ARASHIDA Kouta, ENKAWA Takao, HAMASAKI Akihiro, SUZUKI Sadami
Journal of Japan Industrial Management Association, 55(2) 95-103, 2004
Recently, interest in logistics and supply chain management has grown explosively through exposure to fierce competition and changing circumstances. This interest has led many companies to build their supply chain. In most cases, however, organizational constraints impede their formation of supply chain management (SCM). To breakthrough these constraints, various kinds of scorecards have been developed. A scorecard is a simplified benchmark methodology to diagnose and evaluate various advantages and disadvantages of business operations, such as IT utilization, etc. from the point of total optimization of SCM. In this study, we propose and develop the general-purpose scorecard named the SCM logistics scorecard (LSC) after conducting survey research on various scorecards, and verify its validity and effectiveness. To do this, we gather actual data based on LSC from many manufacturing companies and extract five factors, which represent the drivers of managerial performance through these data. Using the corresponding companies' financial bottom line indexes, we analyze the correlation between these indexes and our factors. The result shows that higher scores of LSC, which leads to higher scores in the five factors, bring significantly positive financial outcomes. At the same time, we also verify statistically that IT itself is just an enabler or means in building SCM by introducing a causal-effect model among these factors leading to managerial performances.