What is the importance of IT on the management of logistics and supply chain?

Topic:

What is the importance of IT on the management of logistics and supply chain?

Instructions:

In this task, you will need to produce a research project specification in which you:
1. Explain the purpose of your research, its value and its contribution to the academic body.
2. Identifies the aims and objectives of your research.
3. Critically review key literature and recent literature around the subject area
4. Explain and justify your epistemological and ontological position.
5. Design and justify your research methods
6. Describe and justify how you propose to analyses the results of your research

Table of Contents as stated below and all the task mentioned hereunder must be discussed/described in the assignment in relation to the above instructions:
1. Understand the design of business research methodologies.
1.1 Critically evaluate appropriate research methodologies in terms of research objectives
1.2 Design an appropriate methodology in terms of research objectives
1.3 Justify a selected methodology in terms of research objectives

2. Develop a research proposal.
2.1Propose techniques for use with quantitative and qualitative data
2.2 Create a research question, literature review and methodology
2.3 Present a research proposal using suitable methods
Above must be mentioned in the table of content as well
Delivery and Submission
• • A Completed research proposal
• • 3500 words

Research Proposal Format
• Word Count: 3500 (Excluding Table of content, List of Figures and Tables, References)
• OTHM Cover page
• Table of Content
• List of Figures and Tables
1. Title/ Topic of the Research
2. Introduction (20%) 600
• General Overview of the topic/ Area Selected (Supported with Facts, Figures, Data, Findings etc)
• Significance/ Importance of the Study
• What motivated you to select this specific topic/ Area
• How and to whom outcome of this research will helpful
• Future research Opportunities
• why you feel the research that you are planning is worth the effort
• Research Gap
3. Research Problem (10%) 200-300 words
4. Research Question/s (2.5%)
5. Research Objectives (2.5%)
6. Literature Review (30%) 900 words
Start at a more general level before narrowing down to your specific research question(s) and objectives
Provide a brief overview of key ideas and themes
Summarize, compare and contrast the research of the key writers
Narrow down to highlight previous research work most relevant to your own research
Provide a detailed account of the findings of this research and show how they are related
Highlight those aspects where your own research will provide fresh insights
Lead the reader into subsequent sections of your project report, which explore these issues
7. Research Hypothesis (If Applicable) (5%)
8. Conceptual or Theoretical Framework (5%)
. Research Methodology (15%)
Exploratory, Descriptive or Casual (Explain and Justify)
Research Design – Inductive or Deductive (Explain and Justify) Qualitative or quantitative
Data Collection – (Primary Data/ Secondary data – Type of Data collection method)
Data Analysis method
Sampling method
Total Population and Sample Size (What basis you arrived at this sample size)
Probability or Non Probability
Demographics about the Respondents
10. Scope and Limitation of the Research (5%)
11. Research Ethics (5%)
12. Time Frame (Gant Chart)
13. Reference (Harvard Referencing style)

1- that the writer should be English native
2- it should be original writing no copy and paste that should be guaranteed
3- the work should cover all the points requested in the file we have attached
4- the plagiarism will be maximum 5%
5- guarantee that assignment should pass
6- any rework will be FOC
7- The Harvard Reference Standard should be used for all submission
8- Table of content and conclusion should be available

ANSWER

Table of Contents

List of figures. 3

1.0 Introduction. 4

1.1 Information Technology. 4

1.2 Logistics and Supply Chain. 4

1.3 IT and Supply Chain. 4

1.4 Value of the Study. 6

2.0 Statement of the Research Problem.. 6

3.0 Research Question. 8

4.0 Objectives of the Study. 8

5.0 Literature Review.. 8

5.1 Functions of Information Technology. 8

5.2 Supply Chain Management IT Applications. 9

5.2.1 E-Commerce. 10

5.2.2 Enterprise Resource Planning Systems. 12

5.2.3 Warehouse Management Systems. 12

5.2.4 Electronic Data Interchange. 12

5.3 Supply Chain Performance. 13

6.0 Research Methodology. 13

6.1 Research Design. 13

6.2 Data Collection. 14

6.3 Data Analysis. 15

7.0 Scope of the Study. 15

8.0 Limitation of the Study. 15

9.0 Ethical Considerations. 16

10.0 Conclusion. 16

References. 17

List of figures

Figure 1: Five drivers of the supply chain……………………………………………………………………………………………….5

Figure 2: Functions of IT in an organization………………………………………………………………………9

Figure 3: IT application areas of the supply chain……………………………………………………………..10

Figure 4: E-Commerce relationships……………………………………………………………11

Figure 5: Warehouse functions ………………………………………………………………………………………12

What is the Importance of IT on the Management of Logistics and Supply Chain?

