SUPPLY CHAIN MANAGEMENT OF WAVE MAGAZINE

PVT. LTD

A Seminar Paper on Supply Chain Management

Submitted to
Office of the Dean
Faculty of Management
Purbanchal University
In Partial Fulfillment of the Seminar Course Requirement for the
Degree of
Masters of Business Administration (MBA)

Submitted by:

Shyam Prasad Neupane

Himalayan Whitehouse International College

White House Graduate School of Management

P.U Registration No:

March, 2017
 DECLARATION

I, Shyam Prasad Neupane declare that this seminar paper entitled “Supply Chain Management

Of Wave Magazine” is submitted in partial fulfillment of the MBA Degree, the faculty of

Management, Purbanchal University is my original work carried out under the guidance of Prof

Santosh Acharya, Research Head of WHGSM, has not been submitted anywhere for the award of

any other degree or commercial purpose. In keeping with the ethical practice in reporting

scientific information, due acknowledgements have been made wherever the finding of others

have been cited.

__________________________________________

Shyam Prasad Neupane

P.U Registration No:

i
 ! THIS PAGE HAS TO BE IN WH GSM LETTER HEAD

APPROVAL LETTER

This is to certify that Mr Shyam Prasad Neupane student of MBA, second semester studying in
Himalayan WhiteHouse International College (WhiteHouse Graduate School of Management)
affiliated to Purbanchal University his completed his seminar course on Supply Chain
Management on the topic of “SUPPLY CHAIN MANAGEMENT OF WAVE MAGAZINE”
as prescribed by the university standard under related subject expert’s guidance. His performance
during the seminar was appreciable and the report has been prepared accordingly. We appreciate
her work.

Evaluation Committee

_________________________________ _________________________________

Mr./Mrs/Ms/ Dr/ Prof Santosh Acharya Mr. Shambhu K. Dahal

(Report Supervisor) (Head of School)

_________________________________ _________________________________

Mr./Mrs/Ms/ Dr/ ProfXxxxXxxxXxxx Mr./Mrs/Ms/ Dr/ ProfXxxxXxxxXxxx

(Course Convener) (External Expert)

Date:

ii
 ACKNOWLEDGEMENTS

I cannot claim that this field study report is prepared without any helps and supports of the
others. I am grateful to those helps, supports and suggestion whose ideas is also play a vital role
to increase idea for field survey and to improve my written skills and knowledge.

First, I would like to express my sincere gratitude to my respected teacher or my supervisor,

lecturer, Mr. Santosh Acharya Head of Research, faculty of Management studies, Himalayan
Whitehouse International College for his continuous encouragement, invaluable suggestion, able
guidance and enduring patience in completing my field report.

I am equally indebted to my seniors Mr. SumanShrestha, Miss Sital Pokharel and Miss Swastika
Regmi for being a source of inspiration and a moral support without whose time, sincere sharing,
opinions and wholehearted support the shaping of this report would be impossible. I am thankful
to the Manager Rabina Shrestha and other staffs of Wave Magazine.

I am very grateful to Mr. Manish Jung Kunwar, Santosh Nepal, Madhav Shahi, Suraj Aryal, and
JinashShresth. At last, I would also like to express my thanks to lovely family members for their
continuous support.

Shyam Prasad Neupane

2017 April

ii
 EXECUTIVE SUMMARY

This research highlights about Supply Chain Management of Wave magazine, Current situation
Challenges and Remedial Measures. Wave magazine is a leading brand in Nepalese Magazine
Industry from last 20 years. At present it has become the second largest national magazine and
sold around 33000 copies of magazine per month.

The main objective of this study is to enhance the theoretical knowledge obtained in a class by
practically observing and analyzing the supply chain of Wave magazine. The main objectives of
the study are: To know how the concept of supply chain management that are implemented on
Wave magazine, To identify major risks, challenges and opportunities of Wave magazine, And
to examine the present situation of the Wave magazine.

Field visit to the Corporate Office of Wave magazine was well managed. Every phenomena and
condition was observed analytically. The information was obtained from interview with
operation officer (Rabinashrestha) and editor (Subhashshrestha). Most of the related information
was available through articles written by different scholars. Various books related to the core
topic of the seminar were searched thoroughly within the library and internet.

From the study, it is found that Wave magazine one of the largest magazine and they print
monthly approximately 33000 pieces of magazine and deliver it to the different part of the
country, The main target customer of Wave magazine is young generation so the contents of the
magazine is based on the music, modeling, fashion etc., Wave magazine deliver its magazine
through the vehicle for the inside the valley and vehicle and courier to the outside valley.

