Abstract
The company's performance must be continuously improved to be able to face the increasingly fierce global competition. The improvement of the company's performance can be made by implementing supply chain practices. The implementation of supply chain practice is a policy set by the company's top management by making the system integrated. Integration of all functions, internally and externally, is done by using integrated information technology. This study takes data from companies in East Java, engaged in machinery that has a workforce of more than 100 people categorized as medium and large companies. Respondents were set on employees with a minimum of 2 yr of working experience and a middle manager position. There were 55 respondents in this study, with data analysis using partial least square (PLS) to test the research hypothesis. The result of the data processing found that the commitment of top management affects the supply chain practices and the use of information technology. This is because the management has shown its commitment by providing the necessary human resources. The top management commitment directly influences the company's operational performance. The use of information technology directly affects supply chain practices and the company's operational performance. Supply chain practices affect the company's operational performance. This is because the company has carried out the process of information sharing with the company's suppliers to control and facilitate the procurement of quality raw materials.
Highlights
In Indonesia, productivity is the main key in improving operational performance to become more efficient and have more competitive values
This explains that SCM company practices along with information sharing, long term relationships, advanced planning systems and supply network structure are capable to provide accurate product delivery, the company's product quality which is better than its competitors, the company's costs of production which are lower than its competitors and the company's profits which are better than its competitors
The information technology used by electronic companies in Malaysia by sharing information with external parties will provide an increase in supply chain management practices in building coordination with suppliers, which called supplier relationship management and with external parties called customer relationship management
Summary
In Indonesia, productivity is the main key in improving operational performance to become more efficient and have more competitive values. The practice of supply chain management has an impact on the company’s operational performance [2] This is achieved through the effective cost required in carrying out a series of supply chain management activities with contributions from the suppliers. The implementation of supply chain management practices can have an impact on a company’s operational performance, both manufacturing and services. Chain management practices can improve relationships between companies and suppliers and customers [3] This can increase customer satisfaction so that it can improve the company’s operational performance. The use of information technology has a significant impact on product quality that is able to provide operational performance for the company [7]. The study has three broad research objectives, namely testing the effect of top management commitment on the use of information technology, supply chain practice, and operational performance. Testing the effect of information technology implementation on supply chain practice and operational performance, and testing the effect of supply chain practice on operational performance
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