• Title/Summary/Keyword: SCM System Benefits

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An Empirical Study on the Determinants of Supply Chain Management Systems Success from Vendor's Perspective (참여자관점에서 공급사슬관리 시스템의 성공에 영향을 미치는 요인에 관한 실증연구)

  • Kang, Sung-Bae;Moon, Tae-Soo;Chung, Yoon
    • Asia pacific journal of information systems
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    • v.20 no.3
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    • pp.139-166
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    • 2010
  • The supply chain management (SCM) systems have emerged as strong managerial tools for manufacturing firms in enhancing competitive strength. Despite of large investments in the SCM systems, many companies are not fully realizing the promised benefits from the systems. A review of literature on adoption, implementation and success factor of IOS (inter-organization systems), EDI (electronic data interchange) systems, shows that this issue has been examined from multiple theoretic perspectives. And many researchers have attempted to identify the factors which influence the success of system implementation. However, the existing studies have two drawbacks in revealing the determinants of systems implementation success. First, previous researches raise questions as to the appropriateness of research subjects selected. Most SCM systems are operating in the form of private industrial networks, where the participants of the systems consist of two distinct groups: focus companies and vendors. The focus companies are the primary actors in developing and operating the systems, while vendors are passive participants which are connected to the system in order to supply raw materials and parts to the focus companies. Under the circumstance, there are three ways in selecting the research subjects; focus companies only, vendors only, or two parties grouped together. It is hard to find researches that use the focus companies exclusively as the subjects probably due to the insufficient sample size for statistic analysis. Most researches have been conducted using the data collected from both groups. We argue that the SCM success factors cannot be correctly indentified in this case. The focus companies and the vendors are in different positions in many areas regarding the system implementation: firm size, managerial resources, bargaining power, organizational maturity, and etc. There are no obvious reasons to believe that the success factors of the two groups are identical. Grouping the two groups also raises questions on measuring the system success. The benefits from utilizing the systems may not be commonly distributed to the two groups. One group's benefits might be realized at the expenses of the other group considering the situation where vendors participating in SCM systems are under continuous pressures from the focus companies with respect to prices, quality, and delivery time. Therefore, by combining the system outcomes of both groups we cannot measure the system benefits obtained by each group correctly. Second, the measures of system success adopted in the previous researches have shortcoming in measuring the SCM success. User satisfaction, system utilization, and user attitudes toward the systems are most commonly used success measures in the existing studies. These measures have been developed as proxy variables in the studies of decision support systems (DSS) where the contribution of the systems to the organization performance is very difficult to measure. Unlike the DSS, the SCM systems have more specific goals, such as cost saving, inventory reduction, quality improvement, rapid time, and higher customer service. We maintain that more specific measures can be developed instead of proxy variables in order to measure the system benefits correctly. The purpose of this study is to find the determinants of SCM systems success in the perspective of vendor companies. In developing the research model, we have focused on selecting the success factors appropriate for the vendors through reviewing past researches and on developing more accurate success measures. The variables can be classified into following: technological, organizational, and environmental factors on the basis of TOE (Technology-Organization-Environment) framework. The model consists of three independent variables (competition intensity, top management support, and information system maturity), one mediating variable (collaboration), one moderating variable (government support), and a dependent variable (system success). The systems success measures have been developed to reflect the operational benefits of the SCM systems; improvement in planning and analysis capabilities, faster throughput, cost reduction, task integration, and improved product and customer service. The model has been validated using the survey data collected from 122 vendors participating in the SCM systems in Korea. To test for mediation, one should estimate the hierarchical regression analysis on the collaboration. And moderating effect analysis should estimate the moderated multiple regression, examines the effect of the government support. The result shows that information system maturity and top management support are the most important determinants of SCM system success. Supply chain technologies that standardize data formats and enhance information sharing may be adopted by supply chain leader organization because of the influence of focal company in the private industrial networks in order to streamline transactions and improve inter-organization communication. Specially, the need to develop and sustain an information system maturity will provide the focus and purpose to successfully overcome information system obstacles and resistance to innovation diffusion within the supply chain network organization. The support of top management will help focus efforts toward the realization of inter-organizational benefits and lend credibility to functional managers responsible for its implementation. The active involvement, vision, and direction of high level executives provide the impetus needed to sustain the implementation of SCM. The quality of collaboration relationships also is positively related to outcome variable. Collaboration variable is found to have a mediation effect between on influencing factors and implementation success. Higher levels of inter-organizational collaboration behaviors such as shared planning and flexibility in coordinating activities were found to be strongly linked to the vendors trust in the supply chain network. Government support moderates the effect of the IS maturity, competitive intensity, top management support on collaboration and implementation success of SCM. In general, the vendor companies face substantially greater risks in SCM implementation than the larger companies do because of severe constraints on financial and human resources and limited education on SCM systems. Besides resources, Vendors generally lack computer experience and do not have sufficient internal SCM expertise. For these reasons, government supports may establish requirements for firms doing business with the government or provide incentives to adopt, implementation SCM or practices. Government support provides significant improvements in implementation success of SCM when IS maturity, competitive intensity, top management support and collaboration are low. The environmental characteristic of competition intensity has no direct effect on vendor perspective of SCM system success. But, vendors facing above average competition intensity will have a greater need for changing technology. This suggests that companies trying to implement SCM systems should set up compatible supply chain networks and a high-quality collaboration relationship for implementation and performance.

