Identifying Critical Success Factors for Supply Chain Excellence

2010 ◽  
Vol 1 (3) ◽  
pp. 49-70 ◽  
Author(s):  
Chinho Lin ◽  
Chu-hua Kuei ◽  
Christian N. Madu ◽  
Janice Winch

This paper presents a research framework for studying supply chain excellence, emphasizing two distinct paths of knowledge acquisition, that is qualitative inquiry through interviews with senior supply chain executives in Taiwan and quantitative inquiry through data collection from companies that operate in Taiwan. Four factors are considered as the antecedents of supply chain excellence, such as collaboration, organizational conditions, technology adoption, and operations. The authors use the grounded theory approach to further understand those four critical factors and relevant concepts. Organizational condition was ranked by our senior supply chain executives as the most important factor based on this qualitative investigation. The effect of four critical factors on organizational performance is also assessed through regression analyses, and the results help supply chain professionals in Taiwan determine which factors and concepts of supply chain management to focus on to improve business performance. Although these findings are situation-dependent, the proposed framework is different from existing literature and can be adopted in other international studies to enhance the body of knowledge on supply chain management.

Author(s):  
Chinho Lin ◽  
Chu-hua Kuei ◽  
Christian N. Madu ◽  
Janice Winch

This paper presents a research framework for studying supply chain excellence, emphasizing two distinct paths of knowledge acquisition, that is qualitative inquiry through interviews with senior supply chain executives in Taiwan and quantitative inquiry through data collection from companies that operate in Taiwan. Four factors are considered as the antecedents of supply chain excellence, such as collaboration, organizational conditions, technology adoption, and operations. The authors use the grounded theory approach to further understand those four critical factors and relevant concepts. Organizational condition was ranked by our senior supply chain executives as the most important factor based on this qualitative investigation. The effect of four critical factors on organizational performance is also assessed through regression analyses, and the results help supply chain professionals in Taiwan determine which factors and concepts of supply chain management to focus on to improve business performance. Although these findings are situation-dependent, the proposed framework is different from existing literature and can be adopted in other international studies to enhance the body of knowledge on supply chain management.


Author(s):  
Leopoldo Colmenares

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities. ERP is a software infrastructure embedded with “best practices,” or best ways to do business based on common business practices or academic theory. The aim is to improve the cooperation and interaction between all the organizations’ departments, such as the products planning, manufacturing, purchasing, marketing and customer service department. ERP systems is a fine expression of the inseparability of IT and business. As an enabling key technology as well as an effective managerial tool, ERP systems allow companies to integrate at all levels and utilize important ERP systems applications, such as supply-chain management, financials and accounting applications, human resource management and customer relationship management (Boubekri, 2001). ERP systems hold the promise of improving processes and decreasing costs. Furthermore, two important new frontiers for ERP systems are electronic business (e-business) and supply-chain management (Wang and Nah, 2001). The systems can connect with suppliers, distributors, and customers, facilitating the flow, the product and information. ERP systems implementation is costly and complex. In many cases, an ERP system is the largest single investment in any corporate-wide project. The software is expensive, and the consulting costs even more. Meta Group found that the average ERP systems implementation takes 23 months with total owners’ cost of $12 million (Stewart, 2000). The ERP systems implementation is the process where business process and ERP system match each other. Usually the firm has to change the business process per ERP systems. Sometimes most positions have to be redesigned according to the ERP systems. Thus the difficulties and high failure rate in implementing ERP systems have been widely cited in the literature (Davenport, 1998; Kim, Lee, & Gosain, 2005)). The failure percentage of ERP systems was determined by one study as ranging from 40 to 60% and from another study as between 60 and 90% (Langernwalter, 2000; Ptak and Schragenheim, 2000; Yingjie, 2005). Although the failure rates of these ERP implementations have been highly publicized, this has not distracted companies from investing large sums of money on ERP systems (Somers & Nelson, 2004). ERP systems provide companies with the means of integrating their business functions into a unified and integrated business process. As companies implement more enterprise based systems throughout their organizations, the need for integration of these systems becomes even more paramount. Expanding from the functional areas of accounting, human resources, and shop floor control to an enterprise-wide system has become a format for producing full organization integration. Over the past few years, limited research has been conducted about ERP implementation issues: mainly case studies in individual organizations have been reported. That is a motivation toward conducting empirical studies to explore critical factors that affect ERP systems implementation. This study presents the results of an empirical study that surveyed managers from seven corporations, who were identified as having a key role in ERP systems implementation, in order to assess empirically which CSFs are critical in leading a successful implementation of ERP systems. A factor analysis solution was used to derive factors affecting successful ERP implementation. These factors are: ERP implementation management, users aptitudes and communication and technical knowledge. The study reveals that about 81.5 % of the variances in ERP systems implementation were explained by the critical factors identified in the study. The remainder of this article is organized in four sections. First ERP-related literature is reviewed. The next section introduces the research methodology, followed by the presentation of the results. The paper ends with the conclusions and implications for future research and practice.