1.0 Introduction

1.1 Information Technology

Information Technology, or simply IT, refers to the design, development, use, support, and management of computer-based information systems, particularly computer hardware and software applications (Fosso Wamba et al., 2015). However, it is also important to note that IT goes beyond computers. With the rapid development of technologies in the fields of PDAs, cell phones, as well as other handheld devices, the field of information technology is rapidly shifting from compartmentalized computer-focused areas to entail other types of mobile technology.

1.2 Logistics and Supply Chain

A supply chain refers to a network of distributors, suppliers, contractors, and subcontractors utilized by a manufacturing firm in sourcing for its raw materials, supplies, and components (Christopher 2016). Logistics firms transport, store, and distribute work-in-progress and supplies within the supply chain and disseminate finished products to intermediaries and final consumers. Integrating logistics and supply chain operations enhances efficiency and minimizes costs, thus enhancing the competitive advantage of the manufacturer (Lii and Kuo 2016).

1.3 IT and Supply Chain

Logistics and supply chain management is concerned with managing interconnected business networks engaged in the provision of goods and services required by the final consumers or end-users (Christopher 2016). Supply chain management encompasses the flow of funds, information, and goods. Such management is driven by the primary objective of enhancing the profitability of the supply chain (Stevens and Johnson 2016). Information technology helps to achieve this goal. It plays a critical role in the supply chain decision phase, which can be in design, planning, or operational based on the period upon which the decision made is applicable. It can be noted that supply chain has five key drivers that include production, inventory, transportation, location and information. All these needs to be interconnected to enhance the supply chain process.

Figure 1: Five drivers of the supply chain.

Supply chain management is concerned with the management and coordination of the movement of materials, funds, and information across the supply chain. Other than being bidirectional, the flow entails management of inventory, information, and flow of cash (Bozarth and Handfield 2016). The rapid development in technology has significantly helped organizations make information easily available on their premises, making it easier to coordinate supply chain management activities. The cost of information has greatly reduced because of the increasing rate of technology (Addo-Tenkorang and Helo 2016). Individuals concerned with the management of logistics and supply chains need to be aware that information technology is not limited to just computers. This study seeks to determine the importance of Information Technology in the management of logistics and supply chain.

1.4 Value of the Study

Professionals in logistics and supply chain management will significantly benefit from this study. Such individuals will be in a position to appreciate information technology’s value in the supply chain and learn of different ways in which they can improve their services and supply chains to achieve a competitive advantage. Furthermore, small and medium companies that engage in supply chain activities in their day-to-day operations will also benefit from this work. Most of such organizations lack improved information technology systems that can help them enhance their supply chain efficiency and effectiveness (Huddiniah and Er 2019). Such retail outlets like the supermarkets will also find this study important as it provides vital information on how they can enhance their logistics and supply chains’ effectiveness.

On the other hand, people in the academic world will also benefit from this study. This research will add more information on the existing knowledge regarding the importance of information technology in the field of logistics and supply chain management. Companies are moving towards a green supply chain, which focuses on the reduction of waste generated by the supply chain. Academicians will understand the critical role played by information technology in minimizing paperwork and encouraging paperless transactions. Existing literature has demonstrated how different organizations across the globe are utilizing information technology for the integrated supply chain management. Such integration results in increased efficiency and effectiveness.