On the basis of the study, it can be concluded that Wave magazine is one of the leading national
magazine company. But it is facing some challenges, among them management of supply chain
has been a major challenge. This company has faced major problem on upstream supply chain
which has eventually affected downstream supply chain as well. To overcome this major
challenge Wave magazine can use advanced inventory management software which can keep
track of inventory and also notify suppliers about the inventory level.

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 TABLE OF CONTENTS
S. No Page No

Declaration i

Approval Letter ii

Acknowledgements iii

Executive Summary iv

List of Figures vii

List of Tables viii

Abbreviations ix

CHAPTER-I INTRODUCTION .................................................................................................... 1

1.1 Background/Introduction ................................................................................................. 1

1.2 Statement of Problem ............................................................................................................ 3

1.3 Objectives of the Study ......................................................................................................... 3

1.4 Significance of Study ............................................................................................................ 4

1.5 Limitations of the Study ........................................................................................................ 4

1.6 Organization of Study ........................................................................................................... 5

CHAPTER-II LITERATURE REVIEW ........................................................................................ 6

2.1 Theoretical Review ............................................................................................................... 6

2.1.1 Definition Supply Chain Management ............................................................................... 6

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 2.1.2 Upstream SCM ................................................................................................................... 8

2.1.3 Downstream SCM .............................................................................................................. 9

2.2 Empirical Review .................................................................................................................. 9

2.2.1 International Review .......................................................................................................... 9

CHAPTER-III: OBSERVATIONS AND ANALYSIS ................................................................ 14

3.1 Research Methodology........................................................................................................ 14

3.1.1 Research Design ............................................................................................................... 15

3.1.2 Source of Data .................................................................................................................. 16

3.1.3 Data Analysis Techniques ................................................................................................ 16

3.2 Background Analysis .......................................................................................................... 17

3.3 Analysis of First Objective .................................................................................................. 18

3.3.1 Supply chain management of Wave magazine ................................................................ 18

3.3.2 Upstream Supply Chain Management.............................................................................. 19

3.3.3 Upstream Supply Chain Management of Wave Magazine .............................................. 20

3.3.4 Downstream supply chain management. .......................................................................... 21

3.3.5 Downstream Supply Chain Management of WAVE Magazine....................................... 22

3.4 Analysis of Second Objective ............................................................................................. 23

3.4.1 SWOT Analysis of Wave magazine................................................................................. 23

3.4.2 Market Analysis ............................................................................................................... 24

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 3.4.3: Raw Material Import ....................................................................................................... 26

CHAPTER-IV: FINDINGS, CONCLUSION AND RECOMMENDATIONS ........................... 28

4.1 Major Findings .................................................................................................................... 28

4.2 Conclusions ......................................................................................................................... 29

4.3 Recommendations ............................................................................................................... 30

Bibilography

Annex

vi
 LISTS OF FIGURES

Figure 1: Supply Chain Management ............................................................................................. 7

Figure 2: Sources of Data ............................................................................................................. 16

Figure 3: Supply Chain Management of WAVE Magazine:- ....................................................... 18

Figure 4: Upstream Supply Chain Management of Wave Magazine ........................................... 20

Figure 5: Downstream Supply Chain of WAVE Magazine.......................................................... 22

Figure 6: Market of Wave Magazine ............................................................................................ 25

Figure 7: Raw Material Source ..................................................................................................... 27

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 LISTS OF TABLES

Table 1: Sample Size .................................................................................................................... 16

Table 2: Market Analysis of Wave Magazine .............................................................................. 25

Table 3: Raw Material Supply Source. ......................................................................................... 26

viii
 ABBREVIATIONS

WM Wave Magazine

SCM Supply Chain Management

SWOT Strength Weakness Opportunity and Threat

JIT Just In Time

SCI Supply Chain Integration

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 CHAPTER-I INTRODUCTION

1.1 Background/Introduction

A magazine is a publication, usually a periodical publication, which is printed or electronically

published (referred to as an online magazine). Magazines are generally published on a regular

basis and based on a variety of content. The source of income of magazine is advertising, by a

purchase price, by prepaid subscriptions, or a combination of the all these source. At its root, the

word "magazine" refers to a collection or storage location of information. The magazine is one of

the main parts of the communication.

All organizations have the supply chains of varying degrees, depending upon the size of the

organization and the type of product manufactured. In magazine logistic supply chain plays an

important role. The logistic supply chain is a science and art of obtaining, producing and

distributing material and product in the proper place and in proper quantities. Also the printed

magazine follows product oriented supply management. Supply chain management consists of

the all activities associated with products and services transfer from raw material stage to final

products which are consumed by final customers. This movement includes financial and

information flow as well as material flow. In other words, supply chain is a network consisting of

downstream and upstream organizations which are involved in different processes, stage and

activities that create value for end customers in the form of products or services. (Hussain &

Nassar, 2010)

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1.1.1 Introduction of the Wave magazine

There are many magazine in Nepal but among them Wave magazine is one of the popular

magazine in the country. Wave is a monthly magazine targeted towards the youths of Nepal

which is established in 1994 A.D. The targeted age group of Wave is somewhere in-between 16

to 35 yrs. Demographically Wave targets youths in every part of the country- in the any

segments such as students (high school, undergraduate or graduates), corporate houses and

service professionals, business persons, and music & entertainment sectors.

