MANUFACTURING TRACK

ENVISIONING SUPPLY CHAIN MANAGEMENT 4.0HOW JAPANESE MANUFACTURING COMPANIES DESIGN SUPPLY CHAIN STRATEGIES TOWARDS INDUSTRY 4.0

Michiya Morita (michiya.morita@gakushuin.ac.jp) Professor, Faculty Economics, Gakushuin University, Tokyo, Japan

Jorge Calvo (jcalvo@rolanddg.com) President Global SCM Division, Roland DG Corporation, Hamamatsu, JapanProfessor, Operations Strategy, Industry 4.0, GLOBIS Graduate School of Management, Tokyo, Japan

Yukari Shirota (yukari.shirota@gakushuin.ac.jp)Professor, Faculty Economics, Gakushuin University, Tokyo , Japan

SCOPE1. Can new emerging information technologies be the

leverage to make a big difference in competitiveness?

2. Who can benefit from them? What characterizes those beneficiaries?

3. How can Japanese manufacturing companies (stuck in poor growth) be such beneficiaries?

4. Management guides for effectuating the leverage of new emerging information technology concepts such as IoT &Industry 4.0

SUMMARY1. Introduction: renovating value creation opportunities by

new emerging information technology concepts.

2. High performance manufacturing and IT leverage.

3. What drives Japanese manufacturing companies. towards IoT & Industry 4.0?

4. Case: Roland DG.

5. Implications and conclusions.

[1] PARADIGM SHIFT:RENOVATING VALUE CREATION OPPORTUNITIES BY NEW EMERGING INFORMATION TECHNOLOGY CONCEPTS

The industrial Revolutions (World Economic Forum):

I. 1784: Steam, water, mechanical production equipment.

II. 1870: Division of labor, electricity, mass production.

III. 1969: Electronics, IT, automated production.

IV. ? : Cyber physical systems: IoT, AI, 3D-Printing…§ Moore1 and Metcalfe2 laws playing together.

1) Moore Law: The number of transistors in a dense integrated circuit doubles approximately every two years.

2) Metcalfe Law: The value of a telecommunications network is proportional to the square of the number of connected users of the system: n·(n-1).

VALUE CREATION BY INDUSTRY 4.0

Value Creation of IoT-relateddevices & systems

New value creation by

business models

INDUSTRY 4.0:EMERGING TECHNOLOGIES

Artificial Intelligence

+ Machine-to-machine interfaces (M2M),

autonomous robots

PwC (2016)

POTENTIAL GROWTH IoT BUSINESS• Cisco: 50 BB IoT devices connected in 2020.• Gartner: $ 1,9 BB Economic Value Added in 2020.• IDC: $ 7,1 TT IoT Solutions sold in 2020.• McKinsey: $ 11,1 TT IoT Economic Impact in 2025.

• Opportunities:1. Transform business processes.2. Enable new business models.§ <1% of data currently used, mostly for alarms and control, not for

optimization or prediction.

McKinsey Global Institute (2015)

Industry 4.0$ 3,5 – 8,9 TT

VALUE IoT BUSINESSINDUSTRY 4.0 APPLICATIONS

IoT IMPLEMENTATION BY INDUSTRIES

Research Japan

*Only Machinery

[2] HIGH PERFORMANCE MANUFACTURING AND IT LEVERAGE

The High Performance Manufacturing database we used contains 304 plants (one plant for each company) in thirteen countries:

Brazil (n=24), China (30), Spain (25), Finland (17), Germany (28), Israel (26), Italy (29), Japan (22), Korea (26), Sweden (9), Taiwan (30), UK (13), Vietnam (25). Industries are Electronics (n=114), Machinery (110) and Vehicle (80). Respondents for each plant are plant manager (n=1), accounting manager (1), downstream supply chain manager (2), environment manager (2), human resource manager (2), information system manager (2), process engineering manager (2), product development manager (2), production control manager (2), quality manager (2), supervisor (2) and upstream supply chain manager (2).

The total number of the respondents is twenty one for each factory. The respondents answer to questionnaires by Likert’s scale from 1 (worst) to 5 (best) except those to be filled in numerically and ‘yes (1)’ or ‘no (0)’. Period: 2014-2016.

[2-1] HIGH PERFORMANCE MANAGEMENT FOCUS: ENHANCEMENT OF RISK DURABILITY

• Securing the capability of minimizing risks for long-run high performance.

