
be exported to foreign countries including Kingdom of
which may yield competitiveness of supply chain.
Saudi Arabia, UAE, European countries, etc. Krajewski
et al. (2012) regarded transportation in and out, both, a
Charan (2012) highlighted that to achieve a
waste as these do not add value. So, these two are
sufficiently efficient and effective supply chain,
obstacles for the implementation of the lean value
members of the supply chain should start cooperation
chain. In the case of China, Government has entered
with each other in a way that the members of supply
into a long-term contract with Government of Pakistan.
chain start sharing profits and losses of each other. He
As a result of this agreement, an extension of
highlighted the case of the automobile industry and
Karakoram highway is to be carried out in the next three
argued that to achieve a global status truly, members of

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years time. As a consequence of this extension, the so margins of industry are small. Now, this has both
distance between China and some of its foreign markets advantages and disadvantages. Where non-availability
will be reduced from 45 days to 12 days. By doing this, of trained staff and technology is a problem for supply
Government of China will help the onyx industry in chain competitiveness there, it leads to lower profits for
developing a more competitive industry. Such the people who are engaged in extraction. It increases
exclusive and favored access to China will contribute to supply chain competitiveness as lower profits would
overcoming the loss of competitiveness of onyx result in lower sales prices and higher value for final
industry to Indian counterparts. customers. Likewise, transportation of onyx from
Khyber Pakhtoon Kha to China is carried out without
The technical competency of the suppliers of onyx any delay as it is transported through Karakoram
to Chinese is not much. Most of the onyx is available in Highway, which is quite developed, and a quick way of
Baluchistan and Khyber Pakhtoon Kha. Both of these transportation between China and Pakistan.
provinces are not very educated, and generally,
production system in these two provinces are not very In the case of Onyx extraction is Pakistan, there is
advanced (Kiani et al., 2015). The technical as such no coordination between the onyx
competencies of people who are engaged in the manufacturers of China and onyx extractors of
extraction of onyx are very less. Consequently, they are Pakistan. Pakistani counter parts continue extracting
using the primitive and less advanced method of materials and piling up. Whenever required, Chinese
extraction of onyx. Most of the onyx is extracted by manufacturer purchases it from Pakistan. However, the
using explosion method of extraction. Due to the bomb nature of the product is such that Pakistani counterparts
explosion, the waste rate of onyx is around 80 per cent do not have to incur any specific storage cost or stock
which is a major challenge to implementation of obsolescence issue. They just have to face the
attainment of a high level of supply chain opportunity cost of money which is tied up, but that is
competitiveness. not substantial. They can stop further extraction at any
time. It has a positive influence on the competitiveness
Further to this, the raw onyx available in Pakistan is of supply chain.
among the best onyx in the world. Pakistan has over 60
different types of onyx, marbles, and granite which it The political, legal and social disturbance in
can export to foreign markets. Such excellent quality of Baluchistan and Khyber Pakhtoon Kha is one of the
onyx is not even available in India. As mentioned biggest problems faced by the people of these two
earlier, China purchases all onyx which is extracted by provinces. Because of terrorist activities, foreign
Pakistani producers. Such acquisition of all the investment is not coming in these areas. Moreover,
extracted was made possible because of harmonious because of terrorist activities, operations of existing
relations between Government of Pakistan and businesses are also jeopardized. Lots of cases were
Government of China. Pakistani Government did not reported in recent few months where terrorists stop
object trade between Pakistan and China. It is important vehicles and set them to fire. Likewise, strikes in
to mention here that Pakistan does not enjoy good different parts of Pakistan are also a major challenge for
relations with India, which hampered bilateral trade the transportation of onyx to China. These things are
between two countries. Courtesy of Pak-China reducing the competitiveness level of the supply chain
relations, the onyx industry of China has access to of China. The problem of Pakistan has become
superior quality of onyx, which may support industry in problems of China. The government of China, having
increasing its supply chain competitiveness. This harmonious relations with Pakistan, should carry out
stiffness of Pakistani onyx, to which China has favored some activities so that these challenges can be managed.
access, is high which results in less wastage during the
cutting process. It increases the competitiveness of Considerable effectiveness in the supply chain can
supply chain as the level of waste is less. At the same be achieved if the extraction techniques used in this area
time, high quality of raw materials also enables Chinese are improved. If the members of supply chain start
producers that they can charge high prices. It also cooperating with each other, then overall effectiveness
increases the level of competitiveness as higher prices and competitiveness of supply chain can be enhanced.
lead to more profits. For instance, onyx extraction sector of Pakistan is not
an organized industry. One of the underlying reason for
As mentioned earlier, that onyx is obtained from this is that onyx extraction parties fear that if they would
Pakistani people who are residing in provinces of allow Government to participate in this area, the
Baluchistan and Khyber Pakhtoon Kha. People are not Government will have an idea of their business
very educated and are using old methods of extraction. activities and would start taxing them. They refrain
Labour is not very trained, and there is an insufficient from receiving support from Government. At the same
use of technology in this area. The Government of time, since Government does not receive any revenue
Pakistan is also not paying lots of attention in this area, from this area, so it does not invest much in this sector.