The main motto of this organization is to publish news and articles addressing the youth and their

varied interests. Along with that, articles featured in Wave also cover the Music Industry of

Nepal and remove unemployment and create job opportunity to the lower level of people in the

society. (Wave magazine, wavemag, 2016)

Term and condition of Wave magazine:

 The magazine comes out in the 1st day of the English month. Advertisement copy/materials

must be submitted 15 days before the publication date.

 Cancellation of advertisements must be settled within 7 days of the conformation date.

 Publisher reserves the right to decline any advertisement materials or copies submitted

beyond the deadline.

 Submissions are required in TIFF, PDF, and JPEG on CD/DVD. Including all the linked les.

Digital les of up to 10 MBs may be emailed to marketing@Wavemag.com.np and

ads@Wavemag.com.np

 The advertisement must come with a paper proof.

 Advertisers must provide images, logos or drawings, copy-written advertisement content

custom artwork will be billed separately.

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 All photographs or images should be in CMYK with at least 300 dpi.

 The editor assumes no responsibility for unsolicited manuscripts and photographs.

1.2 Statement of Problem

Ideal situation of Wave magazine would receive its supplies on time, availability of raw material,

updated and upgraded technology, printed in English language and wide range of service for

customers

At present situation, Although Wave magazine is one of the major players on domestic magazine

it has faced major challenges. Most of these challenges are related with supply chain

management. Due to which it is not able to serve its customer up to its standard. In this context,

this study is to examine the following problems:

 What are the supply chain practices implemented by Wave Magazine?

 What is the present situation of the Wave magazine Pvt. Ltd?

1.3 Objectives of the Study

The study has been conducted with following specific objectives:

 To know how the implementation of supply chain management on Wave magazine.

 To examine the present situation of the Wave magazine company.

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1.4 Significance of Study

The main significance of study is to understand the concept of supply chain management of

WAVE magazine. It provides knowledge of how the supply chain rules affect the whole system

of magazine. By the help of this study the research study helps to know about how it creates an

effective and efficient supply chain. This report fulfills the research gap as this type of research

has not been published yet and it is presented as follows:

 This report helps to overcome the challenges faced by the company.

 This report replicates the current situation of Wave magazine.

 Helps to understand the application of supply chain in printing industry.

1.5 Limitations of the Study

This study possesses some limitations of its own kind, which is presented as follows.

 The study is concerned only with the WAVE magazine which is on Kathmandu district.

 Survey for the present study was conducted at one time. So the conclusion desired from it

may not hold true for all others times.

 The study derived from the present study may not be applicable for other areas of the study.

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1.6 Organization of Study

Introduction chapter deals with introduction of the main topic of the study like general

background, statement of the problem, objectives of the study, significance of the study and

limitation of the study. The second chapter deals with the review of literature relating to the

supply chain management, customer satisfaction, quality service in communication sector. It also

includes the reviews of relating previous writing, review of text books, dissertations and

government publication and newspaper. Third Chapter consists with the presentation and

analysis of all the relevant collected information, data under study. This chapter is the heart of

the study. Forth chapter consists of summary, conclusion and recommendation on the basis of

study.

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 CHAPTER-II LITERATURE REVIEW

2.1 Theoretical Review

2.1.1 Definition Supply Chain Management

SCM is the oversight of raw materials, information, and finances as they move in a process from

supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management

involves coordinating and integrating these flows both within and among companies. It is said

that the ultimate goal of any effective supply chain management system is to reduce inventory.

SCM practices are defined as the set of activities undertaken by an organization to promote

effective management of its supply chain; as the approaches applied in integration, managing and

coordination of supply, demand and relationships in order to satisfy customer, suppliers and

others who are connected into the organization in effective way; as tangible

activities/technologies that have a relevant role in the collaboration of a focal firm with its

suppliers and/or clients; and as the approach to involve suppliers in decision making,

encouraging information, sharing and looking for new ways to integrate upstream activities.

A simple supply chain is made up of several component and elements that are linked by the

movement of products along with it. The supply chain starts with the supplier and ends with the

customer. (Naicker, 2011)

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Figure 1: Supply Chain Management

Source: Slack, Chambers, & Johnston, (2010)

In the above diagram it is clearly shown about the supply chain diagram. The supplier’s supplier

and supplier are the upstream supply chain management and distributor, retailer and customer are

the downstream supply chain management. The focal company gets demand from customer from

downstream chain and value delivery from the upstream chain. According to the demand the

goods were supplied in the market by the focal company.