1. Market risk: Paucity of market.

2. Replenishment risk: Over-supply and under-supply.

3. Business Continuity risk: Disasters, warfare etc.

• Enhancing product development and supply process competencies to reduce the risks.

THREE MAIN CAPABILITIES FOR RISK REDUCTION1. Productdevelopmentcapability:

– Productdesignanddevelopmentforthemarketrisk.

2. Supplyprocesscapability:– Supplyforthereplenishmentrisk.

3. Integrationcapability(Capabilityforstrategicfit):– Coordinationformatchingtheproductdevelopmentandthe

supplyprocesscapabilitiesforthebestvalueprovision.

COMPONENTS OF THE CAPABILITIESCapability Constituent factor

Product development

capability

- Customers involvement in new product development- Manufacturing involvement in new product development- Supplier involvement in new product development- Front-end loading in new product development

Supply process

Capability

- Lead time focus- JIT focus- Quality focus- Demand stability focus

Integration capability

- Cross-functional activities on the floor- Mutual understanding among functions- Leadership for cross-functional behaviors

ASCOS: Morita M. et al.

International Journal of Production Economics, 2015.

[2-2] HOW DO THE THREE CAPABILITIES WORK?

• Fact #1: PDC and ASCOS capabilities tend to be balanced.

• Fact #2: The integration capability is a key to raise PDC and ASCOS capabilities.

• Fact #3: High performers in terms of PDC and ASCOS are competent in both of short cycle time of product development and short replenishment cycle time.

• Fact #4: High performers in terms of PDC and ASCOS are competitive in both of cost and values.

•

FACT #1: PDC AND ASCOS GET BALANCED.

• PDC and ASCOS capabilities tend to be balanced intermediated by the integration capability.

.529 (p<.000)CC between PDC and ASCOS is:

PDF

ASCOSFLF

Yes ✔

HP: High performerPDF: Product development focusedASCOSF: Supply chain focusedLF: Less focused

HP

FACT #2: INTEGRATION CAPABILITY IS INFLUENTIAL ON PDC AND ASCOS

• The integration capability is key to raise both PDC and ASCOS capabilities.

PDC(Productdevelopmentcapability)

ASCOS (Supplyprocesscapability)

Integrationcapability

.401(p<.000)

.490(p<.000)

Yes ✔

FACT #3: KEY COMPETENCES ARE DETERMINED BY PDC AND ASCOS

• High performers in terms of PDC and ASCOS are competent in both of short cycle time of product development and short replenishment cycle time.

REGRESSION RESULTS

• Note: Product development capability is also positively correlated with both performances ( .245 with the replenishment cycle time and .234 with the development cycle time). But lower than ASCOS’s effects.

Dependentvariable Estimatedequation R2

Productdevelopmentcycletime

.870+.693ASCOS(2.009)(5.883) .116

Replenishmentcycletime

.777+.793ASCOS(5.596)(8.155) .203

Yes ✔

FACT #4: PDC AND ASCOS CONTRIBUTES TO COST AND VALUE COMPETITIVENESS

• High performers in terms of PDC and ASCOS are competitive in both of cost and value.Dependentvariable Estimatedequation R2

Costcompetitiveness .690 + .748 ASCOS(1.739) (6.926) .154

Valuecompetitiveness(QualityconformanceOn-timedelivery,Fastdelivery

Productcapabilityandperformance

ProductinnovativenessCustomersupportandservice)

1.827+.203PDC+.345ASCOS(6.524) (2.863) (4.172) .166

Yes ✔

HIGH PERFORMERS IN TERMS OF PDC AND ASCOS ARE COMPETITIVE IN BOTH OF COST AND VALUE

2

3

4

5

Cost Value

HP ASCOSF PDF LF

[2-3] DEVELOPMENT PATTERNS OF THE CAPABILITIES

Apple, 3M, GE, Nestle, P&G,

Siemens

Toyota, Zara, C&CSeven-11, Amazon,

Dell, IKEA

COMPARISON OF PERFORMANCES OF THE FOUR GROUPS

2,5

3,5

4,5

Product development

cycle time

Replenishment cycle time

Cost competitiveness

Value competitiveness

HP(n=88) ASCOSF(35) PDF(43) LF(93)

CONTRIBUTION OF ASCOS ON REPLENISHMENT RISK MANAGEMENT

• The market risk is difficult to reduce in general. But the replenishment risk reduction can be approached logically.

- A steady result is expected. Higher the replenishment risk reduction, more stable the profitability or higher the market risk that can be tried.

