Exploring the most influenced financial determinants of supply chain management by cross-employing factor analysis approach and fuzzy set qualitative comparative analysis method

Yin-Tsuo Huang,Ming-Yuan Hsieh

doi:10.1177/1687814015620329

Abstract

A majority of manufacturing companies are confronting the various financial influences on modern supply chain management. Therefore, this research employs factor analysis approach to synthetically evaluate the weight measurements of random Taiwanese interviewees and significantly further applies fuzzy set qualitative comparative analysis method to testify measured results of factor analysis approach to successfully institute the most reliably evaluated model in order to induce the most influenced financial determinants for effectually minimizing the negative financial influences. Consequently, sale forecast accuracy of forecasting financial assessed factor, inventory-sales days of delivery financial assessed factor, and supplier’s material delivered on-time rate of electronic-transaction financial assessed factor are the most influenced financial determinants. The most valuable contribution of this research is to academically resupply research gap as well as empirically provide handy recommendations for relative manufacturing industrialists in this contemporarily complex, higher comparative, and lower profit era.

Highlights

In the hypercompetitive and dynamic contemporary commerce era, the briefly developed tendency of current supply chain management (SCM) is that SCM covers all activities in entire manufacturing processes from product designed, material purchasing, product procreating, product packaging, product inventory, product delivery, and product after-sales service[1,2] because SCM is a kind of systematically commercial strategy and tactics for traditional cost-down and for increasing corporate concrete profits and potential benefits.[3]
A majority of international companies, in traditionally conventional production industries, have paid more attentions on cash-flow in SCM because upstream suppliers will appear unstable supplying condition as they are in corporate financial crunch and downstream customers will not pay on time in order to cause companies financial crisis as they are in corporate financial juncture
After a series of global economic crises in 1995 and 2008, the current international companies have suffered the financial stress from upstream suppliers and downstream customers because financial bankrupts of upstream suppliers leads to unstable material supplements, and financial stress of downstream customers leads to unsteady income cashflow.[4]

Summary

Introduction

In the hypercompetitive and dynamic contemporary commerce era, the briefly developed tendency of current supply chain management (SCM) is that SCM covers all activities in entire manufacturing processes from product designed, material purchasing, product procreating, product packaging, product inventory, product delivery, and product after-sales service[1,2] because SCM is a kind of systematically commercial strategy and tactics for traditional cost-down and for increasing corporate concrete profits and potential benefits.[3]. After a series of global economic crises in 1995 and 2008, the current international companies have suffered the financial stress from upstream suppliers and downstream customers because financial bankrupts of upstream suppliers leads to unstable material supplements, and financial stress of downstream customers leads to unsteady income cashflow.[4] In order to confront these serious financial stresses, financial influence has become the most crucial research issues in contemporary SCM research field.[5] Lambert and Cooper[6] distinctively addressed that cash-flow is the key element in SCM managerial processes that included downstream management of customer’s order fulfillment, upstream management of supplier’s material, manufacturing management of corporate products, demand management of product development, product’s commercialization, customer’s return management, and service management of after-sale products.[7] Currently, the companies have to pay more attentions on cost-down in SCM but must commence to consider a financial influences in corporate SCM benefits regarding sales forecast, finance preview, inventory system, and supply chain (SC) development in order to achieve the best competitive advantage in this lowest profit and hypercompetitive manufacturing era.

Literature review

Findings

Conclusion