 Customer: The customer starts the chain of events when they decide to buy a product that has

been offered for sale by a company or manufacturing organization. The customer contacts the

sales department of the company, which enters the sales order for a specific quantity to be

delivered on a specific date. If the product has to be manufactured, the sales order will

include a requirement that needs to be fulfilled by the production facility.

 Planning: The requirement triggered by the customer’s sales order will be combined with

other orders. The production planning department will create a manufacturing plant to

7
 produce the products to fulfill the customer’s orders. To produce the products the company

will then have to purchase the raw materials needed.

 Purchasing: The purchasing department of the company receives a list of raw materials and

services needed by the production department to complete the customer’s orders. The

purchasing department of the company sends purchase orders to selected suppliers to deliver

the necessary materials to the production site on the required date.

 Inventory: The raw materials are received from the different suppliers, checked for quality

and accuracy and moved into the warehouse. The supplier will then send an invoice to the

company for the items they delivered. The raw materials are stored until they are needed by

the production department.

 Production: on Bases of the production plan, the raw materials are moved into inventory to

the production area. The finished products ordered by the customer. After the items have

been manufactured and tested, they are stored back in the warehouse prior to delivery to the

customer.

 Transportation: after receiving the finished product in the warehouse, the shipping

department of the company determines the most efficient method to ship the products so that

they are delivered on or before the date specified by the customer. When the finished goods

are received by the customer, the company will send an invoice for the delivered products.

2.1.2 Upstream SCM

The upstream stage of the production process involves searching for and extracting raw

materials. The upstream part of the production process does not do anything with the material

itself, such as processing the material. This part of the process simply finds and extracts the raw

material. Thus, any industry that relies on the extraction of raw materials commonly has an

8
upstream stage in its production process. In a more general sense, "upstream" can also refer to

any part of the production process relating to the extraction stages. (Smallbusiness).

2.1.3 Downstream SCM

The downstream stage in the production process involves processing the materials collected

during the upstream stage into a finished product. The downstream stage further includes the

actual sale of that product to other businesses, governments or private individuals. The type of

end user will vary depending on the finished product. Regardless of the industry involved, the

downstream process has direct contact with customers through the finished product.

(Smallbusiness)

2.2 Empirical Review

2.2.1 International Review

The purpose of this research is to review a supply chain management practices, issues, role of

information technology in the printing industry. This study reviews a sample of 70

companies/individuals from operations department was selected with a questionnaire for

conducting the survey. This sample ranges across printing companies, publishers, material

suppliers like paper, ink, etc., from the population of around 2500 companies in around

Hyderabad. In addition to data collection through a questionnaire, interactions carried out with

material suppliers and the customers or the print-buyers to find out how they operate, and seek

their opinion on the practices being followed and to know their expectations in efficiently

managing the operations of the print supply chain. (Acharyulu, 2014)

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The print supply chain includes document design, material procurement, document creation,

production, warehousing, and delivery. Several small and medium scale industry players are

involved in this supply chain process. Thus the print supply chain network is a loosely coupled

system of spatially dispersed independent companies, working together for delivering value to

the customer. The orchestrator typically does three functions: partner selection, supply chain

planning, and supply chain execution. In this paper, we concentrate on the second step - the

supply chain planning and scheduling and develop a mixed integer programming model,

illustrating it with an example. (Viswanadham, Vedula, & Kulkarni, 2013)

The purpose of this study was to carry out an investigation on the role of supply chain practices

on customer satisfaction in the printing industry. Studies by previous researchers have indicated

that printing industry faces the challenges of uncertainty associated with sourcing for raw

materials from oversees and failure to embrace modern technology which adversely affected the

ability to satisfy customers. The study used the simple random sampling technique will be used

to select the sample size. There were 80 employees involved directly and indirectly in the supply

chain process in this firm. The sample was 30% of the employees and this will result in a sample

size of 24 employees. The study used questionnaires to gather data. Descriptive analysis was

used to analyze the data which was presented in the form of frequencies, tables, and percentages.

The results of the study indicated that benchmarking as a supply chain best practice played a

pivotal role in customer satisfaction. The company was practicing benchmarking but its potential

was not harnessed fully. The study concluded that there is an urgent need for organizations to

adopt pro-active approach towards customer satisfaction by adopting practices that provide the

real-time and accurate response to customer satisfaction. (Francis & Waiganjo, 2014)

10
This research focuses on the causes of the industries‟ inability to be flexible with information

flow be identified and appropriate solutions found to curb the problems of poor performance.

The study employed quantitative approaches with multiple cases to examine the information

systems flexibility and performance on supply chain within the print industries in Kumasi.