ü One more fact:• Fact #5: Companies should put high priority on

strengthening ASCOS, the supply process capability, in the movement towards high performers.

SUPPLY CHAIN DRIVEN & PRODUCT DEVELOPMENT DRIVEN GROUPS

Supply chain driven

Product development

driven

PERFORMANCE COMPARISON OF SUPPLY CHAIN DRIVEN & PRODUCT DEVELOPMENT DRIVEN GROUPS

Product development driven group

Supply process driven group

Product development cycle time 3.194 3.275

Replenishment cycle time 3.347 3.641 (p<.019)

Cost competitiveness 3.069 3.435 (p<.005)

Value competitiveness 3.675 3.725 Yes ✔

IMPLICATIONS• Supply process capability should be the base of high

performers’ management process.

• Strengthening the supply process capability develops:1. Common criteria: speed, quality, lean, and stable demand.

Convergence of focuses: Reduction of the normative barrier.

2. Continuous improvement momentum: readiness for changing processes: Reduction of the flexibility barrier.

3. Coordination leverage by expanding feasible regions for coordination: Reduction of the capability barrier.

[2-4] IT UTILIZATION OF HIGH PERFORMERS

• IT utilization to strengthen the value provision process

1. The market risk: Paucity of market.

2. The replenishment risk: Over-supply and under-supply.

• Strengthening management process to enhance the value creation.

IT FOR VALUE CREATION PROCESSES• Fact #6: High performers utilize more aggressively the

IT to strengthen the value creation process or the capabilities of product development and supply process.

1. Product development related IT utilization.

2. Supply chain design related IT utilization.

3. Supply chain operation related IT utilization.

COMPARISON IT USAGE BETWEEN THE GROUPS

Yes ✔2

2,5

3

3,5

4

4,5

PD1

PD2

PD4

PD5

SD1

SD2

SCM1

SCM2

SCM3

SCM4

SCM5

SCM6

SCM7

SCM8

SCM9

HP ASCOSF PDF2 LF Total average

PHASES OF IT UTILIZATIONPhase IT Utilization

PD PD1: Information system link with suppliers with respect to product development, process and technology design.PD2: The capacity of software applications related to product development.PD3: Product configurator usage (this questionnaire is asked to respond by 0 or 1).PD4: Usage of IT to communicate with primary buyers as to new development.PD5: Usage of IT to communicate with primary suppliers as to new development opportunities and corresponding integration.

SC design SD1: The Internet usage for selecting procurement sources and starting transactions with suppliers.SD2: The capacity of software applications related to design operation capacity.

SC operation

SCM1: Forecasting, production planning and inventory management with suppliers by IT.SCM2: Synchronization of manufacturing plans and solutions by supply chain partners.SCM3: Supply transactions with suppliers by IT.SCM4: Real time communicability of supply chain operation applications.SCM5: Automatic data capture and consistency of data across the supply chain.SCM6: Order processing, delivery information exchange and managing inventories with buyers by IT.SCM7: Consistency of interpretation of exchanged information with partners.SCM8: Automated procurement ordering and sharing of procurement-related information by IT.SCM9: Sharing of production, delivery, sales data and inventory data across the supply chain.

[3] WHAT DRIVES JAPANESE MANUFACTURING COMPANIES TOWARDS IoT/INDUSTRY 4.0?

• Since the Japanese economic bubble burst in 1990, the ability of Japan’s industries to create value-added has remained stagnant.

• Many companies are still not successfully dealing with risk, due to a risk-averse management culture and probably also to a lack of corporate entrepreneurship.§ But there is a good example of Japanese industry dealing with risk: Toyota [Lean] Manufacturing System

and few companies who implemented a Lean Organizational Culture, not just as JIT Operations System.

JAPANESE INDUSTRY LOST “THE MOMENTUM”

INDUSTRY 4.0 SURVEY

• How are Japanese Manufacturing companies tackling with Industry 4.0?– The sampled industries: Electronics (30/79), Machinery (23/88)

and Vehicle (16/87) in the First Section of the Tokyo Stock Exchange Market.

– Respondent: One manager per company in charge of SCM or IT .– Period: August, 2015 to December, 2015.– Survey method: SurveyMonkey.– Data: Likert’s scale from 1 (lowest) to 5 (highest).

THE APPROACH OF JAPANESE MANUFACTURING COMPANIES

[3-1] MAIN SURVEY RESULTSIMPLEMENTATION OF INDUSTRY 4.0

• Relevancy of Industry 4.0 to business and implementation level in specific aspects of management.