2010 ◽  
pp. 1371-1381
Author(s):  
Leopoldo Colmenares

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities. ERP is a software infrastructure embedded with “best practices,” or best ways to do business based on common business practices or academic theory. The aim is to improve the cooperation and interaction between all the organizations’ departments, such as the products planning, manufacturing, purchasing, marketing and customer service department. ERP systems is a fine expression of the inseparability of IT and business. As an enabling key technology as well as an effective managerial tool, ERP systems allow companies to integrate at all levels and utilize important ERP systems applications, such as supply-chain management, financials and accounting applications, human resource management and customer relationship management (Boubekri, 2001). ERP systems hold the promise of improving processes and decreasing costs. Furthermore, two important new frontiers for ERP systems are electronic business (e-business) and supply-chain management (Wang and Nah, 2001). The systems can connect with suppliers, distributors, and customers, facilitating the flow, the product and information. ERP systems implementation is costly and complex. In many cases, an ERP system is the largest single investment in any corporate-wide project. The software is expensive, and the consulting costs even more. Meta Group found that the average ERP systems implementation takes 23 months with total owners’ cost of $12 million (Stewart, 2000). The ERP systems implementation is the process where business process and ERP system match each other. Usually the firm has to change the business process per ERP systems. Sometimes most positions have to be redesigned according to the ERP systems. Thus the difficulties and high failure rate in implementing ERP systems have been widely cited in the literature (Davenport, 1998; Kim, Lee, & Gosain, 2005)). The failure percentage of ERP systems was determined by one study as ranging from 40 to 60% and from another study as between 60 and 90% (Langernwalter, 2000; Ptak and Schragenheim, 2000; Yingjie, 2005). Although the failure rates of these ERP implementations have been highly publicized, this has not distracted companies from investing large sums of money on ERP systems (Somers & Nelson, 2004). ERP systems provide companies with the means of integrating their business functions into a unified and integrated business process. As companies implement more enterprise based systems throughout their organizations, the need for integration of these systems becomes even more paramount. Expanding from the functional areas of accounting, human resources, and shop floor control to an enterprise-wide system has become a format for producing full organization integration. Over the past few years, limited research has been conducted about ERP implementation issues: mainly case studies in individual organizations have been reported. That is a motivation toward conducting empirical studies to explore critical factors that affect ERP systems implementation. This study presents the results of an empirical study that surveyed managers from seven corporations, who were identified as having a key role in ERP systems implementation, in order to assess empirically which CSFs are critical in leading a successful implementation of ERP systems. A factor analysis solution was used to derive factors affecting successful ERP implementation. These factors are: ERP implementation management, users aptitudes and communication and technical knowledge. The study reveals that about 81.5 % of the variances in ERP systems implementation were explained by the critical factors identified in the study. The remainder of this article is organized in four sections. First ERP-related literature is reviewed. The next section introduces the research methodology, followed by the presentation of the results. The paper ends with the conclusions and implications for future research and practice.


Author(s):  
Kijpokin Kasemsap

This chapter reviews the perspectives of fostering supply chain management (SCM) in global business, thus describing the theoretical and practical concept of SCM; the applications of SCM; fostering SCM through knowledge management (KM) in global business; the strategic success factors of SCM; and the significance of SCM in global business. The utilization of SCM is necessary for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is essential for modern organizations to examine their SCM applications, develop a strategic plan to regularly check their practical advancements, and immediately respond to the SCM needs of customers in global business. Applying SCM will extremely improve organizational performance and reach business goals in global business.


Author(s):  
Kijpokin Kasemsap

This chapter reviews the perspectives of fostering supply chain management (SCM) in global business, thus describing the theoretical and practical concept of SCM; the applications of SCM; fostering SCM through knowledge management (KM) in global business; the strategic success factors of SCM; and the significance of SCM in global business. The utilization of SCM is necessary for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global business. Therefore, it is essential for modern organizations to examine their SCM applications, develop a strategic plan to regularly check their practical advancements, and immediately respond to the SCM needs of customers in global business. Applying SCM will extremely improve organizational performance and reach business goals in global business.


2019 ◽  
Vol 15 (2) ◽  
pp. 15-29
Author(s):  
Muhamad Akbar ◽  
Antoni Darius

The Harmony of IT and Business is an asset and the foundation of the organizations to improve and build business competitive strategies. There is a need to integrate and coordinate all business partners of the organization, particularly those associated with Information Technology and suppliers, raw materials or resources needed in the supply chain management. The effectiveness of an E-SCM in Palm Oil industry will be the crucial factor to provide the organization with business opportunities and improve competitive position in the marketplace. Aim of this study is to investigates critical factors E -Supply Chain Management in Oil Palm Industry through Theory Resource Based View (RBV).  With RBV theory, this study develops a concept that can be utilized for identifying the critical success factors of E-SCM value in Palm Oil industry. The quantitative research method is used for collecting data in four Palm Oil organizations in South Sumatera. This research reveals that IT human resources and IT infrastructure are the critical factors and capability in to operate E-SCM effectively and