Primary and secondary data were used for the study. The primary data was sourced through Self-

administered questionnaire through sixty (60) respondents in print industry. The study revealed

that the sixty print industries stood strong in terms of supply chain performance and the

information systems flexibility was comparatively high. (Tuo, Okyere, & Alexander, 2014)

Supply chain management has seen lots of technical and process improvement. Enterprises of all

sizes increasingly reach for international markets in their supply and sales, and the supply chain

is becoming an increasingly important business process. In order for the supply chain to be an

effective operation, the accuracy and consistency of unit data are of paramount importance. This

increases the pressure on an old obstacle of supply chain systems, incoming shipment labeling,

and handling. The new market requirements are forcing enterprises to reevaluate their data entry

and traceability standards. At the end of the line, their issues are usually traced back to the

inability or unwillingness of the supplier to label his shipments to a standard needed by the

enterprise. The paper will present an analysis of the vendor labeling issue and present a technical

solution to this persistent problem. It will present a quantum leap in the evolution of label

printing and a comprehensive overview of how focusing on the supplier will drive the reliability

of supply chain data in the future. (Label Printing in Supply Chain, 2010)

They look at the issue of what managerial practices affect new product development team

effectiveness when suppliers are to be involved. They also consider whether these factors differ

depending on when the supplier is to be involved and what level of responsibility is to be given

11
to the supplier. Finally, they examine whether supplier involvement in new product development

can produce significant improvements in financial returns and/or product design performance.

They used to survey in data collection. (D.cousins, 2006)

This study investigates the role of an overall supply chain, its participants and the planning

problems arises along the chain. It divided the planning problems into strategic, tactical and

operative in a supply chain matrix and it also explains their characteristic and provides

applications. It discusses the need for information and decision support for planners in each of

these areas. (carlsson, Amours, & Martel, 2006)

This research investigates and research to understand the key role of the supply chain

management on repair, maintenance, and operating supplies for paper producer. The main

objective of this research were to develop an understanding of current practices including the

challenges of integrating supply chains across organizations; to identify areas providing

opportunities to improve the effectiveness and efficiency of the supply chains to gather

information on the primary drivers of supply chain performance; and to identify specific

initiatives to improve supply chain performance. (crystal & swaffod, 2004)

This paper proposes a methodology for SCI from customers to suppliers through warehouses,

retailers, and plants via both adaptive network based fuzzy inference system and artificial neural

networks approaches This paper is based on a joint survey, covering 156 organizations, carried

out by Management Development Institute, Gurgaun, and KPMG India. The paper primarily

focuses on the status of four major supply chain dimensions. The paper recommends that the

Indian industry should align supply chain strategy with business strategy, streamline processes

for supply chain integration, form partnerships for minimizing inventory and focus on

infrastructure and technology deployment to build a India‐specific supply chain. (sahay, 2003).

12
This research focuses on describing the distribution delivery and sales management of the

newspaper and it also researches the customer choice for reading the newspaper, however, it’s up

to the newspaper agencies to communicate to the customer that their newspaper can deliver all

the values a customer may look for. The research is carried out an analysis on the delivery and

sales management of the DNA newspaper in order to better understand their channel and also

identify and provide possible solutions to any shortcomings. In this research only focus on the

analysis of the delivery of the newspaper to the customer. It uses the descriptive research design

to research the data and analysis the data. In this research, the downstream analysis of supply

chain of newspaper is explained which is useful to the topic. (Sridhar, Chauhan, Garg, Sharma,

& Batra)

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 CHAPTER-III: OBSERVATIONS AND ANALYSIS

3.1 Research Methodology

Research methodology is one of the important pathway or an approach to get the needed

information by locating the data from different sources which are primary and secondary.

Research methodology focuses on the collection of data about Supply Chain Management (Pant,

2012).

Both quantitative and qualitative methodologies were used for collection of data. The qualitative

data in the research includes use of the literature reviews, open ended and semi-structured

interviews, observations etc. Similarly, the sales report of the company and the raw material

import are used as the quantitative data in the research report. A systematic inquiry and

investigation was made to the Wave magazine personnel to collect facts and opinions.

Observational and survey methods are frequently used to collect descriptive data. On the basis of

all these compilation and presentation interpretation were made. The questionnaire items consist

of open ended focusing on support as a part of print supply chain practices and current position

of the company. Data analysis entailed the use of descriptive methods to provide exploratory

insights into the nature of Supply chain management practices in the wave magazine. The data

was analyzed using descriptive analysis, figure, table and charts.