1,52

2,53

3,54

4,5Electronicsrelevancy Machineryrelevancy VehiclerelevancyElectronicsimplementation Machineryimplementation Vehicleimplementation

[3-2] PRODUCTION FACILITIES’ LEVEL CHARACTERIZED BY INDUSTRY 4.0

1

2

3

4

5

1 2 3 4 5

Electronics Machinery Vehicle

1. Contain self-controlled processes (e.g. by self-organizing) 2. Communicate with each other (e.g. for the optimization of energy consumption) 3. Learn from each other 4. Inform on time in case of maintenance requirements/threats of break-down (e.g. lack of lubrication) 5. Analyze and optimize your energy performance and efficiency automatically (e.g. by capacity utilization)

[3-2] UTILIZATION OF INDUSTRY 4.0 EMERGING TECHNOLOGIES

1

1,5

2

2,5

3

3,5

4

1 2 3 4 5 6 7 8

Electronics Machinery Vehicle

1. Autonomous robots (e.g. for warehouse transportation) 2. Simulation (e.g. for testing and optimizing of machine settings) 3. Internet of Things (e.g. for the support of machine operators) 4. Cyber security(e.g. for the protection of production equipment) 5. Cloud computing (e.g. for data exchange between machines) 6. Additive manufacturing (e.g. 3D-Printing for rapid prototyping 7. Augmented reality (e.g. for navigating employees in the warehouse) 8. Big data and analytics (e.g. for data warehouse optimization)

[3-2] ASCOS AS A DETERMINANT OFIMPLEMENTING INDUSTRY 4.0

Scale of ASCOS for this survey

Super-scale Constituentscale Factorloadingand

Cronbach’salpha

ASCOS- Lead-timereduction

- Quality- Productperformance

- Reductionoffinishedproductinventory- Reductionofin-process inventory

.906.892.891.878.880

Alpha=.934

IMPLEMENTATION LEVEL COMPARISON

1,5

2

2,5

3

3,5ASCOS above average group ASCOS below average group

[3-3] ASCOS AND THE USAGE OF OF INDUSTRY 4.0 RELATED IT

11,5

22,5

33,5

4

ASCOS above average group ASCOS below average group

Note) the differences are statistically significant at least at the significance level of 5% in the usage of autonomous robots, simulation, cyber security and navigation.

[3-4] ASCOS AND EXPECTATIONS OF INDUSTRY 4.0

2

3

4

5

Value delivery Complexity handling Stakeholder satisfaction

ASCOS above average group ASCOS below average group

Value delivery: Faster response to customer demand, Enhancement of competitiveness, Shorter product development process (time to market), Better customer involvement in product development Complexity handling: Easier complexity handling, Flexible production systems, Simplification of planning and control, Higher transparency Stakeholder satisfaction: Enhancement of supplier satisfaction, Enhancement of employee satisfaction, Enhancement of customer satisfaction

CONCLUSIONS OF THE SURVEY1. Japanese manufacturing companies are highly

conscious of Industry 4.0 and take it as a strategic issue.

2. Implementation level is still low.3. Those companies that have been successful in

improving their competitiveness are more aware of the potential effects of Industry 4.0 and are ahead in implementing Industry 4.0.

The culture to enhance competitiveness and the actual achievement of it are keys to drive Industry 4.0 for success.

[4] CASE: ROLAND DG CORP. JAPAN• Supply Chain Management 4.0

A worldwide leading manufacturer of wide-format inkjet printers, printer/cutters and, CAD/CAM systems and 3D Printers.

THE PARADIGM SHIFT: Preparing to the 4th Industrial Revolution“May 2016 marks 35 years since the founding of Roland DG. Our company was born the year the world’s first personal computer went on sale. …Now, in recent years, we are experiencing the rise of the IoT and AI, what many are calling the 4th Industrial Revolution. We are rising to the challenge this Industry 4.0 presents by working towards a new era where people, things and data are all connected via network.As we cultivate markets utilizing new digital technology, we find ourselves back at the time of our founding —a time where sustainable growth through business creation and a shift of business models were necessary to survive”.Mr. Tomioka, Chairman; Mr. Fujioka, President & CEO, 2016 (http://www.rolanddg.com/ir_e/manage/message.html)

ROLAND PRODUCT PORTFOLIO

INDUSTRY 4.0 NEEDS SCM 4.0

New Paradigm:Industry 4.0

New Business Context:IoT & AI

New Corporate Culture: Collective Leadership

New Management System:SCM 4.0

SCM 4.0:• Digital• Agile• Value Net• Data Driven• Real Time• Control

Tower• Responsive• Sensing• Intelligent• Social

IoT& AI

SCM 4.0

IT EMERGING TECHNOLOGIES

ROLAND SCM 4.0 STRATEGIC MAP

ROLAND DIGITAL PRODUCTION CELL

Digital Yatai won the prestigious "Japan Information Processing Development Corporation (JIPDEC) President's Prize" at the 2003 Japan IT Management Awards.