Design and Implementation of RFID Based u-SCM System for Fiber and Apparel Industry (섬유 및 의류산업의 RFID 기반 u-SCM 시스템의 설계 및 구현)

  • Moon, Il-Whan;Ahn, Jae-Geun;Kim, Sam-Keun
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.36 no.8B
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    • pp.986-995
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    • 2011
  • Recently, the market of fiber and apparel industry is rapidly changing from producer to consumer oriented. This trend emphasizes the necessity of SCM systems being able to do flexible correspondences to the market changing through synthetically reflecting consumers' various needs and a variety of patterns. However, because traditional SCMs manage their supply chains being based on bar code systems from the production to the distribution, they are suffering from the needs of real time information sharing and have their essential restrictions in the response to the environmental changes of the market and consumers' needs. This paper suggests a new RFID based u-SCM system optimized into the fiber and apparel industry. The proposed system has the benefits that through basing on RPID can collect information of the production and the distribution real time and make better use of it and connect to the legacy systems organically via Web services and rapidly respond to the market changing and consumers' needs. Through implementation, it is demonstrated that the proposed system can effectively facilitate them.

Development of a Real-Time Supply Chain Model Using RFID Technology (RFID 기술을 이용한 실시간 공급망 모형 구축)

  • Hong, Young-Jee;Tae, Kyung-Hwi;Park, Jin-Woo
    • Korean Management Science Review
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    • v.27 no.3
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    • pp.137-147
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    • 2010
  • Real-time supply chain environments based on RFID will be an important topic in future society; Nevertheless, adopting RFID in real industry SCM is still in its infancy. The aim of this paper is to develop the physical framework of a fully adopting RFID system from manufacturing to recycle phase and measure the effect. So, we built a simulation station with fully appling RFID and analyzed benefits with mathematic model. Then, specifying the advantages and improvement scheme for real industry limitations were suggested. This work concluded that fully appling RFID in SCM gives improvement of quality and service to both production and consumer.

Relative Importance Analysis on Technology Adoption Factors of RFID in SCM (SCM에서 무선인식 기술 수용 요인 별 상대적 중요도 분석)

  • Kim, Tae-Young;Choi, Jun-Seok
    • The Journal of the Korea Contents Association
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    • v.7 no.6
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    • pp.185-194
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    • 2007
  • Today, there is in the world-wide cognition about RFID technology due to established standard, EPC(Electronic Product Code). RFID technology will have wide influence over various fields. Especially, RFID technology's advantages will have positive influence on logistics field. We can solve limited various problems presented in SCM by applying RFIB technology. We can have higher cantrol system, better benefits and actual decision information. Many organizations, however, still have hesitated now because RFID technology has not been validated and RFID technology is in early stage. Other problems are employee resistance against new technology and lack of academic empirical research on assimilation RFID technology for organization. Above reasons I mentioned make me study on analysis on assimilation RFID technology decision in SCM field. This study attempts to analyze the assimilation RFID technology factor from previous researches by using AHP. This outcomes of study will be helpful when we assimilate RFID technology in SCM fields.

A study of SCM strategic plan: Focusing on the case of LG electronics (공급사슬 관리 구축전략에 관한 연구: LG전자 사례 중심으로)