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Likewise, Chinese companies also do not cooperate China. There are some ways through which inter-
much with the extraction companies of Pakistan as Government relations is harnessing supply chain
former that if later would learn tricks of trade then competitiveness, and there are other areas in which such
prices of extracted onyx will be increased. Such non- ties between the two parties can be used. The link
cooperation leads to a wastage of 80 percent, which is between China and Pakistan is giving favored access to
not an ideal condition. This fear of benefit of other onyx resources of Pakistan. In the absence of this, onyx
parties in the supply chain is resulting in a reduction in resources can be sold to India. Likewise, Karakoram
the competitiveness of supply chain of onyx. In all of highway, which was developed by China, is also
this situation, Government of China is the one who supporting transportation of onyx raw materials to
earns tax money on the sales of onyx by Chinese China. There are many ways by which Government can
companies to foreign markets. However, even the support the competitiveness of supply chain.
Chinese government is not paying much attention to
this area, so supply chain competitiveness is 4.2: Recommendations
compromised in this area.
Following are recommendations for concerned
4.0: Conclusion and Recommendations stakeholders.

Based on the analysis carried out in the previous 1- Government of Pakistan should ensure proper law
section, conclusion, and recommendations related to and order situation in Pakistan. It is causing a major
research are given below. problem, not only, in the transportation of goods from
Pakistan to China but also at the same time; it is also
4.1: Conclusion causing problems in the extraction of onyx in Pakistan.

Supply chain management is a major determinant of 2- Government of Pakistan should start to focus on onyx
the success of an organization. If the supply chain extraction sector. This industry is earning lots of foreign
becomes lean, then members of the supply chain will exchange for the country. If this industry is supported,
get benefits. Organizations should strive to improve the then the level of earnings can be increased. In this
competitiveness of its supply chain management regard, Government should develop industry
practices so that all members of the supply chain can development infrastructure including Government
obtain benefits from such competitiveness. Onyx departments, which can provide support to onyx
industry of China is an important sector of China as lots clusters. A technical training department, for instance,
of people are engaged in this area. The sector has can make things better.
international roots as raw materials are obtained from
Pakistan whereas finished products are sold in different 3- Based on close relations between China and Pakistan,
Asian and European countries of the world. There are Government of China can invest in the onyx industry of
many factors which may enhance the competitiveness Pakistan. If the competitiveness of sector will be
of supply chain of an industry. These factors include increased, Chinese Government can directly obtain
transportation in and transportation out that has to be benefits from this in the form of an increase in taxation
incurred by the members of supply chain. In the case of revenues.
Onyx industry, because of transportation in and out is
leading to loss of competitiveness of supply chain. 4- Based on close ties between China and Pakistan, a
Further to this, the technical capability of all the Government level arrangement can be made where
members of the supply chain is also important as Chinese firms can enter into joint ventures with
because of the high level of technical capability, Pakistani extraction companies and can use better
manufacturers can produce goods in efficient ways, technology for extraction
which adds to the effectiveness of supply chain. In the
case of Onyx extraction, technical capabilities of onyx 5- The investment of China in infrastructure sector of
extractors of Pakistan was not high which lead to loss Pakistan will increase the competitiveness of supply
of competitiveness. However, better quality of onyx chain as Chinese manufacturer will have earlier access
raw material, which was obtained by manufacturers of to foreign markets.
onyx of China. Likewise, extraction companies of
Pakistan are not earning cost-efficiency which lead to References
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p-ISSN: 2348-795X
Available at [Link]
Volume 04 Issue 09
August 2017

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