Supply chain operational perfprmance and its influential factors: Cross national comparison between Japan and China

Abstract

This research paper is intended to investigate the supply chain operational performance and its potential factors that constitute an efficient supply chain operational performance in mainly two different countries, Japan and China, respectively. In order to perform this, the SCM logistics scorecard (LSC) has been utilized as a self-evaluation tool for participated companies in these countries. The LSC focused on four decisive areas, namely, company strategy, planning and execution capability, logistics performance, and IT method and implementation. The numbers of participated companies were approximately 1037 from Japan and 236 from China. The scores in each assessment area were compared between the two countries. Subsequently, factor analysis has been conducted in this research by using the result of LSC in order to identify the significant factors which established the operational performance of SCM in each country. The result of the factor analysis indicated that the structure in generating successful SCM of Japanese industry and the Chinese were considered similar in the aspect of SCM realization, SCM strategy and the utilization of IT along the chain. Finally, the correlation between extracted factors and financial bottom lines was conducted, which indicated that improving SCM performance brought positive impact on financial outcome, especially when IT utilization in cooperation with SCM organization strategy.