  • Lee, Gi-Wan;Lee, Sang-Youn
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.83-94
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    • 2011
  • Most domestic companies, with the exclusion of major firms, are reluctant to implement a supply chain management (SCM) network into their operations. Most small- and medium-sized enterprises are not even aware of SCM. Due to the inherent total-systems efficiency of SCM, it coordinates domestic manufacturers, subcontractors, distributors, and physical distributors and cuts down on cost of inventory control, as well as demand management. Furthermore, a lack of SCM causes a decrease in competitiveness for domestic companies. The reason lies in the fundamentality of SCM, which is the characteristic of information sharing, process innovation throughout SCM, and the vast range of problems the SCM management tool is able to address. This study suggests the contemplation and reformation of the current SCM situation by analyzing the SCM strategic plan, discourses and logical discussions on the topic, and a successful case for adapting SCM; hence, the study plans to productively "process" SCM. First, it is necessary to contemplate the theoretical background of SCM before discussing how to successfully process SCM. I will describe the concept and background of SCM in Chapter 2, with a definition of SCM, types of SCM promotional activities, fields of SCM, necessity of applying SCM, and the effects of SCM. All of the defects in currently processing SCM will be introduced in Chapter 3. Discussion items include the following: the Bullwhip Effect; the breakdown in supply chain and sales networks due to e-business; the issue that even though the key to a successful SCM is cooperation between the production and distribution company, during the process of SCM, the companies, many times, put their profits first, resulting in a possible defect in demands estimation. Furthermore, the problems of processing SCM in a domestic distribution-production company concern Information Technology; for example, the new system introduced to the company is not compatible with the pre-existing document architecture. Second, for effective management, distribution and production companies should cooperate and enhance their partnership in the aspect of the corporation; however, in reality, this seldom occurs. Third, in the aspect of the work process, introducing SCM could provoke corporations during the integration of the distribution-production process. Fourth, to increase the achievement of the SCM strategy process, they need to set up a cross-functional team; however, many times, business partners lack the cooperation and business-information sharing tools necessary to effect the transition to SCM. Chapter 4 will address an SCM strategic plan and a case study of LG Electronics. The purpose of the strategic plan, strategic plans for types of business, adopting SCM in a distribution company, and the global supply chain process of LG Electronics will be introduced. The conclusion of the study is located in Chapter 5, which addresses the issue of the fierce competition that companies currently face in the global market environment and their increased investment in SCM, in order to better cope with short product life cycle and high customer expectations. The SCM management system has evolved through the adaptation of improved information, communication, and transportation technologies; now, it demands the utilization of various strategic resources. The introduction of SCM provides benefits to the management of a network of interconnected businesses by securing customer loyalty with cost and time savings, derived through the consolidation of many distribution systems; additionally, SCM helps enterprises form a wide range of marketing strategies. Thus, we could conclude that not only the distributors but all types of businesses should adopt the systems approach to supply chain strategies. SCM deals with the basic stream of distribution and increases the value of a company by replacing physical distribution with information. By the company obtaining and sharing ready information, it is able to create customer satisfaction at the end point of delivery to the consumer.

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Integrating Blockchain and Digital Twin for Smart Warehouse Supply Chain Management (스마트 웨어하우스 공급망 관리를 위한 블록체인과 Digital Twin의 통합)

  • Keo Ratanak;Muhammad Firdaus;Kyung-hyune Rhee
    • Proceedings of the Korea Information Processing Society Conference
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    • 2023.05a
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    • pp.273-276
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    • 2023
  • This paper presents the integration of Digital twin and Blockchain-based Supply Chain Management (DB-SCM) in a smart warehouse to create a more efficient, secure, and transparent facility. The process involves creating a digital twin of the warehouse using sensors and IoT devices and then integrating it with a blockchain-based supply chain management system to connect all stakeholders. All data are collected and tracked in real-time as goods move through the warehouse, and smart contracts are automatically executed to ensure accountability for all parties involved. The study also highlights the critical role of effective supply chain management in modern business operations and the significance of smart warehouses, which leverage advanced technologies such as robotics, AI, and data analytics to optimize warehouse operations. Later, we discuss the importance of digital twins, which allow for creating a virtual representation of a physical object or system, and their potential to revolutionize a wide range of industries. Therefore, DB-SCM offers numerous benefits, including enhanced efficiency, improved customer satisfaction, and increased sustainability, and provides a valuable case study for organizations seeking to optimize their supply chain operations.

Legality of R&D Subsidies and Its Policy Framework under the World Trading System: The Case of Civil Aircraft Disputes

