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Strategic Characteristics of Supply Chain Management Among Thai Manufacturers

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Strategic Characteristics of Supply Chain Management Among Thai Manufacturers Strategic Characteristics of Supply Chain Management among Thai Manufacturers Titinan Nakornsri * Sang M. Lee ABSTRACT บทคัดยอ Effective supply chain management (SCM) has การบริหารโซอุปทานอยางมีประสิทธิภาพไดกลายเปน become an emergent strategy for Thai manufacturers กลยุทธที่ผูผลิตชาวไทยเริ่มนํามาใช เพื่อรักษาความไดเปรียบ to secure competitive advantage and improve organi­ zational performance in today’s highly volatile global ในการแขงขัน และปรับปรุงผลประกอบการขององคกร market. This research identifies eight strategic charac­ ภายใตภาวะตลาดโลกปจจุบันที่เต็มไปดวยความไมแนนอน teristics of SCM (inter­and intra­organizational com­ munication, organizational flexibility, inter­organi­ ผลงานวิจัยฉบับนี้บงชี้ถึงกลยุทธ 8 ประการในการบริหารโซ zational relationships, supply chain coordination, outsourcing, inventory management and mass cus­ อุปทานของผูผลิตไทย ซึ่งประกอบดวย การสื่อสารระหวาง tomization manufacturing strategy) among Thai องคกร การสื่อสารภายในองคกร ความยืดหยุนขององคกร manufacturers and empirically tests their relation­ ships with organizational performance. ความสัมพันธระหวางองคกร การประสานงานภายในโซ Data for the study were collected from 294 อุปทาน การจางบุคคลภายนอก (outsourcing) การบริหาร manufacturing organizations in Thailand and the relationships proposed in the research model were สินคาคงคลัง และการผลิตจํานวนมากตามความตองการ tested using Person’s correlation analysis. The ของลูกคา (mass customization) รวมทั้งทําการทดสอบหา results illustrate the significant positive relation­ ships between the eight SCM characteristics and ความสัมพันธระหวางกลยุทธทั้ง 8 ประการดังกลาวกับผล organizational performance. This indicates the ประกอบการขององคกร importance of these SCM strategic characteristics which firms need to develop and implement การศึกษาวิจัยนี้ ไดทําการเก็บรวบรวมขอมูลจากผูผลิต effectively in order to maximize organizational per­ ในประเทศไทยจํานวน 294 ราย และไดใชการวิเคราะหความ formance. The findings reveal that organizational flexibility has the strongest relationship with per­ สัมพันธแบบ Pearson เพื่อทดสอบหาความสัมพันธที่นํา formance. Therefore, it should be a top priority of management in SCM implementation. Moreover, เสนอในแบบจําลองของงานวิจัย (research model) ผลการ firms need to communicate, coordinate, collaborate, ทดสอบชี้ใหเห็นวา กลยุทธการบริหารโซอุปทานทั้ง 8 and build trusting relationship among members of the supply chain network, as well as implement มีความสัมพันธเชิงบวกกับผลประกอบการขององคกรอยาง outsourcing, (just­in­time) inventory, and mass มีนัยสําคัญ ซึ่งแสดงวากลยุทธการบริหารโซอุปทานดังกลาว customization strategy in order to improve long­term performance of the individual organization and the เปนสิ่งจําเปนที่องคกรจะตองพัฒนาขึ้นและนําไปใชอยางมี supply chain as a whole. The study helps manu­ ประสิทธิภาพ เพื่อทําใหองคกรมีผลประกอบการสูงที่สุด facturers in the development and implementation of effective SCM which is a key to sustaining ผลงานวิจัยนี้ยังชี้ใหเห็นวาความยืดหยุนขององคกรมี competitiveness in today’s globalizing economy. ความสัมพันธอยางใกลชิดที่สุดกับผลประกอบการของ องคกร ดังนั้น ในการนํากลยุทธโซอุปทานไปใช ผูบริหาร จึงควรใหความสําคัญสูงสุดกับความยืดหยุนขององคกร นอกจากนี้ การติดตอสื่อสาร การประสานงาน การใหความ * Prof. Dr. Sang M. Lee รวมมือ และการสรางความไววางใจระหวางสมาชิกทั้งหมด Dissertation Advisor ในเครือขายของโซอุปทานก็นับเปนสิ่งจําเปนสําหรับ องคกร อีกทั้งองคกรควรจัดใหมีการจางบุคคลภายนอกเขา tional strategic characteristics of SCM will have an impact on organizational performance: มาดําเนินการแทน (outsourcing) รวมทั้งมีการบริหารสินคา Organizational Performance คงคลังโดยใชระบบ just-in-time และดําเนนิ การผลิตจาํ นวน In line with previous research in the field of มากตามความตองการของลูกคา (mass customization) เพื่อ SCM, this study measures organizational perfor­ mance using the respondent’s perception of perfor­ ปรับปรุงผลประกอบการขององคกรในระยะยาว รวมถึงผล mance in relation to competitors. The performance ประกอบการของโซอุปทานโดยรวม การศึกษานี้มีสวนชว ย measures employed in this study, which are treated as one composite construct (Sanders and Premus, ผูผลิตในการพัฒนากลยุทธการบริหารโซอุปทานและนํา 2005), include market share, profit margin on sales, กลยุทธไปใชอยางมีประสิทธิภาพ ซึ่งเปนปจจัยหนึ่งในการ return on investment (ROI), growth in market share, growth in sales per employee, and overall competitive รักษาความไดเปรียบในการแขงขันภายใตภาวะเศรษฐกิจ position. โลกาภิวัฒนในปจจุบัน Strategic Characteristics of Supply Chain Management Intra­and Inter­organizational Communication INTRODUCTION Chu (2006) found that communication is one of Supply chain management (SCM) is an important the factors that directly and positively affects trust in issue facing many organizations worldwide. SCM is supply