2.0 Statement of the Research Problem

Businesses are constantly looking for new ways of maintaining relationships with their suppliers across the globe. Most of these companies have significantly banked on Information Technology to meet their supply chain information needs as well as the increased demands of the customers. Companies are re-evaluating how they can carry out business in a market characterized by increasing competition and new technologies. Therefore, in order to be successful in their industries and meet the new customer demand challenges, businesses are reinventing their supply chains (Vanpoucke, Vereecke, and Muylle 2017). They are doing so to help them keep a competitive advantage in the market by attracting more customers and shielding themselves against any possible competitive force at play in the market. The ability to minimize the inventory cost is a significant advantage, and businesses are looking for ways of pleasing customers by offering a fast and efficient service. Firms are also reexamining how they can manage the entire supply chain from sourcing raw materials to finished product delivery to the end-user (Huddiniah and Er 2019).

Information Technology can have an instrumental impact on the management of logistics and supply chain. Apart from being a great enabler of the supply chain, IT can significantly help to cut costs (Agyabeng-Mensah, Ahenkorah, and Osei 2019). Small and Medium businesses across the globe that utilize manual systems in their supply chains are constantly incurring a lot of costs in their daily operations. Some of the demerits associated with the manual systems include no updated records, insufficient security backups, data redundancy, and increased time spent searching for records. Such issues adversely affect the performance of the companies in their supply chain functions. IT will be instrumental in helping such companies minimize these issues, thus allowing them to focus on such other issues as faster response to customer demands, sourcing of new suppliers, identifying new markets for their products, and gaining competitive advantage in the industry (Gunasekaran, Subramanian, and Papadopoulos 2017). There is a huge gap between companies that use a manual supply chain and the ones that utilize IT in their supply chain activities.

There is a lack of research in the country regarding the importance of IT in the management of logistics and supply chain activities among small and medium-sized firms. IT is central to the success of an organization’s supply chain, given the huge amount of information that flows along such a system. Achieving a competitive advantage in their industries will require companies to increase their utilization of information technology. This will require them to come up with ways of improving lead time for their goods, minimizing inventory cost, and integrating the supply chain with other organizational functions. The top management of a company must remain updated on such information as supply lead time, customer demand, as well as inventory. Such information is continuously available at various stages of the supply chain. Supply chain managers need to be adequately equipped with information on shipping locations, routes, costs, margins, inventory level, supplier availability, and customer demand. Today, businesses are heavily investing in IT to help them achieve a competitive edge by becoming more innovative and adapting quickly to the complex and fast-changing market. Customers’ demand across the globe has rapidly increased across the globe due to the invention of information technology.

3.0 Research Question

This study will be guided by the research question, “What is the importance of IT on the management of logistics and supply chain?” The study seeks to bring to light the benefits of information technology on logistics and supply chain management. In doing so, the study will also seek to determine the various information technology applications utilized in supply chain operations. Identifying the benefits of and various information technology applications used will be instrumental in enlightening other organizations to implement information technology in their supply chain management activities fully.

4.0 Objectives of the Study

  1. To find out the benefits of information technology in companies.
  2. To determine different information technology applications utilized by firms to help them maintain a competitive edge in the market.
  3. To establish how information technology has ensured the efficiency and effectiveness of the supply chain.

5.0 Literature Review

This section entails empirical literature, a discussion of various supply chain management information technology applications, supply chain performance description, as well as the benefits of information technology on the management of logistics and supply chain. It will also entail a discussion of the different empirical studies carried out on information technology in the management of the supply chain.

5.1 Functions of Information Technology

Thöni and Tjoa (2017) pointed out that information technology performs various functions in an organization. It processes basic business transactions and increases scale efficiencies of the operations of the firm besides collecting and providing information necessary for managerial decision making. IT is also instrumental in maintaining records of status and the change in the company’s primary business functions and keeping communication channels. Therefore, IT can be said to enhance effectiveness and efficiency in the operations of an organization. These functions are also essential in a supply chain. Information technology systems can integrate all the supply chain processes to ensure the production of high volume customized products at reasonable prices (Thöni and Tjoa 2017).

Figure 2: Functions of IT in an organization

Every company across the globe aims at increasing its organizational competitiveness. Businesses are today experiencing a lot of negative forces in their supply chain, which is primarily caused by increased construction scale as well as increased equipment procurement, storage, and maintenance costs (Gunasekaran, Subramanian, and Papadopoulos 2017). Most organizations currently perceive supply chain management as a global organization strategy for attaining a competitive edge. Organizations are changing their operations by implementing information technology and supply chain management paradigm to enhance their responsiveness and flexibility (Gunasekaran, Subramanian, and Papadopoulos 2017).