  • Shin, Wonkyu;Lee, Wonhee
    • STI Policy Review
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    • v.4 no.1
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    • pp.27-53
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    • 2013
  • Technology research and development (R&D) expenditures have increased as most countries recognize that technological innovation is a significant factor for continued economic growth. R&D subsidies by governmental entities were permitted in accordance with the Subsidy and Countervailing Measure (SCM) Agreement under the World Trade Organization (WTO) system. However, according to Article 31 of the SCM Agreement the provision for R&D subsidies have been terminated as of January 2000 and legal disputes over R&D subsidies are likely to increase. The aircraft industry has been the only industry where R&D subsidies have become an issue under the WTO. This paper examines international trade disputes within the aircraft industry in regards to measures by Canada and bilateral disputes between the U.S. and the European Communities (EC). In these cases, various R&D subsidies on civil aircraft are found to be inconsistent with WTO rules. This study summarizes the WTO decisions on various R&D subsidies disputed in the aircraft cases and examines the type of R&D subsidies found to be inconsistent (or consistent) with the WTO to provide guidelines for current and future R&D subsidy policies in high-tech industries. The Canada-Aircraft case indicates that R&D subsidies directly targeted towards near market R&D projects with a high export potential will likely be in violation of current WTO rules. Furthermore, findings from the EC-Aircraft and the U.S.-Aircraft cases suggest that the forms (or the methods) of R&D subsidy distribution were not a sufficient condition for the WTO ruling; instead, what ultimately mattered was whether and specifically to whom the benefits of the R&D subsidies are conferred by the government entities.

A Study on the Determinants of Blockchain-oriented Supply Chain Management (SCM) Services (블록체인 기반 공급사슬관리 서비스 활용의 결정요인 연구)

  • Kwon, Youngsig;Ahn, Hyunchul
    • Knowledge Management Research
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    • v.22 no.2
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    • pp.119-144
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    • 2021
  • Recently, as competition in the market evolves from the competition among companies to the competition among their supply chains, companies are struggling to enhance their supply chain management (hereinafter SCM). In particular, as blockchain technology with various technical advantages is combined with SCM, a lot of domestic manufacturing and distribution companies are considering the adoption of blockchain-oriented SCM (BOSCM) services today. Thus, it is an important academic topic to examine the factors affecting the use of blockchain-oriented SCM. However, most prior studies on blockchain and SCMs have designed their research models based on Technology Acceptance Model (TAM) or the Unified Theory of Acceptance and Use of Technology (UTAUT), which are suitable for explaining individual's acceptance of information technology rather than companies'. Under this background, this study presents a novel model of blockchain-oriented SCM acceptance model based on the Technology-Organization-Environment (TOE) framework to consider companies as the unit of analysis. In addition, Value-based Adoption Model (VAM) is applied to the research model in order to consider the benefits and the sacrifices caused by a new information system comprehensively. To validate the proposed research model, a survey of 126 companies were collected. Among them, by applying PLS-SEM (Partial Least Squares Structural Equation Modeling) with data of 122 companies, the research model was verified. As a result, 'business innovation', 'tracking and tracing', 'security enhancement' and 'cost' from technology viewpoint are found to significantly affect 'perceived value', which in turn affects 'intention to use blockchain-oriented SCM'. Also, 'organization readiness' is found to affect 'intention to use' with statistical significance. However, it is found that 'complexity' and 'regulation environment' have little impact on 'perceived value' and 'intention to use', respectively. It is expected that the findings of this study contribute to preparing practical and policy alternatives for facilitating blockchain-oriented SCM adoption in Korean firms.

A study on the Development of the Web-based collaborative WMS using RFID (RFID를 활용한 웹기반 협업 지원 창고관리시스템 개발에 대한 연구)

  • Lee Gwang-Ho;Park Je-Won;Choe Yun-Jeong;Lee Hui-Nam;Lee Gong-Seop;Lee Chang-Ho
    • Proceedings of the Safety Management and Science Conference
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    • 2005.05a
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    • pp.81-89
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    • 2005
  • The purpose of this study is to develop S/W of the web-based collaborative warehouse management system using RFID(Radio Frequency Identification). This S/W System supports the realtime inventory management and collaborative operations of relational companies in SCM. We look for benefits-reduce inventory levels, maxmize use of warehouse space, decrease the logistic cost, and increase competitive power of company, using this S/W

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Determinants and Optimum Modelling of Logistics Outsourcing Strategy (물류(物流) 아웃소싱 전략(戰略) 결정요인(決定要因) 및 최적(最適) 모델)

  • Song, Gye-Eui
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.283-302
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    • 2000
  • The firms aim to acquire services and costs advantage from logistics outsourcing strategy. But it is very important to select optimum service provider. A checklist of the criteria for the evaluation of service providers follows : service quality, low cost, logistics information system, service network, financial stability, investments in plant and equipment, management attitude and lookout for the future strategic fit, cultural and psychological barriers etc. Also, a 8-step implement of logistics outsourcing strategy will be of help for maximizing benefits of logistics outsourcing. It follows : 1-step : logistics environment analysis, 2-step : check service provider availability, 3-step : logistics outsourcing determinant analysis, 4-step : select of optimum service provider, 5-step : contract with optimum service provider, 6-step : identify of remaining barriers, 7-step : performance of logistics outsourcing, 8-step : evaluation.

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