chain partnership. Simatupang, Wright, and an important area that helps maximize competitiveness Sridharan (2002) found that information technology and profitability for the company as well as other (IT) such as the Internet, intranet, software applica­ supply chain members which integrate and coordi­ tion packages and decision support system can be nate across their whole extended network (Lambert applied to facilitate information sharing with cus­ and Cooper, 1998). Managing the supply chain has tomers and partners, and optimization of supply become a way of improving competitiveness by chain performance. They added that information reducing uncertainty and enhancing customer service. sharing provides necessary visibility of a global Not all firms are successful in achieving a higher scope to enable better decisions to be made in order level of performance even if they have implemented to maximize the total profit. SCM is a business the SCM concepts. In order for firms to succeed, approach grounded in cooperation not only across survive, and sustain their competitive positions, all functional areas within the firm, but also across certain characteristics of SCM have to exist. This the organizational boundaries in the supply chain. research tries to identify the characteristics that bring Thus, based on the above literature, the first set of or create strategic advantages to Thai manufacturers hypotheses for this study is as follows: as well as help them sustain their competitive H1. There is a positive relationship between advantages and maximize performance. In the long maintaining effective communication within an run, these SCM characteristics add value to the firms, organization and organizational performance. their stakeholders, and their supply chain partners. H5. There is a positive relationship between maintaining effective communication channels across supply chain partner organizations and organizational LITERATURE REVIEW performance. The rapidly changing environments, coupled Organizational Flexibility with the move of competition from “among As diversity and uncertainty in the environment organizations” to “between supply chains”, have increases, companies are responding by adding flexi­ resulted in a great challenge in managing an effective bility as a dimension to their operation strategies SCM practice in the hope of reducing supply chain (Sanchez and Perez, 2005). In addition, firms need to costs, securing competitive advantage and improving be able to adapt their supply chain, as a whole, to organizational performance. Kuei, Madu, and Lin meet emergent customer needs (Schmitz and Platts, (2001) present an empirical study of the relationship 2004). Matchette and Lewinski (2006) added that an between supply chain management and operational organization must ensure that it builds sufficient performance. Li et al. (2006) supported the belief flexibility into its supply chain practices, technologies that SCM practices have direct impacts on com­ and organization structures so that it can fully meet petitive advantage and organizational performance. customer expectations and quickly capitalize on new Their findings indicated that SCM practices produce revenue opportunities which results in higher organi­ competitive advantage to the organization which will, zational performance. It is therefore hypothesized in turn, lead to improved organizational performance. that: Drawing from previous literature, this research H2: There is a positive relationship between proposes that the following intra­and inter­organiza­ organizational flexibility and organizational per­ formance. Mass Customization Manufacturing Strategy multi­organization environment, focus is given to According to Li et al. (2006), postponement, collaboration and feasible ways to coordinate the which is one of the central features of mass network. Strategic partnership, which emphasizes customization, needs to match the type of products, long­term association and encourages mutual market demand of a company, and structure or planning and problem solving, promotes significant constraints within the manufacturing and logistics ongoing benefits and is critical to supply chain system. The adoption of postponement may be success (Li et al., 2006). Tight integration with cus­ appropriate under the following conditions: inno­ tomers and suppliers including process and informa­ vative products; products with high monetary tion integration are found to enable organizations in density, high specialization and wide range; markets achieving profitable growth and high performance characterized by long delivery time, low delivery (Matchette and Lewinski, 2006). Therefore, this frequency and high demand uncertainty; and manu­ study hypothesizes that: facturing or logistics systems with small economies H7: There is a positive relationship between of scales and
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