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3.1.1 Research Design

Research design is a plan for the collection and analyze of data. “A research design is the

specification of methods and procedure for acquiring the information needed. It is a overall

operational pattern of framework, of the project that stipulated what information is to be

collected from which sources by what producers if it is good design, it will ensure that the

information obtained is relevant to the research question and that is was collected by objective

and economical.” (Amarender, 2012)

A convenience sample of 4 individuals from Operations department, delivery of magazine

department and manager of Wave magazine was approached with a questionnaire to collect the

primary data from the population of around 15 members. The questionnaire items consist of open

ended focusing on support as a part of print supply chain practices and current position of the

company. Similarly in this research, descriptive research design was incorporated where the

researcher has intended to attain the relevant information from the conduction of the research. As

a result to this, the researcher has also entailed to concentrate on the existing nature and

condition of the company.

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3.1.2 Source of Data

Figure 2: Sources of Data

Data

Primary Secondary

Inside the Outside the

Observation questionnaire
organization organization

News library

letter Magazine etc

Document

Source: Author (2017)

3.1.3 Data Analysis Techniques

The various tools are used in preparing seminar report are statistical and graphical tools. Like

tabular method, graphical method and figure. These tools help in analyzing the current situation

of the company and supply chain management of the company.

Table 1: Sample Size

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Participants Sample Size

Manager 1

Operational department 1

Receptionist 1

Distribution department 1

Total 4

Source: Author (2017)

From the above table, a convenient sample of 4 individuals from Operations department,

delivery of magazine department and manager of Wave magazine was approached with a

questionnaire to collect the primary data from the population of around 15 members. The

questionnaire items consist of open ended focusing on support as a part of print supply chain

practices and current position of the company.

3.2 Background Analysis

The current scenario of the Wave magazine is tough competition to the other magazine like

Himal magazine, Nari magazine and Nepal magazine etc. the Wave magazine sold around 33000

copies of magazine per month and the price of the web magazine is Rs. 100. The Wave magazine

is published by Annapurna Media Pvt. Ltd. Magazines are generally published on a regular basis

and based on a variety of content. The source of income of magazine is advertising, by a

purchase price, by prepaid subscriptions, or a combination of the all these source. The targeted

age group of Wave is somewhere in-between 16 to 35 yrs. Demographically Wave targets youths

17
in every part of the country- in the any segments such as students, corporate houses and service

professionals, business persons, and music & entertainment sectors.

The Wave magazine is to publish news and articles addressing the youth and their varied

interests. Along with that, articles featured in Wave also cover the Music Industry of Nepal and

reduce unemployment and create job opportunity to the lower level of people in the society. The

Wave magazine has also E-Magazine which is available to subscribers worldwide. Content

sharing has also been done through www.wavemag.com.np along with social sites such as

Facebook, Instagram and Twitter.

3.3 Analysis of First Objective

3.3.1 Supply chain management of Wave magazine

Supply chain management is the broad concept which has been widely practiced by different

business organizations knowingly or unknowingly. It is simply delivery of final products from

supplier’s supplier to final consumer. The success of each organization depends on other

organization in the chain as they enter into contractual relationship in order to supply products,

goods and services. SCM constitutes of focal company and upstream and downstream supply.

Focal company is the organization which acquires raw material form supplier and produce final

goods and services for end consumers. Upstream supply is the supply end of supply chain where

the materials flow in the organization. On the other hand downstream supply is the customer end

of supply chain and flow of final goods and services flow from organization to the final

consumer.

Figure 3: Supply Chain Management of WAVE Magazine:-

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 Self-Promotion
Upload Web site

Advertising
agency
Distribution Customer
Wave magazine department
Paper or reader
manufacturers
Inserting Book shop
Vehicle (Valley)
Ink supplier
Editing Vehicle and Book shop
Internet service courier (out of Valley)
provider Content
writing

Source: Author (2017)

3.3.2 Upstream Supply Chain Management

Upstream are the processes which occur before manufacturing of production into a deliverable

product or services, typically processes dedicated to getting raw materials from suppliers. The

upstream SCM mainly focused on the supplier to supplier. It is supplier based chain. It starts

from the supplier and to focal company. It is oriented to raw materials, services, others inputs of

magazine

19
3.3.3 Upstream Supply Chain Management of Wave Magazine

Figure 4: Upstream Supply Chain Management of Wave Magazine

Advertising Customer

Own Advertising
plantation agency

Wave magazine
Recycle Paper
manufacturers

Planted by Ink supplier

forester
Internet service
provider

Source: Author (2017)

Paper supplier:-

Paper is extremely important for the production of the magazine. The WAVE magazine has

purchased large amounts of papers directly from the paper manufacturer. The paper is supplied

by the Everest paper mill private limited Nepal and also from the India. EPM's products are at

par with the national and international standards. All of the necessary papers are directly deliver

by the Everest paper to the WAVE magazine but in case of India the Wave magazine purchase

and deliver the paper from India.