Wire-less Controlled Electric Screwdrivers

PC & Wi-Fi

Parts Box AutomaticCarrousel Parts Dispenser

ü Real time instructionü Common parts management

managementü Docks for Electric Screwdriversü Common equipmentü Assembling process check

Production Time -30% Space efficiency -30%Flexibility ±30%

IoT “ON SUPPORT” MONITORING• IoT system activity monitoring for customer service.

IoT ON SUPPORT DATA FLOW

OnSupport ServerAdministrator PC

Client PC

Device Info

Device Info

VS-640 (1)

VS-640 (2)

End-user SW

S&OP

CRM

SIOP AS INTEGRATED PLANNINGSALES, INVENTORY & OPERATIONS PLANNING

COLLABORATIVE DEMAND PLANING, FORECAST & REPLISHMENT CYCLE

CONSENSUS

2 weeks planning cycleActive Demand Planning

1weekSCRUMreplanningcycle24/7ALERTSYSTEM

ActiveInventoryManagement

§ Statistical Forecast§ Consensus Demand Planning§ Demand & Supply Balancing

§ Inventory Management

SIOP Applications

2016: QUICK INVENTORY TURNOVER & ORDER FULFILMENT IMPROVEMENT

• 28% inventory turnover optimization• 98% order fulfilment

GLOBAL CONTROL TOWEREND-TO-END REAL TIME TRACK & TRACE

STRATEGY MODEL FOR INDUSTRY 4.0MULTILEVEL-ALIGNED STRATEGY AND DRIVERS

KEY CRITICAL FACTORS• Industry 4.0 should be in the CEO’s long term strategy agenda

aligning all company’s functions: COO, CIO, CFO…

• Top down leadership.

• High Performance Organizational Culture.

• Agility on projects management and implementation.

• Collaborative involvement of all teams.

• Intensive trainings.

• Recruit people with new skills: Diversity matters.

– Diversity = Creativity.

[5] IMPLICATIONS AND CONCLUSIONS

1) High performers can deploy competent product development and supply chain capabilities in integrative ways.

2) On the way to high performers, the integration capability and ASCOS competence (supply chain competence) are critical.

3) The integration capability and ASCOS competence are boosted by information technologies. High performers are aggressive in taking advantage of information technologies.

[5-1] HIGH PERFORMERS TAKE ADVANTAGE OF ICT

[5-2] VALUE CREATION PROCESS AND INDUSTRY 4.0 (1)

• Strengthening management process for the value creation by Industry 4.0 :

[5-2] VALUE CREATION PROCESS AND INDUSTRY 4.0 (2)

IT LEVERAGE IN BUSINESS PROCESS (MODEL) BY INDUSTRY 4.0

• Quality, timeliness (speed), and coverage of data acquisition.

• Quality, timeliness (speed), and comprehensiveness of decision makings.

• Quality, timeliness (speed), and efficiency of supply process.

• Quality, timeliness (speed), and efficiency of service process.

• Quality, timeliness (speed), and efficiency of product development process.

[5-3] PROMISING AREAS FOR INDUSTRY 4.0

2

2,5

3

3,5

4

4,5

PD1

PD2

PD4

PD5

SD1

SD2

SCM1

SCM2

SCM3

SCM4

SCM5

SCM6

SCM7

SCM8

SCM9

HP Total average

NPD, SC design, forecasting

Data consistency between partners

[5-4] HIGH PERFORMANCE MANAGEMENT CYCLE DRIVEN BY INDUSTRY 4.0

• Driving more effective and efficient process for high performance.

Decision making

Operations

Outcome measurement

Industry 4.0

Data/analysis/visualization

Integration capability

This study was supported by a grant from the Japanese Society for the Promotion of Science from 2014-2016 (26380524) and 2015-2017 (15K03619). We sincerely express our gratitude to the Japanese Society for its support.

The views expressed in this presentation belong exclusively to the authors and do not necessarily reflect the views or opinions of the companies and institutions mentioned in any form.