2020 ◽  
Vol 13 (1) ◽  
pp. 56
Author(s):  
Tino Herden

Purpose: Analytics research is increasingly divided by the domains Analytics is applied to. Literature offers little understanding whether aspects such as success factors, barriers and management of Analytics must be investigated domain-specific, while the execution of Analytics initiatives is similar across domains and similar issues occur. This article investigates characteristics of the execution of Analytics initiatives that are distinct in domains and can guide future research collaboration and focus. The research was conducted on the example of Logistics and Supply Chain Management and the respective domain-specific Analytics subfield of Supply Chain Analytics. The field of Logistics and Supply Chain Management has been recognized as early adopter of Analytics but has retracted to a midfield position comparing different domains.Design/methodology/approach: This research uses Grounded Theory based on 12 semi-structured Interviews creating a map of domain characteristics based of the paradigm scheme of Strauss and Corbin.Findings: A total of 34 characteristics of Analytics initiatives that distinguish domains in the execution of initiatives were identified, which are mapped and explained. As a blueprint for further research, the domain-specifics of Logistics and Supply Chain Management are presented and discussed.Originality/value: The results of this research stimulates cross domain research on Analytics issues and prompt research on the identified characteristics with broader understanding of the impact on Analytics initiatives. The also describe the status-quo of Analytics. Further, results help managers control the environment of initiatives and design more successful initiatives.


2018 ◽  
Vol 15 (3) ◽  
pp. 265-287 ◽  
Author(s):  
Bhavana Mathur ◽  
Sumit Gupta ◽  
Makhan Lal Meena ◽  
G.S. Dangayach

PurposeThe purpose of this paper is to examine the causal linkages among supply chain practices, effectiveness of supply chain performance (SCP) and organizational performance (OP) in Indian healthcare industries.Design/methodology/approachThis paper is helpful in developing a framework for linking a healthcare supply chain practice to its OP, and thus identifies how such a linkage can be connected to the effectiveness of SCP. Such effort also enables the authors to derive a set of recommended supply chain practices for SC performance.FindingsFrom the literature review, this paper finds that, in the context of Indian healthcare industries, efficient SC performance may play a critical role for overall OP improvement, as there is a close interrelationship between supply chain management (SCM) practices and SCP that may have a more significant effect on OP improvement.Research limitations/implicationsThe principle limitation of the paper is that it is performed only in a particular industry and with a questionnaire survey which could be extended in future for other industries also. Another limitation of the paper is that it is focused only on the SCP of medical device and equipment supply chain which is a small portion of the whole healthcare supply chain, and therefore requires further research covering various other domains of healthcare supply chain. Another limitation of the study is that the sample survey has been taken from only one respondent per company at one point of time which may create biasness in the results. Thus, future research should collect data through multiple members from the organization.Practical implicationsThis study contributes to know the effect of SCM practices on healthcare SCP and provides a practical and useful tool to evaluate the extent of effectiveness of SCP and finally their impact on the healthcare OP. Finally, this study provides conceptual and descriptive literature regarding SCM practices that leads to improvement in healthcare performance.Social implicationsThis study adds to the knowledge on healthcare SCM performance by exploring the relationship between supply chain practices, healthcare SCP and healthcare OP and by developing and testing a research framework thus help in improving patient satisfaction.Originality/valueThis study attempts to show how the potential benefits of supply chain practices can no longer be ignored in healthcare supply chain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Isaac Sakyi Damoah

PurposeThis study explores the critical success factors (CSFs) in humanitarian supply chain management (HSCM) by focussing on flood disaster management (FDM) in Ghana.Design/methodology/approachAn in-depth semi-structured interview and questionnaire surveys in a sequential data collection approach were used to collect data from definitive stakeholders of humanitarian organisations. The data was analysed using exploratory factor analysis (EFA), confirmatory factors analysis (CFA) and structural equation modelling (SEM) techniques.FindingsSeventy-four factors were identified as success factors of HSCM of flood disaster management. However, 41 of these factors were statistically significant and considered as critical. In descending order, these factors relate to management practices, education and training, stakeholder involvement and cooperation, infrastructure, innovation and technology, materials and resources, administrative practices, socio-cultural and economic. Whilst some factors are internal to the humanitarian organisations, others are external factors that are beyond the control of humanitarian organisations.Research limitations/implicationsEven though this study offers empirical results that could guide policymakers in their decision-making about humanitarian operations, care needs to be taken since the data is within one country and within a specific disaster context – hence, policymakers need to consider the local contextual dynamics. Future studies could look at different disasters context to make a comparative analysis of various types of disaster operations.Practical implicationsInstitutions such as World Health Organization, Red Cross organisations and UN seeking to curbs global-warming-related disasters and the reduction of the effects of flood disaster can use findings as a guide during the formulation of HSCM policies and strategies.Originality/valueUnlike previous studies of humanitarian operations that focussed extensively on theoretical expositions, simulations, conceptual frameworks and models, this present study offers empirical evidence of humanitarian operations in the context of SCM. Further, by highlighting on the HSCM CSFs, this study contributes to disaster reduction and their effects on humanity in the context of FDM. This research could be used as guide by governments and FDM organisations to make informed decisions on SCM areas to focus the most during FDM.


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