5.2 Supply Chain Management IT Applications

            The use of IT by companies in their supply chains has significantly become a popular issue across the globe today. Various organizations have developed effective information systems that have greatly enhanced their supply chain’s efficiency and effectiveness. The management of such organizations has adopted various supply chain management IT applications that have enhanced their performance. These applications are developed to enhance every aspect of the supply chain process as shown below:

Figure 3: IT application areas of the supply chain

5.2.1 E-Commerce

Many businesses have adopted E-commerce in their supply chain operations because of the operational benefits associated with it in the purchasing practices. E-commerce has been associated with significant cost savings in organizations. For instance, Yu et al. (2016) pointed out that there is less paperwork, and order cycle time is greatly reduced with e-commerce. The speedy transactions of purchase orders have resulted in a decrease in inventory as well as better relationships between suppliers and buyers. E-commerce has also helped businesses to reach new markets and new market segments besides enhancing their core processes. Supply chains succeed in the fast-changing internet commerce environment, given that modern businesses can enter and evolve faster than traditional organizations. Some of the relations that have been developed due to e-commerce include consumer to consumer (C2C), consumer-to-business (C2B), business-to-business (B2B), and business-to-consumer (B2C). Such relationship creation and maintenance have hugely helped businesses to achieve great success in their operations.

Figure 4: E-Commerce relationships

Liu and Li (2020) noted that e-commerce includes electronic funds transfers, e-mail, electronic data interchange, shared data-based, electronic bulletin boards, image processing, and optical or magnetic data capture. Electronic commerce has significantly helped organizations automate the process of moving documents between customers and suppliers electronically (Liu and Li 2020).

5.2.2 Enterprise Resource Planning Systems

The ERP is an IT application used by organizations that is based on a computer-aided information management system. The ERP systems capture the data and minimize manual tasks and activities associated with processing customer orders, inventory, and financial information. According to Singh and Teng (2016), the ERP system helps companies efficiently and effectively manages the utilization of such resources as finance, human resources, and materials through the provision of a total integration solution for the information processing needs of the firms. Many businesses now perceive ERP system as the core of their supply chain infrastructure (Thöni and Tjoa 2017). The linking of the supply chain applications with other business systems enables users to reduce inventory and minimize cycle times. The users’ ability to connect with customers, distributors, and suppliers to engage in e-business is also increased. 

5.2.3 Warehouse Management Systems

These information technology systems play a significant role in the running of a warehouse’s daily operations. The areas covered by such systems include receipt of supplies, assigning of storage locations, replenishment of inventory, picking lists generation, picking of orders, as well as the issuance of materials. Warehouse management systems help track warehouse materials (Vanpoucke, Vereecke, and Muylle 2017).

Figure 5: Warehouse functions

5.2.4 Electronic Data Interchange

It can be described as computer to computer exchange of business information in a standard format. It enables businesses to communicate information electronically instead of the traditional forms of communication. According to Gunasekaran, Subramanian, and Papadopoulos (2017), the technology offers such benefits as reduced paperwork, quick information processing, increased productivity, better customer service, improved billing, cost efficiency, improved tracking, and expediting, and competitive edge. The EDI utilization enables supply chain partners to subdue the exaggeration and distortions in demand and supply information by offering time-sharing of the real demand and supply information (Lii and Kuo 2016).

5.3 Supply Chain Performance

The elements of performance in a supply chain include efficiency, effectiveness, and flexibility. Most companies work on minimizing cost in their supply chains at reasonable lead-time. The supply chain’s effectiveness revolves around new product development, increased sales, increased market share, and improved customer service. Bozarth and Handfield (2016) pointed out that a successful supply chain is characterized by effective coordination of their processes, getting rid of unnecessary costs in key functional areas, delivering customer value, and coming up with performance measure systems that are able to show whether the supply chain is meeting the set expectations. To reduce costs, businesses are focusing on minimizing waste along their supply chains by enhancing quality, harmonizing operations and systems, and reducing duplication. Cost reduction in daily operations enables organizations to offer their products at a lower price than their industry rivals hence a competitive edge. Another supply chain efficiency measure involves improving order lead time and minimizing uncertainty. Lead time improvement results in reduced inventory in the firm, improved cash flow, and quick response to customer demands (Nakasumi 2017). Effective customer service is achieved when the supply chain offers the right products to the customers at the right time and place to meet their individual needs.