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Ink supplier:

Ink is another important raw material for the production of the magazine. So WAVE magazine

has purchased all the necessary color of ink from the Apur international pvt.ltd. The Apur

international Pvt Ltd has delivered the ink according to the requirement or order of the WAVE

magazine in very fast. The order is confirmed by the telephone communication and delivers

through the vehicle.

Advertising companies/agencies:

The primary source of advertising supplier of WAVE Magazine are the advertising companies

whereas the secondary source of advertising supplier tends to be the advertising agencies. Here

the core source of supplier are the advertising companies which are referred as the general

corporate clients for the WAVE Magazine, likewise an advertising agency is a service based on

advertising business dedicated to creating, planning, and handling advertising and sometimes

other forms of promotion and marketing in a promotion for its clients. The ads provided by

advertising agencies are generally based on entertainment news which is mostly related to music,

launching of liquors, day to day living, technologies etc. Hence, the WAVE magazine has a core

focus on the young generation customers.

3.3.4 Downstream supply chain management.

Downstream refers to the movement in the direction of the customer, or even the consumer. It

occurs after manufacturing or production, typically those processes dedicated to getting goods

and services to customers and consumers. It is also known as consumer to consumer supply.

21
Downstream is the flow of products, services, finance, and/or information from a source to a

customer.

3.3.5 Downstream Supply Chain Management of WAVE Magazine

Figure 5: Downstream Supply Chain of WAVE Magazine

Upload Web site

Distribution Customer
Wave magazine department or reader

Inserting Book shop

Vehicle (Valley)

Editing Vehicle and Book shop

courier (out of Valley)
Content
writing
Source: Author (2017

Direct sale / delivery

Direct sale and deliveries tends to be the foremost and the primary supply channel that is put into

practice by the WAVE Magazine in the first hand. The WAVE magazine has incorporated the

direct sales and delivery of the magazine to its ultimate customers and i.e.: only inside the

Kathmandu Valley. Hence, the customers are also facilitated with this direct sales and deliveries

to their doorsteps.

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Book Shop

Similarly, the secondary source of supply channel of WAVE magazines are the book shops

where the customers get to buy the magazine directly from the nearest book shops. The

customers of WAVE Magazine get easy access to purchase the magazines from the book shops

that are nearest to their locations. Thus, book shops are the convenient source of supply channel

which can directly reach to the ultimate customers.

Web site / Social site

In today’s tech-based business environment, WAVE magazine has also facilitated its customer

through its website and too with the social sites where the customer can easily order the

magazines online. This has helped the ultimate customers with easy access to the purchase of the

WAVE magazines which is in the tip of their fingers.

3.4 Analysis of Second Objective

3.4.1 SWOT Analysis of Wave magazine

Strengths, weaknesses, opportunities, and threats are a core requirement of any organization, and

essential of any industry. To accomplish objectives, SWOT analysis is very important. No

organization is totally fulfilled from itself; it can have positive and negative aspects. The SWOT

analysis of Wave magazine is explained by the below figure:

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 Figure 8: SWOT Analysis of Wave Magazine

Strength
Weakness
 Supply create its own demand
 High degree of market coverage  Short life span of control
 circulation
 Service and flexibility
 Revenue is increase with
increase in advertisement
 Product can easily been recycled

Opportunities
Threats
 Digital space technology
 Innovation  Consumer migration to TV
 Growing mass media media
 Online magazine

Source: Author, 2017

3.4.2 Market Analysis

Nepal is a country where Magazine industry is one of the large Publications industries. As a part

of the overall magazine publication, Wave magazine also a large portion. The Wave magazine is

available in different places of Nepal. The market share of the Wave magazine can be explained

by the following table and figure.

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 Table 2: Market Analysis of Wave Magazine

Target market Normal sales Percentage

Corporate 1000 3

public 20000 57

East Nepal 8000 23

West Nepal 6000 17

Source: Wave magazine, Market of wave Magazine, (2017)

Figure 6: Market of Wave Magazine

Market share of Wave magazine

17% 3%

Corporate

23%
57% public

East Nepal

West Nepal

25
The above table and figure shows the actual sales performance of Wave magazine in different

places of Nepal. The main market of Wave magazine is public, corporate office, East Nepal,

West Nepal. Wave magazine sale its product 3 % of total sales to the corporate, 57 % of total

sales to the public, 23% of total sales to the East Nepal and 17% of West Nepal.

3.4.3: Raw Material Import

The WAVE magazine has purchased large amounts of papers, ink, and other printing material

from the India and Nepal. The paper is supplied by the Everest paper mill private limited Nepal

and also from the India. All of the necessary papers are directly deliver by the Everest paper to

the WAVE magazine but in case of India the Wave magazine purchase and deliver the paper

from India. The figure shows the percentage of raw material import from the national and

international source.

