Abstract
This study aims to explore the impact of lean manufacturing (LM) or transaction-based supply chain management (SCM) on a supply chain relationship (SCR) and supply performance (SP) in manufacturing industries in Thailand. The measurement instruments for LM, SCR, and SP were developed from comprehensive literature reviews, verified by experts, and statistical techniques to assure reliability and validity. The hypothesized model was tested with path analysis of structural equation modeling. It was found that the set of LM, SCR, and SP frameworks were reliable and valid for Thai manufacturing industries. LM had not only a direct effect on the SCR and SP but also an indirect effect on the SP through the SCR. The SCR also had a direct impact on the SP. This paper presents insights into the debate concerning the impact of transaction-based SCM on relationship-based SCM and SP.
Highlights
Just-in-time (JIT) production was created by Toyota Motor Corporation [1,2]
The findings of this study empirically presented insights into the debate related to the effect of transaction-based supply chain management (SCM) as represented by lean manufacturing (LM) on relationship-based SCM practices and on the supply performance (SP) in manufacturing industries in Thailand
It was found that LM facilitated the supply chain relationship (SCR) and directly improved the SP
Summary
Just-in-time (JIT) production was created by Toyota Motor Corporation [1,2]. The term JIT can be used interchangeably with the Toyota production system (TPS) and lean manufacturing (LM) [2,3,4]. Similar to the supply chain management (SCM), LM emphasizes on time delivery to the right location at a minimum cost by eliminating waste, especially unnecessary inventories [5,6]. LM can be determined as the SCM at an operational level [7,8,9,10,11] or transaction-based SCM, focusing on information and material flows especially in the automotive industry [12,13]. A wider scope of the SCM at the strategic level is more relationship-based which emphasizes partnership development with all stakeholders to gain synergy from stronger collaboration [14]. Efficient uses of resources through LM along the whole supply chain can lead to long-term sustainability (i.e., economic, environmental, and social dimensions) [15,16,17,18,19]
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