6.0 Research Methodology

6.1 Research Design

The study seeks to determine the importance of information technology on the management and performance of logistics and supply chain at 5 companies. The companies will be selected using the purposive sampling approach. The primary goal here is to include organizations that employ the use of various information technology applications in their logistics and supply chain management. A case study research design will be carried out at the selected firms because of their use of technology that has helped them to be paperless in their operations and achieve a competitive edge in their respective industries. According to Yin (2017), a case study research design involves an empirical investigation of an issue within its real-life context through the use of multiple evidence sources. A case study helps a researcher have a deeper understanding of the research context and the processes being enacted. Yin (2017) also adds that case studies can generate questions like why, how, thus helping to explore the existing theory. Case studies can also help researchers to come up with a new hypothesis.

6.2 Data Collection

            A multiple case study approach will be used for the sake of this study. Data will be collected from the five companies settled upon based on the purposive sampling approach. Personal interviews will be used to gather qualitative data for this study. The interview questions for this study will be designed concurrently to ensure that they all cover the benefits of IT, IT applications, and the performance of the IT systems employed by the firms in their supply chains. The researcher will interview five respondents from each of the five companies, and they include the logistics manager, procurement officer, sales and planning manager, warehouse manager, and General Manager. These individuals can provide well-informed information concerning what is required for this study.

The interview questions will be sent to the respondents in their respective companies before the interviews. Doing so will give the respondents enough time to prepare themselves for the real interviews. It will also enable them to invite additional representatives who have relevant information concerning the interviews. The interviews will be semi-structured in nature and are expected to last for twenty minutes. The interviews done will be recorded to support the correctness of interpretation and in case of such incidences as memory lapse (Kumar 2018). A memo will be written for each interview carried out based on the recordings and sent back to the respective respondent to check for any errors or inconsistencies. Information obtained from secondary information sources as company web-pages and annual reports will also be used to supplement the data gathered through interviews. All the data obtained regarding the case organizations will be compiled into a case study database, which will then be utilized as the basis for analysis. Moreover, the respondents will be contacted by telephone should the need for any additional information arise during the analysis phase. To increase the validity of the research, each interviewee will be requested to invite at most two additional staff from their departments for the interview. Memos from the interview will also be verified by the respondents.

6.3 Data Analysis

            The data that will be collected and used for the purpose of the study will be qualitative in nature. Descriptive analysis that entails quantitative and qualitative methods will be adopted to help in coming up with informative information concerning the study. The variables that will be used in the analysis of the data gathered from the interviews include consistency, contexts, and words, as well as the frequency of comments and content analysis. Thematic analysis will be employed in cases where important moments within the raw data will be identified and encoded before their interpretation (Castleberry and Nolen 2018). The researcher will utilize a good code that is able to capture the qualitative richness of the phenomenon. The encoding of information ensures easy organization of data, which facilitates the identification and development of a common theme derived from the gathered and encoded information (Castleberry and Nolen 2018). The researcher will provide graphs showing how the respective companies have progressed since their full implementation of information technology.

7.0 Scope of the Study

            The study will be conducted on five firms that have adopted information technology in the management of their logistics and supply chain. Specifically, it will focus on identifying the benefits of IT in the supply chain, information technology applications employed in the supply chain, as well as the performance of the supply chain after the adoption of IT. The respondents targeted in this study comprise the logistics manager, procurement officer, sales and planning manager, warehouse manager, and General Manager, all of whom work in their respective organizations’ supply chain. The finding of the study is expected to expand knowledge in this field and encourage the adoption of IT in the management of logistics and supply chain.

8.0 Limitation of the Study

  1. The researcher may not be able to obtain 100% response from the targeted respondents primarily due to the tight schedule required to be met. They have limited time to respond to a variety of questions.
  2. Some respondents are most likely to be conservative with information due to the fear of information being leaked to their industry competitors. This may adversely affect the accuracy of the data collected.
  3. The current proposed model may not incorporate all the benefits of information technology in the management of logistics and supply chain. Future research should increase in its scope and go beyond the proposed framework.
  4. The study is limited to a small number of companies for investigation due to time and money constraints. All the responses will have to be recorded by the researcher and visits made to each company on different occasions. Future studies should at least cover more companies across the country to provide a more comprehensive result.