APPENDIX• Research Background

SCALE OF PRODUCT DEVELOPMENT CAPABILITY

Super-scale Constituent scale

Factor loading and Cronbach’s

alphaProductdevelopmentcapability

- Customers involvement in new product development- Manufacturing involvement

in new product development- Supplier involvement in new

product development- Front-end loading in new

product development

.735

.823

.788

.867Alpha=.814

SCALE OF SUPPLY PROCESS CAPABILITY

SCALE OF INTEGRATION CAPABILITY

Super-scale Constituent scale

Factor loading and

Cronbach’s alpha

IntegrationCapability - Cross-functional activities

on the floor- Mutual understanding

among functions- Leadership for cross-functional behaviors

.865

.826

.632Alpha=.668

Communicability

DEFINING ABSOLUTE SUPPLY CHAIN ORIENTATION STRATEGY (ASCOS) (1)

V* = d(LT+RP) + B

V*: The volume to be secured in the chaind: Average demand rate per time unitLT: Throughput-timeRP: Replenishment periodB: Safety stock

Little’s Law

DEFINING ABSOLUTE SUPPLY CHAIN ORIENTATION STRATEGY (ASCOS) (2)

Max(Optimize). Sales-C(V*) = pQ-C[d(LT+RP) + B]

SCM Focus：Minimizing V*, sustaining V* over time, by moving the right volume towards market by responding to the shipment to market, meeting the designed competitive levels of Q, C, & D

Product development Focus：Maximizing (Optimizing) d

SCALE OF VALUE COMPETITIVENESS

Super-scale Constituent competitive measure

Factor loading and

Cronbach’s alpha

Value competitiveness

Quality conformanceOn-time delivery

Fast deliveryProduct capability and performance

Product innovativenessCustomer support and service

.738

.763

.647

.758

.766

.780Alpha=.836

SUPPLY CHAIN DESIGN RELATED IT USAGE

Supply chain design related IT usage HP PDF ASCOSF LF

SD1: The Internet usage for selecting procurement sources and starting transactions with suppliers

3.26ASCOSF(p<.077)

PDF(p<.022)

LFP<(.000)

2.85 2.98 2.76

SD2: The capacity of software applications related to design operation capacity

2.74LF

(p<.006)2.60 2.48 2.38

SUPPLY CHAIN OPERATION RELATED IT USAGE

Supply chain operation related IT usage HP PDF ASCOSF LF

SCM1: Forecasting, production planning andinventory management with suppliers by IT

3.30PDF

(p<.000)LF

(p<.000)

2.65

3.09PDF

(p<.024)LF

(p<.000)

2.42

SCM2: Synchronization of manufacturing plans and solutions by supply chain partners

3.69PDF

(p<.008)LF

(p<.000)

3.34LF

(p<.000)

3.55LF

(p<.000)2.82

SCM3: Supply transactions with suppliers by IT

4.03ASCOSF

(p<.038) PDF(p<.000)

LF(p<.000)

3.543.74LF

(p<.021)3.37

SCM4: Real time communicability of supply chain operation applications

3.71LF

(p<.004)3.49

3.69LF

(p<.022)3.32

SUPPLY CHAIN OPERATION RELATED IT USAGE

SCM5: Automatic data capture and consistency of data across the supply chain

3.97ASCOSF(p<.030)

PDF(p<.002)

LF(p<.000)

3.443.63LF

(p<.046)3.26

SCM6: Order processing, delivery informationexchange and managing inventories with buyers by IT

3.95PDF

(p<.014)LF

(p<.000)

3.54LF

(p<.071)

3.77LF

(p<.000)3.23

SCM7: Consistency of interpretation of exchanged information with partners

3.09PDF

(p<.032)LF

(p<.000)

2.66

3.12PDF

(p<.063)LF

(p<.003)

2.50

SCM8: Automated procurement ordering andsharing of procurement-related information by IT

3.88ASCOSF

(.061)LF

(p<.026)

3.66 3.60 3.57

Supply chain operation related IT usage HP PDF ASCOSF LF

SUPPLY CHAIN OPERATION RELATED IT USAGE

SCM9: Sharing of production, delivery, sales data and inventory data across the supply chain

3.53PDF

(p<.006)LF

(.002)

3.02

3.51PDF

(p<.009)LF

(p<.005)

3.09

Supply chain operation related IT usage HP PDF ASCOSF LF

High performer (HP) is most aggressive in using IT in every area than the other groups. Supply chain focus is the second in the usage of IT.