Table 3: Raw Material Supply Source.

Place Percentage

Domestic 73%

Foreign 27%

Sources: Office record of Wave magazine

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 Figure 7: Raw Material Source

Raw Material Source

27%

Domestic
73%

Foreign

The above table and graph shows the raw material purchased from domestic and foreign

source. In the above table no. 2, Raw material of Wave magazine is imported form out of country

which is 27% and only the 73% of raw material are purchase with in the country.

27
 CHAPTER-IV: FINDINGS, CONCLUSION AND

RECOMMENDATIONS

4.1 Major Findings

The major findings of the research are presented below:

 Wave magazine required different raw material like paper, ink, advertisement, content writer

so it receives material from inside and outside the country. It receives the raw material on the

time. They also maintain safety stock of raw material for future purpose.

 Wave magazine one of the largest magazine and they print monthly approximately 33000

pieces of magazine and deliver it to the different part of the country.

 Wave magazine deliver its magazine through the vehicle for the inside the valley and vehicle

and courier to the outside valley.

 The magazine comes out in the 1st day of the English month. Advertisement copy/materials

must be submitted 15 days before the publication date.

 The company only focuses on the domestic market so there is a lack of international market.

 There are similar natures of other national and international magazine available in the market

so company face the market competition risk.

 The main target customer of Wave magazine is young generation so the content of the

magazine is based on the music, modeling, fashion etc.

28
4.2 Conclusions

Wave magazine follows the concept of supply chain management, it has large number of

suppliers and the company has wide range of customers. There is no problem on the supply chain

management of the company on upstream and downstream supply chain. The wave magazine

obtains the raw material like paper, ink, and others raw materials from the different supplier and

Wave magazine is one of the largest magazine and they print monthly approximately 33,000

pieces of magazine and deliver it to the different part of the country.

The company has investigated the current situation of the company including current market

situation, risk, opportunity, weakness etc. The company has wide range of market but still the

company faced hindrance in fulfillment of the actual demand of their ultimate customer. Besides,

the company also has critical problems in the delivery of the magazine in all part of the country.

The company only focuses on the domestic market so there is lack of international market. There

are different types of national and international magazine are available so the company also face

the market completion risk.

It can be concluded that the study contributes to the knowledge of the role of supply chain

management on the magazine and printing field. During the production of a Monthly magazine a

very large and diverse people, processes, content and technologies are used. Any change in the

technology, trends, styles and developments directly affect the magazine and newspaper

industry. This study provides a practical and useful tool for supply chain managers to audit and

assess supply chain management practices. Print magazine and newspaper are one of oldest

formal modes of news and information dissemination. Newspapers and magazine reach the

remotest parts of the country and probably use the most diverse logistic models and still deliver

within the stipulated timelines.

29
4.3 Recommendations

WAVE magazine is one of the popular magazine companies in Nepal. It provides various news

to the public. The organization has excelled in its performance and had succeeded in providing

standard news and satisfied customer expectation. Nothing in this world is perfect and there is

always place for improvement so to maintain the service standards, production and distribution,

and improve customer satisfaction, some recommendations are as follows:

 The company only focuses on young generation so it should also need to launch new

magazine for child and old generation to maintain its market share and goodwill to

compete the market.

 Understand the evolving customer perceptions: The taste of customers is different from

one another. So the company should focus towards the diverse customer needs.

 The company should entail sponsorships in social programs such a charity, sports,

fashion shows, greenery program etc. so that it help foster and build good image in the

community. This could also be helpful in its promotional campaigning.

 Wave magazine should expand their market by providing international news. This will

increase their international presence on market.

 Wave magazine should engage more on promotional activities in order to enlarge their

narrow market further.

 Wave magazine should introduce Formal credit system and higher incentives for timely

payment.

30
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ANNEX

ANNEX 1: QUESTIONNAIRE

During the conduction of the research the researcher has used open ended questionnaire in the

field, Wave Magazine. The following questionnaire were asked to the despondence in the web

magazine

1. What are your core products?

2. What is the price lists of your products?

3. Where is our marketplace or the target market?

4. Who are your core suppliers?

5. Who are your supplier’s suppliers?

6. Who are your core distributors?

7. Do you have agents in your supply chain?

8. How many wholesalers are there?

9. What is the average number of customer per month?

10. What are the system and technology used for ordering the raw materials from suppliers and

receiving the order from customers?

11. Are the raw materials imported?

12. What technologies have you used to make the final products?

13. Who are your major competitors?

14. How is the service quality?

15. What is the annual sales turnover?

16. Does government assist for promoting the local products?

17. What are the current challenges and issues faced in SCM or in any other?

18. What are the remedial measures?