9.0 Ethical Considerations

            According to Kumar (2018), such ethical considerations as confidentiality, anonymity, as well as avoidance of deception are essential issues to consider when carrying out research. The researcher will guarantee the confidentiality of the information provided by the respondents. The purpose of the study will be made known to the respondents to ward off any fear of information provided being leaked to the competitors. The secondary data used and other sources of information from different scholars used to present ideas in this study are well-acknowledged (Øye, Sørensen, and Glasdam 2016).

10.0 Conclusion

This study aims to determine the importance of IT on the management of logistics and supply chain. The study will benefit small and medium-sized organizations as well as supply chain professionals. The researcher believes that the study will help organizations improve the adoption of IT to enhance their supply chain’s performance to attain a competitive advantage in the market. The study primarily focuses on determining the benefits of IT in supply chain management. To achieve this, a case study will be carried out in five companies that have adopted IT in their supply chain and qualitative data gathered from five staff in each company who work in the supply chain function.

References

Addo-Tenkorang, R., and Helo, PT, 2016. Big data applications in operations/supply-chain management: A literature review. Computers & Industrial Engineering101, pp.528-543.

Agyabeng-Mensah, Y., Ahenkorah, E.N.K., and Osei, E., 2019. Impact of Logistics Information Technology on Organisational Performance: Mediating Role of Supply Chain Integration and Customer Satisfaction. Journal of Supply Chain Management Systems8(4).

Bozarth, C.C., and Handfield, R.B., 2016. Introduction to operations and supply chain management. Pearson.

Castleberry, A., and Nolen, A., 2018. Thematic analysis of qualitative research data: Is it as easy as it sounds?. Currents in Pharmacy Teaching and Learning10(6), pp.807-815.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Fosso Wamba, S., Akter, S., Coltman, T., and WT Ngai, E., 2015. Guest editorial: information technology-enabled supply chain management. Production Planning & Control26(12), pp.933-944.

Gunasekaran, A., Subramanian, N., and Papadopoulos, T., 2017. Information technology for competitive advantage within logistics and supply chains: A review. Transportation Research Part E: Logistics and Transportation Review99, pp.14-33.

Huddiniah, E., and Er, M., 2019. Product Variety, Supply Chain Complexity and the Needs for Information Technology: A Framework Based on Literature Review. Operations and Supply Chain Management: An International Journal12(4), pp.245-255.

Kumar, R., 2018. Research methodology: A step-by-step guide for beginners. Sage.

Lii, P. and Kuo, F.I., 2016. Innovation-oriented supply chain integration for combined competitiveness and firm performance. International Journal of Production Economics174, pp.142-155.

Liu, Z., and Li, Z., 2020. A blockchain-based framework of cross-border e-commerce supply chain. International Journal of Information Management52, p.102059.

Nakasumi, M., 2017, July. Information sharing for supply chain management based on blockchain technology. In 2017 IEEE 19th conference on business informatics (CBI) (Vol. 1, pp. 140-149). IEEE.

Øye, C., Sørensen, N.Ø., and Glasdam, S., 2016. Qualitative research ethics on the spot: Not only on the desktop. Nursing Ethics23(4), pp.455-464.

Singh, A. and Teng, J.T., 2016. Enhancing supply chain outcomes through Information Technology and Trust. Computers in human behavior54, pp.290-300.

Stevens, G.C. and Johnson, M., 2016. Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management.

Thöni, A. and Tjoa, A.M., 2017. Information technology for sustainable supply chain management: a literature survey. Enterprise Information Systems11(6), pp.828-858.

Vanpoucke, E., Vereecke, A. and Muylle, S., 2017. Leveraging the impact of supply chain integration through information technology. International Journal of Operations & Production Management.

Yin, R.K., 2017. Case study research and applications: Design and methods. Sage publications.

Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q., 2016. E-commerce logistics in supply chain management: Practice perspective. Procedia Corp52, pp.179-185.

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